HomeMy WebLinkAboutStaff Report 320-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: JULY 26, 2010 CMR:320:10
REPORT TYPE: CONSENT
SUBJECT: Approval of Four Multiple Prime Contracts for tbe Civic Center
Infrastructure Improvements -Capital Improvement Program
Project PF-OJ002: 1) Contract with Nexgen Builders, Inc. in tbe
Amount of $367,313 for General Work Items and Finishes;
2) Contract with Everest Waterproof"mg aod Restoration, Inc. in the
Amount of $648,934 for Exterior Improvements; 3) Contract with
ACCO Engineered Systems, Inc. in tbe Amount of $1,270,695 for
Mechanical, Plumbing, Fire Sprinkler and Controls; and 4) Contract
with B.A. Bowen Electric, Inc. in tbe Amount of $749,000 for
Electrical And Fire Alarm
RECOMMENDA nON
Staff recommends that Council:
I. Approve and authorize the City Manager or his designee to execute the attached contract
with Nexgen Builders, Inc. in the amount of $367 ,313 (Attachment A) for Civic Center
Infrastructure Upgrades: General Work Items and Finishes -Capital Improvement
Program Project PF-01002.
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Nexgen Builders, Inc. for related , additional but unforeseen
work which may develop during the project, the total value of which shall not exceed
$55 ,000 .
3. Approve and authorize the City Manager or his designee to execute the attached contract
with Everest Waterproofing and Restoration, Inc. in the amount of $648 ,934
(Attachment B) for Civic Center Infrastructure Upgrades: Exterior Improvements -
Capital Improvement Program Project PF-OlOO2.
4. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Everest Waterproofing and Restoration, Inc. for related,
additional but unforeseen work which may develop during the project, the total value of
which shall not exceed $97,500.
5. Approve and authorize the City Manager or his designee to execute the attached contract
with ACCD Engineered Systems, Inc. in the amount of $1,270,695 (Attachment C) for
CMR:320:10 Page 1 of6
Civic Center Infrastructure Upgrades: Mechanical. Plumbing. Fire Sprinklers and
Controls -Capital Improvement Program Project PF-OI002.
6. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with ACCO Engineered Systems, Inc. for related, additional but
unforeseen work which may develop during the project, the total value of which shall not
exceed $190,600.
7. Approve and authorize the City Manager or his designee to execute the attached coptract
with H.A. Bowen E lectric, Inc. in the amount of $749,000 (Attachment D) for Civic
Center Infrastructure Upgrades: Electrical and Fire Alann -Capital Improvement
Program Project PF -01002.
8. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with H.A. Bowen Electric, Inc . for related. additional but
unforeseen work which may develop during the project, the total value of which shal l not
exceed $112 ,000 .
BACKGROUND
The Civic Center was built in 1969. It houses the majority of the City administrative offices in
86,500 square feet , the police station in 19,000 square feet, and three level s of parking in
250,000 square feet. The building complex has a replacement value approaching $100 million
doUars in today's market. Industry standards recommend spending a minimum of 2% of the
building value on maintenance and repairs annually. equating to $2 million per year, to preserve
and maintain the building. These expenditures are not for upgrades, improvements or
betterments; rather they serve to preserve and maintain the building in continuing good
functional condition.
As part of the on-going capital infrastructure maintenance program, a complete building system
study of the Civic Center was completed in fiscal year 2002-03. The Civic Center Building
Infrastructure Study dated September 5, 2003 may be viewed at the Public Works Department
counter located on the 6th floor at 250 Hamilton A venue , Palo Alto, or by contacting the
Manager of Facilities Maintenance and Projects at (650) 496-6973. Following the
recommendations of the study, an elevator upgrade, the first major infrastructure work, was
completed in 2005. In 2005 , the Council awarded a design services contract for the remainder of
the work identified in FY 2002 /03, which includes electrical system upgrades, generator
replacement, mechanical system upgrades, and exterior sealing and painting (CMR :282 :05). A
contract for Construction Management Services was awarded in March 2008 to assist City staff
with project management (CMR: 160:08).
