City of Reno
Nevada

Staff Report
8763

Staff Report (For Possible Action): Award of Contract to Dianda Construction, Inc. for improvements to the sixth floor of Reno City Hall in an amount not to exceed $1,475,350. (Building Permit Fund)

Information

Department:Public Works - Capital ProjectsSponsors:
Category:Approval of Contract

Recommendation and Proposed Motion

Recommendation:  Staff recommends Council award the contract to Dianda Construction Inc. for the City Hall, Sixth Floor Improvements in an amount not to exceed $1,475,350 and authorize the Mayor to sign the contract.

 

Proposed Motion:  I move to approve staff recommendation.

Staff Report Formal Body

Summary: Bids for the improvements of the sixth floor of City Hall were opened on September 14, 2017Dianda Construction, Inc. submitted the best bid pursuant to NRS 338.147 as shown on the attached bid summary. Staff recommends Council award the contract to Dianda Construction, Inc. for the City Hall, Sixth floor Improvements in an amount not to exceed $1,475,350.

 

Previous Council Action:

 

January 11, 2017 - Award of Contract to Q&D Construction for demolition of the sixth floor of City Hall in an amount not to exceed $529,521.

January 11, 2017 - Approval of Amendment to Consultant Agreement for abatement for sixth floor of City Hall in an amount not to exceed $53,450.

January 11, 2017 - Approval of Consultant Agreement with BJG Architecture for design services for the sixth floor of City Hall in an amount not to exceed $163,500.

 

BackgroundThe City of Reno’s Capital Improvement Plan (CIP) for Fiscal Year 16/17 identifies the sixth floor of City Hall as one of several floors not yet remodeled as a potential project.  The sixth floor has been vacated by all the tenants and the demolition has been completed.  It is proposed to relocate certain Building Division employees with little or no direct external customer interactions to the sixth floor. Permits counter team staff will remain on second floor for the benefit of customer service. 

 

Discussion:  Staff conducted a public bid for the improvements to the sixth floor of City Hall.  Seven contractors pulled plans for the project and two submitted bids.  Bid results are shown on the attached document.  Bid Alternate 1 requires the contractor to perform ALL work at night and Staff is not recommended for award due to the cost impact to the project. Bid Alternate 2 requires the contractor to provide additional exterior lift to transport materials into the building during daytime hours and is included in the recommended $1,475,350 bid award.  These improvements to the sixth floor are anticipated to start at the end of October and completed by end of February 2018.

 

At the Building Enterprise Fund Advisory Committee (BEFAC) meeting held on September 26, 2017, the contract amount for the City Hall, Sixth Floor improvements was approved.

 

Financial Implications:  Fund is available in the Building Permit Fund through the process of carrying forward the unspent amount in net assets into the FY 17/18 Capital Improvement Plan.

 

Legal Implications:  The Contract was competitively bid in accordance with Chapter 338 of the Nevada Revised Statutes (NRS).  NRS 338.147 provides that a local government shall award a contract for a public work for which the estimated cost exceeds $250,000 to the contractor who submits the best bid pursuant to the requirements established in Chapter 338.147.   The best bid pursuant to the contract documents is Dianda Construction, Inc.

 

Meeting History

Oct 11, 2017 9:00 AM Video Reno City Council Regular

THIS ITEM WAS PULLED FOR DISCUSSION.

Council Member Duerr stated that contract awards of $1,000,000 deserve some discussion by the City Council.

Kerrie Koski, Public Works Engineering Manager, presented an overview of the staff report.

Council Member McKenzie expressed concerns about awarding the contract to Dianda Construction and recommended awarding it to another contractor. A subcontractor that is not licensed is listed and the estimated cost for outside access to the building may not be sufficient.

Ms. Koski explained that staff examines all of the required licensing as part of the bid valuation process and they ensure that they are qualified before a contractor begins work. There are provisions in law that allow us to tell them they need to use another subcontractor if they are not licensed.

Council Member McKenzie said that having them replace a subcontractor could result in additional costs to the City.

Scott Higgins, representing Dianda Construction, stated that the subcontractor in question has a City of Reno business license, and explained their base bid assumptions regarding the sizes of materials that would have to be brought in.

The Council upheld the staff recommendation with Council Member McKenzie voting nay and Mayor Schieve absent.

RESULT:APPROVED [5 TO 1]
MOVER:Naomi Duerr, Councilmember
SECONDER:David Bobzien, Councilmember
AYES:Jenny Brekhus, Naomi Duerr, Oscar Delgado, Neoma Jardon, David Bobzien
NAYS:Paul McKenzie
ABSENT:Hillary Schieve