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HomeMy WebLinkAbout4/2/2024 Item 6k, Horn and Long - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: April 2, 2024 TO: Mayor and Council FROM: Matt Horn, Public Works Director Prepared By: Erica Long, Project Manager II VIA: Derek Johnson, City Manager SUBJECT: ITEM 6K - AUTHORIZATION TO ADVERTISE THE LAGUNA LAKE DOG PARK REVITALIZATION PROJECT, SPECIFICATION NO. 2001068 Staff received the following questions and is recommending modifications to the staff report regarding the Laguna Lake Dog Park Revitalization project report as follows: 1. Question: Is there a way to provide for additional bid alternates that could allow for more scope to be awarded if the bid is under the Publicly Disclosed Funding limit of $1,130,000? Answer: Staff chose to separate the landscaping and irrigation as Additive Alternate A from the Base Bid to provide more certainty that a project with the primary elements of a dog park could be awarded. The scope of the base bid includes demolition, earthwork, fencing, flatwork, ground cover, and utility infrastructure within the approximate three-acre park. See the estimate table below for approximate construction cost per category of Base Bid work items. Base Bid: Estimated Cost by Category Category Estimated Cost Percentage Demolition $35,000.00 4% Utility Infrastructure (hydration stations & drainage improvements) $55,000.00 6% Earthwork $90,000.00 11% Ground Cover (mulch & pea gravel) $115,000.00 14% Fencing $165,000.00 19% Flatwork (including root barrier & irrigation sleeving) $390,000.00 46% TOTAL $850,000.00 100% Item 6k - Authorization to Advertise the Laguna Lake Dog Park Revitalization Project Page 2 The tables below provide the approximate cost per category of items with Additive Alternate A and B. Additive Alternative A: Estimated Cost by Category Category Estimated Cost Percentage Maintenance (3-months) $10,000.00 4% Trees and Shrubs $41,000.00 18% Turf Lawn $72,000.00 31% Irrigation $107,000.00 47% TOTAL $230,000.00 100% Additive Alternative B: Estimated Cost by Category Category Estimated Cost Percentage Shade Sails (8 total) $50,000.00 100% TOTAL $230,000.00 100% Staff discussed splitting the Additive Alternate A into more than one alternative, but in order to construct some landscaping, there is still a need for the irrigation component which is a significant portion of the cost and needs to be installed all at once. Staff also considered an alternative with irrigation, turf lawn and the three- month maintenance contract but determined this would not provide a significant cost savings. Council could choose to direct staff to bid the project with what is currently in the Base Bid and Additive Alternative A as the updated base bid contract. If Council requests staff proceed with the irrigation and landscaping included in the base bid, then the following alternative recommendation could be used: Alternative 5: Approve authorization to advertise the project with Additive Alternative A in the Base Bid. Council may choose to direct staff to update the plans and special provisions to combine Additive Alternate A (landscaping and irrigation) with the base project bid, and separate Additive Alternate B (shade sails) as the only alternative, with a publicly disclosed funding amount of $1,130,000. Under this alternative, if bids received exceed the publicly disclosed funding limit, staff would return to Council with either a recommendation to reject all bids or a request for additional funding. As this would delay construction of the project, staff does not recommend this alternative. Currently, the Base Bid is scoped to provide the primary elements of a dog park, which would not preclude future improvements. Item 6k - Authorization to Advertise the Laguna Lake Dog Park Revitalization Project Page 3 2. Question: In support of competitive bids, can the contractor qualifications be reduced or public outreach increased? Could opening the project to contractors without public project experience provide more competitive bids? As called out in the special provisions, the required contractor qualifications are listed as follows: “You must have experience constructing projects similar to the work specified for this project. Provide three similar reference projects completed as either the prime or subcontractor. All referenced projects must have been completed within the last five years from this project’s bid opening date. One of the three reference projects must have been completed under contract with a city, county, state or federal government agency as the prime contractor.” The City requires one reference project to be for past experience with a government agency. This requirement has been standardized across all Capital Improvement Projects publicly bid by the City. Prior public project experience better ensures the low bid contractor is familiar with State requirements to be registered with the Department of Industrial Relations as well as prevailing wage rates and reporting requirements. Contractors without public project experience may require extensive staff time to train and familiarize with City and State contract requirements, as well more rigorous oversight during the contract to ensure their contractual obligations are met. Due to limited staffing resources and multiple ongoing construction projects, staff recommend keeping the requirement for past public project experience in order to reduce potential administrative workload. As part of the public bid process, the City posts advertisements for public bids in the New Times. Additionally, project bids opportunities are posted to the City’s website. Contractors interested in working with the City on public projects can sign up for notifications through the website and through the City’s bid advertisement resource called BidSync. These advertisement methods have been successful in soliciting competitive bids for the City’s projects for contractors interested in working on City projects. 3. Staff discovered an error in the table on page 7 of the staff report. The Laguna Lake Dog Park, Specification No. 2001068 funding table should be replaced with the revised table below. The table in the original report incorrectly listed the funding from the Park Improvement Fund (519-0000-32001) that is being requested to be used. Staff is requesting to appropriate the entire unreserved fund balance from the Park Improvement Fund to the project to provide an 18% contingency for construction. This request is included in the recommendations and Item 6k - Authorization to Advertise the Laguna Lake Dog Park Revitalization Project Page 4 fiscal impact sections of the report, as well as the proposed Resolution; however, the request for the full unreserved fund balance from the Park Improvement Fund was not reflected in the funding table. As shown in the revised funding table below, the total project construction estimate is $1,333,000 (with a full 18% contingency amount) and the total project cost estimate is $1,368,683. 4. Staff received a request to list two previous park project costs by funding source for comparison. The table below showcases financial support authorized to fund project costs. Other Park Project Costs by Funding Sources Cheng Park Revitalization (~0.2 acres) (2001010) North Broad Street Neighborhood Park (~0.4 acres) (2091683) Capital Outlay Fund $799,371 $318,534 Quimby Fund $0 $1,356,749 Total Construction Phase Cost $799,371 $1,675,283 Item 6k - Authorization to Advertise the Laguna Lake Dog Park Revitalization Project Page 5 The final plans and special provisions will be updated to reflect any changes made by Council on the items included in the base bid or any alternative. Staff was notified that there is currently an error in the special provisions showing the shade structures in the base bid. Those bid items will be removed from the base bid and included in the correct alternative.