REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  April  11, 2017
CATEGORY:  Consent - Public Works-11.

SUBJECT:

Mental Health Basement Abatement Project – Award Construction Contract

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Award to the low bidder, PARC Specialty Contractors, Inc., on a lump sum basis, the contract for the “Mental Health Basement Abatement Project,” Contract No. 610446A, in the amount of $174,038.00.

SUMMARY

The sole bidder on the Mental Health Basement Abatement Project is PARC Specialty Contractors, Inc.

DISCUSSION

The Mental Health Building is located at 2640 Breslauer Way. This building is the old Shasta General Hospital. A remodel is proposed in the basement which formerly housed the kitchen and cafeteria.  Approximately 3,800 square feet of usable office space would be created for Health and Human Services Agency (HHSA) staff. The proposed space would be well positioned within their existing facilities.

Asbestos and lead paint are widespread.  An abatement project was proposed in preparation for the remodel.  Abatement costs were estimated based upon a similar project in the same building in 2015.  Abatement costs are highly elastic.  The abatement project was timed to avoid competing with summer school work.  The recent winter and associated roofing needs have created exceptional demand for abatement services.  Three potential bidders attended the pre-bid conference.  Only a single bid was received.  The bidder was PARC Specialty Contractors, Inc., in the amount of $174,038.00. The bid was 208% over the Engineer’s estimate.

The lone bid reflects short-term, storm-driven competition for scarce contracting resources.  Recent changes in lead and prevailing wage requirements may have contributed.  The project could be delayed until next winter.  Abatement bids would likely be lower at that time.  Subsequent remodel costs would presumably escalate.  HHSA space needs are immediate.  On balance, staff recommends award of the abatement contract. 

ALTERNATIVES

The Board may decline to award a contract. The project could be rebid next winter.  Abatement costs may be lower but subsequent remodel costs may be higher.  Staff would have to be housed elsewhere in the interim. 

OTHER AGENCY INVOLVEMENT

HHSA Administration supports this project. County Counsel has approved the contract documents as to form. Risk Management has reviewed and approved the contract documents. The recommendation has been reviewed by the County Administrative Office.

FINANCING

The total cost of the Mental Health Basement Remodel Project is estimated to be $1,300,000. Costs to date were included in the Adopted FY 2016/17 Mental Health Budget.  HHSA will propose a budget amendment for the remaining abatement costs in the FY 2016/17 Mental Health Budget.  Subsequent remodel costs will be included in the Recommended FY 2017/18 LB&I Budget. There is no additional General Fund impact.