HomeMy WebLinkAboutStaff Report 11269
City of Palo Alto (ID # 11269)
City Council Staff Report
Meeting Date: 6/22/2021 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Construction Contract Number C21178601A With
Azulworks, Inc. in the Amount of $1,954,900, and Authorization for the City
Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed
Amount of $195,490, for the Rinconada Park Improvement Project, Capital
Improvement Program Project PE-08001, and Approval of Budget
Amendments in the Stormwater Management Fund and the Capital
Improvement Fund
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve and authorize the City Manager or his designee to execute a construction
contract with Azulworks, Inc. (Contract No. C21178601A) in an amount not-to-exceed
$1,954,900 for the Capital Improvement Program Rinconada Park Improvements project
(PE-08001);
2. Authorize the City Manager or his designee to negotiate and execute one or more
change orders to the Construction Contract with Azulworks, Inc. for related additional
but unforeseen work which may develop during the project, the total value of which
shall not exceed $195,490;
3. Amend the Fiscal Year 2021 Budget Appropriation for the Stormwater Management
Fund by:
a. Decreasing the Ending Fund Balance by $149,600;
b. Increasing the Transfer out to the Capital Improvement Fund by $149,600; and
4. Amend the Fiscal Year 2021 Budget Appropriation for the Capital Improvement Fund by:
a. Increasing the transfer in from the Stormwater Management Fund by $149,600;
and
b. Increasing the Rinconada Park Improvements project (PE-08001) appropriation
by $149,600.
Background
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As part of the Fiscal Year 2021 Adopted Capital Budget, Council approved funding for
improvements at Rinconada Park. The improvements address infrastructure, accessibility, and
maintenance needs of the park, and were identified and supported by the community as part of
the Rinconada Park Long Range Plan (LRP) adopted by Council in 2017. These improvements
include replacement of two existing playgrounds and replacement of the existing asphalt
walkways. A Park Improvement Ordinance was previously adopted by City Council on January
13, 2020 (Staff Report ID #10576).
More details on the Rinconada Park Improvements project and Rinconada Park Long Range Plan
can be found on the City’s website at the following links:
• Project Information
• Rinconada LRP
Discussion
Rinconada Park Improvement Project (PE-08001) represents the first phase of work outlined by
the Rinconada Long Range Plan, a multi-year community-based outreach project to determine
priorities and phases of improvement for the overall park. This first phase of work is aligned
with the Junior Museum and Zoo (JMZ) improvement project schedule and facility which is
expected to open in October 2021 (tentatively) and provides funding for the following park
improvement items:
• Asphalt pathway replacement (Safety and ADA needs)
• Concrete pathway connection from the renovated JMZ parking lot into the park (Safety
and ADA needs – provides connection to parking lot and access to the rear of JMZ)
• Replacement of the existing children’s playground (ages 5 and up) (Safety and ADA
needs)
• Relocation and replacement of the existing tot lot playground (ages 2-5) (Safety and
ADA needs)
• Renovations to the existing group picnic area (Safety and ADA needs)
• New picnic area (Meet expansion needs of the JMZ; fulfill high priority of providing more
picnic areas in Rinconada which has very few)
• New irrigation and planting (Reduce water use and overall maintenance)
• Utilities and pad for a future park restroom
• New site furnishings (picnic tables, benches, drinking fountains, bbq, etc.) (Safety and
ADA needs)
Additional project funding from the Stormwater Management Fund is recommended to
increase the scope of work for the following green stormwater infrastructure (GSI) feature:
• A stormwater filtration planter along Hopkins Avenue treating all the run-off from the
Lucie Stern end of the property along with the street.
Bid Process
Staff originally bid this project in summer 2020 and received bids higher than the engineer’s
estimate. Staff repackaged the project to remove the new restroom from the scope. Funding
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for the new restroom was removed from the project as part of the Fiscal Year 2022 budget
development process.
On April 26, 2021, an Invitation for Bids (IFB) for the Rinconada Park Improvement Project was
posted online through PlanetBids and 1,355 notifications were sent to general contractors,
subcontractors, consultants, and builder’s exchanges through the City’s eProcurement system.
The bidding period was 22 days. A non-mandatory pre-bid meeting was held on May 6, 2021.
