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HomeMy WebLinkAboutStaff Report 14681 City of Palo Alto (ID # 14681) City Council Staff Report Meeting Date: 10/3/2022 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of Construction Contract Number C23184924 with Ron Paris Construction Company, Inc. in the Amount of $990,733; Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $99,073 for the Water, Gas, Wastewater Office Remodel Project, Capital Improvement Program Project PE-19001; and Approval of Budget Amendments in the Capital Improvement Fund, Water Fund, Gas Fund and Wastewater Collection Fund From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute a construction contract with Ron Paris Construction Company Inc. (Contract No. C23184924) in an amount of $990,733 for the Capital Improvement Program Water, Gas, Wastewater Office Remodel project (PE-19001); 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to Construction Contract No. C23184924 with Ron Paris Construction Company Inc. for related additional but unforeseen work which may develop during the project, the total value of which shall not exceed $99,073; 3. Amend the Fiscal Year 2023 Budget Appropriation for the following (requires a 2/3 majority vote): a. Capital Improvement Fund i. Increase the appropriation for the Water, Gas and Wastewater Office project (PE-19001) by $920,700; ii. Increase estimate for Transfers In for the Water, Gas and Wastewater Office project (PE-19001) as follows: 1. $297,066 from the Water Fund; 2. $297,067 from the Gas Fund; 3. $297,067 from the Wastewater Collection Fund; iii. Decrease the appropriation for Americans with Disabilities Act Compliance project (PF-93009) by $29,500; b. Water Fund City of Palo Alto Page 2 i. Increase the Transfer To the Capital Improvement Fund appropriation by $297,066; ii. Decrease the Ending Fund Balance by $297,066; c. Gas Fund i. Increase the Transfer To the Capital Improvement Fund appropriation by $297,067; ii. Decrease the Ending Fund Balance by $297,067; and d. Wastewater Collection Fund i. Increase the Transfer To the Capital Improvement Fund appropriation by $297,067; and ii. Decrease the Ending Fund Balance by $297,067. Background Office space at the Municipal Service Center (MSC) has been occupied by Utilities Water Gas Wastewater (WGW) Operations for over 20 years in its current state and no longer meets the operational needs of the department. This space provides the interface between administrative and field operations, and as such experiences greater wear over extended hours than typical office space. This renovation project will reconfigure the space so that it is more efficient for the department, allowing staff from the same work groups to be located together for a more functional work environment. Additionally, the renovation will replace existing finishes such as flooring, cabinetry/furniture, paint, lighting, and add a small reception area for visitors. Discussion The renovation will improve the office function of the WGW Operations group. The renovation scope of work for the attached construction contract includes: 1) Removing existing interiors 2) Constructing seven new offices 3) Constructing new open office area 4) Constructing new visitor reception area 5) Reconfiguring the kitchenette and copy area 6) Constructing new Lead Worker open office area 7) Installing new finishes 8) Installing new fire/life safety, mechanical, and electrical systems for the renovated area 9) Addressing accessibility issues per the Americans with Disabilities Act (ADA) Transition Plan for general building access and in the women’s restroom Summary of Bid Process An Invitation for Bids for the Water, Gas, Wastewater (WGW) Office Remodel Project was posted on Planet Bids, the City’s eProcurement platform. The bidding period was 26 calendar days. Bids were received from four contractors on July 19, 2022. City of Palo Alto Page 3 Table 1: Summary of Invitation for Bids Project Bid Name/Number Water, Gas, Wastewater (WGW) Office Remodel Project/IFB #184924 Proposed Length of Project 153 Calendar Days Number of Bid Packages Downloaded by Contractors 17 Number of Bid Packages Downloaded by Builder’s Exchanges 4 Total Days to Respond to Bid 26 Mandatory Pre-Bid Meeting July 6, 2022 Number of Companies at Pre-Bid Meeting 9 Number of Bids Received 4 Base Bid Price Range $990,733 - $1,249,000 Public Link to Solicitation https://pbsystem.planetbids.com/portal/2 5569/bo/bo-detail/95505 Staff reviewed the four bids and found all four of them responsive. The bids ranged from a low of $990,733 to a high of $1,249,000. The bid summary is included as Attachment A. Two of the four bids are within 5% of the engineer’s estimate of $990,000. Staff