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Home My WebLink About2022-07-12; City Council; ; Authorize a $200,000 Increase in the Construction Contingency Amount for the Temporary Trailer Contract for the Police and Fire Headquarters Renovation ProjectCA Review _RMC_ Meeting Date: July 12, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Steven Stewart, Municipal Projects Manager steven.stewart@carlsbadca.gov, 442-339-2938 Mickey Williams, Police Chief mickey.williams@carlsbadca.gov, 442-339-2130 Subject: Authorize a $200,000 Increase in the Construction Contingency Amount for the Temporary Trailer Contract for the Police and Fire Headquarters Renovation Project District: 2 Recommended Action Adopt a resolution authorizing a $200,000 increase in the construction contingency amount for the temporary trailer contract for the Police and Fire Headquarters Renovation Project, Capital Improvement Program Project No. 4715. Executive Summary/Discussion Temporary trailers were required as part of the Police and Fire Headquarters Renovation Project for staff who work on site. On Aug. 31, 2021, the City Council awarded a contract for temporary trailers and on-site security to McGrath RentCorp, a California corporation, dba Mobile Modular Management Corporation. (Resolution No. 2021-196) The City Council also granted authority to the City Manager to approve change orders to the contract up to a limit of $120,431. This value of $120,431 was set as the construction contingency amount for this contract from which potential change orders could be deducted. To date, most of this amount has been spent on five change orders to the contract for additional provisions requested by the Police and Fire departments. The renovation project is currently behind schedule due to delays in obtaining the materials required for the work, so the rental terms for some of these trailers need to be extended. Staff are requesting authorization to increase the City Manager’s change order approval authority by an additional $200,000 so additional change orders can be issued to extend the trailer rental terms and site security for up to an additional seven months. With this authorization, the City Manager’s change order approval authority for this contract would be increased to the total not- to-exceed amount of $320,431. The recommended action exceeds the City Manager’s procurement authority and therefore requires City Council authorization under Carlsbad Municipal Code Section 3.28.040(D)(3). July 12, 2022 Item #7 Page 1 of 6 Options Staff provide the following options for the City Council’s consideration: 1. Adopt a resolution authorizing a $200,000 increase in the construction contingency amount for the temporary trailer contract for the Police and Fire Headquarters Renovation Project, Capital Improvement Program Project No. 4715 Pros • The use of temporary trailers on the site has been working well, and rental terms are on a month-to-month basis • Mobile Modular’s bid was for less than the consulting engineer’s initial estimate of $1,600,000 when the contract was awarded, and it remains lower than the engineer’s estimate, even with this additional funding authorization request • Overall construction costs have been reduced due to the city dealing directly with Mobile Modular instead of going through the construction contractor, so control of the rental terms continues to be in the city’s best interest • Sufficient funding is available within the current project budget Cons • None identified 2. Do not adopt a resolution authorizing a $200,000 increase in the construction contingency amount for the temporary trailer contract for the Police and Fire Headquarters Renovation Project, Capital Improvement Program Project No. 4715 Pros • None identified Cons • Removing temporary trailers at the end of their current lease terms will compromise the daily operations of public safety staff • Removing the temporary trailers used to store property and evidence before they can be returned to a secure room in the headquarters building would compromise the mandated security protocols required for their custodial care • Asking the building renovation contractor to pay for the extended trailer rental could result in additional costs to the city Staff recommend Option 1 for City Council’s approval. July 12, 2022 Item #7 Page 2 of 6 Fiscal Analysis Project funding to date has been allocated from the General Capital Construction and Infrastructure