Loading...
HomeMy WebLinkAboutItem 5e. Award a Construction Contract for the Cheng Park Revitalization Project, Spec. No. 91385-10 Item 5e Department: Public Works Cost Center: 5005 For Agenda of: 9/5/2023 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Erica Long, Capital Projects Manager II SUBJECT: AWARD A CONSTRUCTION CONTRACT FOR THE CHENG PARK REVITALIZATION PROJECT, SPECIFICATION NUMBER 91385-10 RECOMMENDATION 1. Award a Construction Contract to JJ Fisher Construction, Inc. in the amount of $646,778 for the Cheng Park Revitalization project, Specification Number 91385-10; and 2. Authorize an appropriation of $300,000 from the Capital Projects Reserve Fund to the project account 2001010-01; 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 Cheng Park Revitalization, Specification Number 91385-10.” POLICY CONTEXT On July 19, 2022, City Council authorized staff to advertise for bids for the Cheng Park Revitalization project. No bids were received during the public bidding process, therefore, 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) After reaching out to interested contractors, staff proceeded with an informal bidding process in accordance with the above Municipal Code s ection. JJ Fisher Construction, Inc., submitted a bid package for the project on July 25, 2023, in the amount of $646,778. 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. This project is funded entirely through the Local Revenue Measure. Page 33 of 753 Item 5e The recommended actions for award of a construction contract (Attachment A) 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 follows: 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 Cheng Park Revitalization project is consistent with this policy and a draft resolution has been prepared (Attachment B). DISCUSSION Background Cheng Park is a small contemplative garden with a pond, shade structure, sculptures, and a few benches located at the corner of Marsh Street and Santa Rosa Street. Significant maintenance is necessary to restore and preserve the park. The park was constructed in 2005 to celebrate Chinese Heritage through architectural and landscape features and it has many features that need to be repaired or upgraded. The current project includes rehabilitating the existing water pond, installing a new pump station, minor electrical improvements at the Pagoda, new solar lights, as well landscaping, and irrigation replacement. On May 18, 2023, a bid opening was held where no bids were received (Attachment C). Based on the input from contractors that were interested in the project but did not bid, staff decided to readvertise for bids with the same project documents. Contractors indicated that they did not have adequate time to find subcontractors for the scope of work or were otherwise too busy to do the work. Staff anticipated that readvertising the project would allow contractors more time to submit a bid. The project went out to bid a second time on June 1, 2023, and on June, 22, 2023, a bid opening was held where no bids were received (Attachment D). Since no bids were received after two public bidding processes, staff proceeded with an informal biding process. On July 25, 2023, one bid was received through the informal bidding process (Attachment E). The bid submitted by JJ Fisher Construction, Inc., came in at a price of $646,778, which is over the engineer’s estimate of $400,000. JJ Fisher Construction is a responsible contractor that submitted a responsive bid package and has a history of constructing parks projects for the City. Page 34 of 753 Item 5e Table 1: Bid results for bid opening on July 25, 2023. Engineer’s Estimate JJ Fisher Construction, Inc. $400,000 $646,778 The bid price may be attributed to overall construction cost escalation and the lack of bid competitiveness as demonstrated by no initial bids received after the two formal bid advertisements. Previous Council or Advisory Body Action This Project was identified in the 2021 -23 Financial Plan that was approved by Council. Additionally, the Fund Balance and Reserve Policy was adopted by Council on June 1, 2021. The authorization to advertise was approved by Council on July 19, 2022. Public Engagement Public engagement for the Cheng Park Revitalization project was completed during the initial identification of this project in preparing the 