AGENDA #4i

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Bid:  Renovation to Police Headquarters Building

DATE:             October 22, 2001

The attached resolution would accept the bids of the lowest responsive bidders including D. W. Ward Construction Company Inc., general contractor, for the base bid, alternate # 1 and alternate # 2 and Applied Control Technology, mechanical contractor, for the mechanical work bid and award contracts for the renovation of the Chapel Hill Police Headquarters Building at 828 Airport Road.

BACKGROUND

In 1996, citizens approved a Public Safety Bond package that included $700,000 for renovation of the Police Headquarters Building.  On January 10, 2000 the Council approved the sale of $600,000 in bonds to provide funding for the project.  On November 27, 2000 the Council approved the sale of the remaining $100,000 in bonds to be used as necessary to complete the renovation project.

The scope of work under the bid(s) includes replacement of the “built up” roof, replacement of all nine roof top HVAC units, waterproofing the foundation /below ground walls and replacement/repair of damaged unsafe interior surfaces.  The work described in the base bid is sufficient to accomplish the principle objective of protecting of the Town’s asset from further deterioration. The project will not improve interior features except for those repairs necessary to address health and safety issues.  

DISCUSSION AND EVALUATION

The plans and specifications for this project were prepared by Corley Redfoot Zack Architects, Chapel Hill, North Carolina.  Bids were solicited from general contractors on a single-prime or a multi-prime basis.  The notice to bidders was published in the September 2 and 12, 2001 edition of The Chapel Hill Newspaper and the August 30 and September 13, 2001 edition of The Challenger Newspaper.  The notice was also mailed to 4 minority business organizations and 21 general/mechanical contracting firms in North Carolina. Five single-prime bids and six multi-prime bids were received.  Bids were opened on September 27, 2001 at 3:30 p.m.  The bid results are as follows:

We have reviewed the bids with the project architect.  CCS General Contractors submitted the lowest overall bid of $277,733; however, after conversations with a representative of the company it was determined that their bid omitted a significant amount of roof work that was listed in one of the addenda.  CCS was given the opportunity to withdraw their bid without penalty because of this mistake, and they chose to do so. 

The lowest responsive bidders are D. W. Ward Construction Company Inc., general contractor and Applied Control Technology, mechanical contractor. We propose to award initial contracts for the base bid, mechanical, alternate #1 and alternate # 2.  The total of their bids, $361,079.50, is less than the next lowest single-prime bid from H. M. Kern Corporation of $366,350.00.

The Council’s policy requires that Council approval is necessary for change orders for construction contracts which, cumulatively total more than 10% of the contract or $50,000, whichever is less.  Because this project involves the renovation of an aging building, we anticipate that unexpected conditions will be discovered and that change orders will be necessary, quite possibly totalling more than $8,557.30 (10% of the mechanical bid) or $ 27,550.65 (10% of the general construction bid).  Often, the delay needed to request Council approval of a change order can be expensive and detrimental to the progress of the work. Therefore, we have included in our recommended resolution authorization for the Manager to approve change orders up to a total of $50,000 without additional Council action.

RECOMMENDATION

That the Council adopt the attached resolution accepting the lowest responsive bids including the base and alternate bids totalling  $275,506.50 from D. W. Ward Construction Company Inc. as the general contractor and the bid of $85,573.00 from Applied Control Technology as the mechanical contractor; and authorizing the Manager to approve change orders for this project as necessary up to a cumulative total of $50,000.

A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACTS FOR THE POLICE DEPARTMENT HEADQUARTERS BUILDING RENOVATION PROJECT (2001-10-22/R-6)

WHEREAS, the Town of Chapel Hill has solicited formal bids by advertisement in the September 12, 2001 edition of The Chapel Hill Newspaper in accordance with G.S. 143-128 for the renovation of the Police Department Headquarters Building at 828 Airport Road; and

WHEREAS, the following bids were received and opened on September 27, 2001:

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town accepts the bids of and awards the contracts to the lowest responsive bidders including, D. W. Ward Construction Company Inc., general contractor for base bid and alternate bid work in the amount of $275,506.50 and Applied Control Technology, mechanical contractor, in the amount of $85,573.00 for the mechanical work.

BE IT FURTHER RESOLVED by the Town Council that, because this project is renovation of an aging building and is expected to uncover unexpected conditions, the Town Manager is authorized to approve change orders up to $50,000 without additional approval from the Town Council.

This the 22nd day of October, 2001.