The URL can be used to link to this page

Home My WebLink AboutReject All Bids - 2025-05-06 Ur1i1NGT 2000 Main Street, 01,;, ;xs°ti Huntington Beach,CA 92 48 zti'= :_ y, City of Huntington Beach APPROVED 6-0-1 _ (GRUEL-ABSENT) "fCDUNTV� 'o File#: 25-317 MEETING DATE: 5/6/2025 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Travis Hopkins, City Manager VIA: Chau Vu, Director of Public Works PREPARED BY: Patrick Bannon, Capital Projects Supervisor Subject: Reject lowest bid for the Civic Center -Generator& Switchgear Replacement Project, CC- 1720; reject all remaining bids, re-scope, and re-bid the project Statement of Issue: On April 7, 2025, the Public Works Department received six bids for the Civic Center- Generator& Switchgear Replacement Project. The lowest bid, submitted by MINAKO AMERICA CORPORATION, came in at$3,088,777-significantly exceeding the City's allocated budget of$1,435,000. Given the disparity, staff recommends that the City Council reject all bids. This will allow the department to revise the project scope, re-advertise, and rebid the work in alignment with the City's allocated budget. Financial Impact: There are no fiscal impacts related to the recommended action. Recommended Action: Reject all bids for the Civic Center- Generator& Switchgear Replacement Project, CC-1720. Alternative Action(s): Do not accept the recommended action, and direct staff accordingly. Analysis: The Civic Center - Generator & Switchgear Replacement Project consists of removing two existing 200 kW generators at the Civic Center and replacing them with one 1,000 kW generator and belly tank. The work will involve demolition of the existing generators and mechanical systems, preparation of the new generator pad and fencing, installation of the new generator, conduit routing to facility electrical rooms, patching of concrete and paving, and mechanical work needed to commission the generator. Work will also include refurbishment of the facility switchgear system, as well as removal of the existing generator underground storage tank located in the civic center City of Huntington Beach Page 1 of 2 Printed on 4/30/2025 powered by LegistarTM 209 File#: 25-317 MEETING DATE: 5/6/2025 basement. The bids received for the project significantly exceed the previously approved budget. Upon review, staff has identified several key factors contributing to the cost increases: Market Volatility in Electrical Equipment Pricing: Ongoing global economic challenges have led to sharp fluctuations in the cost and availability of essential electrical distribution components, such as generators, automatic transfer switches (ATS), and switchgears. These supply chain disruptions have resulted in longer lead times and higher material costs, increasing contractor risk and driving up bid amounts. Rising Labor Costs: The construction industry is experiencing upward pressure on labor costs. The California Department of Industrial Relations (DIR) has issued new prevailing wage determinations effective March 2025, which include increases in both base wages and fringe benefits for electrical workers. Outdated Engineer's Estimate: The original engineer's estimate was prepared before the recent surge in prices for commercial- grade electrical equipment and did not accurately account for current market trends. Additionally, it did not fully consider the added complexity and expense of integrating new systems into the existing infrastructure. As a result of these factors, the previously budgeted amount is no longer aligned with actual market conditions. Staff will work with the architect to identify options for upgrading electrical equipment and still work within the existing building footprint to reduce costs. Environmental Status: This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(d) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Strategic Plan Goal: Non Applicable -Administrative Item Attachment(s): 1. Bid Results Report 2. PowerPoint Presentation City of Huntington Beach Page 2 of 2 Printed on 4/30/2025 powered by Leg istarTM 210 City of Huntington Beach Bid Results for Projen Civic Center-Generator&Swtcbgear Replacement Project 1021720) Issued on 02/11/2025 Bid Due on Aps1107,2025 200 PM(PDT) Exported on 04/15/2025 Etna Totals(Unit Prim•Quantity) • Item Num Sec8an Item Code Description Reference Unit of/Amore Quantity MINA0O AMERICA CDRPORATU Kindness Cenral Contrston Mel SMth Electric,Inc. Amax Engineering[onti.nory mr. US BWlden end ConsoltWaMc PC Inc 1 Section 1 1 MobOration - IS 5150,002LO $149,42090 $103,00080 $100060ID S179,85300 