Bids were received from six qualified firms on May 18, 2021 as listed in the attached Bid
Summary (Attachment A).
SUMMARY OF BID PROCESS
BID NAME/NUMBER RINCONADA PARK IMPROVEMENTS PROJECT
IFB #178601A
PROPOSED LENGTH OF PROJECT 120 calendar days
NUMBER OF BID PACKAGES DOWNLOADED
CONTRACTORS 38
NUMBER OF BID PACKAGES DOWNLOADED
BY BUILDER’S EXCHANGES
5-Builder’s Exchanges;
33-prospective bidders
TOTAL DAYS TO RESPOND TO BID 22
PRE-BID MEETING? Yes (Non-mandatory)
NUMBER OF BIDS RECEIVED: 6
BID PRICE RANGE (BASE BID) $1,591,400 - $1,843,500
BID PRICE RANGE (BASE BID PLUS
ALTERNATES) $2,246,900 - $2,798,556
A review of the bids included the base bid and all the bid alternates. Base bids ranged from
$1,591,400 to $1,843,500 and from 1.5% below to 14% above the engineer’s estimate of
$1,614,100. Bid alternates ranged from $655,500 to $1,091,091 and from 4% below to 59%
above the Engineer’s Estimate of $686,250.
Staff has reviewed all bids and recommends that the Base Bid of $1,591,400, plus Additive Bid
Alternates (1 through 6; and 8 through 12 as outlined in Attachment B) of $363,500, for a total
of $1,954,900, submitted by Azulworks, Inc. be accepted and that Azulworks, Inc. be declared
the lowest responsible bidder. Bid alternate items were separated out from the base bid to
allow for flexibility selecting the park elements that could be included in the project scope with
the current funding available, including the site furnishings and playground equipment. Each of
the bid alternate items were part of the original scope of work for this phase of park
improvements and were reviewed and supported by the community during the Rinconada Long
Range Plan development. Additive bid alternatives of $363,500 provide for improvements such
as expanded decomposed granite, drinking fountains, future restroom utilities, and playground
equipment components. The construction contingency amount of $195,490, which equals 10
percent of the contract value, is requested for related, additional, but unforeseen work which
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may develop during the project.
Staff reviewed information regarding Azulworks, Inc.’s responsibility as a bidder and found
Azulworks to be a responsible bidder. Staff also checked with the Contractor's State License
Board and confirmed that the contractor has an active license on file.
Timeline
This project is scheduled for a 120-day construction period. Construction is expected to start in
late July or August 2021 and be completed by January 2022.
Resource Impact
Funding for this project is available in the Fiscal Year 2021 Capital Budget for the Rinconada
Park Improvements project (PE-08001). Funding for the green stormwater infrastructure (GSI)
features, to be included in the improvements implemented as part of this project, is available in
the Stormwater Management Fund Fiscal Year 2021 Operating Budget. Each year, $380,000 is
allocated within the Stormwater Management Fund budget to be used to fund GSI projects
such as this one throughout the City. Use of this funding for the GSI feature in Rinconada Park
was reviewed and has the support of the Stormwater Management Oversight Committee. Of
the $380,000 GSI budget, $149,600 is recommended to be transferred from the Stormwater
Management Fund to the Capital Improvement Fund in Fiscal Year 2021 for the construction of
the GSI Feature in Rinconada Park.
This contract is on the City’s construction contract template, which permits the City to
terminate without cause/for convenience by providing written notice to the contractor. In the
event the City finds itself facing a challenging budget situation, and it is determined that City
resources need to be refocused elsewhere, the City can terminate for convenience. Other
options include termination due to non-appropriation of funds or amending the contract to
reduce the cost, for example, by reducing the scope of work.
Council discussed the Rinconada Park Improvements project, Ramos Park Improvements
project, and Cameron Park Improvements project during several meetings as part of
consideration of capital expense reductions heading into the Fiscal Year 2022 budget process.
While the recommendations in this report advance the Rinconada Park project, the Ramos and
Cameron Park projects are currently out to bid. Estimates for those projects are within the City
Manager’s contracting authority, and the contracts are expected to be executed during the
Council’s summer break. Discussion regarding the Rinconada Park Improvements project is
ongoing as part of the Fiscal Year 2022 budget process. The current Council direction may
result in a reduction in funding of this project in the amount of $1.65 million, to reallocate
funding for the rehabilitation of the ROTH facility in partnership with the Palo Alto Museum if
alternative funding is not identified. In the event this occurs, staff will have the ability to
terminate as noted above and therefore have brought this forward while this budget decision is
being made. It takes advantage of the below engineering estimate pricing and work is not
expected to begin until late July or August 2021.
