HomeMy WebLinkAbout01/09/2007, C6 - SWIM CENTER THERAPY POOL, SPECIFICATION NO. 90093B counat Mm°us°�
jJanu 9 2007 acEnaa REpoRt �N� CA
CITY OF SAN LUIS OBISPO
FROM: Jay Walter, Public Works Director
Prepared By: Bridget Fraser, Engineer III
SUBJECT: SWIM CENTER THERAPY POOL, SPECIFICATION NO. 90093B
CAO RECOMMENDATION
1. Award a contract to and authorize the mayor to execute a contract with, Sansone Construction,
Inc. of San Luis Obispo in the amount of $590,000 for: "Sinsheimer Swim Center
Children's/Therapy Pool Project Specification No. 90093B."
2. Appropriate $319,000 from the unappropriated balance of the Parkland Development Fund to
the project account.
DISCUSSION
This project involves the construction of a small warm water pool at the San Luis Obispo Swim Center
located at Sinsheimer Park. The project fulfills the City's goal of providing recreational opportunities to
groups and individuals that the facility currently does not serve or have been underserved in the past,
such as seniors with arthritis or other disabilities, infants learning to swim, people rehabilitating from
injuries, and other special needs populations. The project was established as a major City goal in the
2003-05 Financial Plan.
On October 3, 2006, the City Council approved the plans and specifications for the Therapy Pool and
authorized staff to advertise the project. Three bids were received and opened on December 7, 2006,
all of which were significantly over the engineer's estimate of $300,000. The low bid of $590,000
submitted by Sansone Construction, Inc. of San Luis Obispo is $290,000 or 97% over the engineer's
estimate. While the cost is significantly more than expected, all bids were in this higher range with
the second bid 5% higher than the low bid and the top bid 23% higher.
Subsequent review and comparison of the estimate and bids along with general comments from
contractors suggests this large variance is due to rising material and fuel costs, and added costs due to
the location and small size of the project.
Material and fuel costs. Based on conversations with several contractors, there have been significant
increases in the cost of materials, particularly the principal materials used in this project — concrete,
rebar, steel products, PVC pipe and conduit, copper wire and asphalt._ For example, the cost for
ready-mix concrete has doubled in the last one to two years according to local contractors. They have
also seen rebar prices fluctuate as high as three times in the last year with current prices leveling out
to around twice what it cost a year ago: Oil-related products such as asphalt and PVC pipe and
conduit have increased as oil prices increase. Fuel costs, in general, affect manufacturing,
transportation and trucking. The cost for copper used to make electrical wire has quadrupled
according to a local electrical contractor. In fact, many suppliers who would have guaranteed their
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Swim Center Therapy Pool Page 2
quotes for the typical 30-days are guaranteeing them only for a day at a time or in some cases by the
hour. There is no way to correctly estimate costs in this type of market.
A $240,000 estimate was provided to staff in December 2005 by the pool engineer. An additional
$60,000 was added to that estimate bringing the total to $300,000 to account for costs not in the pool
engineer's estimate such as a new larger sewer line, rerouting of all the underground utilities around
the new pool and additional costs associated with landscaping, planters and sidewalk that were a
result of architectural review. The December 2005 estimate was based on the best information
available to the engineer at that time, i.e. bid results from previous pool projects. It is speculated that
these bid results may have come from a time when the markets were still somewhat stable and did not
take fully into account major fluctuations and cost increases seen in the past couple of years.
Location and size. In addition to the increased costs, it appears the pool engineer's estimate did not
address added costs associated with the small size of the project and the location of our town away
from the metropolitan areas. Pool construction is a specialized trade and commercial pool contractors
are in high demand. They are also located in and.perform most of their business closer to their homes
in northern or southern California. The pool subcontractor indicated that there is added cost to this
project over what they consider"typical" due to our isolated location and the small size of the project.
It takes the same amount of workers and the same equipment to come to San Luis Obispo to build a
small pool as it would to build a large competition pool. He also indicated that the cost per square
foot for our pool was about double what the square foot cost for a competition pool built in their
working area would cost. He also pointed out that the project was unique in that we were only
building one small pool. Most pools of this size are built in conjunction with a larger swim facility
where much of the costs would be absorbed by the larger project. Estimates based on "typical" costs
per square foot values would not have taken into account the increase in per square foot cost as was
the case in this project.
CONCURRENCES
1. The Parks and Recreation Commission and the Joint Use Committee approved the design
concept at their April 2005 meetings.
2. The School District has granted the City approval to build, operate and maintain the new
therapy pool via an amendment to the existing Joint Use agreement.
