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HomeMy WebLinkAbout10-24-2017 Item 05 - Human Resources and Finance Departments Office Reconfiguration Spec 91525 Meeting Date: 10/24/2017 FROM: Daryl Grigsby, Director of Public Works Prepared By: Michael J. McGuire, Senior Civil Engineer SUBJECT: HUMAN RESOURCES AND FINANCE DEPARTMENTS OFFICE RECONFIGURATION, SPECIFICATION No. 91525 RECOMMENDATIONS 1. Award a contract to BC Construction & Electric in the amount of $124,552 for the “Human Resources and Finance Departments Office Reconfiguration, Specification No. 91525”; and 2. Approve the transfer of $11,962.46 from the General Capital Outlay Completed Projects Account balance and $1,130.54 from the Major Facilities Replacement Completed Projects Account balance, for a total of $13,093.00 to the project construction phase. DISCUSSION On August 15, 2017, Council approved the plans and specification for the HR/Finance Department Remodel project and authorized staff to advertise for bids. On September 28, 2017, bids were opened and of the two bids received, both bids were over the Engineer’s Estimate of $112,939. The bid from BC Construction & Electric of Morro Bay at $124,552 was the apparent low bid. Engineer’s Estimate BC Const. & Electric J & P Construction $112,939 $124,552 $129,835 Staff reviewed the bid documents, legal requirements, and contacted references, and concluded that the apparent low bidder was the lowest responsive and responsible bidder. Staff recommends awarding a construction contract to BC Construction and Electric. CONCURRENCES This project has the concurrence of the Community Development Department, as a building permit has been issued for this project. Also, the Human Resources and Finance Departments are in concurrence with the project reconfiguration plans. FISCAL IMPACT In the 2016-17 Budget Supplement, the City Council approved a Significant Operating Program Change (SOPC) in the amount of $75,000 for immediate workspace needs of Finance, Information Technology and the Human Resources Departments. Of this funding, $55,000 was used to support this need and the remaining $20,000 balance was returned to the General Fund at Packet Pg 31 5 the end of the 2016-17 fiscal year. Subsequently, $185,848 was allocated from the General Fund to fund the office reconfiguration work on August 15, 2017 by Council (Attachment A). Currently, construction is booming in San Luis Obispo, creating a “pick and choose” construction market for contractors. Four contractors were eligible to bid on this project by their attendance to the mandatory pre-bid inspection of the project area, and of those four, only two contractors submitted bids, with both of those bids exceeding the Engineer’s Estimate. With so much construction work available, the contractors most likely submitted a higher bid price due to demand for construction services. Staff is requesting $11,962.46 from the General Capital Outlay Completed Projects balance and $1,130.54 from the Major Facilities Replacement Completed Projects balance, for a total of $13,093, to fully fund the project. Both of these accounts have sufficient balances to transfer these amounts into the project construction account. Overall Project Fiscal Summary Fiscal Impact Summary Cost Total Project Budget Available 185,848$ Construction 124,552$ Contingency 15,593$ Total for Construction 140,145$ Data/Power Cabling (Not in Contract)8,787$ Modular Furniture (Not in Contract)47,066$ Miscellaneous (Not in Contract)2,943$ Total Ancillary Items 58,796$ Total Construction Related Project Costs:198,941$ Additional Funds Needed:(13,093)$ ENVIRONMENTAL REVIEW The Community Development Department has determined that this project is categorically exempt from CEQA pursuant to Section 15301 (Existing Facilities). ALTERNATIVES Deny approval to award. The City Council could choose to deny or defer the approval to award this project. Staff does not recommend this option. Should this be denied or deferred, the much - needed remodel will not occur. Construction, material and labor costs will continue to rise and additional funds may be required. Packet Pg 32 5 Attachments: a - 08.15.17 Council Agenda Report b - Contract Packet Pg 33 5 FROM: Daryl Grigsby, Director of Public Works Monica Irons, Director of Human Resources Xenia Bradford, Director of Finance Prepared By: Violeta Esparza-Reniere, Engineer III SUBJECT: HUMAN RESOURCES AND FINANCE DEPARTMENTS’ OFFICE RECONFIGURATION, SPECIFICATION NO. 91525 RECOMMENDATIONS 1. Approve construction documents for "Human Resources and Finance Departments’ Office Reconfiguration"; and 2. Authorize staff to advertise for bids and authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $169,255; and 3. Authorize allocation of $185,848 from the General Fund balance. DISCUSSION In the 2016-17 Budget Supplement the City Council approved a Significant Operating Program Change (SOPC) titled Organizational Efficiency, Effectiveness, and Transparency Initiative. This project identified the need for both the Finance, Information Technology, and Human Resources departmental re-organization. Specifically, the project approved additional one-time personnel increases in the Human Resources and Finance Departments during the re-organization and implementation of an Enterprise Resource System. Due to the personnel increase and functional re- organization, current workspaces require reconfiguration to meet current and future staff needs. The proposed office space remodel will improve community and city staff interactions and will address Americans with Disabilities Act (ADA) deficiencies at the Finance public counter. The scope of this project is to reconfigure the office