REPORT TO THE CITY COUNCIL Date: June 26, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: ROBERT N. ANDERSEN, PE, Assistant Director Public Works Department - Capital Management Division DEBBIE BERNARD, Project Manager Public Works Department - Facilities Management Division SUBJECT ..Title Actions pertaining to an award of a construction contract in the amount of $736,360 for the emergency generator upgrade at Fresno City Hall (bid file No. 3227) (Council District 3) ..Body RECOMMENDATIONS Staff recommends that City Council: Reject all bids related the purchase and installation of an upgraded emergency generator for Fresno City Hall. EXECUTIVE SUMMARY The Emergency Generator Upgrade at Fresno City Hall is part of the immediate repairs needed at City Hall as determined by the appraisal required to obtain approval for the Fiscal Year 2010 Lease Revenue Bonds. The upgraded emergency generator will support all lighting, data, and cooling/heating equipment (currently not on backup power) within the Information Services Department (ISD) as well as power other ancillary service needed to support other operations within City Hall. On June 19, 2014, the Council approved an amendment to Fresno Municipal Code Section 4-108, subsection (d), which increased the level of local preference from .05% to 5% for public work of improvements. Given the change in policy, staff is recommending that Council rejects all bids and direct staff to issue a new bid based on this change. BACKGROUND On May 19, 2009 the consulting engineering firm of Lawrence Nye Andersen Associates provided the City of Fresno with an "Emergency Generator Study of the Fresno City Hall". This study concluded that an additional 350KW emergency generator should be added to Fresno City Hall in order to meet current and anticipated City Hall needs. The study also stated that the goal in adding an additional emergency generator is to support all lighting, data, and cooling/heating equipment within ISD for at least 48 hours if there should be a PG&E power failure. In an attempt to trim costs the decision to replace the existing 200KW generator with a new 550KW generator was made. On May 10, 2010 Council approved the issuance of revenue lease bonds which included an amount for the "Replacement of the City Hall Backup Generator". Following the bond issuance, in accordance with AO6-19, staff advertised and hired Hardin-Davidson Engineering for the design of plans and general construction documents for the replacement upgrade of the emergency generator. The Notice Inviting Bids was published in the Business Journal on January 17, 2014, and posted on the City's website and faxed to ten (10) building exchanges. The specifications were distributed to sixteen (16) prospective bidders. Seven (7) sealed bid proposals were received and opened in a public bid opening on February 18, 2014 with the bids ranging from $736,360 to $847,000. Bids were posted on March 18, 2014 and a bid appeal was received on March 20, 2014 from R&H Industries dba Best Electric, the second lowest bidder. An appeal hearing was scheduled for April 17th 2014 in accordance with Resolution 2003-129 which establishes procedures for appeals in the competitive bidding process. On June xx, 2014, the Council expressed a desire to amend the local preference ordinance and tabled the awarding of a contract to purchase and install an upgraded City Hall generator item until which time that an amended to ordinance could be considered. On June 19, 2014, the Council approved the introduction of an amendment to Section 4-108, subsection (d), that increase the amount of local preference for public work of improvements from .05% to 5%. FISCAL IMPACT Based on the change in policy the project will be rebid. There is currently $875,860 allocated toward this project that is provided through Fiscal Year 2010 Revenue Lease Bonds.