CC 2017-11-28_09i Award Contract_Womans Club ADA Improvements
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 RK&G
CONSTRUCTION INC. FOR CONSTRUCTION OF THE CITY OF
ARROYO GRANDE AND WOMAN'S CLUB COMMUNITY CENTER
SITE ACCESSIBILITY IMPROVEMENTS PROJECT, PW 2016-10
DATE: NOVEMBER 28, 2017
SUMMARY OF ACTION:
Take action to award a construction contract to improve accessibility for disabled users
of 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 Capital Improvement Program Budget includes $62,251 of 2016 Community
Development Block Grant (CDBG) funds for the project. The total cost for the proposed
project is estimated at $99,618. Staff is recommending that funds be reallocated from a
previously approved capital improvement project that is being deferred a year.
Approximately forty 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 Site Accessibility Improvements Project to RK&G Construction Inc. in the
amount of $72,289.40;
2. Authorize the City Manager to approve change orders for 10% of the contract
amount, $7,228.94, for unanticipated costs during the construction phase of the
project (total construction costs = $72,289.40+ $7,228.94 = $79,518.34)
3. Reallocate $37,466 of Local Sales Tax Funds from the Alpine Street Overlay
Improvement project to cover the subject project expenses.
Item 9.i. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO RK&G CONSTRUCTION INC.
FOR CONSTRUCTION OF THE CITY OF ARROYO GRANDE AND WOMAN'S CLUB
COMMUNITY CENTER SITE ACCESSIBILITY IMPROVEMENTS PROJECT, PW
2016-10
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. The exterior area includes a patio, barbeque pit and facility parking lot.
Due to its age, the building as currently configured has existing architectural barriers
that impede some facility users from easily accessing certain areas of the facility. In
response to this situation, the Council approved the use of Year 2016 CDBG funds to
remove some of these existing architectural barriers.
On February 14, 2017, the Council approved an agreement for design services with
Harris Architecture & Design. On February 28, 2017, a design kick-off meeting was held
with the architect and 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. At this meeting, the proposed barrier removals were presented to the
group. On August 9, 2017, a barrier removal plan which consists of construction of a
new accessible ramp and landing for two of the doors leading to the exterior patio, and
a new accessible path of travel from the rear of the building to a new accessible parking
space in the lower parking lot, were presented to and accepted by the stakeholder’s
group.
The adopted Capital Improvement Program budget included $73,559 of Local Use
Sales Tax funds for the Alpine Street Overlay Improvement project. Subsequent to the
adoption of the budget, it was determined that the Southern California Gas Company
would be installing their pipeline safety enhancement project on Alpine Street, and
pavement improvements on Alpine Street would be part of the project. Because the
paving is to be accomplished by the Southern California Gas Company, it was
recommended that the Local Use Sales Tax funds be used to correct a drainage issue
on South Alpine Street at Eman Court. However, the drainage improvement cannot be
accomplished before Southern California Gas Company initiates its work on South
Alpine Street. Therefore, it is recommended that the drainage improvement project be
deferred until next fiscal year and that the Local Use Sales Tax funds be reallocated to
fully fund this City of Arroyo Grande and Woman's Club Community Center Barrier
Removal Project.
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 Barrier Removal
Project and authorized the advertisement for construction bids. The engineer’s opinion
of probable construction cost for the base bid was $20,000. On October 26, 2017, City
of Arroyo Grande and San Luis Obispo County staff held a non-mandatory on-site pre-
bid meeting to ensure that all potential bidders understood both the project and the
requirements of the CDBG funding.
Item 9.i. - Page 2
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO RK&G CONSTRUCTION INC.
FOR CONSTRUCTION OF THE CITY OF ARROYO GRANDE AND WOMAN'S CLUB
COMMUNITY CENTER SITE ACCESSIBILITY IMPROVEMENTS PROJECT, PW
2016-10
NOVEMBER 28, 2017
PAGE 3
On November 7, 2017, five bids were received for the City of Arroyo Grande and
Woman's Club Community Center Barrier Removal project. The apparent low bidder did
not include a bid security equal to at least ten percent of the bid amount, inclusive of
any additive Alternate Bid Item(s) and, therefore, was deemed non-responsive pursuant
to Public Contract Code Section 20171. The second lowest bid by RK&G Construction
Inc. 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 the base bid and the additive alternate, the total cost for the proposed project
is estimated at $99,618 and is proposed to be funded as follows:
REVENUE
Community Development Block Grant (CDBG) $ 62,152
Local Use Sales Tax 37,466
TOTAL REVENUE $ 99,618
EXPENDITURES
Construction – Base Bid $ 14,127
Construction – Bid Additive Alternate 58,162
Construction Contingencies (10%) 7,229
Construction Mgt, Inspection, Advertisement 2,600
Materials Testing 5,000
Design 12,500
TOTAL EXPENDITURES $ 99,618
The County of San Luis Obispo’s Planning and Building Departments, as the lead
agency in administering the Housing and Urban Development (HUD) federal funds, has
stated that it supports staff’s recommendations for the follow reasons:
The time that County staff has spent up to this point in developing the Action Plans,
environmental review, and agreements for the Woman’s Club Community Center
and Santos Field Barrier Removal projects is in alignment with staff’s
recommendations.
The projects would be funded as identified and submitted in the 2016 and 2017
Action Plans to HUD.
Item 9.i. - Page 3
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO RK&G CONSTRUCTION INC.
FOR CONSTRUCTION OF THE CITY OF ARROYO GRANDE AND WOMAN'S CLUB
COMMUNITY CENTER SITE ACCESSIBILITY IMPROVEMENTS PROJECT, PW
2016-10
NOVEMBER 28, 2017
PAGE 4
Staff’s recommendations would exhaust CDBG funds for both 2016 and 2017 which
assists the Urban County in meeting our timeliness goal.
It is common for a local agency to contribute local funds to make a CDBG project
whole.
The contract time is 120 calendar days with work expected to be accomplished between
January and April of 2018. Recreational Services has modified its bookings for the use
of the building 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. Approve the award of just the base bid construction contract and construction
contingency in the amount of 20% and use the savings to reallocate $14,567 of
CDBG funds to the Santos Field Barrier Removal project, which is also
underfunded and is under consideration at the same City Council meeting;
4. Reject all bids and direct staff to modify the project and solicit new bids; or
5. Provide direction to staff.
ADVANTAGES:
The project will improve the overall accessibility of the Community Center facility.
DISADVANTAGES:
There will be some disruption to the user groups during the construction period. Funds
used to construct this project will be diverted from another budgeted project.
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
Sections 15301 and 15302 regarding existing facilities and replacement or
reconstruction of existing facilities where the new facility will be located on the same site
as the facility replaced, 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.i. - Page 4
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