spaces to increase the number of workstations and remodel the front counter. In the 2016-17 Budget Supplement $75,000 was identified as minor capital for additional work space address immediate needs, including the purchase of computers and workstations to temporarily accommodate the additional staff. Further analysis was performed during 2016-17 fiscal year, following the re-organization, and showed that reconfiguration of the office space will enhance efficiencies by addressing internal workflows and create the required number of desk space Currently, only minor adjustments could be made by placing temporary desks. These configurations are not sufficient to house contract and consulting staff to implement the objectives of the Organizational Efficiency, Effectiveness and Transparency Initiative. Currently, approximately $35,000 of the funding for this project is encumbered for architectural design services. Another $20,000 was used to purchase furniture and workstations for the new hires in both Human Resources and Finance departments. Of the original $75,000 identified for this project, the $20,000 balance was returned to the general fund at the end of the fiscal year. Packet Pg 34 5 CONCURRENCES This project is a collaborative effort from the Human Resources, Finance, and Public Works departments. The project team concurs with these recommendations. Currently, the Community Development Department is reviewing the project plans for future issuance of building permit. ENVIRONMENTAL REVIEW The Community Development Department has determined that this project is categorically exempt from CEQA pursuant to Section 15301 (existing facilities). FISCAL IMPACT The total estimate to complete the project is $185,848. Of the $75,000 allocated for this purpose in the 2016-17 Budget Supplement, $20,848 was unused, lapsed at the end of the fiscal year and was returned to General Fund balance. The Finance Department estimates that $100,000 is available through savings due to staffing vacancies as well as general carryover from the 2016-17 fiscal year. These savings will also be returned to General Fund as part of 2016-17 fiscal year close. As of the 2016-17 Mid-Year report, the estimated General Fund unassigned fund balance was approximately $3 million. In order to timely address Finance and Human Resources staffing space needs and given the project savings in 2016-17, staff recommends that $185,848 be authorized and allocated for this Capital Improvement Project at this time. Given the s avings in 2016-17 from expenditures that were originally allocated for the Organizational Efficiency, Effectiveness and Transparency Initiative, it is estimated that the impact to the General Fund balance is $60,000. 2016-17 Financial Statements are currently being prepared and this allocation will be reflected in the fund balance analysis presented with the Mid-Year report in February of 2018. Construction (Engineer’s Estimate): Staff Relocation $1,750 IT Cabling & Workstation Reconfiguration $54,566 Remodel Work $112,939 $169,255 Construction Contingencies:$15,593 Printing and Advertising $1,000 Total Estimated Project Cost:$185,848 Human Resources and Finance Departments' Office Reconfiguration, Specification No. 91525 ALTERNATIVES Deny approval of funding transfer from the General Fund Balance. City Council may choose to deny or defer the approval to transfer the funding. Staff does not recommend this option. Should this be denied or deferred, the needed Finance and Human Resources Departments’ office space remodel will not occur. This project will improve the workflows within the Human Resources and Packet Pg 35 5 Finance Departments. Current configuration of office space is not aligned with the internal workflows of the departments. Should this project be deferred then construction, material and labor costs will continue to rise and additional funds may be required. Packet Pg 36 5 1 of 2 CITY OF SAN LUIS OBISPO CALIFORNIA AGREEMENT THIS AGREEMENT, made on this day of , 20 , 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 BC CONSTRUCTION AND ELECTRIC, hereinafter called the Contractor. WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE I, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of HUMAN RESOURCES-FINANCE DEPARTMENTS REMODEL SPECIFICATION NO. 91525 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 Item Unit of Estimated Item Price Total No. Description Measure Quantity (in figures) (in figures) 1 Remodel LS 1 $124,552.00 $124,552.00 BID TOTAL: $124,552.00 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 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 attac hed: 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, City Standard Specifications and Engineering Standards, any addenda, and any change orders, field orders or directives issued pursuant to and in accordance with this Agreement. Packet Pg 37 5 2 of 2 ARTICLE IV INDEMNIFICATION: Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claim s or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. In the event of conflict with any other indemnification or hold harmless provisions of this Agreement, the provision that provides the most protection to the City shall apply. ARTICLE V, 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 VI, 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 VII, 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: _____________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________ J. Christine Dietrick City Attorney CITY OF SAN LUIS OBISPO By:_____________________________ Heidi Harmon City Mayor CONTRACTOR: BC Construction and Electric By:_____________________________ Bryan Carlson Its: Owner Packet Pg 38 5