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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 Item 8.h. - Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.h. - Page 6