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Home My WebLink AboutStaff Report 2410-3554CITY OF PALO ALTO CITY COUNCIL Special Meeting Tuesday, November 12, 2024 Council Chambers & Hybrid 5:30 PM Agenda Item 7.Approval of Construction Contract No. C25190935A with Valhalla Builders in the Amount Not-to-Exceed $392,800 for Children’s Library as part of the Library Automated Materials Handling System Project, Capital Improvement Program Project LB-21000 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 $39,280; CEQA Status – Exempt under Section 15070 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: November 12, 2024 Report #:2410-3554 TITLE Approval of Construction Contract No. C25190935A with Valhalla Builders in the Amount Not- to-Exceed $392,800 for Children’s Library as part of the Library Automated Materials Handling System Project, Capital Improvement Program Project LB-21000 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 $39,280; CEQA Status – Exempt under Section 15070 RECOMMENDATION Staff recommends that the Council: 1. Approve and authorize the City Manager or their designee to execute Construction Contract No. C25190935A with Valhalla Builders, in the amount not to exceed $392,800 for the construction and installation of an Automated Materials Handling system pursuant to the Library Automated Materials Handling System Project, Capital Improvement Program Project LB-21000; and 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Valhalla Builders, for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $39,280. BACKGROUND The Library Department has made a significant investment in Radio Frequency Identification (RFID) tagging of their entire collection. Installing an Automated Materials Handling (AMH) System leverages that RFID investment to improve overall library system efficiency and speed up the process of moving materials to shelves for library patrons’ hold requests. An AMH system can speed materials processing and reduce staff time needed for processing books and media; it also decreases the likelihood of repetitive strain injury for staff. Staff time would be freed from processing materials manually to focusing on public projects and revenue generating projects. AMH systems were installed at the Mitchell Park and Rinconada Library branches as part of projects funded by Library Bond Proposition Measure N, and they have proven to increase staff efficiency at the City's two largest branches. Measure N funded the construction of Mitchell Park Library, historical renovation of Rinconada (formerly Main) Library, and remodel of Downtown Library. AMH systems were installed at Mitchell Park Library and Rinconada Library in 2014. ANALYSIS Public Works Engineering staff studied the feasibility of installing AMH systems at the remaining three branches: Children’s Library, Downtown Library, and College Terrace Library. Though smaller than Rinconada and Mitchell Park in square footage, Children's Library has a high circulation rate of library materials. It was determined that adding an AMH system at Children’s Library would have a true benefit given the cost, space constraints, and staff efficiency benefits. The Children's Library AMH System Project will modify the existing sorting room for installation of the new AMH system. The scope includes installing a six-bin sorting AMH system with a public interior return slot and a public exterior return slot with an ADA compliant pathway to the sidewalk. Staff recommends approval of Contract No. C25190935A1 to construct and install an AMH system. Solicitation Process On April 5, 2024, a notice inviting formal bids for the Children's Library Automated Materials Handling System Project was posted on the OpenGov, the City’s eProcurement platform. The bidding period was 25 days. A mandatory pre-bid meeting was held on April 17, 2024, and four potential bidders were present. Only one bid was submitted on April 30, 2024 and exceeded the City’s budget. The City decided to rebid the project with changes to the Invitation of Bids (IFB) including additional as-builts information and reformatting of the Bid Form. Public Works Engineering staff also contacted local companies to raise awareness about the project. The City issued a rebid of the project on July 31, 2024. Another notice inviting formal bids for the Children's Library Automated Materials Handling System Project was posted on the OpenGov. The bidding period was 37 days. Bids were received from three contractors on September 6, 2024, as listed in the attached Bid Analysis in Attachment A. Table 1: Summary of Invitation of Bids Project Bid Name/Number Children’s Library Automated Materials Handling System Project-REBID, IFB #190935A Proposed Length of Project 200 calendar days Number of Bid Packages Downloaded by Contractors 24 Number of Bid Packages Downloaded by Builder’s Exchanges 0 1 Valhalla Builders, Children’s Library Automated Materials Handling System Project, Contract #C25190935A; https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/staff-reports-all/2025/c25190935a-valhalla- builders_cc_11.12.2024_staff-report-003.pdf Table 1: Summary of Invitation of Bids Total Days to Respond to Bid 37 days Mandatory Pre-Bid Meeting Yes Number of Company Attendees at Pre-Bid Meeting 4 Number of Bids Received 3 Base Bid Price Range $392,800 - $685,999 Public Link to Solicitation https://procurement.opengov.com/portal/pa