CC 2017-05-23_09h Award Contract_PW Bldg Renovation
MEMORANDUM
TO: CITY COUNCIL
FROM: CHRISTOPHER MAGDOSKU, 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 PUBLIC
WORKS BUILDING RENOVATION PROJECT, PW 2015-17
DATE: MAY 23, 2017
RECOMMENDATION:
It is recommended the City Council:
1. Approve the construction plans and specifications for the Public Works Building
Renovation Project, PW 2015-17;
2. Find that the project is categorically exempt from CEQA pursuant to CEQA
Guidelines Section 15301(a);
3. Direct the City Clerk to file a Notice of Exemption;
4. Award a contract for the Public Works Building Renovation Project to RK&G
Construction, Inc. in the amount of $140,565;
5. Authorize the City Manager to approve change orders for 20% of the contract
amount, $28,113, for unanticipated costs during the construction phase of the
project (total construction costs = $140,565 + $28,113 = $168,678); and
6. Reallocate $2,710 of General Fund cost savings from the Corporation Yard
Stormwater Improvements project, and appropriate $2,629 from the Water Fund,
$2,629 from the Sewer Fund and $512 from the Local Sales Tax Fund for the
project.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The amended Capital Improvement Program Budget includes $168,350 for the subject
project which is funded 31% from the Sewer Fund, 31% from the Water Fund, and 38%
from the Sales Tax Fund. The total cost for the project is currently estimated at
$176,830. Staff is recommending that $2,710 of General Fund cost saving from the
Corporation Yard Stormwater Improvements project be reallocated to this project plus a
Item 9.h. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO RK&G CONSTRUCTION,
INC. FOR CONSTRUCTION OF THE PUBLIC WORKS BUILDING RENOVATION
PROJECT, PW 2015-17
MAY 23, 2017
PAGE 2
$512 allocation from the Local Sales Tax fund (38%), and that $2,629 be allocated from
the Water Fund (31%) and $2,629 be allocated from the Sewer Fund (31%) to cover the
subject project expenses. The current unallocated Local Sales Tax Fund, Water Fund
and Sewer Fund balances are sufficient to fund this request. The proposed project
expenditure budget is listed on the following chart.
EXPENDITURES
Construction $ 140,565
Contingency (20% of Contract price) $ 28,113
Furniture, Fixtures & Equipment (City Installed) $ 2,000
Const Mgt / Inspection / Advertising / Record Drawings $ 4,652
Design & Survey $ 1,500
TOTAL PROJECT EXPENDITURES $ 176,830
BACKGROUND:
On October 8, 2013, the Council approved conceptual design plans for renovations at
the Corporation Yard and authorized staff to distribute requests for proposals for
architectural and engineering design services. On January 14, 2014, Council approved
a design contract with Harris Architecture & Design. On April 15, 2014, the Planning
Commission adopted a resolution approving Conditional Use Permit No. 13-004 for the
Corporation Yard project.
The project scope of work involved the construction of a single story 2,000 square foot
New Administration Building (Building D) and two additive alternates for remodeling
specific areas of the Original Building (Building A). The bid documents defined the
project components as follows:
Base Bid - New Administration Building (D)
Construction of a separate administration building.
Additive Alternate A - Interior Remodel in Original Building (A)
Remodel of interior partition walls, plumbing, electrical and finishes creating
separate men's and women's dressing rooms and a revised entry.
Additive Alternate B - Construct Lead Worker's Office in Original Building (A)
Conversion of the existing Sewer Parts Shop into office space.
On August 18, 2014, nine bids were opened for the project. Due to bid protests and bids
exceeding the Architect’s Estimate it was recommended that all bids be rejected. On
Item 9.h. - Page 2
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO RK&G CONSTRUCTION,
INC. FOR CONSTRUCTION OF THE PUBLIC WORKS BUILDING RENOVATION
PROJECT, PW 2015-17
MAY 23, 2017
PAGE 3
September 9, 2014, the City Council evaluated the information and rejected all bids
accordingly. Acting on Council's direction, staff revised the scope of work to include
solely the New Administration Building (D), revised the specification language section
that was subject to the bid protests, and advertised the project for a second bid. On
October 20, 2014, nine bids were opened for the Corporation Yard Administration
Building Project, on October 28, 2014, the Council awarded a construction contract, and
on November 24, 2015, the Council accepted the project. The initially proposed Additive
Alternatives for the Original Building (A) were not completed as part of this process.
