HomeMy WebLinkAbout06/21/2011, C 7 - SOUTHERN PACIFIC RAILROAD FREIGHT WAREHOUSE REHABILITATION - PHASE 4, SPECIFICATION NO. 90106 council June 21,2011
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CITY OF SAN LUIS OBISPO
FROM: Jay D. Walter, Director of Public Works
Prepared By: Michael J. McGuire, Engineer III IA IM
SUBJECT: SOUTHERN PACIFIC RAILROAD FREIGHT WAREHOUSE
REHABILITATION—PHASE 4,SPECIFICATION No.90106
RECOMMENDATIONS
1. Award a contract to Noble Building Company in the amount of $102,764 for the "SPRR
Freight Warehouse Rehabilitation—Phase 4, Specification No. 90106".
2. Approve a transfer of $16,000 from the CIP Completed Projects account to the project's
construction account.
DISCUSSION
On May 21, 2002, the City Council approved a plan to rehabilitate and renovate the historic
Southern Pacific Railroad (SPRR) Freight Warehouse. This project has had three phases of
construction already completed. Phase 1, completed in December 2004 and funded by Federal
Transportation Enhancement Activities Grant (TEA Grant) of $440,000, consisted of a new
concrete foundation for stabilization of the Warehouse. Also, due to favorable bidding conditions,
a metal roof was installed.
Phase 2, comprised mainly of construction, included the installation of shear walls, fabrication of
new cargo and pedestrian doors, and installation of temporary electrical power and lighting to the
building. Phase 2 was funded by a Community Development Block Grant (CDBG) and was
completed in May 2007.
Phase 3, funded by the remaining TEA Grant along with the City match requirement, consisted of
abatement of the remaining lead paint from the walls, replacement of damaged wood siding,
installation of new historically replicated windows, installation of new wood shingles on one end
wall, and exterior painting. This phase of work was completed in July 2008.
In May 2010, CDBG funding of$100,000 was obtained to address the Americans with Disabilities
Act (ADA) accessibility requirements of the Freight Warehouse and will comprise the scope of
improvements for Phase 4. Phase 4 improvements will consist of installation of a handicapped-
accessible ramp and stairs to the Freight Warehouse, steel railing enclosing the exterior platform
and installation of a sewer lateral to an existing sewer line.
On April 15, 2011, the City Manager authorized inviting bids for the SPRR Freight Warehouse
Rehabilitation — Phase 4 (Attachment 1). The Engineer's Estimate for the project was below the
purchasing policy threshold of$100,000, allowing City Manager authorization to advertise. Bids
were opened on June 2, 2011, and three bids were received. All of the bids were above the
Engineer's Estimate of $87,000 with Noble Building Company of San Luis Obispo being the
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SPRR Freight Warehouse Rehabilitation-Phase 4(90106) Page 2
lowest bidder at $102,764 (Attachment 2). In discussion with the two lowest bidders, they
indicated a recent substantial increase in steel costs as the main reason for their bids exceeding the
Engineer's Estimate.
Staff recommends awarding the contract for Phase 4 and transferring $16,000 from the Capital
Improvement Program Completed Project account to the project's construction account. This
amount will provide the needed funding for contract award and minimum construction
contingencies. This project is part of the 2009-11 Other Council Objectives - Infrastructure
Maintenance. This is the final phase of construction work to be provided by the City. The San Luis
Obispo Railroad Museum Group will carry the work forward from this point to prepare the building
for final occupancy.
CONCURRENCES
This phase of the project has the concurrence of the Community Development Department and
received environmental clearance with the earlier phases.
FISCAL IMPACT
The 2009-11 Financial Plan, Appendix B, pages 3-382 to 3-386, identifies $200,000 in the
construction phase to support the SPRR Freight Warehouse Rehabilitation project. The
$200,000 allocation consisted of$100,000 CDBG funds (Fund 240) and $100,000 donation from
the Hind Foundation (Fund 400).
The donation from the Hind Foundation was made directly to the Railroad Museum Group and
not to the City as previously anticipated. As such, the Hind donation of$100,000 has been de-
programmed as it is no longer expected project revenue. The Railroad Museum Group is
currently using that donation to install support trusses for the fire sprinkler system piping and
Warehouse lighting, and other tenant improvements.
Staff recommends the transfer of$16,000 from the Capital Improvement Program(CIP) Completed
Project account to the SPRR Freight Warehouse project's construction account to support contract
award and minimum construction contingencies. There are sufficient funds available in the CIP
Completed Projects account, which has a current balance of$45,500, to support this request.