3. The Community Development Department has granted this project a Categorical Exemption in
accordance with the California Environmental Quality Act (CEQA) and reviewed and approved
the plans as a Minor/Incidental Architectural Review project.
4. The Parks and Recreation and the Finance and Information Technology Directors concur with
the recommendation to cover the increased cost with a new appropriation from the Parkland
Development Fund.
FISCAL IMPACT
This project is identified in the 2003-05 Financial Plan. This project has $366,000 currently allocated
for this project that come from a 2002 Proposition 40 Bond Act Per Capita Grant, transfers from
completed pool projects and appropriations from the Parkland Development Fund. As discussed
above, bids came in significantly over estimates. The current budget will not cover the full cost of the
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Swim Center Therapy Pool Page 3
project. To cover the additional costs, staff recommends a new appropriation in the amount of
$319,000 from the Parkland Development Fund, which has an unappropriated balance of $358,100.
Council should be aware that using this funding now will reduce funding that would be programmed
for other uses in the future, although no projects have been approved at this time. Based on
community input over the last two years, including during consideration of the sales tax measure,
senior citizen facilities and programs are a high community priority.
A summary of the project cost is shown below:
Estimated Project Costs:
Design Costs:
Feasibility Study $6,000
Design Fees $21,000
Soils Report Fees $2,700
Allowance for Adv/Printing/Misc $1,300
$31,000
Construction Costs:
Allowance for Special Inspection $5,000
Construction Estimate $590,000
Contingencies $59,000
$654,000 $6859000
Current Budget: $3669000
Budget Shortfall $3199000
ALTERNATIVES
1. Downsize the pool The pool could be downsized to eliminate the shallow portions and only
maintain the deeper sections for therapy. However, downsizing the pool would not
significantly decrease the cost. There would be some savings in costs due to the smaller deck
and pool; however, the bigger issue is losing the shallow water experience for the "tots" which
we currently serve with our wading pool. Staff does not support this option_ as it would simply
fill one unmet need by sacrificing another.
2. Defer the project and obtain additional grants. Staff could begin investigating the
possibility of obtaining additional grants; however, there is no guarantee that a grant exists and
that it could be obtained in time to meet the deadlines associated with the current grant. In
addition, past experience has shown that costs are more likely to increase with time. The
project will become even more expensive to build as time passes.
3. Abandon the project. The goal of this project is to fill a number of recreational opportunities
not currently offered by the City that was requested by the public during the development of
the 2001 Parks and Recreation Element/Master Plan. Neither these unmet needs nor the
2003-05 Major City Goal fora Therapy Pool would be met.
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Swim Center Therapy Pool Page 4
ATTACHMENTS
1. Vicinity Map
2. Bid summary
3. Agreement
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Attachment 3
CITY OF SAN LUIS OBISPO
CALIFORNIA
AGREEMENT
THIS AGREEMENT, made on this day of , 2007, 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 Sansone 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 famish all of the labor, materials, necessary tools, expendable
equipment, and all utility and transportation services required to complete all the work of
construction of
Sinsheirner Swim Center- Children's/Therapy Pool, Specification No.90093B
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 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 Total
(in figures)
Construct new Children's/Therapy Pool per the $590,000.00
Contract Documents.
CONTRACT TOTAL $590,000.00
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.
Attachment 3
ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The full, complete and
exclusive contract between the parties hereto shall consist of the following identified documents
(the "Contract Documents") all of which are as fully a part thereof as if herein set out in full, if not
attached, as if hereto attached: Notice to Bidders, Instructions to Bidders, Information Available
to Bidders, Proposal Form, Listing of Subcontractors,Non-Collusion Declaration, Bidder's Bond,
this Agreement, Escrow Agreement for Security Deposits in Lieu of Retention, Performance
Bond, Payment Bond, Insurance Requirements, Guarantee of Work, Release, General
Conditions, Specifications, Standard Specifications, Engineering Standards drawings, any
addenda, and any change orders, field orders or directives issued pursuant to and in accordance
with this Agreement.
ARTICLE IV, CONFLICTS: 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.
ARTICLE V. BINDING AGREEMENT; ASSIGNMENT: Contractor, by execution of this
Agreement and the other Contract Documents,.understands them, and agrees to be bound by their
terms and conditions. The Contract Documents shall inure to the benefit of and shall be binding
upon the Contractor and the Owner and their respective successors and assigns.
ARTICLE VI, SEVERABILITY: If any provision of the Contract Documents shall be held
invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or
render unenforceable any other provision hereof.
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
City Clerk David F. Romero, Mayor
AROVED AS ORM: CONTRACTOR
Lowell Dave Sansone,Inc.
omey Sansone Company, Inc.
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