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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 14§1-1VOttidfCr 1. 1,483, 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