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Home My WebLink About2024-01-09; City Council; ; Accepting bids, determining a bid is non-responsive, and awarding a contract to Conan Construction, Inc. for construction of the Calavera Hills Community Center RefurbishCA Review GH Meeting Date: Jan. 9, 2024 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Molly Amendt, Senior Engineer molly.amendt@carlsbadca.gov, 760-573-3368 Subject: Accepting bids, determining a bid is non-responsive, and awarding a contract to Conan Construction, Inc. for construction of the Calavera Hills Community Center Refurbishment Project District: 2 Recommended Action Adopt a resolution accepting bids, determining the bid submitted by Dynamis Now, LLC to be non-responsive, and awarding a contract to Conan Construction, Inc. for construction of the Calavera Hills Community Center Refurbishment Project, in an amount not to exceed $1,217,750. Executive Summary The Calavera Hills Community Center located at 2997 Glasgow Drive, as shown in Exhibit 2, requires refurbishment of the roof, exterior siding and painting. This action would award a construction contract to the lowest responsive and responsible bidder, Conan Construction, Inc., in an amount not to exceed $1,217,750. The City Council’s approval is required under Carlsbad Municipal Code Sections 3.28.080(C) and 3.28.080(I)(6), which apply construction contracts when the value exceeds $200,000, as this project does. Explanation & Analysis Project overview The scope of the project includes: •Replacing a portion of the existing low-slope roofing with a single-ply membrane, a wide sheeting designed for low-slope roofs •Applying a fluid roof system over the existing roof for a portion of the existing low-slope roofing •Replacing clay tile roofing with standing seam metal roofing consisting of panels locked together with concealed fasteners •Patching and repairing areas of exterior cement plaster damage •Repainting all previously painted surfaces Jan. 9, 2024 Item #2 Page 1 of 7 _____________________ 1 As a charter city, Carlsbad has the ability to set out its own procedures in public works contracting (Domar Electric, Inc. v. City of Los Angeles (1994) 9 Cal 4th 161). Construction contract • On Oct. 10, 2023, the City Council adopted Resolution No. 2023-258, approving the project’s plans and specifications and authorized staff to seek bids for construction of the project. Staff advertised the project using the city’s formal bidding procedures. • A consulting architect estimated construction of the project would cost a total of $2,101,900. • Six bids were received on Nov. 9, 2023, ranging from the lowest bid of $584,561 to the highest bid of $1,844,818. Staff have reviewed the bids and recommend that the City Council find the apparent low bid of $584,561 from Dynamis Now, LLC to be non-responsive because the contractor submitted a bid that proposed subcontracting for more than 50% of the work. Section 404 of the City Charter, provides that the “City Council shall have the power to establish standards, procedures, rules or regulations relating to all aspects of the award and performance of contracts, including contracts for the construction of public improvements.” Consistent with its authority, the City Council approved the plans, specifications and contract documents for this project, which included a requirement for limiting subcontracting to be no more than 50% of the work.1 Because Dynamis Now, LLC proposed subcontracting for more than 50% of the work, its bid should be deemed non-responsive. Staff determined the next lowest bid in the amount of $1,217,750 from Conan Construction, Inc. to be responsive to the requirements of the bidding documents. Conan Construction, Inc. is the lowest responsive and responsible bidder based on the documents provided in its bid. Staff recommend award of a construction contract to Conan Construction, Inc. for this project. Fiscal Analysis Capital Improvement Program Project No. 4746 is funded by the Infrastructure Replacement Fund. There are sufficient funds available in CIP Project No. 4746 to complete the project. No additional funding is requested at this time. Calavera Hills Community Center Refurbishment Project CIP Project No. 4746 Total appropriation to date $1,985,000 Total expenditures/encumbrances to date -$192,519 Total available funding $1,792,481 Additional project costs Construction contract – Conan Construction, Inc. -$1,217,750 Construction contingency (estimated) -$182,000 Construction management, inspection and testing (estimated) -$75,000 Total estimated construction costs -$1,474,750 Remaining balance $317,731 Jan. 9, 2024 Item #2 Page 2 of 7 CMC Sections 3.28.040(C)(5) and 3.28.090(B) allow for the City Council to authorize the City Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which for this project is $182,000. Next Steps Once the City Council accepts the bids, determines that the bid submitted by Dynamis Now, LLC is non-responsive, and awards the construction contract to Conan Construction, Inc., staff will issue a purchase order, schedule a pre-construction meeting with the contractor and issue a notice to proceed for construction of the project. The duration of the construction contract is approximately four months, not including rain days and delays from change orders that may extend the contract duration. Once the project is completed, which is expected to be in second quarter 2024, a notice of completion to release bonds issued for the project will be recorded. Environmental Evaluation The City Planner, through