HomeMy WebLinkAbout2017-01-24; City Council; ; Adopt a Resolution awarding a contract for the Pine Avenue Park Community Center and Gardens Project (CIP No. 4603) to Barnhart Reese Construction, Inc. in an amount notCITY COUNCIL
Staff Report
CA Review
Meeting Date: January 24, 2017
To: Mayor and City Council
From: Kevin Crawford, City Manageg'
Staff Contact: Kyle Lancaster, Parks Services Manager
kyle.lancaster@carlsbadca.gov or 760-434-2941
Subject: Adopt a Resolution awarding a contract for the Pine Avenue Park Community
Center and Gardens Project (CIP No. 4603) to Barnhart Reese Construction,
Inc. in an amount not to exceed $8,461,224; relieving Tovey-Shultz
Construction, Inc. of its bid; and appropriating $973,040 in additional funds
for construction contingency
Recommended Action
Adoption of a Resolution awarding a contract for the Pine Avenue Park Community Center and
Gardens Project (CIP No. 4603) to Barnhart Reese Construction, Inc. in an amount not to exceed
$8,461,224; relieving Tovey-Shultz Construction, Inc. of its bid; and appropriating $973,040 in additional
funds for construction contingency.
Executive Summary
A total of five bids were received for the Pine Avenue Park Community Center and Gardens Project
(CIP No. 4603). The apparent low bidder, Tovey-Schultz Construction, Inc., submitted a timely
request to withdraw its bid based on a clerical error that resulted in a bid that was materially
different than intended. If Tovey-Schultz Construction, Inc. is relieved of its bid, then Barnhart Reese
Construction, Inc. would be the lowest responsive and responsible bidder, with a total bid amount of
$8,461,224. Although there are sufficient funds in the CIP project's budget for the base bid, staff is
recommending including an 11.5% construction contingency to cover unforeseen circumstances.
Therefore, staff is requesting the City Council to approve the appropriation of $973,040 in additional
funds to the project's budget.
Discussion
The Parks & Recreation Department recently completed an advertisement for bids to construct the
Pine Avenue Park Community Center and Gardens Project. The project, which includes an 18,000
square foot multi-use, multi-generational community center and both ornamental and community
gardens, represents the final build-out components of the park, consistent with the Pine Avenue
Community Park Master Plan Update (2014).
On October 25, 2016, the City Council adopted Resolution No. 2016-219, approving the contract
documents, plans, provisions, and specifications, and authorizing the City Clerk to advertise for bid
the Pine Avenue Park Community Center and Gardens Project (CIP No. 4603). The engineer's
estimate for this project was $8,708,945. The engineer's estimate included a 2.5% cost inflator, but
did not include any construction contingency.
Item #3 January 24, 2017 Page 1 of 7
On December 15, 2016, five sealed bids were received. The following table lists the five bidders, and
their base bid amounts.
CONTRACTOR BASE BID
1. Tovey-Schultz Construction, Inc. $7,640,272.41
2. Barnhart Reese Construction, Inc. $8,461,224.00
3. Woodcliff Corporation $8,826,000.00
4. EC Constructors, Inc. $9,071,575.00
5. USS Cal Builders $9,669,754.00
On December 19, 2016, the apparent low bidder, Tovey-Schultz Construction, Inc., submitted a
request to withdraw its bid. Under California Public Contract Code sections 5101 and 5103, the
awarding authority may relieve a bidder of its bid if the bidder made a mistake that caused the bid to
be materially different than intended, the mistake was made in filling out the bid and not due to an
error in judgment or carelessness in inspecting the site or reading the plans and specifications, and
the bidder has notified the city of the mistake within five working days of the bid opening. Tovey-
Schultz Construction, Inc. gave timely notice of its mistake and included an explanation of why the
mistake was material in lowering the bid by $138,291, and an explanation that the mistake was due
to an error in its spreadsheet. Staff reviewed the information and believes there is sufficient
justification to relieve Tovey-Shultz Construction, Inc. of its bid pursuant to California Public Contract
Code section 5103. Tovey-Shultz Construction, Inc. is not allowed to adjust its bid after the submittal
date, as doing so would give a competitive advantage. Therefore, staff is recommending the City
Council relieve Tovey-Schultz Construction Inc. of its bid.
