Orange County NC Website
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: April 3, 2001 <br />Action Agenda <br />Item No. q <br />SUBJECT: Authorization to Award Bids for Renovation of 129 East King Street, <br />Hillsborough <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Pam Jones (919) 245-2652 <br />. TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227 2031 <br />PURPOSE: To consider-authorizing the Purchasing and Central Services Director to award <br />bids for renovation work at 129 East King Street, Hillsborough in an amount not to exceed <br />$100,000. <br />BACKGROUND : The County purchased the referenced property in which to relocate the <br />Department of Purchasing and Central Services from leased space. After considerable delay, <br />plans were finalized, appropriate approvals were obtained and bids solicited for the renovation <br />work at 129 East King Street. Bids received from three bidders ranged from $297,098 - <br />$334,245, a significant over-run of the $150,000 estimate submitted by the architect and <br />substantially exceeding available funds. The architect continues to believe the value of the <br />work is around $150,000. It is unclear why the bids were above the estimate, however, builders <br />general unfamiliarity with the sustainable design features of the project, coupled with the fact <br />that. small jobs may pay a premium price in an active construction market such as the one in the <br />Triangle area are likely factors. Negotiation with the low bidder yielded savings of <br />approximately $57,000, however these savings remove many of the sustainability elements of <br />the project and reduce the value of the project below a level that is acceptable to the County. <br />Much of the renovation cost lies in the general contractor part of the work, of which a significant <br />portion can be accomplished with County forces. Through collaboration between the Public <br />Works staff and the Purchasing staff, a process has been established to use County forces for <br />part of the general contract work; and supplemental contracts executed for the installation of <br />HVAC, electrical and plumbing work that cannot be accomplished in house. Although not all of <br />the work can be accomplished within the $125,000 limit set by statute for projects using County <br />staff, it will enable substantial completion to the point the space can be occupied by the <br />Purchasing and Central Services Department. Any remaining work that is critical to the project <br />may be scheduled at some future date in subsequent years. <br />