HomeMy WebLinkAboutItem 5d. Award Construction Contract for City Hall Meeting Room Tenant Improvements Specification No. 1000055 Item 5d
Department: Public Works
Cost Center: 5005
For Agenda of: 10/4/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Nathan Garcia Nava, Engineer I
SUBJECT: AWARD CONSTRUCTION CONTRACT FOR CITY HALL MEETING
ROOM TENANT IMPROVEMENTS, SPECIFICATION NUMBER 1000055
RECOMMENDATION
1. Award a Construction Contract to Quincon, Inc. in the amount of $330,280 for the
City Hall Meeting Room Tenant Improvement, Specification No. 1000055; and
2. Appropriate $160,000 from the Capital Projects Reserve Fund to the project
account (1000055); and
3. Authorize the Finance Director to return unspent Capital Reserve funding to the
Capital Projects Reserve Fund balance after project completion; and
4. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of
San Luis Obispo, California, authorizing use of Capital Projects Reserve Fund to
support the City Hall Meeting Room Tenant Improvement Specification Number
1000055.”
POLICY CONTEXT
On June 10, 2022, the City Manager authorized the invitation of bids for the City Hall
Meeting Room Tenant Improvements project. As stated in the report (Attachment A), the
project contract could be awarded by the Director of Public Works if the construction bid
was lower than the Engineer’s Estimate. This process is in compliance with the City
Financial Management Manual Section 203 of for projects estimated to be under
$200,000 in contract cost.
Following advertising approval, a bid opening was held on July 21, 2022. No bids were
received. Staff proceeded with an informal bidding process as outlined in City Municipal
Code 3.24.185:
If no bids are received, the purchase may be made through negotiated contract or
other process approved by the purchasing authority, including, in the case of
construction projects, performing the work by employees of the city by force
account. (Ord. 1435 § 1 (part), 2003)
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Item 5d
After reaching out to interested contractors who attended the project walkthrough, staff
proceeded with an informal bidding process in accordance with the above Municipal Code
section. Quincon, Inc. submitted a bid package for the project on August 19, 2022, in the
amount of $330,280. The contract price exceeds the delegated authority provided by
Council to the City Manager and therefore a contract must be evaluated and awarded by
Council to move forward with this project in compliance with the Financial Management
Manual Section 203 for projects over $200,000 in contract cost.
The recommended actions for award and fund appropriation are supported by the City
Council’s adopted Capital Improvement Plan as well as its Fund Balance and Reserve
Policy. The City’s Fund Balance and Reserve Policy was adopted in June 2021 and
includes guidelines related to the Capital Projects Reserve Fund, as f ollows:
The City will maintain a committed reserve of 20% of capital improvement
plan budget from the Local Revenue Measure for the purposes of offsetting
unanticipated cost increases, unforeseen conditions, and urgent
unanticipated projects to provide continued investment in infrastructure
maintenance and enhancement. Use and allocations of funds from the
Capital Projects Reserve Fund will be made to Capital Projects including
Major Facility Replacement upon Council approval as necessary during any
fiscal year.
The recommended use of the Reserve to supplement the City Hall Meeting Room Tenant
Improvements project is consistent with this policy.
DISCUSSION
Background
Since being built in the 1950s, City Hall has been through Seismic Safety and HVAC
retrofits, remodels, and reconfigurations of specific sections such as Human Resources
offices, Administration Office (east and west wings), and public restrooms. The most
recent projects include the City Hall Chiller Replacement as well as the Audio and Video
Replacement in the Council Chambers. Since the Seismic Safety and HVAC
Improvements project in 1998, the City Hall meeting room and City Hall breakroom have
not been improved. Improvements implemented by this project include installation of ADA
compliant counters, reconfiguration of IT equipment for proper storage, and break room
cabinetry necessary for storage of reusable dishware and utensils. Additional
improvements include flooring, ceilings, new appliances, lighting, carpeting, and painting.
On June 10, 2022, City Manager authorized advertisement for bids for the City Hall
Meeting Room Tenant Improvements in accordance with Financial Management Manual
for projects with an estimated contract cost of less than $200,000 (Attachment A). As
detailed in the preceding Policy Context section of this report, staff ultimately received
one bid in the amount of $330,280 which was over the Engineer’s Estimate for the project.
This cost increase is representative of the significant increase in construction costs seen
since 2021 as a result of labor and materials shortages. Costs are rapidly increasing and
further delay in this project is not anticipated to result in reduced construction costs.
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Item 5d
Although the bid was over the estimate, staff is recommending award of the agreement
(Attachment B) and allocating an additional $160,000 to the project from the Capital
Projects Reserve Fund balance as shown in Fiscal Impact Section of this report to avoid
further cost increases.
