City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends that the City Council award a construction contract to PCN3, Inc.,
as the lowest responsive and responsible bidder to complete the necessary work for
the Teen Center Remodel Project, P-819.
BACKGROUND:
This year’s Capital Improvement Budget includes the Teen Center Remodel Project,
P-819 (Project).
On January 13, 2003 the State authorized use of the Murray-Hayden Urban Parks
and Youth Service Grant in the amount of $262,500 for the Teen Center remodel
Project. The grant required the City to provide matching funds of an additional
$112,500, which were authorized from the General Fund. The total Project
allocation was $375,000.
The City Council has taken the following actions related to implementing the Project:
1. May 31, 2005 - Authorized entering into a professional services agreement with
Wolcott Architecture - Interiors to provide architectural and construction
management services for the Project.
Meeting Date: 10/10/05 Item Number: A-8
AGENDA ITEM: Consideration to Award a Construction Contract to PCN3, Inc.
for the Project Teen Center Remodel Project
Contact Person/Dept.: John Rivera,
PW/Admin.
Phone Number: 310-253-6423
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: []
Public Notification:
Master Notification List emailed on October 5th; PCN3, Inc., WE Construction, Inc.,
Horizons CCI Services, Inc., Icon West, Inc. and Wolcott Architecture via phone call on
October 5th.
Department Approval:
Charles D. Herbertson 9/29/05
CAO Approval:
Scott Bixby for Jerry Fulwood 10/4/05
City Controller Approval:
Mary Noller for Marlee Chang 10/4/05City of Culver City, California
City Council Agenda Item Report
2. June 13, 2005 - Approved the Conceptual Design plans and materials; and,
approved a “Short-List” of General Contractors to be invited to submit a bid
proposal to construct the Project.
3. July 25, 2005 - Approved the Final Plans and Specifications and Authorized
Advertising for Bids for the Teen Center Remodel Project.
4. August 22, 2005 - Authorized entering into a professional services contract with
Castlerock Environmental, Inc., to complete the necessary work for asbestos
abatement for the Project.
As stated above, the Council approved the plans and specifications and authorized
releasing the project for bid on July 25, 2005. The bid was released on Tuesday
July 26th, for a 15-day bid period to end on August 11
th
. The bid package was sent
to the 6 firms that had been previously contacted and expressed interest in the
project and been pre-qualified to receive the bid. The Bid Package was also sent to
the 3 local plan rooms and a notice was published twice in the Culver City News.
However, during the mandatory job-walk on August 1st, the 3 construction firms
present advised staff that due to their and their sub-contractors work/vacation
schedules, they could not submit bids by August 11th. In response to the
contractor’s comments, Public Works release Bid Addendum No. 1 on August 2nd,
extending the bidding period to August 25th, a date by which the 3 contractors
agreed they could submit their bids.
On August 23rd, staff learned that none of the 3 contractors would be submitting
bids. Their reasons varied from difficulty in compiling their bids due to other ongoing
projects to deciding that they did not want to take on a job requiring the City’s
standard bonding requirements. Therefore, on August 24th, Public Works released
Bid Addendum No. 2, extending the bidding period to September 29, 2005.
The Building Permit plan check process has been completed and the Teen Center
Remodel plans were approved on August 26, 2005.
DISCUSSION:
On July 26, 2005, the City opened the bidding process, issued two addendums
extending the bid period and on September 29th, 2005, the Deputy City Clerk
publicly opened bids. Four Contractors responded with the following bid amounts:City of Culver City, California
City Council Agenda Item Report
Contractors Base Bid Total
Alternate
Bids
Total
Bids
WE Construction, Inc. $257,700 $41,550 $299,250
PCN3, Inc. $257,619 $59,625 $317,244
Horizons CC Services,
Inc.
$411,654 $51,750 $463,404
Icon West, Inc. $495,861 $102,990 $598,851
Staff reviewed the proposal from the bidder with the lowest Base Bid (PCN3, Inc.,)
and found the bid documents complete. The bonding information was reviewed and
determined to meet City requirements. PCN3, Inc., references were reviewed and
found to be positive.
Due to the favorable unit prices that the contractor submitted in his bid, staff
recommends that the City Council authorize staff to negotiate to accomplish as
many of the alternate bid items as possibly in order to expend the complete project
amount. Pursuing a negotiated change order to fit within the existing project budget
is consistent with direction provided by the City Council in past projects. With City
Council’s approval, staff will negotiate additional work in an amount to expend the
complete project amount.
Budget Item Amount
Base Bid $257,619
10% Contingency $25,761
Wolcott A-I Design/Construction
Management
$32,500
Moving/Storage Furnish. $2,000
Signage $2,500
Recreation Equipment $20,000
SUB-TOTAL $340,380
Minimum available for Alternates $34,620
TOTAL $375,000
Project Budget $375,000
Wolcott and City staff will perform construction management and inspection.City of Culver City, California
City Council Agenda Item Report
Construction is expected to commence on Monday, October 24, 2005 and be
completed within approximately 70 calendar days.
Asbestos remediation work in the remodel area will begin on Monday, October 17,
2005 and be completed within approximately 5 calendar days.
FISCAL ANALYSIS:
There are sufficient funds in the budget to construct the project (including a 10%
construction contingency). However, there is not a sufficient amount to construct all
of the bid alternates. Staff will negotiate with the contractor to accomplish as many
of the alternate bid items as possible in order to expend the complete project budget
amount. (Any grant funds remaining at the completion of the project must be
returned to the State.)
As stated previously, the City received a Murray-Hayden Urban Parks and Youth
Service Grant under the Proposition 12 grant process. The grant is a $262,500
reimbursement grant, with an additional $112,500 in City matching funds. The City
has allocated funds in the Capital Improvement Program (CIP) Budget as the Teen
Center Remodel Project P-819, Accounts No. 41900819 and No. 42300819. The
total Project allocation is $375,000.
The grant requires that all construction be complete and reimbursement paperwork
finalized no later than June 30, 2009.
Wolcott prepared the construction plans and specifications for this Project and will
provide construction management for $27,500.
Asbestos remediation work in the remodel area will cost $19,194 and will be funded
by a combination of P-132, Building Repairs project funds (#42000132) and possibly
budget savings from the Teen Center Project, if necessary.
Maintenance and operational costs for the Teen Center in fiscal year 05/06 are
estimated to total about $11,000 and are not anticipated to increase as a result of
the remodeling project.
MOTION:
That the City Council:City of Culver City, California
City Council Agenda Item Report
1) Award a construction contract to PCN3, Inc., for the Teen Center Remodel
Project, P-819, based on its base bid amount of $257,619;
2) Authorize Public Works Director/City Engineer to negotiate change orders for
unanticipated conditions and to accomplish alternative bid items in an amount not
to exceed the unallocated/unexpended portion of the total project budget; and
3) Direct the City Attorney to prepare the necessary documents and authorize the
Chief Administrative Officer to approve the documents.