10-17-2014 BPU RPT 09 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: OCTOBER 17, 2014 ITEM NO: 9 SUBJECT: BID NO. RPU -7266 — REJECTION OF BIDS FOR THE MISSION SQUARE FIFTH FLOOR TENANT IMPROVEMENTS ISSUE: The item for Board of Public Utilities consideration is rejection of all bids received for the Mission Square Fifth Floor Tenant Improvements, Bid No. RPU -7266. RECOMMENDATION: That the Board of Public Utilities reject all bids for Mission Square Fifth Floor Tenant Improvements, Bid No. RPU -7266, and release all bid guarantees. BACKGROUND: In June 2012, approximately 200 employees from Engineering, Water Resources, Marketing /Public Benefits and Administration at Orange Square, 3901 Orange Street, moved to Mission Square, at 3750 University Avenue. Of the 55,500 square feet of space used by Riverside Public Utilities (RPU) at Mission Square, there is approximately 2,900 square feet of unimproved space on the Fifth Floor, adjacent to the Administration offices. On December 7, 2012, the then General Manager, Dave Wright, presented the RPU long -range space plan ( "Plan ") to the Board of Public Utilities. The Plan recommended consolidating downtown locations to create a "campus" for Utility employees between the newly leased Mission Square, Orange Square and City Hall, to provide for optimum deployment of staff and management. The Board and City Council approved the Plan on December 7, 2012 and December 11, 2012, respectively. Under the Plan, the Customer Service Payment Center and 311 Call Center would move from Utility Plaza, at 3640 Orange Street, to Orange Square to utilize the space vacated by the employees who moved to Mission Square. This move requires that the current conference room at Orange Square, which is also used as a Board meeting space, be reconfigured as a computer training room for the Customer Service Division. Therefore, a new conference space large enough to accommodate staff training, as well as facilitate Board meetings needed to be determined within the existing leased space at Mission Square. The unimproved space on the Fifth Floor of Mission Square was determined to be the optimal location to use as a training and workforce development area for staff, as well as facilitate a meeting place for the Board of Public Utilities. Additionally, the Mission Square lease provides for $400,000 in tenant improvement credits that would offset construction costs. On July 10, 2014, a comprehensive bid package was issued; eight contractors bid on the project. U.S. Dash Construction, Inc. was the lowest responsive bidder in the amount of $379,000. The Board of Public Utilities considered award of the contract on September 5, 2014. The Board postponed this item to a future meeting in order to consider both the Mission Square and Orange Square tenant improvement projects as a whole.