Due to the overall cost of the project, construction of the major work was broken into five phases
and was intended to be bid in three packages. The first construction phase for the major work,
Bid Package I, was awarded in August 2008 (CMR :334:08) with construction completed in July
2009. TIlls package included replacement of the main building generator, boiler, and
refurbishment of major garage and building mechanical and electrical systems. Bid Packages
originally designated as 2 and 3 have been combined and bid as Bid Package 2 to take advantage
of the current favorable bid climate. This bid package includes the upgrade of the balance of the
mechanical systems; electrical systems, including transformers, panels, etc.; and exterior painting
CMR:320: 10 Page 2 of 6
and sealing. These systems have exceeded their expected useful lives and are in need of
replacement to provide another 30 years of beneficial use of the building. Mechanical and
electrical systems serving the police wing are excluded from the project at this time.
DISCUSSION
The work to be completed under this phase will be completed by four multiple prime contractors
responsible for: General Work Items and Finishes; Exterior Improvements; Mechanical ,
Plumbing, Fire Sprinklers and Controls; and Electrical and Fire Alarm . Use of this multiple
prime delivery method, coupled with a construction management finn, provides reduced
overhead cost for the specialty contractors, increases competition for each contract, and
augments project management services of the limited staffing available in·house.
The scope of work under General Work Items and Finishes includes providing all general jobsite
requirements; structural infill of walls, floors, ceilings and roof sla,b as required to support the
other packages; roof patching and repair; modification of elevator lobbies for fire and building
code compliance; and full renovation of the first and seventh floor restrooms for accessibility
compliance including all finishes, accessories and partitions.
The scope of work under Exterior Improvements includes patching and repair of the pre·cast
concrete panels; installing building parapet cap; painting of tower, chambers, and police wing ;
and removal and . replacement of windows, window seals and caulking to address ongoing water
intrusion issues. Designated windows will be replaced with breakout windows per code
requirements.
The scope of work under Mechanical , Plumbing, Fire Sprinkler and Controls includes the
demolition and re·work of heating, ventilation, air conditioning, and control work for the
upgrade of distribution systems on each tower floor. Plumbing upgrades for restrooms and fire
sprinkler system modifications as required by code shall be completed.
The scope of work under Electrical and Fire Alann includes the demolition and re·work of
electrical distribution and fire alarm systems on tower floors including replacement of panels and
installation of lighting controls. Designated transformers throughout the building will also be
replaced .
Work of all four contractors will be concurrent with disruptive work scheduled for evenings and
weekends whenever possible. Construction of this phase is scheduled to begin late summer 20 I 0
with completion in summer 2011.
Bid Process
Notices inviting fonnal bids for the Civic Center Infrastructure Upgrades project four bid
packages were posted at City Hall and sent to forty three contractors and eight builder's
exchanges on June 1,2010. The bidding period was thirty eight days. Bids were received from
fifteen qualified contractors on July 8, 2010, as listed on the attached bid summary
(Attachment E).
General Work Items and Finishes bids ranged from a high of$781,500 to a low bid of$367,313.
Exterior Improvements bids ranged from a high of $1 ,360,423 to a low bid of $648 ,934.
CMR:320:10 Page30f6
Mechanical, Plumbing, Fire Sprinklers and Controls bids ranged from a high of $2,708,842 to a
low bid of$I ,270,695.
Electrical and Fire A larm bids ranged from a high of$I ,3 17,581 to a low bid of $749,000.
S fB·d P ummarvo I rocess
Bid NamelNumber Civic Center Infrastructure Upgrades -IFB
Proposed Length of Project 270 calendar days
Number of Bid Packages Mailed to 43
Contractors
Number of Builder's Exc hanges 8
receiving Bid Packages
Total Days to Respond to Bid 38
Pre-Bid Meeting June 15 ,2010
Number of Company Attendees at 38
Pre-Bid Meeting
Number of Bids Received: 4
General Work Items and Finishes
Bid Price Range $781,500 -$367,3 13
Number of Bids Received: Exterior 5
Improvements
Bid Price Range $1 ,360,423 -$648,934
Number of Bids Received: 3
Mechanical, Plumbing, Fire
Sprinklers and Controls
Bid Price Range $1,447,592 -$1,270,695
Number of Bids Received: 3
Electrical And Fire Alarm
Bid Price Range $1 ,077,000 -$749,000 . *Bld summary proVided 10 Attachment E.
