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HomeMy WebLinkAbout2003-10-07; City Council; 17340; Swim Complex Filtration & Heating ReplacementAB# 17,340 MTG. 1017103 DEPT. Recreation CITY OF CARLSBAD -- AGENDA BILL TITLE : AWARD CONSTRUCTION CONTRACT FOR SWIM COMPLEX FILTRATION AND HEATING REPLACEMENT DEPT.HD. fl5 CITY ATTY&- CITY MGR.~ RECOMMENDED ACTION : It is recommended the City Council ADOPT RESOLUTION NO. awarding the construction contract for the Swim Complex Filtration and Heating Replacement, City Project No. 38981 and appropriating additional project funding. 2003-265 ITEM EXPLANATION : The Monroe Street Swim Complex’s filtration and heating system is many years past it’s life expectancy, requiring frequent and expensive repairs. The purpose of this project is to replace the old system before a catastrophic breakdown occurs. Such a breakdown could require up to six months to repair which could cause a major inconvenience to the Carlsbad aquatics patrons. On July 22, 2003, the City Council adopted Resolution No. 2003-200 approving the plans and specifications, and authorizing the advertisement of bids for the Swim Complex Filtration and Heating Replacement Project, City Project No. 38981. On September 9, 2003, two (2) sealed bids were received and opened by the City’s Purchasing Department as follows: California Commercial Pools $216,000 Mission Pools of Escondido $21 9,000 An original estimate of $146,300 was prepared by the City’s aquatics consultants, Aquatics Design Group (ADG) earlier this year. Because both of the bids are significantly higher than the estimate without a significant change in project scope, staff has requested ADG evaluate the reason for the discrepancy. Attached as Exhibit “A is ADG’s letter listing nine possible reasons for the high bids. To summarize the letter, ADG concluded the project is unattractive to contractors in the current construction market. ADG believes a renovation project is undesirable to contractors who have the alternative to accept new construction projects of greater size, higher profit potential, and less risk. With additional research, staff has concluded the two bids submitted are fair and that it would not be possible to obtain a more competitive bid. Purchasing and Recreation Department staff have reviewed the bid documents submitted by California Commercial Pools and have found them to be complete and in compliance with the bid requirements. Therefore, should the City Council choose to award this contract, staff recommends it be awarded to the lowest responsive, responsible bidder, California Commercial Pools. AB# 17,340 Page 2 Construction is anticipated to begin shortly after award and will require 60 calendar days to complete. During the first 213 of the construction schedule, the contractor will obtain materials and pre-fabricate equipment. For the remaining 1 /3 of the construction schedule, the contractor will mobilize and commence construction on site. This will result in the Swim Complex being closed from November 24, 2003 to December 12, 2003 to accommodate construction needs. Staff has alerted the public and the school district of the anticipated closure. I OPTIONS There are two options for Council to consider regarding this project. I Option 1: Reject all bids and continue to make periodic repairs as necessary. Option 2: Appropriate additional funding to the project and award the contract at this I Partial funding for construction has been appropriated and is available in the amount of $146,300 from the Infrastructure Replacement Fund. An additional $91,300 would be required to complete the project. The following illustrates the necessary funding to complete the project. FY 2003-2004 Budqet (estimate) A) Expenditures to Date $ 9,758 6) Construction Estimate 146,300 C) Desian, Inspection, Testina, etc. 15,952 D) Subtotal 172,000 Revised Proiect Budqet E) Construction Bid $21 6,000 F) 10% Contingency 21,600 G) Expenditures to Date 9,748 H) Desian, Inspection. Testina. etc. 15.952 I) Total New Project Estimate 263,300 J) Less Available Funds (Item “D” above) 172,000 K) Total Additional Required $ 91,300 As indicated previously, the existing filtration and heating system is in severe disrepair. Should Council reject bids, there is a risk the filtration and heating system could have a catastrophic breakdown. For this reason, it is staff’s recommendation that Council choose Option 2 and appropriate additional funding for the project in the amount of $91,300 from the Infrastructure Replacement Fund. In addition, staff recommends Council award the contract to California Commercial Pools, the lowest responsive, responsible bidder for the amount of $21 6,000. EXHIBITS: 1) Resolution NO. 2003-265 2) Exhibit “A, Letter from Aquatic Design Group DEPARTMENT CONTACT: Scott Bradstreet, Park Planner, (760) 434-2856, sbrad Bci.carlsbad.ca.us. