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Home My WebLink About02/04/2003, C3 - LUDWICK COMMUNITY CENTER REMODEL SPECIFICATION NO. 90163B I council MFebrFebre uary 4, 2003 [A] acEnba nEpont '."� c3 CITY OF SAN LUIS OBISPO FROM: Michael McCluskey, Public Works Directot � Prepared By: Michael J. McGuire, Assistant Engineer SUBJECT: LUDWICK COMMUNITY CENTER REMODEL SPECIFICATION NO. 90163B CAO RECOMMENDATIONS: 1. Award a contract in the amount of $709,900 to Maino Construction for the "Ludwick Community Center Remodel", Specification No. 90163B 2. Authorize the Mayor to execute the contract 3. Approve transferring $111,144 from the Capital Outlay Fund completed projects account to the Ludwick Community Center Project account DISCUSSION On September 3, 2002 the City Council approved plans and specifications for the Ludwick Community Center Remodel and authorized staff to advertise for bids. Public Works advertised for bids on December 3, 2002 and opened bids on January 7, 2003. Five bids were received and all exceeded the engineer's construction cost estimate of$612,000. The lowest bid received was from Maino Construction in the amount of$709,900—$97,900, or 16 percent over the engineer's estimate. By Council policy, when bids received are higher than the engineer's estimate, the decision to award a contract is returned to the Council for action. Why did Bids Exceed the Engineer's Estimate? Staff contacted the apparent low bidder, Maino Construction, and learned that Maino had considered the following factors that were reflected in his bid, but not in the engineer's estimate: 1. Recent substantial increases in liability insurance 2. Recent increases in prevailing wage rates 3. Recent increases in the cost of building materials These conditions contributed to higher-than-expected bids. Upon examining the remaining four bids, all were within a 5% range, from 16% to 21% over the Engineer's Estimate. This validates the claim made by Maino Construction that costs to do the work were higher for all contractors involved in the bid. The bids received for the Police Station Women's Locker Room Remodel project were also above the Engineer's Estimate. These two building remodel projects, bid so close together, seem to reflect an increased cost for this type of work. In part the higher bids may also indicate some uncertainty as to what the contractor will find when they actually begin the remodel work. Council Agenda Report-Ludwick Community Center Remodel Page t -- A comparison to the recently awarded Damon-Garcia Sports Field project, which bids came in significantly below the Engineer's Estimate, would not be valid. That project, consisting mainly of Public Works construction items, is very different from remodeling an existing building. The project work is new construction, without the constraints of a building remodel, and as such the contractor has a much higher degree of certainty when bidding. What are the improvements to the parking lot? The main improvements are a slurry seal resurfacing and new parking stall striping. Slight modifications have been made to the restriping to accommodate handicap accessibility at the van parking stalls. The new parking capacity will be two stalls less than the current capacity due to the required trash enclosure. Due to site constraints and the Engineering Standards parking bay dimensions, additional parking stalls could not be added. CONCURRENCES The Parks & Recreation Director concurs with the awarding of the contract. FISCAL IMPACT This project was approved in the 2001-03 Financial Plan, to be completed in part through a generous $600,000 donation from the Ludwick family. (See pages 295 and 296 of Appendix B to the Financial Plan: 2001-05 Capital Improvement Plan). As shown in the following table, construction costs exceed the amount budget by$101,200. In addition, other project costs (for design, sign installation, asbestos removal, public art,and printing/advertising) exceed the amount budgeted by$9,944. Thus the total additional amount needed to cover all project costs is $111,144. Amount Amount Additional Estimated Budgeted Needed Construction Costs: Construction Contract(Bid Amount) $709,900 $612,000 $97,900 Construction Contract Contingencies @ 9 Percent 66,600 63,300 3,300 Construction Management(Contract Amount) 47,180 .47,180 0 Construction Management Contingencies @ 6 Percent 2,820 2,820 0 Total Construction Costs $826,500 $725,300 $101,200 Other Project Costs: Architectural Design(Actual and Encumbered) 49,890 45,500 4,390 Sign Design(Actual) $1,570 .1,500 70 Sign Construction(Actual) 7,079 7,000 79 Asbestos Removal(Actual) 16,364 11,000 5,364 Asbestos Removal Management(Actual) 12,100 12,100 0 Public Art(Actual and Encumbered) 18,500 18,500 0 Printing and Advertising(Actual) 1,041 1,000 41 Total Other Project Costs $106,544 $96,600 $9,944 Total All Project Costs $933,044 $821,900 $111,144 Council Agenda Report—Ludwick Community Center Remodel Page 3 Public Works is recommending that $111,144 be transferred from the Capital Outlay Fund completed projects account to the Ludwick Community Center Project account. The Capital Outlay Fund completed projects account has a current balance of$111,172. ALTERNATIVES 1. Reject all bids submitted, obtain additional construction funding for the project, and re- advertise for bids. This alternative would result in a setback of the start of construction and additional staff time and resources. 2. Reject all bids submitted and wait a substantial period before re-advertising for bids. This alternative presumes that a more competitive bid climate will result in the future due to the state fiscal crisis or other reasons. It would result in a setback of the start of construction and additional staff time and resources. Public Works feels that waiting and re-bidding the project would not result in bids low enough to avoid the need for the additional $111,144. 3. Reject all bids submitted and postpone the project until future funding is available. This course would likely result in higher construction costs when funding does become available. 4. Reject bids and defer the project indefinitely. A postponement in construction may result in the private donation being retracted, which would conceivably eliminate the project entirely. 5. Ask the donor for more funds. Considering the current amount that the donor has graciously donated to the project, asking for more would be in poor taste and should not be considered. ATTACHMENTS 1. Contract with Maino Construction 1:\Council Agenda Reports\2003 agenda reports\90163B CAR2 Ludwick Remodel B CITY OF SAN LUIS OBISPO CALIFORNIA AGREEMENT THIS AGREEMENT, made on this day of , 2003, by and between the City of San Luis Obispo, a municipal corporation and charter city (hereinafter called the "Owner"), and Maino Construction Company,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 fimfish all of the labor,materials,necessary tools,expendable equipment,and all utility and transportation services required to complete all the work of construction of the Ludwick Community Center Remodel,Specification No.90163B in strict accordance with the plans and specifications therefore, 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 famished 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: TOTAL BID AMOUNT:Seven hundred nine thousand,nine hundred dollars and no cents($709,900.00) Payments are to be made to the Contractor in accordance 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 Contractors and information for bidders. 2. Contract General Conditions and Technical Specifications. 3. Accepted Proposal. 4. Public Contract code Section 10285.1 Statement and 10162 Questionnaire. 5. Noncollusion Declaration. 6. Plans. 7. List of Subcontractors. 8. Agreement and Bonds. 9. Insurance Requirements and Forms. I ARTICLE IV. 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 or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date fust above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation Lee Price,City Clerk Mayor David F.Romero APPROVED AS TO FORM: CONTRACTOR X ert .Trujillo Maino Construction Company,Inc. Interim City Attorney Name and Title -2- �3 ,s