Staff reviewed al l bids submitted for General Work Items and Finishes and recommends that the
bid of $367,313 submitted by Nexgen Bui lders , Inc. be accepted and that Nexgen Builders , Inc.
be declared the lowest responsible bidder. The change order amount of$55,OOO which equals 15
percent of the total contract is requested for unforeseen conditions which may be discovered
during construction.
Staff reviewed all bids submitted for Exterior Improvements and recommends that the bid of
$648 ,934 submitted by Everest Waterproofing and Restoration, Inc. be accepted and that Everest
Waterproofing and Restoration, Inc. be declared the lowest responsible bidder. The change order
amount of $97,500 which equals 15 percent of the total contract is requested for unforeseen
conditions which may be discovered. during construction.
Staff reviewed all bids submitted for Mechanical, Plwnbing, Fire Sprinklers and Controls and
recommends that the bid of $1,270 ,695 submitted by ACCO Engineered Systems, Inc. be
CMR:320:10 Page 4 of6
accepted and that ACCO Engineered Systems, Inc . be declared the lowest responsible bidder.
The change order amount of $190,600 which equals 15 percent of the total contract is requested
for unforeseen conditions which may be discovered during construction.
Staff reviewed all bids submitted for Electrical and Fire Alann and recommends that the bid of
$749,000 submitted by HA Bowen Electric, Inc. be accepted and that HA Bowen Electric, Inc.
be declared the lowest responsible bidder. The change order amount of $112,000 which equals
15 percent of the total contract is requested for unforeseen conditions which may be discovered
during construction.
To take advantage of the favorable bidding climate, Bid Packages 2 and 3 were combined in to a
Bid Package 2 with much of the work previously planned for Bid Package 3 bid as add
alternates. Because the bids came in well under the Engineer's estimate and because there is
existing CIP funding for the work, staff is recommending award of all add alternates. This will
close out all major work recommended in the 2003 Civic Center Infrastructure Study, with the
exception of the Police wing work. Bringing work forward complies with Council direction to
perfonn as much infrastructure work as possible in this favorable bidding climate .
With renovation of an existing facility , there is a high likelihood of additional required repairs or
system replacement triggered by the base construction. In addition, due to the time constraints
placed upon the contractors to complete their work during off hours, the majority of change
orders will be billed at a premium rate for night or weekend work. Typically, ten percent of the
contract amount would be allotted for such unforeseen change orders; however, due to these
factors, fifteen percent contingency funds are requested for all bid packages.
The engineer's estimate of $6,436,505 was prepared based on the project award as a whole.
Breakdown was not provided in a way to compare the four individual packages. The combined
total of $3 ,035,942 for the four contracts is 53 percent below the engineer's estimate. This is in
large part due to the economic climate, very competitive bidding, and combining the balance of
the phases together to achieve economy of scale and fewer mobilizations of contractors.
Staff confirmed with the Contractor's State License Board that contractors have active licenses
on file. Staff checked references supplied by the contractors for previous work performed and
found no significant complaints.
RESOURCE IMPACT
Funds for this project are available in Capital Improvement Program Project PF-01002, Civic
Center Infrastructure Upgrades. Prior actual cost to date following completion of the study totals
$8,962,465.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA) under
Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility, and no
further environmental review is necessary.
CMR:320:10 Page 5 of6
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ATIACHMENTS
Attachment A: Contract for General Work Items and Finishes
Attachment B: Contract fo r Exterior Improvements
Attachment C: Contract for Mechanical, Plumbing, Fire Sprinklers and Controls
Attachment D: Co ntract for Electrical and Fire Alarm
Attachment E: Bid Summary
PREPARED BY:
KAREN SMITH
DEPARTMENT HEAD:
?iF'C) ~;rJ i~Sion
GLENN ROBERTS
CITY MANAGER APPROVAL: . u:tALlAo
CMR:320:10
~r _ JAMES KEENE l;pr City Manager
•
Page 6 of6
ATTACHMENT A
CONSTRUCTION CONTRACT
Contract No. C11136276
City of Palo Alto
and
Nexgen Builders, Inc.
