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SR-05-27-2014-3ACity Council Report City of Santa Monica City Council Meeting: May 27, 20014 Agenda Item: 3A To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Award Construction Contract for City Hall HVAC Replacement Project Recommended Action Staff recommends that the City Council: 1. Authorize the -City Manager to negotiate and execute a contract with Bon Air, Inc., a California -based company, in an amount not to exceed $871,200 (includes a 10% contingency) for the City Hall HVAC Replacement Project. 2. Authorize the Director of Public Works to issue any necessary change orders to complete the work within contract authority. Executive Summary This project would replace and upgrade the heating, ventilating and air - conditioning (HVAC) system throughout much of City Hall. On March 25, 2014, the City solicited bids for mechanical construction services associated with the HVAC improvements. Five bids were received and opened on April 21, 2014. Staff recommends Bon Air, Inc. as the best bidder for the City Hall HVAC Replacement Project at a cost not to exceed $871,200. Discussion The Santa Monica City Hall building currently has a number of aging package and split system HVAC units in need of replacement. This project would consist of the replacement of various HVAC units /mechanical systems throughout the building in a phased timeline with new split multi- system air - cooled heat pump systems and all associated mechanical work. Contractor Selection On March 25, 2014, the City published Notices Inviting Bids to replace and upgrade the heating, ventilating and air - conditioning systems of the City Hall building. The bid was 1 posted on the City's online bidding website and notices were advertised in the Santa Monica Daily Press in accordance with the City Charter and Municipal Code provisions. Thirty -seven vendors downloaded the Notice Inviting Bids and eleven prospective bidders attended a non - mandatory pre -bid job walk. Five bids were received and publicly opened on April 21, 2014. The bid results are as follows: Bidder AP Construction Group Bon Air, Inc. JCT Mechanical Sea Pac Engineering, Inc. South Coast Mechanical Total Bid Amount $760,000 $792,000 $914,230 $920,000 $939,727 Bids were evaluated based on price, experience, qualifications and references. The instructions to bidders included a requirement that the contractor "be a certified Mitsubishi HVAC system installer at the time of bid submission." Mitsubishi was selected as the manufacturer in order to allow the new units to tie into the existing system of HVAC units and become the new standard for the City Hall facility. Also, by selecting a certified installer the City is provided with an additional 7 years of manufacturer warranty for the system. In reviewing the bids, AP Construction Group (the low bidder) confirmed that they do not meet this requirement and are therefore deemed a nonresponsive bidder. Staff confirmed that Bon Air, Inc. is a certified Mitsubishi HVAC system installer and also verified with the Contractors State License Board that their C -20 license is current, active, and in good standing. Staff contacted references provided by Bon Air, Inc. for prior project experience with the City of Thousand Oaks, the Port of Los Angeles, and the Beverly Hills Unified School District. All respondents reported that work was completed in a timely and cost - efficient manner while maintaining consistent quality. Based on these criteria, Bon Air, Inc. is recommended as the best bidder. Pa Construction Schedule Construction work is tentatively scheduled to begin in July 2014, to be conducted sequentially in four phases, and lasting for a period of approximately 185 days. Financial Impacts & Budget Actions The contract to be awarded to Bon Air, Inc. is for an amount not to exceed $871,200 (includes a 10% contingency). Funds in the amount of $871,200 are available in FY 2013 -14 Capital Improvement Program budget in account M010085.589000. Prepared by: Christopher Dishlip, Civil Engineer Approved: Forwarded to Council: 3 Rod Gould City Manager Reference: Contract No. 9907 (CCS)