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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