The second apparent low bid, from Barnhart Reese Construction, Inc., was responsive and
responsible. The advertisement for bid required a performance report on one of the community
center's energy systems to be included with the bid. While Barnhart Reese Construction, Inc. did not
include that report with its bid, staff believes this is a minor, waivable irregularity under Carlsbad
Municipal Code section 3.28.080(G)(3). A bidder is required to meet the system's specifications,
irrespective of whether a performance report was included with the bid, so omitting the report did
not give Barnhart Reese any competitive advantage. Therefore, staff is recommending the City
Council award a contract to Barnhart Reese Construction, Inc.
The Pine Avenue Park improvements incorporate energy and water savings features consistent with
the city's Climate Action Plan, Environmental Guiding Principles and Landscape Manual. Specifically,
those features include:
D LEED Silver equivalent design standards on the Community Center (CAP Action G-2:
Commission city facilities to improve building operations and energy costs)
D Energy generating solar photovoltaic panels on the Community Center (CAP Action M-2:
Incorporate renewable energy measures such as PV system installation on city buildings)
D Electric vehicle charging station in E. lot (CAP Action L-3: Construct EV charging stations)
D Porous surfacing materials (Environmental Guiding Principles — Clean Air and Water)
D Water conserving landscape palette (Landscape Manual — Water Conservation Policies)
Item #3 January 24, 2017 Page 2 of 7
Fiscal Analysis
Funding for the project, in the amount of $11,110,000 was approved in the FY 2016-17 Capital
Improvement Program Budget. The project is funded with Public Facility Fee Funds and Park-in-Lieu
Fee Funds. Sufficient funds are available in the project's budget for the base bid. However, staff is
requesting an additional appropriation, in the amount of $973,040 (11.5% of base bid) from the
Public Facility Fee Fund (PFF) to the project's budget, for construction contingency. Escalating
construction costs, and a robust construction climate in San Diego County over the past year and a
half, have attributed to higher construction costs than anticipated for this project.
Next Steps
Presuming award of the subject contract for the Pine Avenue Park Community Center and Gardens
Project, staff anticipates construction commencement on or about March 1, 2017, with completion
by the end of the first quarter of 2018.
Environmental Evaluation (CEQA)
The Negative Declaration for Pine Avenue Park was approved by the Planning Commission on
December 17, 2003 (Planning Commission Resolution No. 5523). The pending improvements to the
park are within the scope of the prior environmental review documents, and no further
environmental documentation is required per CEQA Guideline Sections 15162.
Public Notification
Public notification has occurred throughout this project, beginning with stakeholder interviews and
public meetings regarding potential improvements to the park. The input received significantly
contributed to the development of the Pine Avenue Community Park Master Plan Update (adopted
by the City Council in December 2014). On December 10, 2015 staff provided the City Council with an
informational report on the implementation of the master plan update.
Over the past year, there continued to be a considerable amount of public notification on the
progression of the design of the park improvements, and several opportunities for further public
input. These notifications and opportunities occurred through a variety of means, including:
3 Ongoing postings on the city website, Parks & Recreation Department pages
3 Approximate monthly presentations at Parks and Recreation Commission Meetings
3 Approximate bi-monthly presentations at Carlsbad Barrio Neighborhood Meetings
3 Approximate quarterly presentations at City Council Workshops, Citywide CIP Projects
3 Routine meetings/communications with the Carlsbad Community Gardens Collaborative
3 Recent installation of large display boards at each location of the pending improvements
3 Recent e-mail blasts to address lists of patrons expressing interest in Parks & Recreation
Exhibits
1. Resolution awarding a contract for the Pine Avenue Park Community Center and Gardens Project
(CIP No. 4603) to Barnhart Reese Construction, Inc. in an amount not to exceed $8,461,224;
relieving Tovey-Shultz Construction, Inc. of its bid; and appropriating $973,040 in additional funds
for construction contingency.
2. Letter from Tovey-Schultz Construction, Inc. requesting to withdraw its bid (Dec. 19, 2016).
Item #3 January 24, 2017 Page 3 of 7
RESOLUTION NO. 2017-014
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA AWARDING A CONTRACT FOR THE PINE AVENUE PARK
COMMUNITY CENTER AND GARDENS PROJECT (CIP NO. 4603) TO
BARNHART REESE CONSTRUCTION, INC. IN AN AMOUNT NOT TO
EXCEED $8A61,224; RELIEVING TOVEY-SHULTZ CONSTRUCTION, INC.
OF ITS BID; AND APPROPRIATING $973,040 IN ADDITIONAL FUNDS FOR
CONSTRUCTION CONTINGENCY.