2021-23 Financial Plan. Additionally, City staff worked with the original designer of the park, Alice Loh, to ensure the revitalization is consistent with the original purpose of the park to honor Chinese culture. CONCURRENCE The Public Works, Community Development, and Parks and Recreation departments concur with the recommendations of this report. ENVIRONMENTAL REVIEW The Cheng Park Revitalization 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 maintain existing facilities. The project is consistent with the applicable general plan policies as well as with applicable City Regulations. FISCAL IMPACT Budgeted: Yes Budget Year: 2023-24 Funding Identified: Yes Fiscal Analysis: The current available project budget is $499,371 which includes the $200,000 of Capital Projects Reserve Fund approved by Council on July 19, 2022 and $300,000 of funding that was provided in the 2021-23 Financial Plan. Due to the current bid price, staff is requesting an additional $300,000 of Capital Projects Reserve Funds be appropriated to the project to fund the project, including costs of construction, contingencies, materials testing, design support, and printing. Project anticipated costs included recommended Capital Projects Reserve Funding shown below. Page 35 of 753 Item 5e Project Costs (2001010-01) General Fund - Local Revenue Measure Bid Total $646,778 Contingencies (20%)$129,356 Total Construction Cost $776,134 Materials Testing:$5,500 Design Support - RRM $17,000 Printing:$737 Total Project Cost $799,371 Current Project Balance:$499,371 Current Capital Projects Reserve Fund Balance $3,700,000 Additional Funding Requested from the Capital Projects Reverve Fund Balance $300,000 Remaining in the Capital Projects Reverve:$3,400,000 Cheng Park Revitalization, Specification No. 91385-10 The table below shows the available project funding, available Capital Projects Reserve Funding, and the additional proposed funding from the Capital Projects Reserve of $300,000 leaving a remaining balance of Capital Projects Reserve funding of $3,400,000. Funding Sources Total Budget Available Additional Funding Request Remaining Balance after Project Annual Ongoing Cost General Fund: Capital Outlay - LRM $499,371 $0 $0 N/A State Federal Fees Other: Capital Projects Reserve Fund $3,700,000 $300,000 $3,400,000 N/A Total $4,199,371 $300,000 $3,400,000 N/A The Capital Projects Reserve Fund received an allocation of $4,000,000 with approval of the 2023-25 Financial Plan. This amount complies with the Capital Reserve Fund Policy which requires that the City maintain a capital reserve equivalent to 20% of the annual Local Revenue Measure capital budget to offset unanticipated cost increases and unforeseen conditions and thus provides for continued investment in infrastructure maintenance and enhancement according to the adopted project list. Below is a summary of use of the Capital Reserve in FY 2023-24. Page 36 of 753 Item 5e FY 2023-24 Capital Reserve Starting Balance $4,000,000 Use of Reserves to Date Amount Notes Corporation Yard Fuel Island and Wash Station Rehabilitation (2000075-9.01) $300,000 Approved on 6/20/23 for allocation from FY 2023- 24 reserve amount Cheng Park Revitalization (91385-10) $300,000 Requested via this item FY 2023-24 Remaining Reserve Balance $3,400,000 * * On April 4, 2023, Council authorized use of up to $75,000 from the Capital Reserve for the Buchon Street Traffic Calming Project. As of the writing of this staff report, none of the $75,000 has been allocated to that project. ALTERNATIVES 1. Deny the award of the construction contract. Council may choose to not award the contract at this time, reject all bids, and defer the project for readvertisement when additional project funding can be identified and allocated as part of typical budgeting processes. Staff does not recommend this option as it would further delay the construction of this approved project from the 2020-21 Supplemental Budget. This option risks project costs rising and the City could potentially receive bids higher than the above bid from JJ Fisher Construction, Inc. 2. Deny the appropriation of Capital Projects Reserve Funds. Staff does not recommend this option, as the park rehabilitation was identified as a near-term project in the Council-approved Parks and Recreation Blueprint for the Future and needs restoration. No