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Policy Implications
The project is consistent with the City’s Comprehensive Plan goals, policies and programs.
Stakeholder Engagement
Two community meetings, one Parks and Recreation Committee (PRC) meeting, and
presentations to the Youth Activity Board and Youth Council were completed in Spring 2019,
prior to the PRC’s recommendation of Council approval of the Park Improvement Ordinance in
September 2019.
Environmental Review
Pursuant to the requirements of the California Environmental Quality Act (CEQA), the project is
categorically exempt from CEQA, per Section 15303 New Construction or Conversion of Small
Structures. A program CEQA review was performed for the Rinconada Long Range Plan that
reviewed the overall scope of the proposed Rinconada Park Improvements and deemed them
categorically exempt.
Attachments:
• Attachment A - Rinconada Park Bid Summary
ATTACHMENT A
Project: Rinconada Park Improvements Project (PE‐08001)
IFB Issue Date: April 27, 2021
Bid Opening Date: May 18, 2021
Bid Summary
Unit Price Total Item Price Unit Price Total Item Price Unit Price Total Item Price Unit Price Total Item Price Unit Price Total Item Price Unit Price Total Item Price Unit Price Total Item Price Unit Price Total Item Price
001 1 Lump Sum Notification of Residence Lump Sum 1,500.00$ Lump Sum $ 2,400.00 Lump Sum $ 50,790.00 Lump Sum $ 29,000.00 Lump Sum $‐ Lump Sum $ 1,500.00 Lump Sum $ 2,865.00 Lump Sum $ 2,170.00
002 1 Lump Sum Erosion Control Lump Sum 12,000.00$ Lump Sum $ 20,000.00 Lump Sum $ 15,261.00 Lump Sum $ 9,000.00 Lump Sum $ 77,000.00 Lump Sum $ 15,000.00 Lump Sum $ 24,048.00 Lump Sum $ 9,470.00
003 1 Lump Sum Treee Protection Lump Sum 8,500.00$ Lump Sum $ 19,000.00 Lump Sum $ 20,100.00 Lump Sum $ 6,800.00 Lump Sum $ 16,000.00 Lump Sum $ 4,000.00 Lump Sum $ 8,975.00 Lump Sum $ 4,960.00
004 1 Lump Sum Demoltion Lump Sum 127,600.00$ Lump Sum $ 440,000.00 Lump Sum $ 349,800.00 Lump Sum $ 97,000.00 Lump Sum $ 130,000.00 Lump Sum $ 48,000.00 Lump Sum $ 124,120.00 Lump Sum $ 176,000.00
005 1 Lump Sum Asphalt Paving Lump Sum 290,000.00$ Lump Sum $ 80,000.00 Lump Sum $ 312,020.00 Lump Sum $ 494,000.00 Lump Sum $ 190,000.00 Lump Sum $ 208,400.00 Lump Sum $ 248,135.00 Lump Sum $ 418,000.00
006 1 Lump Sum Concerete Paving Lump Sum 64,500.00$ Lump Sum $ 90,000.00 Lump Sum $ 86,402.00 Lump Sum $ 107,000.00 Lump Sum $ 140,000.00 Lump Sum $ 329,000.00 Lump Sum $ 146,621.00 Lump Sum $ 137,000.00
007 1 Lump Sum Decomposed Granite Paving Lump Sum 14,000.00$ Lump Sum $ 13,000.00 Lump Sum $ 10,412.00 Lump Sum $ 9,900.00 Lump Sum $ 12,000.00 Lump Sum $ 6,500.00 Lump Sum $ 20,424.00 Lump Sum $ 18,800.00
