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HomeMy WebLinkAbout1986-07-15; City Council; 8592-1; DECLARE CHAMAC INC. THE APPARENT LOW BIDDER FOR PHASE I CONSTRUCTION OF CALAVERA HILLS COMMUNITY PARKP a .- . ~ ' "'" c jib-: ,.' CI 1 OF CARLSBAD - AGENDA BILL u U a, *T 0 $4 a a, 5 a e .ii a, $4 2 (d El .d m a, a !4 a, 0 U Icr w u (d m a a, U L) a, !4 -4 a n m a *d P rl 4 cd a a, U 0 'r7 a, a, $4 4 *I4 L) F: 1 V 0 a 03 I vl 4 b I 2 0 U 6 1 0 Z 3 8 AB# fs%2-# I CITY M( DEPT. p L R MTG.7/15/86 OEPT. k TITLE; DECLARE CHAMAC INC. THE APPARZN'I' LOW RECOMMENDED ACTION: BIDDZR FOR PHASE I CONSTRUCTION OF CALAVERA HILLS COMMUNITY PARK CITY A1 City Council accept staff's alternative number three; declare Chamac Inc. the apparent low bidder and authorize staff and RSI to negotiate with Chamac Inc. for a reduction of development cost associated with the grading specifications for construction of Calavera Hills Community Park, BACKGROUND: Five (5) bid proposals for Phase I development of Calavera Hills Community Park were opened on June 6, 1986. The apparent low bidder, Chamac Inc., bid of $1,337,836 was $338,836 over the architect's February 1986, estimate of $999,000 for Phase I construction of the Community Park. Phase I includes grading of the entire 18 acre park site and site development of the southern eight (8) acres only. ALTERNATIVES: 1. Accept the apparent low bid of $1,337,836. Award contract. This alternative will require an additional allocation of $745,336. The park development completion date of March 1987, will remain on line, 2. Reject all bids, direct RSI to prepare design alternatives, at no cost to the City, that will reflect a lower develop- ment cost, re-advertise and re-bid. This alternative may require a scope change in the design of the park, i.e. A. Grade entire park site (18 acres), develop the south section (8 acres) only, provide fill dirt for the north section in Phase 11. B. Redesign park to eliminate certain amenities such as the lighting systems on two (2) ballfields, tot lot and or picnic area. The intent of the above scope change (A and B) is to bring the cost of the park in line with RSI's estimate of $999,000 This alternative will require an additional allocation of at least $365,500 and may delay the completion of the park by 60 days (June 1987). "" - 3. Declare Chamac Inc. as the apparent low bidder, direct staff to negotiate for reduction of costs by adjusting the grading specifications. Negotiations are not to exceed a period of 21 days. Agenda Bill No. *A,*( Page Two 0 Special provisions for all City contracts, as outlined in the "Standard Specifications for Public Works Construction" (Green Book), allow for negotiations of reduction in develor ment costs. The maximum reduction which can be negotiated is 25% of the base bid. By negotiating with the contractor, RSI feels they can re- duce the cost of the project by approximately $200,000 with- out changing the scope. This alternative will require an additional allocation of $515,011 and may delay the project completion by 30 days (April 1987). Contingent upon the success of negotiations, the City will have the option to award the contract to Chamac Inc. or re- ject all bids, redesign and re-advertise for the Phase I construction of Calavera Hills Community Park. RECOMMENDATION: Due to the bids coming in 33% to 50% over RSI's estimate and in order that the project will have a minimal construction delay, staff recommends that the City Council approve alternative number three (3); declaring Chamac Inc. as the apparent low bidder, and costs. The negotiations are not to exceed a period of 21 days. authorize staff to negotiate for a reduction in Phase I developmen DISCUSSION: An analysis of the existing bids indicate that the grading portion of the contract is the main reason the construction of Phase I is 33% to 50% higher than RSI's estimate. More specifically, the removal of rock and the import of clean fill material were a very high cost item in all the bids. Staff feels that RSI, the City's Park Planning Consultant, at no cost to the City, could either negotiate a cost reduction in the project from the apparent low bidder by changing the grading specifications or change the scope of the park, submit design alternatives to reduce park constructiol cost and come in line with the original cost estimate of $999,000. Staff suggests that negotiation with the contractor would be the best alternative to pursue because it may lower the original low bidders construction cost and it will have only a minimal delay as compared with the redesign alternative which would delay the project completion date 60 days or longer. Agenda Bill No. @2 -+( Page Three e FISCAL IMPACT: A. April 22, 1986, revised staff and RSI estimate for Calavera Hills Community Park Phase I is as follows: 1. Grading & site improvements RSI estimate $999,000 2. Design fees Phase I & I1 $140,000 3. Inspection: "Grading $25 , 000 'Site work 10,000 'Engineering 10 , 000 'Buildings 5,000 'Soils 10 , 000 $60 , 000 $60,000 4. Administration: OPrinting $10 , 000 Outilities 20 , 000 