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CC - (1) Award of a Construction Contract to Golden Gate Steel, Inc., dba Golden Gate Construction, as the Lowest Responsive and Responsible Bidder, in an Amount Not-To-Exceed $299,014.00 for the Senior Center Courtyard Renovation Project, PF-007; (2) Adoption of a Budget Amendment to Appropriate Supplemental 419 (Park Facilities) Funds in the Amount of $60,972.63 for the Project; and, (3) Adoption of a Budget Amendment to Appropriate Supplemental 420R (Recreation Facilities Reserve) Funds in the Amount of $56,757.00 for the Project. (Four-Fifths Vote Requirement for Budget Amendment)
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Meeting Date: July 24, 2017
Contact Person/Dept: Hong Wang/Public Works Department-Engineering
Patrick Reynolds/PRCS Department-Parks Division
Phone Number: (310) 253-5604 / (310) 253-6471
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/18/17); (Email) Senior Citizens (07/18/17); (Email) Culver City Senior Citizens Association Board of Directors (07/18/17); (Email) Parks, Recreation and Community Services Commission (07/18/17)
Department Approval: Daniel Hernandez, PRCS Director (07/14/17) Charles D. Herbertson, Public Works Director/City Engineer (07/14/17)
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RECOMMENDATION
Staff recommends the City Council (1) award a construction contract to Golden Gate Steel, Inc., dba Golden Gate Construction, as the lowest responsive and responsible bidder, in an amount not-to-exceed $299,014.00 for the Senior Center Courtyard Renovation Project, PF-007; (2) adopt a budget amendment to appropriate supplemental 419 (Park Facilities) Funds in the amount of $60,972.63 for the Project; and, (3) adopt a budget amendment to appropriate supplemental 420R (Recreation Facilities Reserve) Funds in the amount of $56,757.00 for the Project.
A Budget Amendment requires a 4/5ths vote.
BACKGROUND
On January 23, 2017, the City Council approved the final plans and specifications and authorized the publication of a Notice Inviting Bids for the Culver City Senior Center Courtyard Renovation Project, PF007. The Notice Inviting Bids was published in Culver City News, on the City’s website and in trade journals. An addendum was issued to add an additional one-week to the bidding period. On June 8, 2017, City Clerk’s Office staff publicly opened the bids. Two contractors responded with the following bid amounts:
$299,014.00 Golden Gate Steel, Inc. dba Golden Gate Construction
$299,801.76 Concept Consultant, Inc.
Staff reviewed the two sets of contractor bid documents and determined Golden Gate Steel, Inc. submitted the lowest responsive total base bid. Staff reviewed the bid proposal and found the bid documents responsive and complete. The bid bond, contractor’s license, and worker’s compensation insurance were reviewed and determined to meet City requirements.
DISCUSSION
The Project Bids
Although both bids exceeded the Project’s budget, it is staff’s opinion that, based on current market conditions, re-publishing the Notice Inviting Bids is unlikely to yield bids that are more in line with the current Project budget. Additionally, a representative from Lands Images Landscape Architecture, the firm that designed the Project, offered these suggestions as to why the Project bids came in over budget:
• The project is small so mobilization costs are not able to be amortized over a long time period.
• The project area is confined requiring extra effort and caution and less ability to bring heavy equipment into the site, for instance tree removal is likely more difficult in the courtyard than in an open area.
• There is a lot of active construction in town, contractors are busy and not as ‘hungry’ as several years ago.
• Anecdotally, bids are generally coming in higher.
The Project Budget
The current budget is:
41980000.730100.PF007 (Park Facilities Funds) $16,284.37
42080000.730100.PF007 (Recreation Facilities Reserve Funds) $215,000.00
TOTAL $231,284.37
The revised budget is:
Contract for Golden Gate Steel, Inc. dba Golden Gate Construction $299,014.00
Inspection and Project Management* $20,000.00
Change Orders and Contingencies** $30,000.00
TOTAL $349,014.00
*For the sake of expediency and due to the busy schedules of City staff who typically perform project management duties, a consultant will be hired to manage the Project.
**The Project involves certain unknown conditions, including, but not limited to, (1) the condition of the waterproofing membrane around the building perimeter in the Courtyard and whether or not it will need to be replaced; and, (2) the automatic door mats may need to be replaced.
FISCAL ANALYSIS
Per the revised budget, the amount of supplemental funding need for the Project is $349,014.00 - $231,284.37 = $117,729.63. Staff recommends the following funding strategy for the Project:
ACCOUNT CURRENT SUPPLEMENT TOTAL
419 $16,284.37 $60,972.63 $77,257.00
420R $215,000.00 $56,757.00 $271,757.00
GRAND TOTAL $231,284.37 $117,729.63 $349,014.00
There are currently sufficient funds in the 419 (Park Facilities) Fund and the 420R (Recreation Facilities Reserve) Fund to satisfy the funding strategy outlined above. Staff is requesting the adoption of budget amendments to allocate the supplemental funding. A budget amendment requires a 4/5ths vote.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Award a construction contract to Golden Gate Steel, Inc., dba Golden Gate Construction, in an amount not-to-exceed $299,014.00 for the Senior Center Courtyard Renovation Project, PF-007; and,
2. Authorize the Public Works Director/City Engineer to execute change orders in an amount not-to-exceed $30,000; and,
3. Authorize the City Attorney to review/prepare the necessary documents; and,
4. Authorize the City Manager to execute such documents on behalf of the City; and
5. Adopt a budget amendment to appropriate supplemental 419 (Park Facilities) Funds in the amount of $60,972.63 for the Project (requires a 4/5 vote); and,
6. Adopt a budget amendment to appropriate supplemental 420R (Recreation Facilities Reserve) Funds in the amount of $56,757.00 for the Project (requires a 4/5 vote).