Co tion: $ 102,754
Construction Contingencies: $ 10,275 1
Total for Construction: $1-13,029
1— - ---
$ 367
Construction Tes ' 1 $ 2,604 1
Total for other costs: - $2,971 1
Total Cost of Project_ -_� $116,000
CDBG Funding: -- ------ - - $ 100,0001
Additional Funding Needed: $16,000 f
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SPRR Freight Warehouse Rehabilitation—Phase 4(90106) Page 3
ALTERNATIVE
Deny approval for award. The City Council could choose to deny the approval for award. Staff
does not recommend this alternative. Should the approval to award be denied or deferred,
improvements leading towards the occupancy of the SPRR Freight Warehouse will not be
constructed. In addition, the CDBG funding already approved for this project could be put in
jeopardy if not utilized in a timely manner, and re-allocated to another jurisdiction.
ATTACHMENTS
1. City Manager Report, Authorizing Advertisement
2. Bid Summary
3. Contract Agreement, Noble Building Company
T:\Council Agenda Reports\Public Works CAR\2011\CIP\90106 Freight Warehouse Phase 4\90106 eCAR Award_.doc
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Attachment 1
city of
san Luis owspo
CITY MANAGER .
EPORT
Final City Manager Approval Appr6verNarrie Date Approved
City Administration Michael C:odron Asiri1 1-1;, 2(111
Reviewer Routing List Reviewer Name Date Reviewed
City Attorney Christine Dietrick April 11,2011
City Engineer Barbara Lynch April 8,2011
Finance& Information Technology Debbie Malicoat April 11,2011
April 7, 2011
FROM: Jay D. Walter, Director of Public Works IVIV Apri 1 8. 201 1
PREPARED BY: Michael J. McGuire, Engineer III
SUBJECT: SOUTHERN PACIFIC RAILROAD FREIGHT WAREHOUSE
REHABILITATION—PHASE 4, SPECIFICATION No. 90106
RECOMMENDATIONS
1. Approve plans and specifications for "Southern Pacific Railroad (SPRR) Freight Warehouse
Rehabilitation— Phase 4, Specification No. 90106".
2. Authorize staff to advertise for bids.
3. Approve the reduction of$100,000 in the contributions revenue and expenditure budget for
the SPRR Freight Warehouse project as a result of an un-realized donation from the Hind
Foundation.
4. Approve a Budget Amendment Request of $12,583.28 to transfer funding from the CIP
Completed Projects account to the project's Capital Outlay Fund construction account.
5. Approve a transfer of $18,000 from the project's Community Development Block Grant
Fund construction management phase to the construction phase account.
DISCUSSION
On May 21, 2002, the City Council approved a plan to rehabilitate and renovate the historic
Southern Pacific Railroad Freight Warehouse. This project has had three phases of construction
already completed. Phase 1, completed in December, 2004 and funded by Federal Transportation
Enhancement Activities Grant(TEA Grant) of$440,000, consists of a new concrete foundation for
stabilization of the Warehouse. Also, due to favorable bidding conditions, a new metal roof was
installed.
Phase 2, comprised mainly of construction, included the installation of shear walls. fabrication of
new cargo and pedestrian doors, and installation of temporary electrical power and lighting to the
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Attachment 1
SPRR Freight Warehouse Rehabilitation—Phase 4(90106) Page 2
building. Phase 2 was funded by a Community Development Block Grant (CDBG) and was
completed in May, 2007.
Phase 3, funded by the remaining TEA Grant along with the City match requirement, consisted of
abatement of the remaining lead paint from the walls, replacement of damaged wood siding,
installation of new historically replicated windows, installation of new wood shingles on one end
wall,and exterior painting.
In May,2010, CDBG funding of$100,000 was obtained to address the Americans with Disabilities
Act (ADA) accessibility requirements of the Freight Warehouse and will comprise the scope of
improvements for Phase 4. Phase 4 improvements will consist of installation of a handicapped-
accessible ramp and stairs to the Freight Warehouse, steel railing enclosing the exterior platform,
installation of a sewer lateral to an existing sewer line, and replacement of damaged asphalt
flooring.
The Railroad Museum Group, who will be the occupants of the Freight Warehouse, has obtained
matching funds of$100,000 donated from the Hind Foundation. The Railroad Museum Group has
agreed to use this donation to install support trusses for the Fre sprinkler system piping and
Warehouse lighting. The fire sprinkler system for the building is a generous donation provided by
Alpha Fire of San Luis Obispo. The balance of the donation to the Railroad Museum Group will be
used for interior tenant improvements, including a handicap-accessible restroom for use by the
museum as well as the designated lounge and rest area for the Regional Transit Authority (RTA)
bus drivers, which was a requirement for expenditure of the original Phase 1 TEA Grant funds.
Unfortunately, due to rising costs for construction materials and labor, Phase 4 scope of work does
not include the costs for obtaining occupancy of the Freight Warehouse for the Railroad Museum
Group. While the Freight Warehouse building occupancy is very close, the Railroad Museum
Group will need to obtain additional funding or donations to complete the work required for
occupancy.
CONCURRENCE
This phase of the project has the concurrence of the Utilities Department.
FISCAL IMPACT
The 2009-11 Financial Plan, Appendix B, pages 3-382 to 3-386, identifies $200,000 in the
construction phase to support the SPRR Freight Warehouse Rehabilitation project. The
$200,000 allocation consisted of$100,000 CDBG funds (Fund 240) and $100,000 donation from
the Hind Foundation (Fund 400).
