CC 2017-11-28_09h Award Contract_Womans Club Kitchen Renovation
MEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, PUBLIC WORKS DIRECTOR
BY: JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO EFFECT
CONTRACTORS FOR CONSTRUCTION OF THE CITY OF ARROYO
GRANDE AND WOMAN'S CLUB COMMUNITY CENTER KITCHEN
RENOVATION PROJECT, PW 2016-01
DATE: NOVEMBER 28, 2017
SUMMARY OF ACTION:
Take action to award a construction contract to renovate the kitchen at the City of
Arroyo Grande and Woman’s Club Community Center. It is anticipated that work will be
accomplished between January and April of 2018.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The amended Capital Improvement Program Budget includes $239,500 for the project
which includes $55,492 in donations. The total cost for the proposed kitchen renovation
project is estimated at $262,813. Staff is recommending an appropriation of $23,313
from the Park Development Fund. The current unallocated Park Development fund
balance is approximately $651,500. It is anticipated that there will be an indeterminate
increase in rental fees for the Community Center building given the proposed kitchen
improvements that will qualify for commercial kitchen status, significantly increasing the
desirability of the facility for rental purposes. It is estimated that approximately eighty
hours of staff time will be necessary to provide oversight during project construction.
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for the City of Arroyo Grande and Woman's Club Community
Center Kitchen Renovation Project to Effect Contractors in the amount of
$177,344;
2. Authorize the City Manager to approve change orders for 20% of the contract
amount, $35,469, for unanticipated costs during the construction phase of the
project (total construction costs = $177,344 + $35,469 = $212,813)
3. Appropriate $23,313 from the Park Development Fund balance for the project.
Item 9.h. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO EFFECT CONTRACTORS
FOR CONSTRUCTION OF THE CITY OF ARROYO GRANDE AND WOMAN'S CLUB
COMMUNITY CENTER KITCHEN RENOVATION PROJECT, PW 2016-01
NOVEMBER 28, 2017
PAGE 2
BACKGROUND:
The City of Arroyo Grande and Woman’s Club Community Center building, located at
211 Vernon Street, serves as a social hall and meeting room rental facility for the City of
Arroyo Grande. Currently, this 4,773 square foot building includes a large meeting
room, men’s and women’s bathroom facilities, an employee office and a small kitchen,
which does not adequately meet the needs of the ongoing user groups.
On February 14, 2017, the Council approved an appropriation for the kitchen renovation
and approved an agreement for design services with Harris Architecture & Design.
Through a series of meetings with the stakeholder’s group, which consisted of
representatives from the City of Arroyo Grande, the Woman’s Club of Arroyo Grande,
and the Arroyo Grande Lion’s Club, a design plan for the kitchen renovation was
developed. The plan consists of expanding the kitchen area by 105 square feet by
moving out the eastern exterior wall. This expansion allows for a redesigned kitchen
with increased efficiency and capacity. Improvements will include new cabinetry,
appliances, electrical modifications and lighting. After completion, the facility will meet
the requirements of a commercial kitchen.
ANALYSIS OF ISSUES:
On October 10, 2017, the Council approved the construction plans & specifications for
the City of Arroyo Grande and Woman’s Club Community Center Kitchen Renovation
project and authorized the advertisement for construction bids. The architect’s opinion
of probable construction cost was $117,000. On October 26, 2017, City staff and Harris
Architecture & Design held a non-mandatory on-site pre-bid meeting to ensure that all
potential bidders understood the project.
On November 7, 2017, six bids were received for the kitchen renovation project. The
apparent low bidder did not include a bid security equal to at least ten percent of the
amount bid and, therefore, was deemed non-responsive pursuant to Public Contract
Code Section 20171. The second low bid, submitted by Effect Contractors in the
amount of $177,344, has been determined to be responsive and the bidder to be
responsible. The architect's opinion of probable construction cost is based on previous
bids received. It is believed that the bids came in higher than anticipated due to higher
than expected construction labor and material prices with the economy picking up
significantly over the past couple of years. While higher than anticipated, the bid is a
good and reasonable bid from a reputable company.
Based on this bid, the total cost for the project is estimated at $262,813 and is proposed
to be funded as follows:
Item 9.h. - Page 2
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO EFFECT CONTRACTORS
FOR CONSTRUCTION OF THE CITY OF ARROYO GRANDE AND WOMAN'S CLUB
COMMUNITY CENTER KITCHEN RENOVATION PROJECT, PW 2016-01
NOVEMBER 28, 2017
PAGE 3
REVENUE
Donations $ 55,492
Community Center Impact 59,957
Park Development Fund (Current Appropriation) 124,051
Park Development Fund (Additional Appropriation) 23,313
TOTAL REVENUE $ 262,813
EXPENDITURES
Construction $ 177,344
Construction Contingencies (20%) 35,469
City Furnished Appliances and Brick Purchase 17,000
Construction Mgt, Inspection, Advertisement 5,500
Design 27,500
TOTAL EXPENDITURES $ 262,813
The contract time is 120 calendar days with work expected to be accomplished between
January and April of 2018. Recreational Services has not booked the use of the kitchen
during this time frame.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendations;
2. Do not approve staff’s recommendations;
3. Reject all bids and direct staff to modify the project and solicit new bids; or
4. Provide direction to staff.
ADVANTAGES:
The project will expand the kitchen area to better serve the various user groups and has
the potential to generate additional rental revenues.
DISADVANTAGES:
The kitchen will be unavailable to the user groups during the construction period. An
appropriation from the Park Development Fund balance could take away funding from
other potential projects.
ENVIRONMENTAL REVIEW:
On October 10, 2017, the Council determined that the project is categorically exempt
from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines
Section 15301(e)(1) for additions to existing structures that will not result in an increase
Item 9.h. - Page 3
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO EFFECT CONTRACTORS
FOR CONSTRUCTION OF THE CITY OF ARROYO GRANDE AND WOMAN'S CLUB
COMMUNITY CENTER KITCHEN RENOVATION PROJECT, PW 2016-01
NOVEMBER 28, 2017
PAGE 4
of more than 50 percent of the floor area of the structure before the addition, or 2,500
square feet, whichever is less, and the City Clerk filed a Notice of Exemption.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachment:
1. Bid Opening Log Sheet
Item 9.h. - Page 4
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