008 1 Lump Sum Playground Lump Sum 435,000.00$ Lump Sum $ 435,000.00 Lump Sum $ 494,935.00 Lump Sum $ 458,000.00 Lump Sum $ 490,000.00 Lump Sum $ 428,000.00 Lump Sum $ 328,513.00 Lump Sum $ 355,000.00
009 1 Lump Sum 6' Wood Fencing & Gate Lump Sum 25,000.00$ Lump Sum $ 55,000.00 Lump Sum $ 20,000.00 Lump Sum $ 82,000.00 Lump Sum $ 65,000.00 Lump Sum $ 76,000.00 Lump Sum $ 124,021.00 Lump Sum $ 66,830.00
010 1 Lump Sum Site Furnishing Lump Sum 115,000.00$ Lump Sum $ 90,000.00 Lump Sum $ 77,847.00 Lump Sum $ 69,000.00 Lump Sum $ 85,000.00 Lump Sum $ 61,400.00 Lump Sum $ 101,964.00 Lump Sum $ 58,000.00
011 1 Lump Sum Electrial Lump Sum 85,000.00$ Lump Sum $ 50,000.00 Lump Sum $ 17,604.00 Lump Sum $ 52,000.00 Lump Sum $ 90,000.00 Lump Sum $ 42,000.00 Lump Sum $ 101,790.00 Lump Sum $ 53,169.00
012 1 Lump Sum Irrigation Lump Sum 115,000.00$ Lump Sum $ 120,000.00 Lump Sum $ 84,000.00 Lump Sum $ 115,000.00 Lump Sum $ 110,000.00 Lump Sum $ 135,800.00 Lump Sum $ 155,877.00 Lump Sum $ 123,791.00
013 1 Lump Sum Planting Includes planting, amendment and mulch Lump Sum 85,000.00$ Lump Sum $ 80,000.00 Lump Sum $ 63,923.00 Lump Sum $ 77,000.00 Lump Sum $ 74,000.00 Lump Sum $ 91,000.00 Lump Sum $ 165,059.00 Lump Sum $ 90,000.00
014 1 Lump Sum Relocate All Existing Site Signage as necesssary Lump Sum 3,500.00$ Lump Sum $ 2,000.00 Lump Sum $ 5,496.00 Lump Sum $ 7,000.00 Lump Sum $ 10,000.00 Lump Sum $ 3,500.00 Lump Sum $ 2,650.00 Lump Sum $ 6,000.00
015 1 Lump Sum Filtration Planter Lump Sum 170,000.00$ Lump Sum $ 50,000.00 Lump Sum $ 60,039.00 Lump Sum $ 178,000.00 Lump Sum $ 76,000.00 Lump Sum $ 80,000.00 Lump Sum $ 58,367.00 Lump Sum $ 100,000.00
016 1 Lump Sum Restroom Lump Sum 56,000.00$ Lump Sum $ 35,000.00 Lump Sum $ 31,860.00 Lump Sum $ 47,000.00 Lump Sum $ 21,000.00 Lump Sum $ 53,700.00 Lump Sum $ 21,524.00 Lump Sum $ 20,000.00
017 1 Lump Sum Gravel at Rear of Girl Scout House Lump Sum 6,500.00$ Lump Sum $ 10,000.00 Lump Sum $ 6,976.00 Lump Sum $ 5,800.00 Lump Sum $ 5,000.00 Lump Sum $ 7,100.00 Lump Sum $ 8,358.00 Lump Sum $ 7,500.00
$ 1,614,100.00 $ 1,591,400.00 $ 1,707,465.00 $ 1,843,500.00 $ 1,591,000.00 $ 1,590,900.00 $ 1,643,311.00 $ 1,646,690.00
Alt 001 1 Lump Sum Expanded Decompsed Granite Lump Sum 11,750.00$ Lump Sum $ 14,500.00 Lump Sum $ 7,600.00 Lump Sum $ 18,000.00 Lump Sum $ 12,000.00 Lump Sum $ 10,000.00 Lump Sum $ 16,116.00 Lump Sum $ 23,000.00
Alt 002 1 Lump Sum Site Furnish Lump Sum 54,000.00$ Lump Sum $ 52,000.00 Lump Sum $ 81,748.00 Lump Sum $ 48,660.00 Lump Sum $ 60,000.00 Lump Sum $ 5,600.00 Lump Sum $ 60,176.00 Lump Sum $ 22,000.00
