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HomeMy WebLinkAboutStaff Report 3558City of Palo Alto (ID # 3558) City Council Staff Report Report Type: Action Items Meeting Date: 3/4/2013 City of Palo Alto Page 1 Summary Title: Public Hearing: Finding Main Library Substantially Complex Title: Public Hearing: Adoption of Finding that the Main Library Expansion and Renovation Project (CIP PE-11000) is "Substantially Complex" under Public Contract Code Section 7201 and Direction to Increase the Retention Schedule from 5% to 10% From: City Manager Lead Department: Public Works Recommendation and Draft Motion: Draft Motion: I move that Council: 1.Find the proposed Main Library Expansion and Renovation Project “substantially complex”under Public Contract Code Section 7201,and 2.Allow this project to be advertised with a retention amount of ten (10) percent. Executive Summary A new state law requires that the City is limited to five (5) percent retention on public works projects unless the City Council makes a formal finding that the project is “substantially complex.” This finding must be made before the project can be advertised for bid. The City is prepared to issue the formal Invitation for Bids (IFB) for the Main Library Project immediately following Council’s finding that the project is substantially complex. City of Palo Alto Page 2 Background As of January 1, 2012,a new section of the Public Contract Code Section 7201 requires that public agencies limit contract retention on public works projects to 5%, unless the project is found to be a “substantially complex project”. A retention is a contractual withholding of money by the City to cover any unexpected expenses,such as liens or poor workmanship, that may occur before the project is completed and accepted. Prior to January 1, 2012, the City’s standard retention amount for most public works contracts was 10%. The standard procedure is to return the retention once the following occurs: work is completed, the Contractor provides the Maintenance Bond, the City accepts the project,and the lien period expires. Public Contract Code Section 7201(b) provides,in part,that “retention proceeds withheld from any payment by a public entity from the original contractor…shall not exceed 5 percent of the payment.” This section further provides that “…in no event shall the total retention proceeds withheld exceed 5 percent of the contract price.” However, Section 7201(b)(4) provides, in part, that an awarding agency may withhold in excess of five percent (5%) on specific projects where the governing body has approved a finding during a properly noticed and normally scheduled public hearing and prior to bid that the project is substantially complex and therefore requires a higher retention amount than 5 percent. The awarding entity must include both this finding and the actual retention amount in the bid documents. Discussion The Main Library is a prominent and historic public building designed by Edward Durell Stone and built in 1957. The expansion and renovation project is part of the $76 million Measure N bond passed by Palo Alto voters in 2008. The bond also included the renovation of Downtown Library and the new Mitchell Park Library and Community Center. The Main Library construction cost is estimated to be approximately $16 million, and involves significant upgrades to the historic building’s structural, electrical City of Palo Alto Page 3 and mechanical systems; construction of a new Teen Room;and Americans with Disabilities Act (ADA) upgrades. These improvements will occur while preserving the integrity of the original architect Edward Durrell Stone’s iconic design. A new addition includes a program room and additional restrooms to extend the services of this heavily used branch. The project targets Leadership in Energy and Environmental Design (LEED) certification. The Historic Resources Board (HRB) and the Architectural Review Board (ARB) both approved this project in July 2012. The plans include site integration features to create a more unified campus with the Art Center. This includes a connection pathway to link the Art Center parking lot with the Main Library parking lot. The contractor will be required to subcontract for numerous specialty trades including well drilling for over 45 geothermal heat exchange boreholes to 350 feet deep. The entire concrete floor of the western half of the library will be replaced and radiant floor heating will be installed. The project also includes sealing of the basement walls, installation of new electrical equipment,abatement of asbestos- containing material, and the addition of approximately 4,000 square feet of new building space. The project will require the coordination of multiple construction disciplines while maintaining public access to the adjacent Art Center and public garden area. The large amount of work required, the preservation of historic features,and the measures to obtain LEED certification make this project “substantially complex”. The finding of a “substantially complex” project is based on the various disciplines and trades involved in the construction of this project, and coordination with adjacent active facilities. The Main Library Expansion and Renovation was determined to be substantially complex based on the project scope described above. The City Clerk has published the required notice of this hearing in the Palo Alto Weekly starting on February 15, 2013. The retention will be released as described in the City of Palo Alto’s standard contract General Conditions Section 9.8.1 which states, “Upon receipt of notice City of Palo Alto Page 4 from Contractor that the Work is ready for final inspection, City will make such inspection. The City will file a Notice of Completion (NOC) with the County Clerk within ten (10) days after acceptance by the City. Thirty (30) Days after filing the NOC, the City may release the final retention provided the requirements in this paragraph are met.” Timeline Staff expects to issue an IFB soon after Council’s finding that the project is substantially complex. Main Library will be closed for renovation on April 30, 2013. A small temporary library will be opened in the adjacent Art Center Auditorium on May 3, 2013. Main Library is expected to reopen in fall 2014. Resource Impact There are no resource impacts associated with finding the project “substantially complex”. The project is funded as part of a $76 million Measure N bond within the Capital Improvement Program Project (CIP)PE-11000 Main Library New Construction and Improvements. Policy Implications The proposed action is consistent with City policy. Environmental Review On July 21, 2008, the Council confirmed the Director of Planning and Community Environment’s approval of a 2007 Addendum to the 2002 final Environmental Impact Report for the Main Library.