5189,17790 2 Section 1 1 Demolition LS 5175,003LO S55,855.00 $80,000.m 5100p00.00 5571,805.00 5136,586A4 3 Section 1 3 Grading:Soli,Seeding,and Gravel 3S 575,003.00 $17,600.00 $60000.00 550,000.00 57,74503 5128,640.97 4 Section 1 4 New Exterior Concrete Footings,Pad&Pavement LS 5187,003.60 $55,000DO $180,000.0 510000090 SS/30,31800 $124,857.41 5 Section 1 5 Interior Concrete Slab Repair IS $25,000.00 $23,030.00 $40,00000 529060.00 55,971E0 560,53693 65ectionl 6 New Interior Steel Bollards IS $7,000.00 57,50003 $18,00000 $10,000.00 $40,96410 537,83558 75ectlon 1 7 Exterior Plumbing-Area Drains&Catch Basis IS 537,000.00 542,000.03 $43,1330.120 $251200.00 $59,651.m $39,727.36 8 Section1 8 Exterior Chain-link Fencing IS 515,000.00 511,000D0 $26,003.00 $25,000.00 597,48900 $34,052.01 9 Section 1 9 Eatenor Chain-link Gates IS $7.003.00 $2,50.00 $12,000.00 $10,000.00 53.025.00 $32,160.24 10 section 10 Plumbing-Area Drains&Catch Basins L9 517,003.00 $080 554,00000 $20,000.00 $1,170.00 $41,75431 ll Section 11 Exterior CMU Retaining Wall IS 567,om00 525,000.03 $60,00000 540,00D0 $61952.03 $140,74836 12 Section 12 Exterior Pipe Qearont IS 55,000.00 56,60300 $12.000.00 $1000.00 $1,69390 53o,26BA6 13 Section1 13 Painting IS $5,70080 $10,467.00 $23,O00.0 $2,50060 $9,63190 S54,86159 14 Section 14 Underground Exterior PVC Piping LS 527,000.03 $121,150.0 540,000.00 $5,000110 515,677.00 552,96981 15 Section l 15 Underground Exterior Perforated Piping IS 57,000.03 $8.000.00 $17,000.00 $5,020.00 $13,859.00 $49,186.25 16 Section 1 16 Electrical Equipment IS 51,173,077.00 $1,234,075.00 S1,340,0000 51,600,000D0 S1,172,522.00$1,191,820.77 17 Section 17 Electrical Equipment-Pull Boxes,Conduit Cable Trays,Wiring,Grounding and Specialty Poll Boma LS $467,020D0 51,040,713.00 $66000000 $850,060.03 5572,918.00 $444,568D7 IB Section 1 18 Exterior Seals and fire Seals for Wall Penetrations 15 $1,000.00 524,15003 $19,03100 $2,03003 53,61900 571,887.60 19 Section 1 19 Equipment Anchors IS 53,000.00 $6,555.00 $20,000.133 $10,000D0 52,094.00 $7,188.76 20 Section 1 20 Signage 05 53,00000 $3,16300 514,000.00 52,00000 51,31000 $5,675.34 21 Section 1 21 Existing Retrofitted Svtchboard EA 5597,020.00 $286,078.00 5354p00D0 S403,030.03 $53,085120 $586,451.49 22 Section 1 22 Removal of Existing Generator Underground Storage Tank EA $37,000.00 $69,150.00 $54,01:000 530,03900 $139,60400 5321602.44 Subtotal 53,088,777.00 $3,197,776.00 53,226,600SO 53,407,500.00 53,597,051.03 53,783,558.00 Total 53,098,777.00 $3,197,77690 53,216,030110 $3,407,503.00 53,597,05100$3,783,55900 • • • • • 211 -.:.: 1 ,116. , . ! -„.. .„ , :, ... . . ,,o.,. ; ,.. - .-. .,_ 0 0174' all: �--- ...- - . ,:,,,,....:7..-7-.-":„'s, ... -•.'..„.f:: fir!, / i/ : , .. .:: ..::. IN ...:_e, •.,:„...,.. ,:,,,_ , .• „,, ., ,...,: .,.. ,,.,,,, , , .. :. .. Reject All Bi . s, s; CC — 1720 Civic Center Generator & Switchgear Replacement Project ® 4 � - --- . Ma 6, 2025 e:-.7.00-1 '.'1.:',..t' 1 t.:,4:'''4,:t"lib' a. (S.-' \IS-.... .-' r , OUNTN., • : ' -',0- 1 - .4.00-..,,, - ... •..: .. . ,. „,. ... . . . . . • . . . . . . . , . . . . . . . . . . , , . . . . . . • • . . : . • • . , . 212 BAC KG ROU N • April 7, 2025, Public Works Department received 6 bid openings for the Civic Center — Generator & Switchgear Replacement Project • MINAKO AMERICA CORPORATION submitted lowest bid at $3,088,777 • Lowest bid exceeds City's original budget for project set at $1 ,435,000 ii,ogIN r 'aft °OUNTV,CP��t!ri 213 REC.OMMENDED ACTION • Reject all bids, re-scope, and re-bid project T1N �p • • ow • • • 214 EXPLANATION • Market Volatility in Electrical Equipment Pricing: Recent fluctuations due to global economic conditions in the availability and cost of electrical distribution components, including generators, ATS units, and switchgear, have led to inflated supplier pricing • Lead times and limited availability due to ongoing supply chain disruptions have increased contractor risk and material costs • Labor Escalation and Availability: Labor availability, particular) f• specialized electrical trades, remains constrained, potentially increasing labor costs �•: a 0 °OUNTV`_ Ar" 0- 215 ✓'V g . .x e ' rf g r t5 � t•o� d.'. .$ te `, a �. ,��, S iV 'h a �' a ey°am d raAV�t�._ ....„.:„...i°-.‘:r.......•••Z,-,,... ,,,- °, 4.° Ij ,ds ,g!l " f am y ii, - y} s , rce .,. 11##1 i Questions ? a 'g �`a r k * 11.L:i d! [ ', 5d ,e if 4 ,.?,',,..„3,..' 'xia,.--,--„Ity''°-'1,----1 i 0 41,°..,,,--.-...`: °,,i-- ,;1:,,,,,:,.....1,,,,:c.:1.''4:4' 4.444 4 .,s,10144 44‘...ilia..+:1t:24,I,,":.3".-t'4' I e ° 1a t,.� ,,-ad,6 ,'ice �� , �� tt " 216