Previous Council or Advisory Body Action
On June 1, 2021, Council adopted its 2021-23 Financial Plan and the Fund Balance and
Reserve Policy. On June 7, 2022, Council adopted the FY 2022-23 Budget Supplement.
Public Engagement
This capital project was included in the 2021-23 Financial Plan, which included a robust
public outreach component.
CONCURRENCE
A building permit application was submitted to the Community Development Department’s
Building Division in August 2019. A permit extension was requested and approved in June
2022. The building permit will be obtained prior to the start of construction and will be
issued to the Contractor following the award of a construction contract. All comments and
conditions associated with the building and safety review of the project have been
incorporated into the design of the project.
ENVIRONMENTAL REVIEW
The Community Development Department has issued a Notice of Exemption pursuant to
section 15301 Class 1 (Existing Facilities) of the California Environmental Quality Act
Guidelines.
FISCAL IMPACT
This project was identified in the 2019 -21 Financial Plan, where it was initially allocated
$100,000 for construction but funds were deferred for another project. The 2021 -23
Financial Plan allocated $130,000 into the project account (1000055 -01) to cover
construction cost. Due to the passage of time since the project was initially conceived,
material costs have gone up as well as inflation leading to the need for additiona l funding.
Therefore, an additional $115,000 from the Local Revenue Measure and $15,000 the
General Fund was requested and approved with the 2022-23 Budget Supplement on
June 7, 2022, for a total project budget of $260,000. Due to the current bid price, st aff is
requesting an additional $160,000 be appropriated to the project from the Capital Projects
Reserve Fund to offset the increased project cost (Attachment C).
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
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Item 5d
Fiscal Analysis:
Funding Sources Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund:
Capital Outlay $14,692 $14,692 $0 N/A
General Fund:
Capital Outlay
Fund LRM
$245,000 $245,000 $0 N/A
State
Federal
Fees
Other: Capital
Projects Reserve
Fund
$1,171,708 $160,000 $1,011,708
Total $1,431,400 $419,692 $1,011,708
Project Total Cost
(1000055-01)
Capital Outlay Fund - LRM
Bid Total:$330,280
Contingencies (20%)$66,020
Total for Construction $396,300
Materials Testing:$2,000
Construction Support:$20,000
Printing:$500
Total Project Cost $418,800
Available Funding
Current 1000055-01 Balance:$259,692
Capital Projects Reserve Fund Balance:$1,171,708
Requested Funding
Requested Funding from the Capital
Projects Reserve Fund $160,000
Remaining Funding
Remaining funds in the Capital Projects
Reserve Fund $1,011,708
Post Project 1000055-01 account Balance $892
City Hall Meeting Room Tenant Improvements, Specification No.
1000055
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Item 5d
ALTERNATIVES
Deny awarding project and additional funding. Council may deny the award of the
project, but city staff advises against this as delay of the project would result in higher
construction cost. Council may also deny the authorization for additional funds, but city
staff advises against this as the funds are essential in order to ensure project completion.
ATTACHMENTS
A - City Manager Report to Advertise City Hall Meeting Room Tenant Improvements
B - Draft Agreement with Quincon, Inc.
C - Draft Resolution authorizing use of Capital Projects Reserve Fund for Specification
Number 1000055
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City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver
Name Date Approved
ACM Community Services Shelly 6/10/22
Reviewer Routing List Reviewer Name Date Reviewed
City Engineer Brian Nelson 6/2/2022
City Attorney Mark Amberg 6/9/22
Finance BE 6/9/22
Department Analyst Paul Fields 5/19/2022
CIP Process Improvement Manager Emily Jackson 5/24/2022
June 9, 2022
FROM: Matt Horn, Director of Public Works MH 6/8/2022
PREPARED BY: Nathan Garcia Nava, Engineer I
SUBJECT: Advertise City Hall Meeting Room Tenant Improvements, Specification No.
1000055
RECOMMENDATIONS
1. Approve the Project Plans (Attachment A) and Specifications (Attachment B) for the City
Hall Meeting Room Tenant Improvements, Specification Number 1000055; and
2. Authorize staff to advertise the project for bids; and
3. Authorize the Director of Public Works to award the construction contract if the lowest
responsible bid is within the Engineer’s Estimate of $180,000.
DISCUSSION
Background
Since being built in the 1950s, City Hall has been through Seismic Safety and HVAC retrofits,
remodels, and reconfigurations of specific sections such as Human Resources offices,
Administration Office (east and west wings), and public restrooms. The most recent projects
include the City Hall Chiller Replacement as well as the Audio and Video Replacement in the
Council Chambers. Since the Seismic Safety and HVAC Improvements project in 1998, the City
Hall meeting room and City Hall Breakroom have not been improved. This is a critically needed
project given the regular use of the rooms has caused significant wear and tear since the last
improvement. Considerations that were made in the prioritization of this project include the change
in ADA counter height requirements, the improper storage of IT equipment, and the need for break
room cabinetry to store reusable dishware and utensils. Additional improvements include but is
not limited to flooring, walls, and ceilings, new appliances, lighting, carpeting, and painting.
