AGENDA #4j

MEMORANDUM

TO:

Roger L. Stancil, Town Manager

FROM:

Bruce Heflin, Assistant Town Manager

Bill Webster, Interim Director of Parks & Recreation

SUBJECT:

Reject Bids for the Southern Community Park Project

DATE:

April 11, 2007

PURPOSE

Adoption of the attached resolution would authorize the Town Manager to reject all seven bids and re-bid the Southern Community Park project. 

BACKGROUND

In 1986, and 1989, Chapel Hill voters approved parks bonds, portions of which were used to purchase the Southern Community Park property.  In 1997, and 2001, Orange County voters approved parks bonds that included funds designated for the Southern Community Park. 

In July 2000, the Town Council appointed the Southern Community Park Conceptual Plan Committee.  On March 25, 2002, the Town Council adopted the Report of the Southern Community Park Conceptual Plan Committee and directed the Town Manager to prepare an implementation plan. The Orange County Board of Commissioners adopted the Park Concept Plan on March 5, 2003.

On May 9, 2005, the Council approved the Special Use Permit application for the Southern Community Park, which included an expanded parking lot and traffic calming on Dogwood Acres Drive. The Council also stipulated that the traffic calming plan for Dogwood Acres Drive be approved by the Council.

On January 9, 2006, the Council considered a traffic calming plan for the Town-maintained section of Dogwood Acres Drive at the proposed Southern Community Park. The Council received a petition asking that a number of issues related to parking and safety on Dogwood Acres Drive be considered. The Council postponed action and asked advisory boards to consider the traffic calming plan.

In April 2006, the Town received revised cost estimates for the park that indicated a rise in prices by about 30 percent since the previous cost estimate was completed in December 2004.

On April 13, 2006, the Project Planning Committee discussed the concerns of residents and the revised cost estimates. The Committee agreed to recommend that the Council revise the project’s parking and phasing plans.

On April 24, 2006, the Council adopted a new phasing plan and tentative budget for the Southern Community Park based on updated cost estimates.

On December 4, 2006, the Council rejected bids because the bids exceeded available budget.

DISCUSSION

Based on the plans and specifications for this project prepared by OBS Landscape Architects, bids were solicited from general contractors on a single-prime basis.  Seven bids were received and opened. 

Rationale for Rejection of all Bids: The Town’s project architect made a procedural error by submitting a late bid addendum. Two bidders did not receive the addendum in time to include in their bids. We believe that their failure to acknowledge receipt of the addendum has introduced too much uncertainty in the process for the Town to proceed.  If we were to accept the bids of those firms who did not acknowledge the addendum, other bidders could argue that the bids from firms not acknowledging the addendum were not reflective of the same information that other bidders were required to consider. If we do not accept bids from the firms who did not acknowledge the addendum, the firms which did not acknowledging the addendum could challenge the process by claiming that the addendum was not substantive in nature and was simply a minor deviation. We believe that the fairest process would be to re-bid the project.

Next Steps:  If the Council agrees to re-bid, it would be our intent to re-bid in the shortest period of time that the law and practical considerations would allow. It would be our intention to open bids in late April if possible.

RECOMMENDATION

We recommend that the Council adopt the attached resolution authorizing the Manager to reject all bids and re-bid the Southern Community Park project.