'Engineering Fees 10,000 'Miscellaneous 5 , 000 $45,000 $45,000 5. Contingency - 15% of grading b site work $150,000 Grand Total $1,394,000 Allocated Funds $1,038,500 Additional Funds Required $355 , 500 B. Alternative 1 - Accept Apparent Low Bidder 1. Gradine & site improvements 2. Design fees Phase I & I1 3. Inspection 4. Administration 5. Contingency 15% grading & site work (Base bid + Alternatives) Grand Total Available Funds Additional Funds Required $1,337,836 140,000 45 , 000 60 , 000 201 , 000 $1,783,836 $1,038,500 $745,336 C. Alternative 2 - Reject bids, redesign & re-bid 1. Grading & site improvements (change in scope) $999,000 2. Design fees Phase I & I1 140,000 3. Inspection 60,000 4. Administration 45 , 000 5. Contingency 15% grading & site work 150 , 000 6. Cost to re-bid (printing) 10,000 Grand Total $~,404,000 Available Funds $1,038,500 Additional Funds Required $365,500 Agenda Bill No. Page Four -*I W D. Alternative 3 - Accept apparent low bidder and negotiate a reduction of cost for grading and or site improvements up to the maximum allowed 25% of base bid or $322,500. 1. Base Bid (Chamac low bidder) $1,290,000 2. Bid Alternatives 47,836 3. Total Low Bid 1,337,836 5. Total Estimated Low Bid 1,137,836 6. Design Fees 140,000 7. Inspection Fees 60,000 8. Administration Fees 45,000 4. RSI Estimate Negotiation Reduction - 200,000 9. Contingency 15% 170,675 10. Total Estimated Project Cost 1,553,511 11. Allocated Funds to date -1,038,500 Additional Funds Required to 515,011 Staff recommends that appropriation of additional funds to complete Phase I as designed be appropriated at award of contract. The Finance Director has indicated that there are available funds in the Public Facilities Fees account. However, appro- priating the additional funds at this time may affect the funding of some 86-87 CIP projects. EXHIBITS: 1, Bid Summary 2. Agenda Bill No. 8592 - ADVERTISE FOR BIDS FOR PHASE I OF CALAVERA HILLS COMMUNITY PARK * EXHIBIT .1 - a,< 4 4 4 I - c Kj=Lk/'bfkg :A,; .i i. ?., J I. t" CARLSBAD - AGEND I ]ILL / c AB# r.57 2 MTG, 4/ 22 / 8 6 DEPT. HI TITLE: ADVERTISE FOR BIDS FOR PHASE I OF DEPT. p ti I? CITY ATI CITY MG RECOMMENDED ACTION: By motion adopt Resolution No. &-/54 approving plans and speci tions authorizing the City Clerk to advertise for bids for Phase Calavera Hills Community Park (Project No. 3173). CALAVERA HILLS COMMUNITY PARK ITEM EXPLANATION: Phase I of the 18 acre Calavera Hills Community Park consists of grading the entire park site and providing site improvements for southern eight acres. Site improvements will include two lighte ballfields, a restroom/concession stand, a tot lot, walkways, pa and landscaping. Phase 11 will be constructed at a later date after the northern portion of the park has been dedicated by the owner. It will in a community center/gymnasium, two lighted tennis courts, one liq ballfield with soccer overlay, lighted basketball courts, picnic as well as walkways, parking and landscaping. Plans and specifications for Phase I have been completed and apF Plans and specifications for Phase I1 are nearly complete and wi "shelf ready" when construction of Phase I1 can be initiated. Pacific Scene is in the process of constructing the remainder of Tamarack Avenue as well as half street improvements on Elm Avenu and Glasgow surrounding the Park. Their schedule for completion the beginning of July. At that time the City's contractor will grading the park. Completion of Phase I of the park is estimate the beginning of February 1987. I FISCAL IMPACT: -CONSTRUCTION n > IJJ 0 [1= Q a. < 2 0 i= 0 U $ z 3 0 0 The following is the updated cost estimate by Recreation Systems City staff for Phase I of Calavera Hills Community Park. Constr cost figures are based on estimates developed in February 1986. current appropriation of $1,038,500 was developed during 83-84 C budget allocation and did not include funds for inspection and a stration costs. The figures below are in line with costs incurr at Stagecoach Community Park currently being built. Phase I Construction Estimate Construction (RSI Estimate) $999,000 Design Fees (Phase I & 11) 155,000 Inspection 80,000 Administration 55,000 Contingency ( 15 8; 1 194,000 Total $1,483,000 Current 85-86 CIP Appropriation 1,038,500 Estimate of Additional Funds Required 444,500 i I I EXHIBIT 2 ’” , Agenda Bill No .as72 - Page Two I) Staff recommends that appropriation of additional funds to complete Phase I as designed be appropriated at award of contract. The Finance Director has indicated that there are available funds in the Public Facility Fees account. However, appro- priating the additional funds at this time may affect the funding of some 86-87 CIP projects. -MAINTENANCE Park Maintenance - Estimated total first year operation = $66,01 NOTE: Succeeding yearly maintenance will be approximately 10% less than the first year costs. EXHIBITS: 1. Resolution No. gs/&-approving plans and specifications - authorizing the City Clerk to advertise for bids for Phase of Calavera Hills Community Park (Project No. 3173). 2. Location Map 3. Master Plan