other funding sources have been identified that could contribute to this project without deferring other projects. ATTACHMENTS A - Draft Construction Contract with JJ Fisher Construction, Inc. B - Draft Resolution authorizing use of Capital Projects Reserve Fund for Specification Number 91385-10 C - Bid Results from the 1st Advertisement D - Bid Results from the 2nd Advertisement E - Bid Results from the Informal Bidding Process Page 37 of 753 Page 38 of 753 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 JJ FISHER CONSTRUCTION, 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 CHENG PARK REVITALIZATION, SPECIFICATION 91385-10 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 Traffic Control LS 1 --- $17,500.00 2 Site Demolition LS 1 --- $42,000.00 3 Concrete Curb LF 175 $50.00 $8,750.00 4 Concrete Sidewalk SQFT 50 $135.00 $6,750.00 5 Paint Touchup (Pagoda post and conduit) LS 1 --- $5,435.00 6 Pagoda Guardrail LF 68 $920.00 $62,560.00 7 Interpretive Sign LS 1 --- $4,850.00 8 Landscape Boulders (size range 24” – 36”) EA 2 $1,475.00 $2.950.00 9 Landscape Boulders (size range 36” – 48”) EA 14 $2,215.00 $31,010.00 DocuSign Envelope ID: 8F729461-58EB-4A25-B681-AED13220B179 Page 39 of 753 10 (S) Pound Construction LS 1 --- $144,465.00 11 Erosion Control LS 1 --- $3,235.00 12 Pump Procurement and Installation LS 1 --- $26,800.00 13 Pump Vault Lid Replacement LS 1 --- $23,800.00 14 Electrical Infrastructure Upgrades LS 1 ---- $106,285.00 15 Pagoda Light Fixtures EA 6 $2,025.00 $12,150.00 16 (S) Lita Solar Lights (14ft pole) EA 2 $18,690.00 $37,380.00 17 (S) Lita Solar Light (20ft pole) EA 1 --- $21,275.00 18 Camera Installation LS 1 --- $7,360.00 19 Shrubs (15 gallon container) EA 11 $370.00 $4,070.00 20 Shrubs (5 gallon container) EA 39 $72.00 $2,808.00 21 Shrubs and Ground Covers (1 gallon container) EA 63 $35.00 $2,205.00 22 Shrubs and Ground Covers (4 inch container) EA 1011 $21.00 $21,231.00 23 Backfill Mix CF 10 $59.00 $590.00 24 Thin Existing Bamboo Thicket LS 1 --- $4,185.00 25 Mulch Planting Areas SQFT 3340 $2.25 $7,515.00 26 Modifications to Existing Irrigation System LS 1 --- $29,555.00 27 Comply with Building Perrmit Requirements LS 1 --- $7,475.00 28 Plant Establishment Period MONTH 3 $863.00 $2,589.00 BID TOTAL: $646,778.00 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 DocuSign Envelope ID: 8F729461-58EB-4A25-B681-AED13220B179 Page 40 of 753 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. 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. DocuSign Envelope ID: 8F729461-58EB-4A25-B681-AED13220B179 Page 41 of 753 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: _______________________________ Teresa Purrington, City Clerk CITY OF SAN LUIS OBISPO A Municipal Corporation ___________________________________ Erica A. Stewart, Mayor APPROVED AS TO FORM CONTRACTOR: JJ FISHER CONSTRUCTION, INC. ________________________________ ___________________________________ J. Christine Dietrick City Attorney Jayson James Fisher Chief Executive Officer ____________________________________ Mark Sczbecki Chief Financial Officer DocuSign Envelope ID: 8F729461-58EB-4A25-B681-AED13220B179 Page 42 of 753 R ______ RESOLUTION NO. _____ (2023 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE USE OF CAPITAL PROJECTS RESERVE FUND TO SUPPORT CHENG PARK REVITALIZATION, SPECIFICATION NUMBER 91385-10 WHEREAS, in June of 2021, the City Council approved the 2021-23 Financial Plan – Capital Improvement Program, which identified the Cheng Park Revitalization project with a total budget of $300,000 to support implementation of the project; and WHEREAS, in July of 2022, the City Council approved Resolution 11346 to provide funding to support construction work for the Project, the City Council approved the use of $200,000 from the Capital Projects Reserve Fund; and WHEREAS, to provide funding to support the total construction contract for the Project, staff is recommending the City Council approve the use of $300,000 from the Capital Projects Reserve Fund; and WHEREAS, a balance of approximately $3.97 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: Page 43 of 753 Resolution No. _____ (2023 Series) Page 2 R ______ SECTION 1. The City Council authorizes staff to transfer $300,000 from the Capital Project Reserve Fund to Cheng Park Revitalization, Specification No. 91385-10. