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CC - FOUR-FIFTHS VOTE REQUIREMENT: (1) Approval of a Proposed Budget Amendment to Appropriate $16,550 in Recreation Facilities Reserve (420R) Funds for the Blair Hills Park Playground Improvement Project, PP005 (Requires Four-Fifths Vote); (2) Award of a Contract to Micon Construction, Inc., as the Lowest Responsive and Responsible Bidder, for the Base Bid of $262,744; and (3) Approval of an Amount of $26,274 in Change Order Authority for the Parks Manager, for the Blair Hills Park Playground Improvement Project, PP005.
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Meeting Date: December 10, 2018
Contact Person/Dept: Corey Lakin/PRCS Department
Phone Number: (310) 253-6682
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Public Notification: (Email) Meetings and Agendas - City Council (12/05/18); (Email) Parks, Recreation and Community Services Department Updates (12/05/18); (Email/Telephone) All bidders (12/05/18)
Department Approval: Corey Lakin, PRCS Director (11/28/18)
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RECOMMENDATION
Staff recommends the City Council (1) approve a proposed budget amendment to appropriate $16,550 in Recreation Facilities Reserve (420R) Funds for the Blair Hills Park Playground Improvement Project, PP005 (budget amendment requires a 4/5ths vote); (2) award a contract to Micon (“Micon”) Construction, Inc., as the lowest responsive and responsible bidder, for the base bid of $262,744; and (3) approve $26,274 in change order authority for the Parks Manager, for the Blair Hills Park Playground Improvement Project, PP005 (the “Project”).
BACKGROUND
During the Fiscal Year 2016/2017 Budget process, the City Council allocated Recreation Facilities Reserve (420R) funds for the Blair Hills Park Playground Improvement Project, PP005. The Parks, Recreation and Community Services (PRCS) Department has developed a Playground Design Community Outreach Program to provide multiple opportunities for the public to view proposed playground designs and participate in the selection process. For the Blair Hills Park Playground, the Outreach Program was conducted during June, July and August 2018. Two Design Workshops were held and surveys were conducted by both printed ballot and through online posting. On August 7, 2018, this information was presented to the PRCS Commission. Based on community input, the PRCS Commission made a recommendation for the design of the Blair Hills Park Playground which was then incorporated into the Project’s final plans and specifications. On October 8, 2018, the City Council approved the final plans and specifications and authorized the publication of a notice inviting bids for the Project.
DISCUSSION
Proposed Budget Amendment
During the Fiscal Year 2016/2017 Budget process, the City Council allocated Recreation Facilities Reserve (420R) funds in the amount of $275,000 for the Blair Hills Park Playground Improvement Project, PP005. In accordance with the Culver City Municipal Code and the City’s standard practices, the Notice Inviting Bids (NIB) was published in the local newspaper and posted on the City’s website. Because the NIB was published in the newspaper twice, the cost was quoted as $1,031, leaving a total of $273,969 in the PP005 account.
In addition to the Micon base bid and City’s discretionary 10% contingency amount, which totals $289,018, an additional $1,500 is needed for the final playground inspection and certification. Therefore, the total remaining Project cost is estimated to be $290,518 or $16,550 more than is currently available in 42080000.730100.PP005 (Blair Hills Park Playground / Improvements Other Than Buildings).
The reasons for the discrepancy between the previously allocated Blair Hills Park Playground Improvement Project funding amount and the estimated amount currently needed for the Project include:
1. The cost of the Project was originally estimated in late 2015 and early 2016 before the Fiscal Year 2016/2017 Budget process. Since then, the economy has improved and prices for certain goods and services have risen accordingly.
2. When the cost of the Project was originally estimated, it was the PRCS Department’s practice to use engineered wood fiber exclusively as the surfacing for newly-renovated playgrounds. However, for the Blair Hills Park Playground, the community selected a playground design that includes rubber surfacing tiles. The cost of both purchasing and installing playground rubber surfacing tiles is greater than the cost of purchasing and installing engineered wood fiber, thereby increasing the total Project cost.
Parks, Recreation and Community Services Department staff has confirmed with the Finance Department that there are currently sufficient unallocated funds in the Recreation Facilities Reserve (420R) Fund for the proposed budget amendment.
Award of a Contract to Micon Construction, Inc.
On November 15, 2018, the City Clerk’s Office staff publicly opened the sealed bids and announced the bid amounts. Four contractors responded with the following bid amounts:
$262,744 - Micon Construction, Inc.
$286,875 - R.E. Schultz Construction, Inc.
$289,358 - Community Playgrounds, Inc.
$603,155 - ABC Builders
Staff reviewed the bid documents and determined that Micon Construction, Inc. submitted the lowest total base bid. Their bid proposal was reviewed and found to be both responsive and responsible. The company’s bid bond, contractor’s license, and worker’s compensation insurance meet City requirements. Micon Construction, Inc. also meets the requirement of providing a certified installer for the Playground’s rubber surfacing tiles, which is a primary element of the overall design.
The company’s references were checked and all those contacted rated Micon Construction, Inc. high in overall professionalism, workmanship, efficiency, project management and getting the job done on time and on budget. Micon Construction, Inc. has been completing capital improvement projects for the City of Moreno Valley, California, for the past twenty (20) years.
Therefore, staff recommends that the City Council award a contract to Micon Construction, Inc., as the lowest responsive and responsible bidder, in the amount of $262,744, and authorize the Parks Manager to approve change orders in an amount not-to-exceed $26,274, for the Blair Hills Park Playground Improvement Project, PP005. Project management and monitoring of the project will be conducted by City staff. Playground inspection and certification will be performed by a qualified firm.
FISCAL ANALYSIS
As noted earlier, there is currently $273,969 in 42080000.730100.PP005 (Blair Hills Park Playground / Improvements Other Than Buildings). If the proposed budget amendment to appropriate $16,550 in Recreation Facilities Reserve (420R) Funds is approved, that amount will then be transferred into the account, leaving a balance of $290,519 to complete the Project.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a proposed budget amendment to appropriate $16,550 in Recreation Facilities Reserve (420R) Funds for the Blair Hills Park Playground Improvement Project, PP005 (budget amendment requires a 4/5ths vote); and,
2. Award a contract to Micon Construction, Inc., as the lowest responsive and responsible bidder, for the base bid of $262,744; and,
3. Approve $26,274 in change order authority for the Parks Manager, for a total not-to-exceed amount of $289,018, for the Blair Hills Park Playground Improvement Project, PP005; and,
4. Authorize the City Attorney to review/prepare the necessary documents; and,
5. Authorize the City Manager to execute such documents on behalf of the City.