ANALYSIS OF ISSUES:
It has been a goal of the Public Works Department to be less compartmentalized and to
have all staff coordinate closely on maintenance projects and tasks. This renovation
project will bring all field staff into the Original Building (A) to help improve
communication and project coordination. This will be accomplished by modifying a
space formerly used for sewer parts storage in the Original Building (A) into a joint office
area for the Public Works Lead Workers. This includes the Parks Division Lead Workers
who are currently housed in a separate Building (B). The area vacated in Building (B)
will be used for document storage, allowing plans and archive files to be stored in a dry
and accessible location. The project also includes renovating an area in the Original
Building (A) formerly used as a break/meeting room and reception/office area into
separate men's and women's locker rooms.
Staff worked with a consultant to prepare plans and specifications for the renovation of
the Original Building (A) that were the Additive Alternatives originally proposed in 2013
as part of the new Administration Building construction. The bid documents define the
project components for the Original Building (A) renovation as follows:
Base Bid
Remodel of interior partition walls, plumbing, electrical and finishes creating
separate men's and women's dressing rooms and a revised entry; and conversion of
the existing Sewer Parts Shop to a Lead Worker's office, including improvements to
the exterior access way leading to the office.
Bid Alternate No. 1
Renovation of the existing men’s restroom and shower.
Bid Alternate No. 2
Exterior painting of the building.
Bid Alternate No. 3
Conversion of two existing offices to create an additional office/conference room.
Item 9.h. - Page 3
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO RK&G CONSTRUCTION,
INC. FOR CONSTRUCTION OF THE PUBLIC WORKS BUILDING RENOVATION
PROJECT, PW 2015-17
MAY 23, 2017
PAGE 4
The project was advertised for construction bids and on May 9, 2017, three bids were
opened for the project. The lowest base bid from RK&G Construction, Inc. was in the
amount of $129,746. Staff reviewed the bid and determined it to be responsive and
RK&G Construction, Inc. to be a responsible bidder.
In addition, staff reviewed the bid against the available budget and determined that by
using project cost savings from the Corporation Yard Stormwater Project plus an
additional $5,770 from other funds, Bid Alternative No. 1 could be accomplished. The
savings from the Corporation Yard Stormwater Project was a result of the final asphalt
quantities being less than the engineer’s estimate. Since the intent of both projects is to
provide improvements at the Corporation Yard, it seems appropriate to use the $2,710
of General Fund savings toward further improvements at the Corporation Yard as
opposed to reallocating the funds to other areas in the City or returning the funds to
fund balance. In addition, it is much more cost effective to perform the work while a
contractor is mobilized and on site as opposed to performing the work later under a
separate contract. The men’s bathroom is approximately forty years old and overall is
beyond its useful life. The shower has been inoperable for several years, and there
more fixtures than necessary which leads to reduced clearances and lack of privacy.
Staff is recommending the award of a construction contract to RK&G Construction, Inc.
for the Base Bid plus Bid Alternative No. 1.
The contract time is 60 working days. Work is expected to be accomplished during June
through September 2017.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendations;
2. Do not approve staff’s recommendations and request further information;
3. Modify staff’s recommendation and approve; or
4. Provide direction to staff.
ADVANTAGES:
The proposed project will improve the function of Original Building (A) by modifying the
existing building to create separate men’s and women’s changing rooms, and will help
to improve communication and project coordination by creating a joint office space area
for the Public Works Lead Workers.
DISADVANTAGES:
The Corporation Yard will remain in full operation during the construction which may
cause intermittent inconvenience to Public Works staff. Funds used to make the
recommended renovations may be diverted from other future projects.
Item 9.h. - Page 4
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO RK&G CONSTRUCTION,
INC. FOR CONSTRUCTION OF THE PUBLIC WORKS BUILDING RENOVATION
PROJECT, PW 2015-17
MAY 23, 2017
PAGE 5
ENVIRONMENTAL REVIEW:
The project is categorically exempt from the California Environmental Quality Act
(CEQA) pursuant to Guidelines Section 15301(a) as the project involves the repair or
minor alteration of the interior of an existing public structure.
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.
Attachments:
1. Bid Opening Log Sheet
2. Notice of Exemption
Item 9.h. - Page 5
Attachment No. 1
Item 9.h. - Page 6
Attachment No. 2
Item 9.h. - Page 7
THIS PAGE INTENTIONALLY LEFT BLANK
Item 9.h. - Page 8