HomeMy WebLinkAbout2024-05-07; City Council; ; Accepting bids, authorizing relief of a bid, and awarding a contract to CALTEC CORP for the Schulman Auditorium Audio-Visual Update Project and Authorizing an AdditionalCA Review GH
Meeting Date: May 7, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Steven Stewart, Municipal Projects Manager
steven.stewart@carlsbadca.gov, 442-339-2938
Subject: Accepting bids, authorizing relief of a bid, and awarding a contract to
CALTEC CORP for the Schulman Auditorium Audio-Visual Update Project
and Authorizing an Additional Appropriation
District: 3
Recommended Action
Adopt a resolution accepting bids, authorizing relief of the bid submitted by EIDIM Group, Inc.
and awarding a contract to CALTEC CORP for the Schulman Auditorium Audio-Visual Update
Project in an amount not to exceed $2,222,222 and authorizing an additional appropriation in the
amount of $1,170,000 from the Infrastructure Replacement Fund.
Executive Summary
The sound and video systems at the Ruby G. Schulman Auditorium at the Carlsbad City Library
have had performance failures and are at the end of their expected service life. The Schulman
Auditorium Audio-Visual Update Project No. 4753 was developed for this work.
The City Council approved the plans, specifications and contract documents for the project on
Jan. 9, 2024. These documents were then advertised on the city website, and on Feb. 21, 2024,
staff received three bids.
The apparent low bidder, EIDIM Group Inc. (doing business as EIDIM AV Technology) has
requested withdrawal of its bid, and staff are recommending the City Council award a contract to
the second low bidder, CALTEC CORP, in an amount not to exceed $2,222,222.
For award of this contract, additional funding in the amount of $1,170,000 is needed to proceed
with the work. This funding will be allocated from the Infrastructure Replacement Fund, which is
currently the only funding source for this project.
The City Council’s authorization is required when the value of construction contracts exceed
$200,000 pursuant to Carlsbad Municipal Code, or CMC, Section 3.28.080(I)(6).
May 7, 2024 Item #2 Page 1 of 8
Explanation & Analysis
Background
The City Council approved an agreement with Domusstudio Architecture LLP, for design of the
Schulman Auditorium and Cannon Art Gallery Audio-Visual Update Project, Capital Improvement
Program Project No. 4753, on July 12, 2022, with Resolution No. 2022-165.
Staff from the Public Works Branch and Library & Cultural Arts Department met with the
consultant, Domusstudio Architecture LLP, on several occasions to review the programming
needs for each location and create an appropriate design for the project. The project’s design was
completed, approved by staff and received a building permit on Aug. 1, 2023, on file for the
successful bidder to pick up once the contract is awarded.
This project was originally envisioned to include audio-visual, lighting and infrastructure upgrades
in both the Schulman Auditorium and the Cannon Art Gallery. However, once the design work for
both areas were completed, the preliminary cost estimate exceeded the funding appropriation,
primarily due to the audio-visual related work. Accordingly, staff have deferred the Cannon Art
Gallery and adjacent courtyard work to a later date and reconsidered the scope of work for the
Schulman Auditorium to identify potential cost savings.
The project’s scope was then reduced to include work in the Schulman Auditorium only. The work
in the auditorium includes complete replacement of the audio-visual system and most of the
theatrical lighting with supporting infrastructure. The new systems are expected to have a useful
lifespan of at least 15 years. The cost estimate for this lesser scope still exceeded the available
project funding but given that most of the estimated cost was related to the audio-visual and
lighting work, the scope was not reduced any further.
Bidding process
The City Council approved the revised project plans, specifications and contract documents for
the Schulman Auditorium Audio-Visual Update Project in January, as noted above, with
Resolution No. 2024-002. The city received three bids in response to its advertisement.
The lowest bid was submitted by EIDIM AV Technology in an amount of $1,243,560. During
further evaluation of EIDIM’s bid, staff noted that several categories of work on its bid form were
left blank, so staff requested additional information.
EIDIM provided a revised bid form on March 7, 2024, and staff again noted that several
categories of work were left blank. Then, on March 15, 2024, EIDIM requested to withdraw its bid
because it contained a material error.
Staff and the City Attorney’s office have considered EIDIM’s request to withdraw its bid, together
with the incomplete bid information provided, and are recommending that the City Council grant
relief of the bid submitted by EIDIM and authorize the City Clerk to release the bid bond that was
submitted as part of its bid.
Staff then evaluated the bid submitted by the second lowest bidder, CALTEC CORP and found its
bid to be responsive and responsible. The bid form submitted was complete and client references
spoke favorably of the company.
The amount of the bid submitted by CALTEC CORP was in the amount not to exceed $2,222,222.
For award of this contract, additional funding in the amount of $1,170,000 is needed. This
May 7, 2024 Item #2 Page 2 of 8
funding could be allocated from the Infrastructure Replacement Fund, which is the only available
funding source for this project.
