HomeMy WebLinkAbout02/01/2000, C2 - AWARD OF CONTRACT FOR 879 MORRO RENOVATION/SEISMIC STRENGTHENING PROJECT council Feb.
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C I T Y O F S A N L U I S O B I S P O
FROM: John Moss, Director of Utilities 91Y1
Prepared By: Sue Baasch, Administrative Analyst
SUBJECT: Award of Contract for 879 Morro Renovation/Seismic Strengthening Project
CAO RECOMMENDATION
• Authorize the transfer of$173,800 from the Water Fund's completed CEP project account to
the 879 Morro CIP construction account to establish a new total construction budget of
$847,600; and
• Authorize the award of the construction contract for renovation and seismic strengthening
of 879 Morro (CIP Specification Number 99229B) to David Scarry Construction, Inc., of
San Luis Obispo, in the amount of$737,000.
DISCUSSION
The 879 Morro Street Renovation project, Specification No. 92-29, opened bids on January 5,
2000. Five bids were received, ranging from $737,000 (low) to $863,070 (high). The low bidder
was David Scarry Construction of San Luis Obispo.
The engineer's estimate for this project was $619,200. The approved project budget for
construction and site work is currently $673,800. The additional amount requested includes
$63,200 to fund the contract, as well as $110,600 (an additional fifteen percent) to fund
contingencies. Staff recommends a fifteen percent contingency as this is a renovation project and
has the additional issues of lead-based paint, some asbestos, and seismic strengthening.
Why are the bids higher than the engineer's estimate?
Representatives from the project Architect (RRM) and construction manager (MarWal
Construction) thought the bids reflected several factors, primarily attributable to a healthy economy
and a very busy construction community. They speculated on the lack of local subcontractors to bid
the project because local subcontractors are very busy and the likelihood that specified materials
were in high demand, requiring longer lead times or the use of alternative, more expensive, sources
for materials to meet the construction schedule.
The other consideration is that this project has certain construction complexities which were
difficult to estimate financially:
limited access to the site;
proximity of the building to the Palm parking structure;
limited contractor staging and storage area;
the requirement to retain the parking structure's Morro Street ingress/egress at the beginning
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Council Agenda Report—879 Morro Award of Construction Contract
Page 2
and end of the work day; and
the requirement to protect the parking structure equipment.
Listing of Bids
i Contractor Bid
David Scarry Construction,San Luis Obispo $737,000
Maino Construction,San Luis Obispo $789.000
Wysong Construction,Atascadero $837.000
Vernon-Edward Contractors,Nipomo $846.000
Goodrich-Baas and Associates Santa Barbara $863,070
Project Schedule
Action Date
Seek Council authorization to award bid to Contractor. February 1,2000
Issue Notice to Proceed February 15,2000
Construction Period(180 days) February through August,2000
Occupancy September 2000
FISCAL IMPACT
The total requested budget for construction and site work for this project is $847,600. Currently
approved budget for construction and site work is $673,800. The requested $173,800 will fund
the additional amount needed to meet the contractor's bid ($63,200), and provide a 15% project
contingency ($110,600). Staff requests that the additional amount required ($173,800) be
approved to come from the Water Fund CIP completed project account.
879 Morro Construction/Site Work Bud2et
Approved Construction/Site Work
Water Fund $458,200
Sewer Fund 215.600
Total approved budget $673,800
Additional requested
To fund contract 63,200 Contractor's Bid $737,000
Contingency(15%) 110660 Contingency(15%) 110,600
Total additional request $173,800
Total Construction/Site Work Budget $847,600 Total Construction/Site Work Budget $847,600
CONCLUSION
Excluding only the cost of furnishings and information systems equipment from the total project
costs, the cost per square foot (based upon an approximate 4,000 square foot building) is $1.56.
This assumes a twenty-year time frame for amortizing the cost. The City's most current
allocation plan uses $1.55 per square foot as its charge to departments for office space.
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Council Agenda Report—879 Morro Award of Construction Contract
Page 3
Therefore, this project is consistent with the current cost of downtown office space. In addition,
at the end of this construction project, another downtown building will be seismically
strengthened.
How does this project fit with the City's current look at expanding City Hall? It creates and
maintains options for the City as it plans for the future. In the short term, cost-effective office
space is created for the Utilities Administration and Conservation staff. (The three members of
the Water Conservation staff are currently located in the Old Library and the seven members of
the Utilities Administration staff are located in 955 Morro building.) In the long term, the City
can choose to use this office space, lease this office space, or sell the structure to the Parking
Fund for possible parking structure improvements.
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