The donation from the Hind Foundation was made directly to the Railroad Museum Group and
not to the City as previously anticipated. As such, the Hind donation of$100,000 needs to be de-
programmed as it is no longer expected project revenue. Staff recommends reducing the
donation appropriation and expenditure budget for the SPRR Freight Warehouse by $100,000.
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Attachment 1
SPRR Freight Warehouse Rehabilitation—Phase 4(90106) Page 3
Funding By Source
SPRR FricahtlWarehouse (90106) Fund Current Proposed Change
CDBG Grant 240 $ 100,000 $ 100,000 1 $ -
Hind Foundation Donation 400 $ 100,000 $ $ (100,000)
Total $ 200,000 $ 100,000 $ (100,000)
During the design and construction completed as part of the first three project phases, there was
work completed and services performed that could not be paid through either the TEA Grant or the
CDBG funds due to certain grant restrictions on billable items. Some of these items were for
printing and advertising, additional design services, construction management services, material
testing fees and other construction-related costs. This work totaled approximately $12,585 and was
intended to be supported by the anticipated donation from the Hind Foundation. Unfortunately, the
Hind Foundation provided its donation directly to the Railroad Museum Group, leaving the City
with insufficient funding to support the previous work completed as part of phases 1-3. Staff
recommends that funds in the amount of$12,585 be transferred from the CIP Completed Projects
account to the project's construction account (Fund 400) to fully pay these restricted cost items.
There is sufficient budget available in the CIP Completed Projects account, which has a current
available balance of$49,245.
Funding By Source Fund Current-
gh ( ) (12,583) $Proposed- $ 12,583
SPRR Frie t Warehouse 90106 400 $
CIP Completed Projects(99899) 400 $ 44,245 $ 31,662 $ (12,583)
Total $ 31,662 $ 31,662 $ -
The remaining budget allocation of $100,000 (CDBG Fund 240) for the SPRR Freight
Warehouse Rehabilitation project consists of $82,000 for construction and $18,000 for
construction management. The construction management duties will be provided by in-house
Public Works Inspectors. Therefore, staff recommends the construction management budget
allocation of$18,000 be transferred into the project's construction account in support of Phase 4
work.
Funding By Source
SPRR Freiuht Warehouse (90106) Fund Current Proposed Chan-e
Construction-953 1 240 $ 82,000 $ 100,000 1 $ 18,000
Construction Management-954 240 $ 18,000 $ - $ (18,000)
Total $ 100,000 $ 100,000 $
The budget allocation of $100,000 is sufficient to support construction of the SPRR Freight
Warehouse Rehabilitation Project—Phase 4. Project budget details are outlined below.
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Attachment 1
SPRR Freight Warehouse Rehabilitation—Phase 4(90106) Page 4
(90 106)
Engineer's Estimate Construction: $87,000
Construction Contingencies: $10,000
Total for Construction: $97,000
Construction Testing: $2,000
Printing/Advertising: $1,000
Total Cost of Project: $100,000
ALTERNATIVES
1. Deny approval for advertising. The City Manager could choose to deny the approval for
advertising. Staff does not recommend this alternative. Should the approval to advertise be
denied or deferred, improvements leading towards the occupancy of the SPRR Freight
Warehouse will not be constructed. In addition, the CDBG funding already approved for
this project could be put in jeopardy if not utilized in a timely manner and re-allocated to
another jurisdiction.
2. Deny Funding Transfer. The City Manager could chose to deny the approval of funding
transfer from the CIP Completed Projects account. Staff does not recommend this option as
there is already a Fund 400 budget shortfall of$12,583 for work completed in anticipation
of the Hind Foundation funding. This work was completed prior to the deprogramming of
these anticipated funds. CDBG funds (Fund 240) cannot be used to backfill this shortfall
due to certain grant restrictions on billable items.
ATTACHMENTS
1. Plans& Specifications
2. Budget Amendment Requests
TACity Manager Reports\Public Works\20I I\CIP\90106 Freight Warehouse Phase 4\90106 eCM Advertise.doc
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Attachment 3
CITY OF SAN LUIS OBISPO
CALIFORNIA
AGREEMENT
THIS AGREEMENT, made on this day of , 2011,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 Noble Building Company,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 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
SPRR Freight Warehouse Rehabilitation—Phase 4,Specification No. 90106
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 H. 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)
Installation of handicapped accessible ramp and $102,764.00
stairs,platform and stairs metal railing, and sewer
lateral extension per the Contract Documents.
CONTRACT TOTAL $102,764.00
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:
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Attachment 3
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 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 fust above written.
CITY OF SAN LUIS OBISPO,
A Municipal Corporation
Katie Lichtig, City Manager
APPR VED AS T ORM: CONTRACTOR
J. Christine Dietrick Dennis Noble,Owner
City Attorney Noble Building Company
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