HomeMy WebLinkAbout07-07-2015 C11 Administration RemodelCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Daryl R. Grigsby, Director of Public Works
Prepared By: Michael J. McGuire, Engineer III
James David, Principal Analyst
SUBJECT: CITY HALL ADMINISTRATION REMODEL, SPECIFICATION NO. 91290
RECOMMENDATIONS
1. Reject all bids for the “City Hall Administration Remodel, Spec. No. 91290”.
2. Authorize staff to re-advertise the revised project and authorize the City Manager to
award a contract if the lowest responsible bid is within the project budget.
DISCUSSION
On May 5, 2015, the City Council authorized inviting bids for the City Hall Administration
Remodel, Specification No. 91290 (Attachment 1). Three bids were opened on June 23, 2015
and all three bids exceeded the Engineer’s Estimate of $132,000. Newton Construction &
Management Inc. of San Luis Obispo was the lowest responsible bidder with a base bid proposal
of $147,500 (Attachment 2).
On June 26, 2015, Newton Construction formally requested that their bid be withdrawn from
consideration for award due to a significant clerical error in their bid price (Attachment 3). They
cited a miscalculation between using regular partition wall and the proprietary wall system
specified in the contract documents.
This wall system is in use throughout the administrative wings of City Hall, having been
installed in previous remodels. For the current remodel, the wall system was specified for its ease
of installation and for continuity of the walls within the area. Unknown at the time of bidding,
the company that manufactures the wall system is in financial difficulty and has stopped supply
to the Western United States. There is only one supplier available for Southern California and the
costs for the wall system have dramatically increased.
Staff recommends rejecting all bids for the remodel. All three bids indicated a high bid price for
the proprietary wall system, significantly more costly than a conventional stud-wall system.
Staff also recommends authorization to re-advertise the project. The plans and specifications will
be revised to remove the installation of the proprietary wall system and replaced with the more
cost-effective typical stud-wall system. If the Council approves re-advertising and delegates
award authority to the CM, staff is cautiously optimistic that construction will begin August 10.
This is about three weeks later than originally planned.
One additional change is the Administration West vault door will no longer be part of the
remodel project. It was an added alternative to the original Request for Proposals that resulted in
significant project cost escalation with limited benefit. The Admin West vault can still function
as temporary staff workstations without removal of the vault door.
July 7, 2015
C11
C11-1
City Hall Administration Remodel (91290) Page 2
CONCURRENCES
The Administration Department has been involved in the design and bid process and supports the
revised project as presented. Construction documents are awaiting permitting by the Community
Development Department. The project will not start construction until a permit has been issued.
FISCAL IMPACT
On February 18, 2014, the City Council approved the use of $250,000 of excess General Fund
reserve to reconfigure the City Hall Administration offices and make accessibility upgrades to
the building. Approximately $17,500 has been expended for the automated doors to the Finance
and IT main entrance, and $35,000 for project design services. Other costs include workstation
reconfiguration, data/communications cabling work, furniture purchases and shipping container
rental. These items will be managed separately by staff for expediency and are within the
purchasing authority of the Finance Director.
Fiscal Impact Summary Revised
Total Project Budget 250,000$
Design Services (35,000)$
Finance/IT Accessible Doors (17,500)$
Available Project Budget 197,500$
Engineer's Estimate Construction*132,000$
Construction Contingency 11,000$
Total For Construction 143,000$
Furniture Purchase 12,000$
Workstation Reconfiguration 25,000$
Printing & Advertising 1,000$
Total Ancillary Items 38,000$
Estimated Total Remaining Project Costs 181,000$
Project Balance 16,500$ *Includes $22,000 of ADA Upgrades
ALTERNATIVES
Deny rejection of bids. The Council could choose to deny rejection of bids and award this project to
the second lowest bidder. This is not recommended as there are insufficient project funds available
to award a contract.
Deny re-advertising. The Council could choose to deny or defer re-advertising of the project. This
is not recommended as construction and labor costs will continue to rise and the reconfiguration of
the administrative wings will not be achieved.