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2023. ___________________________ 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 Page 44 of 753 Bid Opening: 05/18/23 Item # Item Description Unit of Measure Estimated Quanity Item price Total 1 Traffic Control LS 1 2 Site Demolition LS 1 3 Concrete Curb LF 175 4 Concrete Sidewalk SQFT 50 5 Paint Touchup (Pagoda post and conduit) LS 1 6 Pagoda Guardrail LF 68 7 Interpretive Sign LS 1 8 Landscape Boulders (size range 24"-36") EA 2 9 Landscape Boulders (size range 36”-48”) EA 14 10 Pond Construction LS 1 11 Erosion Control LS 1 12 Pump Procurement and Installation LS 1 13 Pump Vault Lid Replacement LS 1 14 Electrical Infrastructure Upgrades LS 1 15 Pagoda Light Fixtures EA 6 16 Lita Solar Lights (14ft pole) EA 2 17 Lita Solar Light (20ft pole) EA 1 18 Camera Installation LS 1 19 Shrubs 15 (gallon container) EA 11 20 Shrubs (5 gallon container) EA 39 21 Shrubs and Ground Covers (1 gallon container) EA 63 22 Shrubs and Ground Covers (4 inch container) EA 1011 23 Backfill Mix SQFT 2040 24 Thin Existing Bamboo Thicket LS 1 25 Mulch Planting Areas SQFT 3340 26 Modifications to Existing Irrigation System LS 1 27 Comply with Building Permit Requirements LS 1 28 Plant Establishment Period MONTH 3 $0.00 CHENG PARK REVITALIZATION, SPECIFICATION NO. 91385-10 Total Bid Amount Engineer's Estimate Page 45 of 753 Page 46 of 753 Bid Opening: 06/22/23 Item # Item Description Unit of Measure Estimated Quanity Item price Total 1 Traffic Control LS 1 2 Site Demolition LS 1 3 Concrete Curb LF 175 4 Concrete Sidewalk SQFT 50 5 Paint Touchup (Pagoda post and conduit) LS 1 6 Pagoda Guardrail LF 68 7 Interpretive Sign LS 1 8 Landscape Boulders (size range 24"-36") EA 2 9 Landscape Boulders (size range 36”-48”) EA 14 10 Pond Construction LS 1 11 Erosion Control LS 1 12 Pump Procurement and Installation LS 1 13 Pump Vault Lid Replacement LS 1 14 Electrical Infrastructure Upgrades LS 1 15 Pagoda Light Fixtures EA 6 16 Lita Solar Lights (14ft pole) EA 2 17 Lita Solar Light (20ft pole) EA 1 18 Camera Installation LS 1 19 Shrubs 15 (gallon container) EA 11 20 Shrubs (5 gallon container) EA 39 21 Shrubs and Ground Covers (1 gallon container) EA 63 22 Shrubs and Ground Covers (4 inch container) EA 1011 23 Backfill Mix SQFT 2040 24 Thin Existing Bamboo Thicket LS 1 25 Mulch Planting Areas SQFT 3340 26 Modifications to Existing Irrigation System LS 1 27 Comply with Building Permit Requirements LS 1 28 Plant Establishment Period MONTH 3 $0.00 CHENG PARK REVITALIZATION, SPECIFICATION NO. 91385-10 Total Bid Amount Engineer's Estimate Page 47 of 753 Page 48 of 753 Bid Opening: 07/25/23 Item # Item Description Unit of Measure Estimated Quanity Item price Total 1 Traffic Control LS 1 --- $17,500.00 2 Site Demolition LS 1 --- $42,000.00 3 Concrete Curb LF 175 $50.00 $8,750.00 4 Concrete Sidewalk SQFT 50 $135.00 $6,750.00 5 Paint Touchup (Pagoda post and conduit) LS 1 --- $5,435.00 6 Pagoda Guardrail LF 68 $920.00 $62,560.00 7 Interpretive Sign LS 1 --- $4,850.00 8 Landscape Boulders (size range 24"-36") EA 2 $1,475.00 $2,950.00 9 Landscape Boulders (size range 36”-48”) EA 14 $2,215.00 $31,010.00 10 Pond Construction LS 1 --- $144,465.00 11 Erosion Control LS 1 --- $3,235.00 12 Pump Procurement and Installation LS 1 --- $26,800.00 13 Pump Vault Lid Replacement LS 1 --- $23,800.00 14 Electrical Infrastructure Upgrades LS 1 --- $106,285.00 15 Pagoda Light Fixtures EA 6 $2,025.00 $12,150.00 16(S) Lita Solar Lights (14ft pole) EA 2 $18,690.00 $37,380.00 17(S) Lita Solar Light (20ft pole) EA 1 $21,275.00 $21,275.00 18 Camera Installation LS 1 --- $7,360.00 19 Shrubs 15 (gallon container) EA 11 $370.00 $4,070.00 20 Shrubs (5 gallon container) EA 39 $72.00 $2,808.00 21 Shrubs and Ground Covers (1 gallon container) EA 63 $35.00 $2,205.00 22 Shrubs and Ground Covers (4 inch container) EA 1011 $21.00 $21,231.00 23 Backfill Mix CF 10 $59.00 $590.00 24 Thin Existing Bamboo Thicket LS 1 --- $4,185.00 25 Mulch Planting Areas SQFT 3340 $2.25 $7,515.00 26 Modifications to Existing Irrigation System LS 1 --- $29,555.00 27 Comply with Building Permit Requirements LS 1 --- $7,475.00 28 Plant Establishment Period MONTH 3 $863.00 $2,589.00 $646,778.00 CHENG PARK REVITALIZATION, SPECIFICATION NO. 91385-10 Total Bid Amount JJ Fisher Construction Inc. Page 49 of 753 Page 50 of 753