reviewed all bids submitted and recommends the lump sum base bid of $990,733 submitted by Ron Paris Construction be accepted and Ron Paris Construction be declared the lowest responsible bidder. A change order amount of $99,073 equal to 10% of the total construction contract is requested for related additional, unforeseen work which may develop during construction. Staff confirmed with the Contractor’s State License Board that the contractor has an active license on file. Timeline Construction is expected to start in October 2022 and be completed by March 2023. Resource Impact Due to multiple factors, the latest estimated cost of the construction exceeds the budget for the Water, Gas and Wastewater Office project (PE-19001) as adopted in the Fiscal Year 2023 Capital Budget. Primarily due to COVID-19 disruptions, the design took longer than expected and construction costs have escalated significantly since 2017 when the original budget estimate was created. Prior expenses in this project have been for the design phase during which the original project scope has changed and expanded. WGW office requirements changed substantially since 2017 including but not limited to changes in staffing levels and operations and the need for more enclosed offices among the WGW supervisors and managers to adapt to new working methods including varied modes of communication and engagement with their teams. The original estimate did not account for all of the changes that were needed and designed into the final project. One other significant factor relates to existing heating and cooling deficiencies that City of Palo Alto Page 4 were identified during design and will be addressed by the project. These costs were not anticipated when the project budget was developed in late 2017. Additionally, a salary and benefits administrative adjustment (to account for unallocated expenses) to the project decreased available budget, impacting the amount of additional funding for appropriation. Table 2: Project Budget PRIOR EXPENSES FY23 MODIFIED BUDGET* CURRENT TOTAL PROJECT BUDGET REMAINING WORK** FUNDING NEED REVISED TOTAL PROJECT BUDGET $475,829 $461,823 $937,652 $1,382,500 $920,700 $1,858,352 *Includes FY 2022 Year-End Reappropriations, scheduled for Council Review on October 24, 2022 **Shown in Expense Description table below As shown in the table above, the overall project budget shortfall is $920,700. Of this amount, $891,200 is recommended to be split equally and transferred from the Water Fund, Gas Fund, and Wastewater Collection Fund into the Capital Improvement Fund. The remaining $29,500 is recommended to be shifted from the Americans with Disabilities Act (ADA) compliance project (PF-93009) to PF-19001 to fund ADA required upgrades such as removal of general accessibility barriers in MSC Building C that were incorporated into the Building Permit and adopted as part of the City’s ADA Transition Plan. There is no impact to the Infrastructure Reserve (Ending Fund Balance) in the Capital Improvement Fund as a result of these changes to the project, because the increased expenses in PE-19001 are funded through transfers from the various Utilities Funds and funding previously allocated to PF-93009. Table 3: Pending Project Expenses Expense Description Required Appropriation Construction Contract with Ron Paris Construction $990,733 Construction Contract with Ron Paris Construction 10% contingency $99,073 Salary & Benefits $62,900 Ethernet Network modifications for temporary staff space $6,500 Moving expenses to and from temporary space $3,000 Asbestos Abatement Monitoring and Clearance Consultant $3,100 CJW Architects Construction Administration Contract $55,353 Staff systems furniture (cubicles, desks, and workstations) $147,630 General project contingency $14,211 TOTAL $1,382,500 Policy Implications The project is consistent with the City’s Comprehensive Plan goals, policies and programs. Stakeholder Engagement The project has been carefully coordinated directly with management staff in WGW Operations, the Chief Building Official, and Public Works Facilities Management. City of Palo Alto Page 5 Environmental Review This project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301c of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary. Attachments: • Attachment A - Bid Summary BID SUMMARY IFB #184924 MSC Building C - Water, Gas and Wastewater Office Remodel Engineer's Estimate $990,000 Bidder Base Bid Bid Amount Ron Paris Construction Co., Inc.990,733.00$ 990,733.00$ 0.1%above Beals Martin Inc.1,009,799.00$ 1,009,799.00$ 2.0%above Tochi 1,048,888.00$ 1,048,888.00$ 5.9%above Southwest Construction & Property Management 1,249,000.00$ 1,249,000.00$ 26.2%above % above/below Eng. Est.