C11-2
City Hall Administration Remodel (91290) Page 3
ATTACHMENTS
1. May 5th Council Agenda Report
2. Bid Results
3. Bid Withdrawal Letter
t:\council agenda reports\2015\2015-07-07\city hall administration remodel\car reject city hall admin remodel.docx
C11-3
City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Daryl R. Grigsby, Director of Public Works
Prepared By: Michael J. McGuire, Engineer III
James David, Principal Analyst
SUBJECT: CITY HALL ADMINISTRATION REMODEL, SPECIFICATION NO. 91290
RECOMMENDATIONS
1. Approve plans and specifications for “City Hall Administration Remodel, Spec. No. 91290.”
2. Authorize staff to advertise for bids and authorize the City Manager to award the contract if
the lowest responsible bidder is within the Engineer’s Estimate of $132,000.
DISCUSSION
On February 18, 2014, the City Council approved use of $250,000 of excess General Fund
reserve to reconfigure and update City Hall Administration offices and make accessibility
upgrades to the building. The purpose of the office reconfiguration is to consolidate two public
counters into one for efficient customer service, and group staff that collaborate daily on shared
department objectives in the same work area. The overall scope of the project follows.
1. Move the Mayor, Council, City Manager and Council Assistant into the Administration
offices on the east side of the building.
2. Move the Natural Resources Manager, Economic Development Manager, City Biologist
and Tourism Manager into the Administration offices on the west side of the building.
3. Improve the interior reception area in the Admin East offices.
4. Create an additional Council office.
5. Create informal meeting space in the Admin West offices to relieve meeting pressure on
the Council Hearing Room.
6. Create additional workstations in the Admin West offices for temporary staff and interns,
7. Install automatic-opening accessible doors on the main entrance to the Finance and IT
Department.
8. Install various ADA upgrades along the accessible path of travel to the Administration
offices, and the upstairs restrooms..
The project involves construction and removal of walls and partitions, workstation (cubicle)
reconfigurations, furniture purchases, fixture installations, carpeting and painting. The furniture
plan reuses existing workstation components to the fullest extent possible, thereby minimizing
the purchase of new parts or furniture.
Project Plan and Timing
The accessible upgrades to the main entrance of Finance and IT were completed during the week
of April 20 under a separate contract. Construction and demolition in the Administration offices
will begin mid to late July. This work will be phased beginning with Admin East. Some staff will
be temporarily relocated during construction. Impact to the Mayor, Council and City Manager is
minimal; these individuals will remain in Admin West until Admin East construction is
completed. Furniture will be relocated on the weekend to avoid disruption.
May 5, 2015
C7
Attachment 1
C11-4
City Hall Administration Remodel (91290) Page 2
CONCURRENCES
The Administration Department has been involved in the process and supports the project as
presented. Construction documents are currently under permitting review by the Community
Development Department. The project will not start construction until a permit has been issued.
FISCAL IMPACT
Approximately $17,500 has been expended for the accessible upgrades to the Finance and IT
main entrance. $35,000 has been expended for project design services. The estimated
construction cost is $132,000. This cost does not include workstation reconfiguration and
furniture purchases, which will be managed separately by staff for expediency. Costs for these
two project elements are within the purchasing authority of the City Manager.
ALTERNATIVES
Deny approval to advertise. The Council could choose to deny or defer the approval for advertising
of this project. This is not recommended since efficiencies from the project – public counter
consolidation, aligning staff workgroups and ADA upgrades – will not be achieved.
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
Plans & Specifications
t:\council agenda reports\2015\2015-05-05\city hall administration remodel\car advertise city hall admin remodel.docx
Attachment 1
C11-5
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Attachment 2 C11-6
P.O. Box 3260 San Luis Obispo, CA 93403 (805) 544-5583 (805) 544-5584Fax
June 26, 2015
Mike McGuire, Project Manager
Public Work Department
City of San Luis Obipso
919 Palm Street
San Luis Obispo, CA 93401
VIA EMAIL
PROJECT: City Hall Administration Remodel
Specification NO. 91290
San Luis Obispo, CA 93401
RE: Bid Proposal Withdrawal
Mr. McGuire;
Please consider this letter as a formal bid proposal withdrawal for the above referenced
project. A significant clerical error was made on the intent and calculation of the drywall
and Ultrawall scopes of work and their weights on the base and alternate prices.
California Public Contract Code section 5103 provides grounds for relief from a prime
contractor's bid error and thus the forfeiture of its bid bond. In light of the above, we
regretfully are forced to withdraw our bid from the selection process for this project per
this section.
If you should have any questions, please feel free to contact our office at any time.
Respectfully,
Newton Construction & Management, Inc.
Eric Newton
Project Manager
Attachment 3
C11-7