02-22-21 Regular Meeting of the La Porte City Council

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provided written confirmation of their willingness to honor their original bid price of $990,906. In order for City Council to award this project to Perry Construction it will require an additional $107,481 of appropriations to cover the difference in bid amounts. Previously, staff identified an opportunity to complete the entire project scope of constructing an open air pavilion, parking lot, and restroom by utilizing Park Zone funds to supplement the Five Points Plaza Enhancement Project budget. Council previously approved both the award of Bid #20010, for all line items, as well as a budget amendment to utilize $286,165 of Park Zone funds to supplement the project budget, reducing the overall available balance of $651,522 down to $365,357. An additional $108,000 would be needed from the Park Zone Fund to fully fund the project, leaving a balance of $257,357 within the Park Zone Fund. Should Council choose this option, a budget amendment would need to be made since these Park Zone funds were not budgeted to be used during the Fiscal Year 2020-21 Budget process. The budget amendment has been prepared and included for Council consideration as a separate agenda item. Any Park Zone funds not utilized at the completion of this project would return to the Park Zone fund. Staff is recommending City Council withdraw the award of Sealed Bid #21003 to Texas Specialized Construction Services, LLC for failure to satisfy bid condition to timely provide performance and payment bonds, and award Sealed Bid #21003 to Perry Construction, for bid items 1, 2, 3, 4, and 5 in the amount of $990,906, with a contingency amount of $45,519 for a total authorization of $1,036,425.00. Benefits: Second lowest bidder has communicated the willingness to honor bid prices. Provides for construction of the entire scope of work, as designed. Considers utilization of Park Zone funds without having to re-budget/re-bid the project in October 2021. Avoids potential increased construction cost attributable to anticipated inflation. Provides restroom facilities and additional programming/rental space, which generate revenue. Park Zone fund is expected to replenish as development currently under construction continue to pay park land dedication fee(s). Provides clean and safe restrooms to the visiting public. Liabilities: continue through construction, causing project completion to be delayed. Bid prices could increase, creating project budget shortfall. Rejecting bids further delays addition of permanent restrooms and other planned enhancements.