EXHIBIT 1
WHEREAS, the City Council of the City of Carlsbad, California, has determined it necessary,
desirable, and in the public interest to construct the park improvements for the Pine Avenue Park
Community Center and Gardens Project (CIP No. 4603) ("Project"); and
WHEREAS, on October 25, 2016, the City Council adopted Resolution No. 2016-219 approving
the contract documents, plans, provisions and specifications, and authorizing the City Clerk to advertise
the Project for bids; and
WHEREAS, on December 15, 2016, five bids were received; and
WHEREAS, on December 19, 2016, Tovey-Schultz Construction, Inc., the apparent low bidder,
submitted a timely request to withdraw its bid due to a material error in its bid spreadsheet in
compliance with California Public Contract Code sections 5101 and 5103; and
WHEREAS, staff is therefore recommending the City Council relieve Tovey-Schultz Construction,
Inc. of its bid; and
WHEREAS, Barnhart Reese Construction, Inc., the next apparent low bidder, submitted a bid in
the amount of $8A61,224 that was determined to be responsive and responsible despite a minor,
waivable irregularity under Carlsbad Municipal Code section 3.28.080(G)(3L in failing to submit an
energy system's performance report; and
WHEREAS, staff is recommending the City Council award of a contract to Barnhart Reese
Construction, Inc. in an amount not to exceed $8A61,224; and
Item #3 January 24, 2017 Page 4 of 7
WHEREAS, sufficient funds for the base bid, in the amount of $8,461,224, are available in this
Project's FY 2016-17 CIP budget; and
WHEREAS, an appropriation of additional funds from the Public Facility Fee Fund (PFF), in the
amount of $973,040, to this Project's budget, is requested for construction contingency (11.5% of base
bid); and
WHEREAS, subsection 3.28.040(C)(5) of the Carlsbad Municipal Code authorizes the City
Manager to approve change orders in the amount equal to the contingency set at the time of project
award.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows that:
1. The above recitations are true and correct.
2. Tovey-Schultz Construction, Inc. is relieved of its bid for the Pine Avenue Community
Center and Gardens Project (CIP No. 4603).
3. Barnhart Reese Construction, Inc. is determined to be the lowest responsive,
responsible bidder, and the failure to include an energy system's performance report
with its bid is determined to be a minor, waivable irregularity.
4. The Mayor is hereby authorized and directed to execute a contract with Barnhart Reese
Construction, Inc., for the construction of the Pine Avenue Park Community Center and
Gardens Project (CIP No. 4603) in accordance with the contract documents, plans,
provisions, and specifications referred to herein, in an amount not to exceed
$8,461,224.
5. The City Manager is hereby authorized to approve construction change orders, singly
or in aggregate, up to $973,040 for the Project.
Item #3 January 24, 2017 Page 5 of 7
EXHIBIT 2
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pH.951.471.5677 1 FAx951.639.6070 I 18261 Collier Avenue, Unit A Lake Elsinore, CA 92530
December 19, 2016
Contract Administration
City of Carlsbad
1635 Faraday Ave.
Carlsbad, CA 92008
Re: REVISED LETTER - Pine Ave_ Park Community Center and Garden Project — Contract
No. 4603
Dear Mr. Jordan,
On December 16, 2016 we submitted written notice of withdrawal of our bid for the above
referenced project due to a clerical error in the tabulation of our bid. This letter is intended to
explain the precise nature of the clerical error we made in our bid preparation.
As part of our bid preparation, we built a spreadsheet with various subcategories to match the bid
form required by the City of Carlsbad. These subcategories each had an internal summation
formula that subtotaled each subcategory within the total amount of the bid of Tovey/Shultz
Construction, Inc. During the bid preparation, as bids were coming in, I adjusted our bid
spreadsheet to add lines for additional amounts within two different bid categories (7 Thermal &
Moisture for $101,585 and 9 Finishes for $36,706) but I inadvertently failed to modify the
underlying internal summation equation in each of these two sub-categories. As a result, the
totals for these two (2) sub-categories of our bid were materially understated and this resulted in
a total bid by Tovey/Shultz Construction, Inc., that was for an amount that is $138,291.00, less
than we intended. This mathematical tabulation error in the amount of our bid made our total bid
amount materially different than we intended it to be. This error was due to a clerical error as
described above, and was not due to an error in judgment or to carelessness in inspecting the site
of the work, or in reading the plans or specifications. It is, as stated, simply a clerical error in the
tabulation of our bid such that the resulting amount of our bid was substantially less than the
amount we actually intended. Unfortunately, we did not catch this clerical error until after the
numbers were called in to our bid runner and the bid was turned in.
Sincerely,
Kevin Terry
President
Item #3 January 24, 2017 Page 7 of 7