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Home My WebLink AboutItem 5j. Award the Parks and Recreation Office Rehabilitation Project Construction Contract to Pre Con Industries, Inc.Item 5j Department: Public Works Cost Center: 5005 For Agenda of: 12/7/2021 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Nathan Garcia Nava, Engineer I SUBJECT: AWARD THE PARKS AND RECREATION OFFICE REHABILITATION CONSTRUCTION CONTRACT, SPECIFICATION NO. 91562 RECOMMENDATION 1. Award a Construction Contract to Pre Con Industries, Inc. in the amount of $544,000 for the Parks and Recreation Office Rehabilitation Project, Specification Number 91562; and 2. Appropriate $150,000 from the Capital Reserve Funds to support the completion of the Parks and Recreation Office Rehabilitation project; and 3. Authorize the Finance Director to return unspent Capital Reserve funding to the Capital Reserve fund balance after project completion. DISCUSSION Background The Parks and Recreation Office building was constructed in 1997; the existing interior office furnishings are now nearly 25 years old and have reached the end of their service lives. This project will include new office furniture as well as the rearrangement of modular furnishings to create a new open office layout to provide for more efficient work group collaboration. The new layout will allow for the use of work areas by multiple staff members at different times of day, and incorporate new “all weather” flooring, painting throughout the building, and an IT infrastructure upgrade. On November 5, 2019, Council approved the project and authorized advertisement for bids (Attachment A). Following authorization to advertise, the project funding for construction was placed on hold in the FY 20/21 Budget Supplement due to the anticipated fiscal impacts of the Covid-19 pandemic. As part of the 2021-23 Financial Plan, funding was provided for the project to be constructed. The project was originally advertised for bids on July 15, 2021. Four bids were received and publicly opened, but all the bids received were non-responsive to the bid requirements and rejected by the City (Attachment B). Page 309 of 450 Item 5j Staff re-advertised the project and provided additional clarifications for the requirements of the project in the special provisions to ensure that future bids received would be responsive to the bidding instructions. After re-advertising the project, bids were opened on October 28, 2021 (Attachment C). Two bids were received and both bids were over the Engineer’s Estimate of $340,000. The bid from Pre Con Industries, Inc at $544,000 was the apparent low bidder. Table 1: Bid Results from the second bid opening 10/28/21 Engineer’s Estimate Pre-Con Industries Newton Construction $340,000 $544,000 $596,000 Staff reviewed the bid documents and legal requirements and concluded that the apparent low bidder was responsive. Staff therefore recommends awarding a construction contract to Pre Con Industries, Inc for the project (Attachment D). Although the bid from Pre Con Industries, Inc was over the engineer’s estimate, staff is recommending allocating an additional $150,000 to the project from the Capital Reserve Fund as shown in Fiscal Impact Section of this report. The increase in prices can be attributed to the rise in construction labor and material costs as well as inflation. The project was delayed when construction funding was placed on hold to mitigate the fiscal impacts of the COVID-19 pandemic. The Parks and Recreation building has not had any improvements to the interior of the building since its opening and as such, is well overdue for rehabilitation. Previous Council or Advisory Body Action This project was identified in the 2017-19 Financial Plan that was approved by Council. The Parks and Recreation Office Rehabilitation Project Council Agenda Report approving the project and authorizing advertisement of the project was approved on November 5, 2019. Policy Context Per the City Council report on November 5, 2019, the project must be awarded by Council if the construction contract is higher than the Engineer’s Estimate of $340,000. Council authorization is required to allocate funds from the Capital Reserve Fund. By Policy, the Capital Reserve Fund Balance can be used for the purposes of offsetting unanticipated cost increases. Reserves will be replenished to the extent annual revenues exceed expenditures as reported in the City’s annual audited financial statements. Public Engagement Public engagement was done during the initial identification of this project as included in the 2017-19 Financial Plan. Page 310 of 450 Item 5j CONCURRENCE There is concurrence from the Community Development Department through its review of the project for building permit issuance. This project also has concurrence from the Parks and Recreation Department through its involvement in the project development process and review of project plans. ENVIRONMENTAL REVIEW This project is exempt from environmental review under Section 15301 Class 1 (existing facilities) of the California Environmental Quality Act (CEQA) Guidelines because the project proposes to work within the existing building footprint and replace furniture with similar equipment. The project is consistent the applicable general plan policies as well as with applicable City Regulations. A Notice of Exemption has been filed through the Community Development Department. FISCAL IMPACT Budgeted: Yes Budget Year: 2018-2019 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Total