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2003-265 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AWARDING THE SWIM COMPLEX FILTRATION AND HEATING REPLACEMENT CONTRACT TO CALIFORNIA COMMERCIAL POOLS, PROJECT NO. 38981, AND AUTHORIZING THE APPROPRIATION OF ADDITIONAL PROJECT FUNDING. WHEREAS, The City of Council of the City of Carlsbad, California previously adopted Resolution No. 2003-200 approving the plans and specifications and authorizing the advertisement of bidding for the Swim Complex Filtration and Heating Replacement, City Project No. 38981; and WHEREAS, two (2) sealed bids were received and opened by the City on September 9, 2003 for the above referenced project; and WHEREAS, the lowest responsive, responsible bid is determined to have been submitted by California Commercial Pools, in the amount of $216,000; and WHEREAS, partial project funding in the amount of $146,300 has been appropriated and is available in the Infrastructure Replacement Fund; and WHEREAS, the City Council wishes to appropriate additional funding in the amount of $91,300 from the Infrastructure Replacement Fund; and WHEREAS, the City Council hereby finds it necessary, desirable, and in the public interest to award the contract for the Swim Complex Filtration and Heating Replacement to California Commercial Pools and to authorize the appropriation of additional project funding. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the contract for the Swim Complex Filtration and Heating Replacement be awarded to California Commercial Pools, the lowest responsive, responsible bidder in the amount of $216,000. 3. That additional funding in the amount of $91,300 from the Infrastructure Replacement Fund be appropriated for the project. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 7th day of October , 2003 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Hall, and Packard CLAUDE A. LWS, Mafir vL c;'" - .' ATTEST: / e M.)(VOOD, City Clerk / CC RES0 NO. 2003-265 Page 2 of 2 (SEAL) -2- 11 September 2003 Carl Pope Aquatic Supervisor City of Carlsbad Recreation 3401 Monroe Street Carlsbad, CA 92008 Dear Carl: We are in receipt of the swim complex filtrationheating bids, contract No. 3898- 1, and offer the following comments. The two bids that were submitted were within $3,000 dollars of each other, but were considerably over the Architect’s estimate and the City’s listed valuation. While both bids are from qualified pool contractors, (Mission Pools and California Commercial Pools) both are far in excess of the anticipated costs. Potential reasons for the overage are: 4) 5) The current bidding climate for pool contractors is ‘Pro-contractor’ with several large pool projects in the bidding and construction phase. Only two companies submitted bids, due to current project loads. This is a highly specialized trade and project dealing with specialized equipment. The swimming pool industry has had liability insurance renewals increase by 50-100% this year. The undesirable nature of renovation work couple with the desire by the contractors to cover their exposure. Prevailing wage and insurance requirements by the City. Increased scope of the project during the design phase without updating of the estimate. Relatively short period of construction time during a holiday period. Constraints of the site and work areas. Further review of actual bids indicate that many of the contractors unit prices are several times what they should be, in accordance with current prices. It appears that the contractors prices reflect a busy market with a ‘Here’s Our Price’ attitude. EXHIBIT A Carlsbad Swim Complex 11 September 2003 Page 2 of 2 We stand-by the City, and will support their decision to accept bids or reject and re-bid the project with a potentially revised scope of work, as may be required. We feel the bids are high, but are mindful of scheduling conflicts and the need to accomplish the project as currently packaged and to complete the pool renovation. Sincerely, AQUATIC DESIGN GROUP, INC Scott J Fey, AIA Principal / chitect SJFICS From: John Cahill To : Ray Patchett Date: 10/6/03 3:42PM Subject: Monroe Street Pool Agenda Bill Questions Ray: Our Scott Bradstreet worked closely with Carl Pope on this project and authored the agenda bill in question. He is out of the office today. I have just discussed the agenda bill questions posed by Councilmember Finnila with Carl and can provide the following responses. (1) Regarding the difference between lines "A" and "GI' in the Fiscal Impact section of the AB, the correct expenditure amount to date is $9748. It appears that line "A" is a typo; where it says $9758 it should read $9748. The subtotal amount listed on line "D" is correct. (2) Regarding the estimated amount of line "H" within the "Revised Project Budget" total, this is a "catch-all estimate" for unknown, unforseen indirect project costs that may occur during construction. There may be design modifications, although minor in nature, needed that are unknown at this time. Regarding inspection and testing, County Health Department will be out to check the pressure gauges in the filter system and do some water quality testing. City Building Inspectors will be out to check all electrical and structural work under a City issued Building Permit. We routinely take concrete samples whenever structural concrete is poured and have it tested for strength. There is a major concrete pour over compressed gravel within the existing pit area. Concrete will be poured as a "cap" and the cap used as the foundation for the filtering equipment. We are also replacing all of the worn and corroded metal handrails adjacent the filter pit with galvanized steel rails that will last much longer. There may be the need to test the galvanizing process used on the steel rails as well as their embedment into to concrete foundation. This amount in line "H" again is for things we haven't thought of or can't foresee prior to construction. If we need it, it's there. If we don't use it, it reverts to fund balance at the conclusion of the project. Please let me know if there are any other questions regarding this project. Thanks, John Cahill cc: Carl Pope; Frank Mannen; Ken Price; Sue Spickard