the process outlined in Carlsbad Municipal Code Section 19.04.060, has determined that the project to replace the Calavera Hills Community Center roof and repair and paint the exterior of the building, belongs to a class of projects that the State Secretary for Natural Resources has found do not have a significant impact on the environment, and it is therefore categorically exempt from the requirement for the preparation of environmental documents pursuant to Section 15301 (d) Class 1 of the California Environmental Quality Act, or CEQA, Guidelines. The project is consistent with 15301 (d) Class 1 because it consists of maintenance of public facilities, such as restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety. In making this determination, the City Planner has found that the exceptions listed in Section 15300.2 of the CEQA Guidelines do not apply to this project. Exhibits 1. City Council resolution 2. Location map Jan. 9, 2024 Item #2 Page 3 of 7 RESOLUTION NO. 2024-001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING BIDS, DETERMINING THE BID SUBMITTED BY DYNAMIS NOW, LLC TO BE NON-RESPONSIVE AND AWARDING A CONTRACT TO CONAN CONSTRUCTION, INC. FOR CONSTRUCTION OF THE CALAVERA HILLS COMMUNITY CENTER REFURBISHMENT PROJECT, IN AN AMOUNT NOT TO EXCEED $1,217,750 WHEREAS, the City Council of the City of Carlsbad, California has determined it necessary, desirable and in the public interest to construct the Calavera Hills Community Center Refurbishment, Capital Improvement Program Project No. 4746, or project; and WHEREAS, on Oct. 10, 2023, the City Council adopted Resolution No. 2023-258, approving plans and specifications that included a requirement to limit subcontracting to no more than 50% of the work and authorizing advertisement of the project for construction bids; and WHEREAS, Section 404 of the City Charter allows the City Council to set its own bidding requirements in matters that are strictly a municipal affair; and WHEREAS, the Carlsbad Municipal Code Sections 3.28.080(() and 3.28.080(1)(6) require the City Council to award all formally bid contracts when the value exceeds $200,000, and therefore, the project is subject to this requirement; and WHEREAS, on Nov. 9, 2023, staff received six bids for construction of the project; and WHEREAS, the apparent lowest bid submitted by Dyna mis Now, LLC in an amount not to exceed $584,561 did not meet the requirement of limiting subcontracting to no more than 50% of the work and therefore staff recommend the bid be found non-responsive for not meeting the requirement stated in the bid solicitation; and WHEREAS, Conan Construction, Inc., submitted the next lowest bid in an amount not to exceed $1,217,750, and WHEREAS, staff determined that Conan Construction, Inc. is a responsible contractor and its bid is responsive; and WHEREAS, the Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) authorize the City Manager or designee to approve change orders in an amount equal to the contingency set at the time of project award, which is $182,000; and WHEREAS, the City Planner has determined that the project is exempt from the California Environmental Quality Act, or CEQA, under CEQA Guidelines Section 15301(d) Class 1 because it Exhibit 1 Jan. 9, 2024 Item #2 Page 4 of 7 consists of maintenance of public facilities, such as the restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment to meet current standards of public health and safety. 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 bid in the amount of $584,561 submitted by Dynamis Now, LLC is determined to be non-responsive as they failed to limit subcontracting to no more than 50% of the work. 3.That the bid in the amount of $1,217,750 submitted by Conan Construction, Inc., for construction of the Calavera Hills Community Center Refurbishment Project, CIP Project No. 4746, is accepted, and the Mayor is hereby authorized to execute a contract with Conan Construction, Inc. 4.That the City Manager or designee is hereby authorized to approve construction change orders for the project up to $182,000. 5.That the City Manager or designee is authorized to sign all other documents necessary to finalize, implement and comply with the project, subject to their approval as to form by the City Attorney. 6.That the award of this contract is contingent upon Conan Construction, Inc., executing the required contract and submitting the required bonds and insurance policies, as described in the contract, within 20 calendar days after adoption of this Resolution. The City Manager may grant reasonable extensions of time to execute the contract and assemble the required bonds and insurance policies. Jan. 9, 2024 Item #2 Page 5 of 7 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 9th day of January, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. l KEITH BLACKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) Jan. 9, 2024 Item #2 Page 6 of 7 ROCK RIDG E R D MIDDLET O N D R WOODSTOCKST E D G E W A R E W Y G L A S G O W D R HA R W I C H D R T A M A R A C K A V C A R L S B A D V I L L A G E D R COL LEGE BL TAMARACK AV Copyright nearmap 2015 LOCATION MAP PROJECT NAME EXHIBIT2CALAVERA HILLS COMMUNITY CENTER REFURBISHMENT PROJECT $!Å **#5$ **#5$·|}þ78 VISTA ENCINITAS SAN MARCOS S.D. COUNTY OCEANSIDE PACIFICOCEAN T A M ARACKAV LACO STAAV POIN S E T TI A L N C A R L S B A D B L ELCA MIN O REALA V I A R APY ALGA R D CANNON R D Created By: Sara Jadhav 8/15/2023 J:\SaraJadhav_Customers\MollyAmendt\CalaveraHills\LocationMap-4746.mxd SITE LOCATION $!Å PROJECTNUMBER4746 Exhibit 2 Jan. 9, 2024 Item #2 Page 7 of 7