HomeMy WebLinkAboutStaff Report 2403-2743CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, April 22, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
7.Approval of Construction Contract Number C24190641A with Valhalla Builders, Inc. in the
Amount of $460,900 and Authorization for the City Manager or Their Designee to
Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that
may Develop During the Project up to a Not-to- Exceed Amount of $46,090 for the
Performing Arts Venues Seat Replacement Project at Lucie Stern Community Theatre,
Capital Improvement Program Project AC-18000; CEQA Status – Exempt Under CEQA
Guidelines Section 15301
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: April 22, 2024
Report #:2403-2743
TITLE
Approval of Construction Contract Number C24190641A with Valhalla Builders, Inc. in the
Amount of $460,900 and Authorization for the City Manager or Their Designee to Negotiate
and Execute Change Orders for Related Additional but Unforeseen Work that may Develop
During the Project up to a Not-to- Exceed Amount of $46,090 for the Performing Arts Venues
Seat Replacement Project at Lucie Stern Community Theatre, Capital Improvement Program
Project AC-18000; CEQA Status – Exempt Under CEQA Guidelines Section 15301
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute construction
contract no. C24190641A with Valhalla Builders, Inc. in the amount of
$460,900 for Performing Arts Venues Seat Replacement, Capital Improvement
Program project AC-18000; and
2. Authorize the City Manager or their designee to negotiate and execute one or more
change orders to the construction contract with Valhalla Builders, Inc. for related,
additional but unforeseen work which may develop during the project, the total
value of which shall not exceed $46,090.
BACKGROUND
The existing Lucie Stern Community Theatre seats have been in service for many decades and
are exhibiting signs of severe wear, including the inability for the seat cushions to self-rise,
leading to inadequate aisle width for egress. There have been attempts over the years to
rehabilitate the seats, but due to the age of the mechanisms, their components are now
obsolete. To avoid the potential for fire and building code violations as well as safety concerns
during emergency evacuations, staff has determined that the seats must be replaced.
Additionally, the City’s ADA Transition Plan documents the need to address requirements for
access compliance.
ANALYSIS
Staff recommends approval of Contract No. C24190641A1 in order to provide replacement of
the existing theatre seats. The project will replace the existing seats with a more modern
configuration that allows for gravity to raise the seat cushions in lieu of spring-loaded
mechanisms. The upper portions of the entrance ramps will be reconfigured to provide access
to a newly raised concrete platform which is configured for both wheelchair and companion
seating. There will be additional ambulatory seating strategically placed at the ends of the rows
at the aisles. The work will occur during the planned closure of the theatre from May 13, 2024
through August 8, 2024.
Bid Process
On March 27, 2024, an Invitation for Bids (IFB) for the Community Theatre Seat Replacement-
REBID project was posted on OpenGov, the City’s eProcurement system. The bidding period
was 12 calendar days. The City received three (3) bids from qualified contractors on April 8,
2024, as listed on the attached Bid Summary (Attachment A).
Table 1: Summary of invitation for Bids
Project Bid Name/Number Community Theatre Seat Replacement-REBID
IFB #190641A
Proposed Length of Project May 13 – Aug 8, 2024
Number of Bid Packages Downloaded by
Contractors
8
Number of Bid Packages Downloaded by
Builder’s Exchanges
2
Total Days to Respond to Bid 12
Mandatory Pre-Bid Meeting No
Number of Company Attendees at Pre-Bid
Meeting
N/A
Number of Bids Received 3
Base Bid Price Range
$460,900 - $581,501
Public Link to Solicitation https://procurement.opengov.com/portal/palo-
alto-ca/projects/87752
Bids ranged from $460,900 to $581,501 and from 36% to 71% above the engineer’s estimate of
$340,000. Staff reviewed the submitted bids and recommends acceptance of the base bid
submitted by Valhalla Builders, Inc. in the amount of $460,900, and that Valhalla Builders, Inc.
be declared the lowest responsible bidder. The higher bids are attributed to current global
economic inflationary pressures as well as necessary just-in-time delivery expectations for a
1 Valhalla Builders, Inc. Construction Contract C24190641A;
https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip-
contracts/c24190641a-valhalla-builders_cc_staff-report.pdf
project with a short window of opportunity for construction. The construction contingency
amount of $46,090, which equals 10% of the total contract value, is requested for related,
additional but unforeseen work which may develop during the project, implemented via City-
approved Change Order.
Staff reviewed information and similar projects performed by the lowest bidder, Valhalla
Builders, Inc. and found them to be the lowest responsive and responsible bidder. Staff also
checked with the Contractor's State License Board and determined that the contractor has an
active license on file.
FISCAL/RESOURCE IMPACT
Funding for this contract is available in the Fiscal Year 2024 Adopted Budget for the Capital
Improvement Program Performing Venues Seat Replacement (AC-18000) project.
STAKEHOLDER ENGAGEMENT
The Performing Arts Venues Seat Replacement Project has been coordinated with the Public
Works, Administrative Services, and Community Services Departments as well as other user
groups that rent the Lucie Stern Community Theatre. The work will take place during the
coordinated closure of the facility between May 13, 2024 and August 8, 2024.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the provisions of the California Environmental Quality
Act (CEQA) under Section 15301 of the CEQA Guidelines as repair, maintenance and/or minor
alteration of existing facilities and no further environmental review is necessary.
ATTACHMENTS
Attachment A: Bid Summary
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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ATTACHMENT A - BID TABULATION
BID RESULTS FOR Lucie Stern Community Theatre Seat Replacement Project
(IFB 190641)
BID ITEM DESCRIPTION Unit of
Measure
Qty Ron Paris
Construction
Co, Inc.
Selway Construction Valhalla Builders, Inc.
(Lowest Responsible Bidder)
Base Bid Community Theatre as a Turn-
Key
Project
LS 1 $462,027 $581,501 $460,900
Engineer Estimate LS 1 $340,000 $340,000 $340,000
Percent Difference 36%71%36%
Notes: 1. Determination of Lowest Bid - The lowest bid shall be the lowest Base Bid. There were no additive or deductive alternate items.