HomeMy WebLinkAboutItem 11 - Palace Theatre Contract RejectionTO:
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
HONORABLE MAYOR AND CITY COUNCIL MEMBERS
ROGER NELSON, CITY MANAGER
FEBRUARY 15, 2000
PALACE THEATRE CONTRACT REJECTION
Staff recommends City Council reject all bids received on January 6, 2000, with the
exception of the Audio -Visual Package and take any other necessary action.
BACKGROUND INFORMATION:
Staff received a limited number of bids for the Palace Theatre project at the first bid
opening on January 6, 2000. The lack of interest resulted in fewer bids than expected and
subsequently less competitiveness between bidders. Several factors contributed to the
lack of contractor interest in this bid opening.
❖ First, the plans were more complex than most sub -contractors realized. Several
sub -contractors indicated that they either did not understand the plans when they
ae, sat down with them, or that they didn't adequately evaluate the amount of time it
would take to prepare a competitive bid.
❖ Second, the bids were opened less than a week after the Christmas/New Year
holiday break. Many contractors did not begin to evaluate the bid package until
after the first of the New Year. Subsequently, they did not have adequate time to
prepare a competitive bid.
❖ Finally, the bids were opened early in the morning without the option to submit
sealed competitive bids by facsimile.
Staff feels that these issues prohibited the bidding process from being more competitive
and took the following actions to correct the problem.
❖ Staff received authority to re -advertise the project in order to give contractors more
time to evaluate the plans and produce realistic bids.
❖ Staff required all contractors to meet with project management personnel at the job
site so that the scope of the project was better understood. Furthermore, project
management staff worked diligently with all prospective bidders to ensure that they
Palace Contracts Rejection 1 February 9, 2000 (4:21 PM)
were familiar with the project.
Staff received clearance from the City Attorney's Office to receive sealed
competitive bids via facsimile.
Staff recommended opening the bids in the afternoon, not early morning, to allow
sub -contractors more time to deliver their bids in person.
The results of these measures can be seen in the number and the competitiveness of bids
received on February 3, 2000.
HTH/sdk
Palace Contracts Rejection
N
February 9, 2000 (4:21 PM)