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Home My WebLink About10/19/2005 - STAFF REPORTS (30) i FppLMS,6 iy c u N A4 1 #70 City Council Staff Report DATE: October 19, 2005 CONSENT CALENDAR SUBJECT: TERMINAL EXPANSION/HOLDROOM-ADD CHECKPOINT PHASE 3 (PART 2) CITY PROJECT 2005-10 (AIP 3-06-0181-38). FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY It is recommended that the City Council reject all bids/release bid bonds and direct staff to re-package and re-bid the Expand Terminal/Holdrooms-add Checkpoint Phase 3 (Part 2) project at the Palm Springs International Airport, City Project 2005-10 (AIP 3- 06-0181-38). RECOMMENDATION: 1. Approve Minute Order No. , to reject all bids/release bid bonds, direct staff to re-package and re-bid the EXPAND TERM INAL/HOLDROOMS — ADD CHECKPOINT PHASE 3 (PART 2) PROJECT AT THE PALM SPRINGS INTERNATIONAL AIRPORT CITY PROJECT 2005-10 (AIP 3-06-0181-38). STAFF ANALYSIS: In July 2005, bids were received and opened. The lowest bidders were identified and announced. For the Holdroom Expansion project, of the seven bid packages let, five received one bid, one package received three bids and one package received no bids. The total bid price of all the bid packages exceeded the engineers' estimates by 10%. Staff believes that the primary factors affecting the engineers' estimates include an abundance of work combined with a limited pool of local contractors at the time the bids were let. Please see Attachment 1 entitled Bid Tabulations. The evaluation process to determine the responsive and responsible bidders was conducted and award recommendations to the City Council were pending FAA approval of funding for all the bid packages. FAA funding was contingent upon receiving Item No. 2 .T. City Council Staff Report October 19, 2005) -- Page 2 Terminal Expansion/Hold room (required by the FAA Western Region) the bids to validate the project costs for each bid package. During the latter part of August 2005, FAA informed the Airport it would receive only a portion of the discretionary funding requested (approx $2.3m of the requested $8.0m) to only support the new Apron construction essential for the new Holdroom. Additionally, the Airport was advised at the beginning of August it would receive a multi-year grant for terminal holdroom development ($10,636,200). The capacity demands of the traveling public through the airport will not be impacted by the funding shortfalls. The project can continue with staff re-packaging the plans & specifications in a phased approach over the next eighteen months for the new holdroom, restroom, new security walls and a portion of the landscaping. As a result of limited Federal funding, it is in the City's best interest to reject all bids, re- package and re-bid the project. The Airport will work with the Construction Manager to re-package the bid documents with the goal of receiving new bids that meet the approved project design and approved construction budget. This action will allow for a consolidation of tasks and consequently an overall savings to the cost of the re-packaged project and affords the Airport the opportunity to continue with the construction of the Terminal Expansion project to increase passenger throughput capacity. FISCAL IMPACT: The work referenced within this Report is eligible for reimbursement via Airport Improvement Program (AIP) Grant 38 from the Federal Aviation Administration (FAA), which will cover 95% of the cost. This grant was accepted by the City on August 12, 2005 in the amount of$10,636,200. A portion of the 5% local funding match has been budgeted in the current budget and the remaining amount will be budgeted in next fiscal year's budget. Any possible cost increase in materials should be insignificant considering the short time frame between construction start time without re-bidding and construction start time when re-bidding the work. The original construction start date was planned for late October 2005 or early November 2005, re-bidding the project will result in a revised start date of mid December to mid January. There should not be material and labor costs impacts as a result of this action. The natural disasters of the mid-south area should have no substantial affect on the project. The initial direction of governmental agencies is to use local businesses and labor for the re-building efforts. Additionally, preliminary assessments indicate the majority of the buildings requiring structural tasks similar to the Airport projects were not substantially affected by the storms. The majority of the damages were to small businesses and homes. City Council Staff Report (October 19, 2005) -- Page 3 Terminal Expansion/Holdroom Concrete costs, as an example, have increased steadily over the last twelve months approximately 7-11% and this trend has been considered in construction cost estimates (covered in escalation projections). Indications from the ongoing security checkpoint show the availability of concrete for the Palm Springs area should not be an issue for the next 8-12 months. Cr ig�Graves, Director of Finance 4 Richard S. Walsh, A.ffA., Director of Aviation Tr Butzla A1�ss stant City Manager David H. Ready, City Managef�`� Attachments: Attachment 1 - Bid Tabulations Minute Order ATTACHMENT 1 Palm Springs International Airport AIP 3-06-0181-38 Bid Tabulation- City Praisers 2005-10 Holdroom Lowest Bid=1 1 a♦sl .�\ Spa♦♦h, a♦aecF parr 6aoJ a<a, AAai 4f ♦< o♦♦s♦oM c<a♦e CP cage, , ail p�e� Goo o x�<a �a♦ Ai 00 ,a <e<o ♦e° ,aeti te° ae 40 ♦a<oo 5♦<J0 ea♦re <eGo a♦�e< ea♦tee ea~ra e OV yi ♦ e ♦a♦� ♦a♦♦` ♦�♦♦♦\ ♦�♦ ♦O ♦O`� ♦O`♦ BIDS 0 0 _ 0 0 6 0 0 Taiyo Birdair Corporation $ 908,800 $ 1,08D,700 Harbor Construction Company, $ 9,328,000 $ 2,988,000 Precision Concrete Inc. $ 2,200,000 LA Contractors $ 7,789,000 $ 952,000 Doug Wall Construction Inc. $ 7,200,000 $ Engineers Estimate $ 6,633,948 $ 974,700 $ 1,563000 $ 240,000 S 981,000 $ 1,673,000 $ 1,710,000 Cost Differentials $ (566.052) $ 22,700 $ (637,000) $ - $ 72,200 $ (1,315.000) $ 629,300 SEE NOTE: NOTES Cost differentials in$chetlules I,tll, VI,and VII were due to the following factors 1)Multiple Mobilizations 2)Concrete Costs have escalated over time,and 3)Too much construction work in the Valley for the limited number of quelifetl contractors MINUTE ORDER NO. APPROVE MINUTE ORDER NO. REJECTING ALL BIDS/RELEASE ALL BONDS, DIRECT STAFF TO RE-PACKAGE AND RE-BID THE EXPAND TERM INAL/HOLDROOMS-ADD CHECKPOINT PHASE 3 (PART 2) CITY PROJECT 2005-10 (AIP 3- 06-0181-38) AT THE PALM SPRINGS INTERNATIONAL AIRPORT. I HEREBY CERTIFY that this Minute Order, rejecting all bids/releasing all bonds, directing staff to repackage and re-bid the expand terminal/hold rooms- add checkpoint phase 3 (part 2) City Project 2005-10 (AIP 3-06-0181-38) at the Palm Springs International Airport was adopted by the City Council of the City of Palm Springs, California, in a meeting was held on the 19th day of October, 2005. JAMES THOMPSON City Clerk