Recommendation
Staff request that the City Council accept the bids, authorize relief of the bid bond submitted by
EIDIM, and award a contract to CALTEC CORP. Additionally, staff request that the City Council
authorize the City Manager or designee to appropriate an additional $1,170,000 from the
Infrastructure Replacement Fund to complete the project and authorize the City Manager to
approve change orders in an amount equal to the contingency set at the time of project award,
which is $222,000.
Fiscal Analysis
This project is funded from the Infrastructure Replacement Fund, and additional funding is being
requested to proceed with the work. An additional appropriation in the amount of $1,170,000
from the Infrastructure Replacement Fund is necessary to complete the project. Sufficient funds
are available in the fund to support the requested action.
Schulman Auditorium Audio-Visual Update Project
Capital Improvement Program Project No. 4753
Total appropriation to date $1,650,000
Total expenditures/encumbrances to date -$282,185
Total available balance $1,367,815
Construction contract – CALTEC CORP -$2,222,222
Construction contingency (estimated) -$222,000
Construction management, inspection and testing (estimated) -$93,593
Total estimated project costs -$2,537,815
Additional appropriation needed to proceed with project $1,170,000
Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) allow for 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 $222,000.
Next Steps
Once the City Council authorizes award of the contract to CALTEC CORP and approves additional
funding from the Infrastructure Replacement Fund, staff will prepare and issue a purchase order
and proceed to 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 expected to be eight months, although supply chain
delays and change orders may extend it. Once the project is complete, which is expected to be in
early 2025, a notice of completion to release bonds issued for the project will be recorded.
Environmental Evaluation
The City Planner has determined that the project is exempt from the California Environmental
Quality Act under CEQA Guidelines Section 15301(d) Class 1 because it consists of maintenance of
May 7, 2024 Item #2 Page 3 of 8
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.
Exhibits
1. City Council resolution
2. Location map
May 7, 2024 Item #2 Page 4 of 8
RESOLUTION NO. 2024-088
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ACCEPTING BIDS, AUTHORIZING RELIEF OF THE BID
SUBMITTED BY EIDIM GROUP, INC. AND AWARDING A CONTRACT TO
CALTEC CORP FOR THE SCHULMAN AUDITORIUM AUDIO-VISUAL UPDATE
PROJECT IN AN AMOUNT NOT TO EXCEED $2,222,222 AND AUTHORIZING
AN ADDITIONAL APPROPRIATION IN THE AMOUNT OF $1,170,000 FROM
THE INFRASTRUCTURE REPLACEMENT FUND
WHEREAS, the City Council of the City of Carlsbad, California has determined it necessary,
desirable and in the public interest to con struct the Schulman Auditorium Audio-Visual Update Project,
Capital Improvement Program Project No. 4753, or Project; and
WHEREAS, 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 Jan. 9, 2024, the City Council adopted Resolution No. 2024-002, approving plans
specifications and contract documents, and authorizing the Project to be formally bid; and
WHEREAS, on Feb. 21, 2024, staff received three bids for construction of the Project; and
WHEREAS, EIDIM Group Inc. dba EIDIM AV Technology submitted the lowest bid, but later
requested to withdraw its bid due to a material error in their bid; and
WHEREAS, CALTEC CORP submitted the second lowest bid in an amount not to exceed
$2,222,222; and
WHEREAS, staff determined CALTEC CORP to be responsible and its bid to be responsive; and
WHEREAS, staff request additional appropriation in the amount of $1,170,000 from the
Infrastructure Replacement Fun d to CIP Project No. 4753 to complete the Project; and
WHEREAS, Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(8) authorize the
City Manager or designee to approve change orders in an amount equal to the contin gency set at the
time of project award, which is $222,000; 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
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.
Exhibit 1
May 7, 2024 Item #2 Page 5 of 8
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 is authorizing relief of the bid submitted by EIDIM Group Inc. and
the City Clerk is directed to release the accompanying bid bond provided by The Gray
Casualty & Surety Company Bid Bond submitted as part of its bid.
3. That the second lowest bid submitted by CALTEC CORP in an amount not to exceed
$2,222,222 for construction of the Schulman Auditorium Audio-Visual Upgrade Project,
CIP Project No. 4753, is accepted, and the Mayor is hereby authorized to execute a
contract with CALTEC CORP.
4. That the City Manager or designee is authorized to appropriate $1,170,000 from the
Infrastructure Replacement Fund to CIP Project No. 4753.
5. That the City Manager or designee is hereby authorized to approve construction change
orders for the project up to $222,000 for the Project.
6. That the award of this contract is contingent upon CALTEC CORP 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.
May 7, 2024 Item #2 Page 6 of 8
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 7th day of May, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
May 7, 2024 Item #2 Page 7 of 8
2 : Schulman Auditorium Audio-Visual Update
Project - CIP Project No. 4753
DOVE LIBRARY
SITE
DOVE LIBRARY
SITE
Exhibit 2
May 7, 2024 Item #2 Page 8 of 8May 7, 2024 Item #2 Page 8 of 8