CC 2014-03-25_10.b. Reject Bids - Police Station Upgrade Project p,RRO)IO
1A. INCORPORATED �Z
m MEMORANDUM
# JULY 10. 1911
14 IF Oft \P RN\P
TO: CITY COUNCIL
FROM: TERESA MCCLISH, DIRECTOR OF COMMUNITY DEVELOPMENT
SUBJECT: CONSIDERATION TO REJECT THE BIDS FOR THE POLICE STATION
UPGRADE PROJECT
DATE: MARCH 25, 2014
RECOMMENDATION:
It is recommended the City Council:
1. Reject all bids and direct staff to solicit new bids after modifications are made
to design;
2. Approve a transfer of $300,000 from the Police Department budget to the
Police Station Upgrade project budget; and
3. Appropriate $315,000 from the General Fund unappropriated fund balance to
the Police Station Upgrade project budget.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
The remaining balance 'in the budget for the Police Station Upgrade project is
$1,330,476.
The project costs (with the current low construction bid included) are as follows:
Asbestos Removal ($51,500)
Construction Bid ($1,798,285)
Contingency ($179,829)
Construction Management ($35,000)
FF&E's ($100,000)
Dispatch Relocation ($2,000)
Earth Systems ($4.800)
Total ($2,171,414)
This results in a budget shortfall of approximately $840,000. It is recommended to
redesign portions of the project with a target of reducing costs of the project by a
minimum of $225,000. Approximately $300,000 can be funded out of savings from the
Police Department's existing operational budget. Therefore, an additional appropriation
of $315,000 is necessary from the General Fund un-appropriated fund balance, which
can be accomplished while maintaining reserves well above the City's minimum fund
balance policy at this time.
Item 10.b. - Page 1
CITY COUNCIL
CONSIDERATION TO REJECT BIDS FOR THE POLICE STATION UPGRADE
PROJECT
MARCH 25, 2014
PAGE 2
BACKGROUND:
At the April 13, 2013 meeting, the City Council approved the proposed plan to address
the Police Station facility needs through remodel of the existing building 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.
Since that time the architect has completed construction drawings, the Police Department
moved to the Women's Center, and the project was advertised for bid according to
schedule. Additionally, the Rena Street sewer relocation project has been awarded and
construction has begun. Bids for the project were opened on March 11, 2014. Ten bids
were received. The low bid was GLR Construction Inc. in the amount of $1,798,285.
Including a 10% contingency, the low bid is approximately $715,000 higher than the
engineers estimate range of$1,083,000.
ANALYSIS OF ISSUES:
Staff is working with the architect to determine the discrepancy between the bids and
estimate. It should be noted that there was not a large difference in price among the bids
received as the range between the lowest and highest bidder was approximately
$260,000. An initial meeting was also held with the consultant 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. Given the cost of the improvements, it is
now necessary to ensure the project is designed to serve the Police Department needs
for a minimum 15-year period.
After reviewing proposals, and receiving general input from bidders, the following items
were identified to help reduce the cost:
♦ The roofing and fencing specifications resulted in specialized costly
products that can be revised by providing specifications for a standard
wrought iron fence and roof (approximately $210,000 estimated savings).
♦ Design related to the site radio tower infrastructure can be revised for
additional savings (approximately $15,000 estimated savings).
♦ Minor clarifications in the specification for the storage building and pad will
enable vendor flexibility for additional potential savings (approximately
$10,000 to $20,000 estimated savings).
Item 10.b. - Page 2
CITY COUNCIL
CONSIDERATION TO REJECT BIDS FOR THE POLICE STATION UPGRADE
PROJECT
MARCH 25, 2014
PAGE 3
Other items were identified, but not recommended for removal or revision due to the need
to meet project objectives. Staff and the architect will continue to investigate additional
cost saving items by obtaining additional contractor input. The technical specifications
will be reviewed to incorporate recommended changes. Staff would then re-advertise the
project at the beginning of April to reduce the impact on the project schedule and
potentially the length of time the Police Department will have to utilize the Women's
Center. It is anticipated that tentative bid award would be on May 13, 2014.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
• Approve staffs recommendations;
• Award the contract to the lowest bidder to proceed with the project on schedule
and fund the remaining costs from the General Fund un-appropriated fund
balance;
• Approve staffs recommendations and direct staff to also pursue an additional
savings of approximately $20,000 by modifying indoor lighting specifications from
LED to fluorescent fixtures, which staff does not recommend due to the increase in
ongoing operational costs; or
• Provide direction to staff.
ADVANTAGES:
Rejecting and re-advertising bids, and approving the recommended funding plan, will
allow design modifications to be incorporated into the project to reduce costs without
significant impact to the project objectives or construction schedule.
DISADVANTAGES:
Rejecting bids will increase the project schedule by approximately two months and
appropriating funds from the General Fund will reduce the un-appropriated fund balance.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Guidelines Section 15301(c).
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted on Thursday, March 20, 2014. The agenda and staff report was
posted on the City's website on Friday, March 21, 2014. No public comments were
received as of the time of preparation of this report.
Attachment:
1. Bid Tabulations
Item 10.b. - Page 3
ATTACHMENT 1
CITY OF
--= CITY OF ARROYO GRANDE
BID OPENING LOG SHEET
CALIFORN A
DEADLINE: TUESDAY, MARCH 11, 2014-2:00 PM
PROJECT NAME:POLICE STATION ADDITION/TENANT IMPROVEMENTS
PROJECT NO. PW 2014-08
ARCHITECT'S ESTIMATE. $1,083,000.00
SUBMITTED BY: TOTAL
SIGMA Services, Inc. $1,806,962.00
Ventura, CA
Dian! Building Corp. $1,983,000.00
Santa Maria, CA
GLR Construction, Inc. $1,798,285.00
Santa Maria, CA
Carroll Building Co. $1,839,000.00
San Luis Obispo, CA
Newton Construction & Management, Inc. $1,889,000.00
San Luis Obispo, CA
PRC $1,803,000.00
Atascadero, CA
Zumwalt Construction, Inc. $1,885,000.00
Fresno, CA
Tomar Construction, Inc. $1,952,000.00
Santa Paula, CA
Vernon Edwards $1,852,000.00
Santa Maria, CA
Pueblo Construction, Inc. $2,060,071.00
Santa Barbara, CA
Kitty No rt , Deputy City Clerk
c: Director of Community Development
Director of Public Works
Assistant City Engineer
City Manager
Item 10.b. - Page 4