Alt 003 1 Each Drinking Fountain Lump Sum 18,000.00$ Lump Sum $ 28,000.00 Lump Sum $ 16,701.00 Lump Sum $ 13,800.00 Lump Sum $ 24,000.00 Lump Sum $ 17,000.00 Lump Sum $ 11,967.00 Lump Sum $ 22,000.00
Alt 004 1 Lump Sum Solar System Lump Sum 20,000.00$ Lump Sum $ 17,000.00 Lump Sum $ 13,420.00 Lump Sum $ 5,700.00 Lump Sum $ 14,000.00 Lump Sum $ 31,000.00 Lump Sum $ 8,827.00 Lump Sum $ 16,000.00
Alt 005 1 Lump Sum 1" Gas Stub Out Lump Sum 8,500.00$ Lump Sum $ 5,000.00 Lump Sum $ 6,012.00 Lump Sum $ 14,200.00 Lump Sum $ 18,000.00 Lump Sum $ 6,000.00 Lump Sum $ 12,060.00 Lump Sum $ 10,000.00
Alt 006 1 Lump Sum Restroom Utility Lump Sum 25,000.00$ Lump Sum $ 11,000.00 Lump Sum $ 10,210.00 Lump Sum $ 14,000.00 Lump Sum $ 24,000.00 Lump Sum $ 27,000.00 Lump Sum $ 26,210.00 Lump Sum $ 11,000.00
Alt 007 1 Lump Sum Playground Equipment ‐ Giant XL Lump Sum 225,000.00$ Lump Sum $ 292,000.00 Lump Sum $ 464,000.00 Lump Sum $ 300,000.00 Lump Sum $ 268,000.00 Lump Sum $ 294,000.00 Lump Sum $ 241,153.00 Lump Sum $ 360,000.00
Alt 008 1 Lump Sum Playground Equipment ‐ Tot Lot Lump Sum 85,000.00$ Lump Sum $ 66,000.00 Lump Sum $ 121,000.00 Lump Sum $ 54,000.00 Lump Sum $ 72,000.00 Lump Sum $ 113,000.00 Lump Sum $ 60,966.00 Lump Sum $ 120,000.00
Alt 009 1 Lump Sum Playground Equipment ‐ Spin Lump Sum 73,000.00$ Lump Sum $ 53,000.00 Lump Sum $ 114,000.00 Lump Sum $ 58,000.00 Lump Sum $ 47,000.00 Lump Sum $ 64,000.00 Lump Sum $ 65,116.00 Lump Sum $ 62,000.00
Alt 010 1 Lump Sum Playground Equipment ‐ Swing Lump Sum 56,000.00$ Lump Sum $ 42,000.00 Lump Sum $ 76,000.00 Lump Sum $ 36,000.00 Lump Sum $ 42,000.00 Lump Sum $ 52,000.00 Lump Sum $ 53,396.00 Lump Sum $ 65,000.00
Alt 011 1 Lump Sum Playground Equipment ‐ Adult Fitness Lump Sum 45,000.00$ Lump Sum $ 42,000.00 Lump Sum $ 106,000.00 Lump Sum $ 42,000.00 Lump Sum $ 77,000.00 Lump Sum $ 89,000.00 Lump Sum $ 105,196.00 Lump Sum $ 54,000.00
Alt 012 1 Lump Sum Playground Equipment ‐ climbing structures Lump Sum 65,000.00$ Lump Sum $ 33,000.00 Lump Sum $ 74,400.00 Lump Sum $ 6,000.00 Lump Sum $ 54,000.00 Lump Sum $ 85,200.00 Lump Sum $ 54,497.00 Lump Sum $ 16,000.00
686,250.00$ 655,500.00$ 1,091,091.00$ 610,360.00$ 712,000.00$ 793,800.00$ 715,680.00$ 781,000.00$
2,300,350.00$ 2,246,900.00$ 2,798,556.00$ 2,453,860.00$ 2,303,000.00$ 2,384,700.00$ 2,358,991.00$ 2,427,690.00$
Azul Works Joe's Landscape Engineer's Estimate
Total (Base + Bid Alternate)
Bid Item Approx.
Quantity Unit Description
Total Base Bid (Items 001 to 017)
Total Bid Alternate (items 001 to Alt 012)
Base Bid
Bid Alternates
Guerra Construction O'Grady Suarez and Munoz QLM SBAY