PROJECT
CIVIC CENTER INFRASTRUCTURE -
GENERAL WORK ITEMS AND FINISHES
Rev. May 6, 2010
SECTION 1.
CONSTRUCTION CONTRACT
TABLE OF CONTENTS
INCORPORATION OF RECITALS AND DEFINITIONS .................................... 1
1.1 Recitals ................................................................................................................................ 1
1.2 Definitions .......................................................................................•.................................... 1
SECTION 2. THE PROJECT ...........•...............................................................................•....... 1
SECTION 3. THE CONTRACT DOCUMENTS ........................................................................ 1
LIST OF DOCUMENTS ..................................................................................................................... 1
3.2 ORDER OF PRECEDENCE .......................................................................•...•... 2
SECTION 4. THE WORK ....................................................................•.................................... 2
SECTION 5. PROJECT TEAM ..............................•................................................................. 2
SECTION 6. TIME OF COMPLETION ..................................................................................... 3
6.1 Time Is of Essence ............................................................................................................. 3
6.2 Commencement of Work ................................................................................................... 3
6.3 Contract Time ...................................................................................................................... 3
6.4 Liquidated Damages ........................................................................................................... 3
6.4.1 Entitlement ........................................................ .-......................................................... 3
6.4.2 Daily Amount. ............................................................................................................... 3
6.4.3 Exclusive Remedy ........................................................................................................ 3
6.4.4 Other Remedies .............................................................. ~ ............................................ 3
6.5 . Adjustments to Contract Time ......................................................................................... , 3
SECTION 7. COMPENSATION TO CONTRACTOR .............................................................. 2
7.1 Contract Sum ...................................................................................................................... 2
7.2 Full Compensation .............................................................................................................. 2
7.3 Compensation for Extra or Deleted Work ........................................................................ 2
7.3.1 Self Performed Work .................................................................................................... 2
7.3.2 Subcontractors ............................................................................................................. 2
Rev. May 6,2010
Final Contract.DOC
SECTION 8. STANDARD OF CARE ...............................................................................•....... 2
SECTION 9. INDEMNIFICATION ..................................................•.................................•....... 5
9.1 Hold Harmless .............................................................................................................•....... 5
9.2 Survival ................................................................................................................................ 5
SECTION 10 NONDISCRIMINATION ...................................................................................... 5
SECTION 11. INSURANCE AND BONDS ...........•.................................................................... 5
SECTION 12. PROHIBITION AGAINST TRANSFERS ............................................................. 5
SECTION 13. NOTiCES ....................................................................................................•....... 6
13.1" Method of Notice ................................................................................................................. 6
13.2 Notice Recipients ................................................................................................................ 6
13.3 Change of Address ............................................................................................................. 7
14.1 Resolution of Contract Disputes ....................................................................................... 7
14.2 Resolution of Other Disputes ..............•.....................................................•....................... 7
14.2.1 Non-Contract Disputes ................................................................................................. 7
14.2.2 Litigation, City Election ................................................................................................. 7
14.3 Submission of Contract Dispute ....................................................................................... 8
14.3.1 By Contractor ............................................................................................................... 8
14.3.2 ByCity .......................................................................................................................... 8
14.4 Contract Dispute Resolution Process .............................................................................. 8
14.4.1 Direct Negotiations ....................................................................................................... 8
14.4.2 Deferral of Contract Disputes ....................................................................................... 9
14.4.3 Mediation ................................................................................................................... " ... 9
14.4.4 Binding Arbitration ........................................................................................................ 9
14.5 Non-Waiver ........................................................................................................................ 10
SECTION 15. DEFAULT .......................................................................................................... 11
15.1 Notice of Default ............................................................................................................... 11
15.2 Opportunity to Cure Default ............................................................................................. 11
SECTION 16. CITY'S RIGHTS AND REMEDIES .................................................................... 11
16.1 Remedies Upon Default ................................................................................................... 11
16.1.1 Delete Certain Services ............................................................................................. 11
16.1.2 Perform and Withhold ................................................................................................ 11
ii Rev. May 6,2010
Final Contract. DOC