Page 79 of 364
Authorization to Advertise City Hall Meeting Room Tenant Improvements Page 2
FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:
Funding Sources FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: Capital Outlay &
LRM
$200,000 $200,000
Total $200,000 N/A $200,000
Project Cost Estimate (Spec. 1000055)
Construction Estimate $180,000
Contingency (15%) $20,000
Total for Project $200,000
Available Budget $260,000
This project was identified in the 2019-21 Financial Plan, where it was initially allocated $100,000
but funds were deferred for another project. The 2021-23 Financial Plan allocated $130,000 into
the project account (1000055) to cover construction cost. Due to the passage of time since the
project was initially conceived, material costs have gone up as well as inflation leading to the need
for additional funding. Therefore, an additional $130,000 from the Local Revenue Measure and
the Capital Outlay Fund was requested and approved with the 2022-23 Budget Supplement on
June 7th. This additional funding is expected to accommodate any additional unforeseen cost
increases above the estimated project budget of $200,000. On May 17, 2022, Council increased
the City Manager’s delegated authority for Capital Improvement Plan Project purchasing from
$175,000 to $200,000 in compliance with the State of California’s Uniform Public Construction
Cost Account Act.
The project is going out for bid now, so it can commence once FY2022-23 funding is available on
July 1, 2022.
ALTERNATIVES
Deny authorization to advertise. The City Manager may choose to not authorize project
advertisement. However, staff does not recommend this alternative as delaying the work pushes
the construction timeframe away from the council break and will likely increase future
construction costs.
ATTACHMENTS
Page 80 of 364
Authorization to Advertise City Hall Meeting Room Tenant Improvements Page 2
1. 1000055 – City Hall Meeting Room TI Plans
2. 1000055 – City Hall Meeting Room TI Specifications
https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/citymanagersreports/Shared Documents/Public Works/2022/CIP
Engineering/1000055 - Council Hearing Room Tenant Improvements/1000055 CMR - Advertise City Hall Meeting Room TI.docx
Page 81 of 364
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AGREEMENT
THIS AGREEMENT, made on _____________, by and between the City of San Luis
Obispo, a municipal corporation and charter city, San Luis Obispo County, California
(hereinafter called the Owner) and Quincon, Inc. (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
CITY HALL MEETING ROOM TENANT IMPROVEMENTS, SPEC NO. 1000055
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. COUNCIL HEARING ROOM
IMPROVMENTS
LS 1 --- $210,486.00
2. BREAK ROOM
IMPROVEMENTS
LS 1 --- $104,437.00
3. COUNCIL CHAMBERS
CCARPET
LS 1 --- $9,657.00
4. COMPLY WITH BUILIDING
PERMIT REQUIREMENTS
LS 1 --- $1,200.00
5. CONTRACTORS
COORDINATION
LS 1 --- $4,500.00
BID TOTAL: $ 330,280.00
DocuSign Envelope ID: 648BB937-FB61-423C-BC59-DEFDDC7FBD80
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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
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.
DocuSign Envelope ID: 648BB937-FB61-423C-BC59-DEFDDC7FBD80
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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 CONTRACTOR:
Quincon, Inc.
________________________________
By:________________________________
J. Christine Dietrick
City Attorney
Jose Quintana
Chief Executive Officer & Secretary
DocuSign Envelope ID: 648BB937-FB61-423C-BC59-DEFDDC7FBD80
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R ______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING USE OF CAPITAL PROJECTS
RESERVE FUND TO SUPPORT THE CITY HALL MEETING ROOM
TENANT IMPROVEMENTS, SPECIFICATION NUMBER 1000055
WHEREAS, in June of 2021, City Council approved the 2021-23 Financial Plan –
Capital Improvement Program, which identified the City Hall Meeting Room Tenant
Improvements (Project) with the current budget of $130,000 to support implementation of
the work; and
WHEREAS, in June of 2022, City Council adopted the Fiscal Year 2022-23 Budget
Supplemental, which identified an additional $130,000 to support construction work for the
Project upon award; and
WHEREAS, to provide funding to support the total construction contract for the
Project, staff is recommending City Council approve the use of an additional $160,000 from
the Capital Projects Reserve Fund; and
WHEREAS a balance of approximately $1.1 million is available from the Capital
Projects Reserve Fund
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
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Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 1. The City Council authorizes staff to transfer $160,000 from the
Capital Projects Reserve Fund to the City Hall Meeting Room Tenant Improvement
project account 1000055-01.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2022.
___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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