CC 2014-05-27_08.h. Award Contract Police Station UpgradeMEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, DIRECTOR OF COMMUNITY DEVELOPMENT
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO GLR
CONSTRUCTION, INC. FOR THE POLICE STATION UPGRADE
PROJECT
DATE: MAY 27,2014
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for construction remodel of the Police Station Building to GLR
Construction, Inc. in the amount of $1 ,676,342; and
2. Authorize the City Manager to approve change orders up to 10% of the contract
amount, $163,044, for unanticipated costs during the construction phase of the
project (total construction costs= $1 ,676,342+ $167,634= $1 ,843,976); and
3. Appropriate an additional $69,000 from the General Fund unappropriated fund
balance.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
Remaining funds in the revised budget for the Police Building project are $1,883,000,
which includes additional funding appropriated by the City Council at the March 25, 2014
meeting. The lowest responsive bid is $1,676,342. Therefore, the project and design
team were successful in reducing the project cost by approximately $134,000 from the
prior bid due to design changes when including contingencies. However, it falls roughly
$91,000 short of the City's goal. This results in a budget shortfall of $68,476 after all cost
and revenue figures have been updated. Therefore, an additional appropriation of
$69,000 from the General Fund unappropriated fund balance is recommended. Sufficient
reserve funds are available. Staff will work with the contractor to attempt to identify and
agree on additional potential areas for savings in order to complete the project under the
proposed budget.
Item 8.h. - Page 1
CITY COUNCIL
CONSIDERATION TO AWARD A CONTRACT FOR THE POLICE STATION
UPGRADE PROJECT
MAY 27,2014
PAGE2
An estimate of remaining costs and revenue is as follows:
Available Funding
Construction Bid
Construction Contingency
FF&E's
$1,883,000
($1 ,676,342)
($167,634)
($1 00,000)
Relocation of Woman's Club User Groups ($7,500)
Balance ($68,476)
BACKGROUND:
At the April 13, 2013 meeting, the City Council approved the proposed plan to remodel
the existing Police Station to address the highest priority immediate facility needs. The
Council also approved the Purchase and Sale Agreement for the acquisition of the
property at 270 North Halcyon Road. On July 9, 2013 and August 27, 2013, parking lot
design options were considered. On October 8, 2013, the Council approved the Police
Department Temporary Relocation Plan. On November 26, 2013, the Council approved
the design for the Police Station Upgrade project, the funding plan; and Amendment No.
1 to the Agreement for Consultant Services with IBI Group. On March 25, 2014, the
Council rejected all bids, directed staff to re-advertise, and approved a revised funding
plan to allow design modifications to be incorporated into the project to reduce costs
without significant impact to the project objectives or construction schedule.
Since that time, the architect completed revised specifications and the project was re-
advertised for bid. Additionally, the Rena Street sewer relocation project has been
completed, as well as the asbestos abatement work. Bids were re-advertised on April 19,
2014 and a mandatory pre-bid conference was held on April 29, 2014 for all contractors
who did not previously participate in a pre-bid conference. Bids for the project were
opened on May 15, 2014. Eight bids were received. The low bid was initially Carroll
Building Company in the amount of $1,630,447, and in second position, Vernon Edwards
Constructors, Inc. in the amount of $1 ,634,658. However, the City received notice from
both Carroll Building Company and Vernon Edwards Constructors, Inc. requesting to
have their bids rejected as non-responsive based on clerical/mathematical errors made in
their proposals. The next lowest responsive bid was GLR Construction Inc., which was
$1,676,342. The low bid is within the architect's estimate range of $1,442,000 -
$1,730,400.
ANALYSIS OF ISSUES:
Staff worked with the architect to identify items that could reduce costs through redesign
without reducing the ability of the project to address the operational needs of the Police
Department. After reviewing proposals, and receiving general input from bidders, plans
Item 8.h. - Page 2
CITY COUNCIL
CONSIDERATION TO AWARD A CONTRACT FOR THE POLICE STATION
UPGRADE PROJECT
MAY 27,2014
PAGE3
were revised to reflect modified roofing, fencing and radio tower specifications.
Additionally, the architect configured the Bid Proposal into two distinct sections: the Base
Bid Proposal, for the entire project scope of work, and a Deductive Alternate for
construction of the metal storage building. In compliance with Section 20103.8 of the
Public Contractor's Code, the specifications stipulate the award of a contract to be based
solely on the Base Bid Proposal.
The lowest responsive base bid was from GLR Construction, Inc. The prices received
for the Deductive Alternates ranged from $51,000 to $96,000, with the price received
from GLR Construction, Inc., in the amount of $76,342. Staff has satisfactorily reviewed
the bid documentation and recommends award of a contract to the lowest responsive
bidder, established on the base bid. Further, staff is recommending not accepting the
Deductive Alternate from GLR Construction, Inc. (not deducting the storage building) at
this time due to an estimated comparable cost and time delays if the City were to
construct the storage building separately.
Should the Council award the bid, the notice to proceed is anticipated to be issued the
second week of June. The specifications include a 190 day construction period with
completion projected by December 22, 2014.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
• Award a contract to GLR Construction, Inc.;
• Award the bid and deduct the storage building to determine if savings can be
achieved by constructing it separately;
• Do not award a construction contract for the project; or
• Provide direction to staff.
ADVANTAGES:
Awarding the bid will enable construction of the project with available revenues to
address Police Department facility needs in the most cost efficient manner and minimize
the additional time Police personnel will need to occupy the Woman's Club. Staff and the
construction manager will attempt to work with the contractor to identify additional cost
reductions.
DISADVANTAGES:
Awarding the bid may require minor additional budget adjustments unless costs can be
further reduced prior and during construction.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Guidelines Section 15301 (c).
Item 8.h. - Page 3
CITY COUNCIL
CONSIDERATION TO AWARD A CONTRACT FOR THE POLICE STATION
UPGRADE PROJECT
MAY 27,2014
PAGE4
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted on Thursday, May 22, 2014. The agenda and staff report was
posted on the City's website on Friday, May 23, 2014. No public comments were
received as of the time of preparation of this report.
Attachment:
1. Bid Tabulations
Item 8.h. - Page 4
CITY OF ARROYO GRANDE
BID OPENING LOG SHEET
DEADLINE: TUESDAY, MAY 15, 2014-2:00 PM
ATTACHMENT 1
PROJECT NAME: POLICE STATION ADDITION I TENANT IMPROVEMENTS
PROJECT NO. PW 2014-08
ARCHITECT'S ESTIMATE: $1,442,000.00
SUBMITTED BY: BASE ALTERNATE
GLR Construction, Inc. $1,676,342.00 $76,342.00
Santa Maria, CA
SIGMA Services, Inc. $1,785,947.00 $64,930.00
Ventura, CA
Carroll Building Co. $1,630,447.00 $99,131.00
San Luis Obispo, CA
PBC $1,694,000.00 $76,417.00
Atascadero, CA
Pueblo Construction $2,013,336.00 $62,000.00
Santa Barbara, CA
Pre Con Industries, Inc. $1,803.580.00 $78,011.00
Santa Maria, CA
Vernon Edwards $1,634,658.00 $74,230.00
Santa Maria, CA
Newton Construction $1,739,000.00 $51,000.00
San Luis Obispo, CA
NOTE: The City will award a contract based on the lowest responsible Bidders Base Bid Proposal.
c: Director of Community Development C> ""
Assistant City Engineer
City Manager
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