lo-alto-ca/projects/107994 The apparent low bidder was selected based upon the base bid only. The bids ranged from $392,800 to $685,999 and from 6% to 85% above the engineer’s estimate of $369,549. Staff reviewed the submitted bids and recommends acceptance of the base bid submitted by Valhalla Builders, in the amount of $392,800, and that Valhalla Builders be declared the lowest responsible bidder. The construction contingency amount of $39,280, which equals 10% of the contract value, is requested for related, additional, but unforeseen work which may develop during the project, implemented via City-approved Change Order. FISCAL/RESOURCE IMPACT Funding for the installation of the AMH system is available in the Fiscal Year 2025 Adopted Capital Improvement Program budget for the Library Automated Materials Handling System project LB-21000. A total transfer of $540,000 from the Library Development Impact Fee Fund was added to CIP LB-21000. The equipment will cause a slight increase in electric bills and will require annual equipment maintenance. Ongoing operating costs are estimated to be about $20,000 and anticipated to increase by 3 percent annually thereafter. STAKEHOLDER ENGAGEMENT Public Works Engineering staff consulted with the Library staff on the operation and workflows at each Library branch in order to determine the feasibility of an AMH system at each location. ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act (CEQA) under section 15070 of the CEQA Guidelines as the project scope involves only the repair, maintenance, and/or minor alteration of existing facilities. No further environmental review is necessary. ATTACHMENT Attachment A: Bid Analysis APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Children's Library Automated Materials Handling System Project-REBID IFB #190935A Bid Item Description Engineer's Estimate Arana Group Inc.Tochi Valhalla Builders Task 1 All Labor, Equipment, Material, and Transportation to fabricate, furnish, and install interior and exterior walls and associated activities as specified and shown on the Project Drawings. This line item includes wall installations, modifications, and infills as shown on the Project Drawing and Specifications. $ 12,726.19 45,334.00$ 18,000.00$ 7,700.00$ Task 2 All Labor, Equipment, Material, and Transportation to fabricate, furnish, and install doors, door hardware, and associated activities as specified and shown on the Project Drawing and Specifications. $ 5,389.91 6,005.00$ 6,000.00$ 4,900.00$ Task 3 All Labor, Equipment, Material, and Transportation to fabricate, furnish, and install window, window hardware, and associated activities as specified and shown on the Project Drawing and Specifications. $ 5,749.24 63,067.00$ 15,000.00$ 18,400.00$ Task 4 All Labor, Equipment, Material, and Transportation to demolish, remove, and salvage items as shown on the Project Drawing and Specifications. This includes interior and exterior areas. This also includes the protection and delivery of the window to the City. $ 9,537.15 77,734.00$ 6,500.00$ 2,200.00$ Task 5 All Labor, Equipment, Material, and Transportation to furnish and install electrical power and electrical accessories as shown on the Project Drawing, Specifications, and required by the latest building code. $ 4,491.60 38,844.00$ 10,000.00$ 26,500.00$ Task 6 All Labor, Equipment, Material, and Transportation to furnish and install data, cabling, telecom, and associated activities as shown on the Project Drawing, Specifications and City’s IT cable policy. $ 1,497.20 16,083.00$ 3,500.00$ 1,100.00$ Task 7 All Labor, Equipment, Material, and Transportation to furnish to cove base as shown on the Project Drawings and described in the Special Provisions. This includes time and coordination with City’s third-party vendor performing carpet installation. $ 449.16 5,078.00$ 10,000.00$ 900.00$ Task 8 All Labor, Equipment, Material, and Transportation to perform painting of walls as shown on the Project Drawings and Specifications. This includes submittal and approval of paint samples as required for existing wall colors. $ 4,491.60 15,728.00$ 6,000.00$ 3,100.00$ Task 9 All Labor, Equipment, Material, and Transportation to procure and install an Automated Materials Handling System as shown on the Project Drawings, Specifications, and required by the latest building code. This includes the deferred submittal package by the Contractor. $ 260,702.67 270,925.00$ 215,000.00$ 193,400.00$ Task 10 All Labor, Equipment, Material, and Transportation to furnish, modify, and install guard rail and concrete ramps shown on the Project Drawings, Specifications, and as required by the latest building code. $ 43,568.47 98,393.00$ 96,000.00$ 40,000.00$ Task 11 All Labor, Equipment, Material, and Transportation to complete sitework as shown on the Project Drawings and Specifications. This includes landscaping, irrigation, earthwork, and tree protection. $ 13,085.51 46,734.00$ 32,000.00$ 30,200.00$ Task 12 All Labor, Equipment, Material, and Transportation to complete all other items not covered in the line items above, but included in the Scope, Specifications, and Project Drawings. $ 7,860.29 2,074.00$ 10,000.00$ 64,400.00$ Subtotal 369,549.00$ 685,999.00$ 428,000.00$ 392,800.00$ Contingency 68,599.90$ 42,800.00$ 39,280.00$ Total Not-to-Exceed 754,598.90$ 470,800.00$ 432,080.00$ 86%16%6% Over Over Over