Project Cost General Fund: Capital Outlay Fund $509,798 $655,500 State Federal Fees Other: Capital Reserve Funds $150,000 Total $509,798 $150,000 $655,500 Page 311 of 450 Item 5j 401 Fund Bid Total:$544,000 $544,000 Contingencies (20%)$110,000 $110,000 Total for Construction $654,000 $654,000 Materials Testing:$1,000 $1,000 Printing:$500 $500 Total Project Cost $655,500 $655,500 Current Project Balance:$509,798 $509,798 Additional Funding from Capital Reserve Fund:$150,000 $150,000 Balance:$4,298 $4,298 ** Exisiting funds are found within 3 different project awards in Oracle Parks and Recreation Office Rehabilitaion, Specification No. 91562 Project Account (91562)Project Total Costs Including construction cost, contingency funds and materials testing the estimated total project cost is $655,500. The Parks and Recreation Office Rehabilitation Project was originally allocated $116,000 in the 2017-2019 Financial Plan but in June 2018 Council approved an appropriation of some construction funds totaling $61,000 to the Laurel Lane Complete Streets Project. Remaining funds were sufficient to complete the project design phase with a present balance of $9,798. In the 2019-2021 Financial Plan, $400,000 were allocated to the project funded by Local Revenue Measure. The 2021-2023 Financial Plan allocated an additional $100,000 for construction costs from the Capital Outlay Fund. An additional request of $150,000 from the Capital Reserve Fund is being made to fund the construction cost. The Capital Reserve Fund has a current balance of $3,426,208. ALTERNATIVES Deny awarding project and additional funds. Denying award and authorization for additional funds is not recommended as the Parks and Recreation Office Building needs rehabilitation and has been delayed for several years due to funding constraints. Construction of this project during the winter season is preferred as it will minimize impacts to staff and the public. Additionally, delay of the project would likely result in higher costs. ATTACHMENTS A – Council Agenda Report Authorizing Advertising B – City Managers Report Rejecting Bids and Authorizing Readvertising C – 91562 Bid Results D – Draft Contract Pre Con Industries, Inc. 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(hereinafter called the Contractor). WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of PARKS AND RECREATION OFFICE REHABILITATION, SPECIFICATION NO. 91562 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives. ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in the Contract Documents, the contract prices as follows: Item No. Item Unit of Measure Estimated Quantity Item Price (in figures) Total (in figures) 1. Office Rehabilitation LS --- --- $142,000 2. Painting LS --- --- $13,000 3. Furniture Purchase and Installation LS --- --- $252,000 4. Electrical and Communication Improvements LS --- --- $57,800 5. Flooring Removal and Replacement LS --- --- $24,300 6. Flagpole and Foundation Installation LS --- --- $6,300 7. Soundproof Phone Booth Unit Purchase and Installation LS --- --- $10,300 Page 321 of 450 8 Patio Improvements LS --- --- $21,000 9. Parking Lot Improvements per Sheet A-101 LS --- --- $17,300 BID TOTAL: $544,000.00 Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract. Should any dispute arise respecting the true value of any work omitted, or of any extra work which the Contractor may be required to do, or respecting the size of any payment to the Contractor, during the performance of this Contract, said dispute shall be decided by the Owner and its decision shall be final, and conclusive. ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached: 1. Notice to Bidders and Information for Bidders 2. Standard Specifications and Engineering Standards 3. Special Provisions, any Addenda, Plans and Contract Change Orders 4. Caltrans Standard Specifications and Standard Plans 2015 5. Accepted Bid and Bid Bond 6. List of Subcontractors 7. Public Contract Code Sections 10285.1 Statement 8. Public Contract Code Section 10162 Questionnaire 9. Public Contract Code Section 10232 Statement 10. Labor Code Section 1725.5 Statements 11. Bidder Acknowledgements 12. Qualifications 13. Non-collusion Declaration 14. Agreement and Bonds 15. Insurance Requirements and Forms ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with the Contractor’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both the City and the Contractor, or should the City otherwise find the Contractor’s legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful Page 322 of 450 performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. The Contractor obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the City under any provision of this agreement, the Contractor shall not be required to indemnify and hold harmless the City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the City is shown to have been actively negligent and where the City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City. ARTICLE V. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written. ATTEST: CITY OF SAN LUIS OBISPO A Municipal Corporation ______________________________________ Teresa Purrington, City Clerk ___________________________________ Erica A. Stewart, Mayor APPROVED AS TO FORM __________________________________ J. Christine Dietrick City Attorney CONTRACTOR: Pre Con Industries, Inc. _______________________________ John Amburgey President ___________________________________ James Amburgey Vice President Page 323 of 450 Page 324 of 450