Replacement funds as shown below: Police and Fire Headquarters Renovation Capital Improvement Program Project No. 4715 Total appropriation to date $20,966,550 Total expenditures/encumbrances to date (including the Mobile Modular contract) $19,068,273 Total available funding $1,898,277 Contract, including construction contingency $1,575,199 Soft cost budget (staff time, consultant services, testing) $323,078 Remaining balance $0 Next Steps Should the City Council approve the recommended option, staff will prepare a change order to the contract with Mobile Modular to extend rental terms and security services at the Police and Fire Headquarters. The rental term for the temporary trailers will initially be extended by three months. Environmental Evaluation The City Planner has determined that the action to authorize a contract change order related to the use of temporary trailers is exempt from the provisions of the California Environmental Quality Act pursuant to Article 19, Section 15301 – Existing Facilities, which apply to the operations, repair, maintenance, permitting, leasing or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and available for viewing at least 72 hours prior to the meeting. Exhibits 1.City Council resolution 2.Location map July 12, 2022 Item #7 Page 3 of 6 RESOLUTION NO. 2022-166 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING A $200,000 INCREASE IN THE CONSTRUCTION CONTINGENCY AMOUNT FOR THE TEMPORARY TRAILER CONTRACT FOR THE POLICE AND FIRE HEADQUARTERS RENOVATION PROJECT WHEREAS, on June 8, 2021, the City Council adopted Resolution No. 2021-127, approving the revised plans and specifications to provide temporary trailers and authorizing the City Clerk to advertise a request for bids on the city website for this portion of the Police and Fire Headquarters Renovation Project, Capital Improvement Program, or CIP, Project No. 4715; and WHEREAS, on July 13, 2021, staff received four bids for the temporary trailers and found that McGrath RentCorp, a California corporation, dba Mobile Modular Management Corporation, or Mobile Modular, submitted the lowest responsive and responsible bid in an amount not to exceed $1,204,309; and WHEREAS, on Aug. 31, 2021, the City Council adopted Resolution No. 2021-196, awarding a contract to Mobile Modular in an amount not to exceed $1,204,309 and authorizing the City Manager to approve change orders up to the amount of the construction contingency of $120,431; and WHEREAS, this construction contingency authorized for change orders has been expended on previous change orders requested by the Police and Fire departments, and additional construction contingency of $200,000 is needed for change orders to extend the trailer rental terms due to material delays impacting completion of the building renovation work; and WHEREAS, the recommended action exceeds the City Manager's procurement authority and therefore requires City Council authorization under Carlsbad Municipal Code Section 3.28.040{0){3); and WHEREAS, the City Planner has determined that the action to authorize a contract change order related to the use of temporary trailers is exempt from the provisions of the California Environmental Quality Act pursuant to Article 19, Section 15301-Existing Facilities, which consists of the operations, repair, maintenance, permitting, leasing or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use. Exhibit 1 July 12, 2022 Item #7 Page 4 of 6 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 City Council authorizes a $200,000 increase in the construction contingency amount for the contract with Mobile Modular for CIP Project No. 4715, for a total not to-exceed contingency amount of $320,431. 3.That the City Manager is hereby authorized to approve construction change orders up to $320,431. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of !lliY, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta. None. Norby. � .fov FAVIOLA MEDINA, City Clerk Services Manager (SEAL) July 12, 2022 Item #7 Page 5 of 6 FARADAY AVE. PALOMAR AIRPORT RD. E L C A M I N O R E A LORIONST.WHIPTAIL LOOPLOKERAVE.WE S T E A S T SALK AVE. IMPALA DR.PALMERWY.GATEWAY RD. SITE PALOMAR AIRPORT EL F U E R T E ST.RUTHERFORD RD. SITE LOKERAVE. SAFETY CENTER EXHIBIT 2 July 12, 2022 Item #7 Page 6 of 6 LOCATION MAP V7PJ NOT TO SCALE PROJECT NAME EXHIBIT PLOTTED BY: SCOTT EVANS PLOT DA Tf: 5/29/18 PA TH: D: \Cl1Y FAQL/11£5\AUTOCAD MAPS\LOCA 110N MAPS\SAFFTY CENTER LOCA 110N MAP.DWG