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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
Bruce Heflin, Assistant Town Manager Bill Webster, Interim Director of Parks & Recreation |
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SUBJECT: |
Reject Bids for the Southern Community Park Project |
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DATE: |
December 4, 2006 |
Adoption of the attached resolution would authorize the Town Manager to reject all six bids and re-bid the Southern Community Park project.
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 am 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.
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. The notice to bidders was published on the Town website on August 1, 2006 and in the August 3, 2006 edition of Greater Diversity. Six bids were received and opened on August 31, 2006 at 3:00 p.m. The bid results are as follows:
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RESOLUTE BUILDING COMPANY |
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Base Bid |
4,599,300 |
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Add Alternate |
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Add (Alt. 1) Maintenance Building |
178,239 |
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Total Resolute Building Co. (Base plus Add Alternate) |
4,777,539 |
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CENTRAL BUILDERS |
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Base Bid |
4,900,000 |
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Add Alternate |
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Add (Alt. 1) Maintenance Building |
145,600 |
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Total Central Builders (Base plus Add Alternate) |
5,045,600 |
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MOUNTAIN STATES CONTRACTORS |
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Base Bid |
5,255,000 |
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Add Alternate |
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Add (Alt. 1) Maintenance Building |
283,000 |
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Total Mountain States (Base plus Add Alternate) |
5,538,000 |
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BAR CONSTRUCTION |
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Base Bid |
5,310,000 |
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Add Alternate |
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Add Alt. Maintenance Building |
217,000 |
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Total Bar Construction (Base plus Add Alternate) |
5,527,000 |
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FAULCONER CONSTRUCTION |
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Base Bid |
5,424,828 |
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Add Alternate |
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Add (Alt. 1) Maintenance Building |
157,301 |
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Total Faulconer Construction (Base plus Add Alternate) |
5,582,129 |
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T.A. LOVING CO. |
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Base Bid |
4,663,000 |
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Add Alternate |
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Add Alt. Maintenance Building |
229,000 |
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Total T.A. Loving (Base plus Add Alternate) |
4,892,000 |
Budget for the Southern Community Park: The project budget contains revenues from both Town and Orange County sources as follows:
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PROPOSED REVENUES |
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1997 Orange County Parks Bond |
1,000,000 |
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2001 Orange County Parks Bond |
2,000,000 |
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Proposed Borrowing |
600,000 |
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Payment in Lieu Recreation Area |
81,000 |
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1995 PARTF Grant |
500,000 |
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Sale of Land to Schools |
148,000 |
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Reimbursement for Design of Recycling Center |
3,000 |
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Total Proposed Revenues |
4,332,000 |
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PROPOSED EXPENDITURES |
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Construction |
2,968,000 |
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Contingency 1 |
600,000 |
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Additional Expenditures 2 |
145,000 |
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Prior Expenditures 3 |
619,000 |
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Total Proposed Expenditures |
4,332,000 |
1 We recommend a higher than normal contingency (20%) because indications are that there may be significant amounts of rock to be removed from this particular site.
2 Includes testing, reserve for playground equipment, OWASA tap fees, and burial of a utility line.
3 Prior expenditures include construction of the Scroggs Athletic/Soccer Field, Southern Community Park concept plan, park design, surveying, and art.
Rationale for Rejection of all Bids: The low bid of $4,599,300 is approximately $1,631,000 over the amount of $2,968,000 that we have remaining for construction of the park. The Town Attorney believes that the large gap between base budget and available funding is too large to address through conventional value engineering. If we were to accept the low bid, other bidders could argue that the final negotiated project did not closely resemble the project that was initially bid.
Next Steps: We believe that if the Southern Community Park is to move forward we must re-bid the project in such a way that the final accepted project is reasonably close to that which is bid. We are in the process of contracting with an independent construction administration firm to prepare a more up-to-date cost analysis and to assist us in the preparation of a bid package that would more closely conform to the amount of funds available for the project.
It is our intention to return to the Council on January 8, 2007 with recommendations for a new phasing plan based on the revised cost estimates. We would then re-bid the project in January based on the Council’s preferences with a new bid opening in February 2007.
We recommend that the Council adopt the attached resolution authorizing the Manager to reject all bids and re-bid the Southern Community Park project.