HomeMy WebLinkAboutItem 7.1 - 1349 Award of Contract
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STAFF REPORT
CITY COUNCIL
DATE: March 21, 2017
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Sean Diamond Park (Project PK0216) - Award of Construction Contract
Prepared by: Rosemary Alex, Parks & Facilities Development Coordinator
EXECUTIVE SUMMARY:
The City Council will consider awarding a construction contract for Sean Diamond Park
(Project No. PK0216) and approving a budget change to increase project funding for
construction. The project is a five-acre neighborhood park including a central gathering
point with lighted rose garden and public art, playgrounds for children ages 2 -5 and 5-
12, a tennis court, picnic area with shade structure, informal lawn area, grass volleyball
court, restroom building, pathways for circulation and exercise, and supporting elements
as further detailed in the report.
STAFF RECOMMENDATION:
Adopt the Resolution Awarding a Contract for Sean Diamond Park (Project No.
PK0216) to McGuire and Hester, and approve the budget change.
FINANCIAL IMPACT:
The base bid from the low bidder, McGuire and Hester, plus bid altern ates #1 and #2, is
$2,025,400. Including a 10% contingency, the construction cost totals $2,227,940.
Additional funds are needed in the project budget to award the construction contract.
The available project funds and proposed budget adjustment are as follows:
Construction
Total Available Construction Budget $1,568,226
McGuire and Hester Bid Results
Construction Proposal for Base Bid $1,964,900
Alternate #1 Shade Sails $40,000
Alternate #2 Lighting at Rose Garden $20,500
Total Base Bid with Both Alternates $2,025,400
Ten Percent (10%) Construction Contingency $202,540
Total Potential Construction Cost $2,227,940
Page 2 of 4
Funding Shortfall for Base Bid with Both Alternates -$659,714
Additional Funding Source
Public Facilities Fees Fund $659,714
DESCRIPTION:
The 2016-2021 Capital Improvement Program (CIP) includes Sean Diamond Park
(Project No. PK0216), a five-acre neighborhood park within the Positano subdivision.
On February 2, 2016, the City Council approved the conceptual plan for Sean Diamond
Park (Attachment 3) and authorized Staff to proceed with development of the
construction drawings. On September 20, 2016, the City Counc il approved an
amendment to the CIP to accelerate the construction of Sean Diamond Park from Fiscal
Year 2017-18 to Fiscal Year 2016-17. The City Council authorized Staff to solicit bids
for the project on December 6, 2016.
Base Bid
Sean Diamond Park base bid scope of work includes the following:
Central gathering point with public art as focal point
Playgrounds for ages 2-5 and 5-12
Tennis Court
Picnic Area
Grass Volleyball Court
Informal Lawn Area
Restroom Building
Pathways for circulation and exercise
Bid Alternates
As part of the bid package, additive alternates were included to provide flexibility in
terms of project scope and budget. The following additive alternates were included in
the bid package:
Additive Alternate #1 – Shade Structure at Picnic Area
Additive Alternate #2 – Additional Lighting in the Rose Garden
Bid Results
On February 28, 2017, after a six-and-a-half-week bid period, the City opened bids from
the four responding contractors, with results summarized in the table below. Contractor
selection is based upon the lowest responsive base bid from a responsible bidder.
McGuire and Hester is a responsible bidder and submitted the lowest responsive base
bid of $1,964,900. McGuire and Hester also submitted a $40,000 bid for additive
alternate #1 and a $20,500 bid for additive alternate #2. Staff has reviewed the bid
results, checked references and necessary licenses, and recommends that the City
Council adopt the Resolution (Attachment 1) awarding a contract for Sean Diamond
Park (Project PK0216) to McGuire and Hester as the lowest responsive bidder.
Company Base Bid Alternate #1 Alternate #2 Bid Total
McGuire and Hester $1,964,900 $40,000 $20,500 $2,025,400
Suarez & Munoz $2,075,000 $45,000 $30,000 $2,150,000
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Company Base Bid Alternate #1 Alternate #2 Bid Total
Bothman $2,077,300 $45,000 $22,000 $2,144,300
Stockbridge $2,247,000 $51,000 $21,000 $2,318,430
Construction
Estimate
$1,480,000 $18,000 $15,000 $1,513,000
There is an approximate 14% difference between the lowest and highest base bids
received. Excluding the highest base bid, the remaining three base bids are separated
by less than 6%. Because four bids were received, and because the base bids are
quite close in value, the base bid represents the current marketplace for the
construction of a five-acre park and the included amenities.
Base bid results varied from 33% to 52% higher than the construction estimate for the
project. Staff and project consultants have investigated the factors that are driving
construction prices to understand the higher-than-estimated costs. Upon review, it was
found that there are substantially higher prices in the concrete, planting, and site
furnishing categories. In discussions with construction industry representatives, it was
found that certain construction prices are being driven by a labor shortage, in part from
the robust construction activity throughout the Bay Area. Additionally, several
contractors are busy on projects that have been delayed by rains, and they are not
aggressively pursuing construction jobs right now. Finally, t here has been a noticeable
spike in concrete and other site work prices within the last few months and it is
anticipated the current bidding climate will remain unpredictable for some time.
Because of these cost increases, award of this contract will requ ire the City to amend
the project budget to add $659,714 in Public Facility Fees funding, as shown in the
budget change form (Attachment 2). Furthermore, in order to facilitate the approval of
contract change orders and to avoid construction delay, it is r equested that the City
Manager be authorized to approve change orders up to the contingency amount of
$202,540. The Resolution (Attachment 1) will authorize this change as it relates to this
Project.
Schedule
The following is a summary of the key project milestones for the remainder of the
project:
Award of Contract & Construction Begins Spring 2017
Construction Complete & Open to the Public Spring 2018
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
Copies of the Staff Report will be sent to project bidders and Dublin residents who
participated in the community design process for Sean Diamond Park.
ATTACHMENTS:
1. Resolution Awarding a Contract for the Sean Diamond Park to McGuire and Hester
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2. Budget Change Form
3. Approved Conceptual Plan
4. Bid Results
ATTACHMENT 1
RESOLUTION NO. XX - 17
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * * *
AWARDING A CONTRACT FOR THE SEAN DIAMOND PARK (PROJECT NO. PK0216) TO
MCGUIRE AND HESTER
WHEREAS, Staff completed plans and specifications for the Sean Diamond Park, Project No.
PK0216 (“Project”). The Project includes a five-acre neighborhood park with central gathering point,
public art, playgrounds, tennis court, shaded picnic area, lighted rose garden, and other amenities; and
WHEREAS, the City of Dublin did, on February 28, 2017, publicly open examine and declare all
sealed bids for doing the work described in the approved Plans and Specifications for the Project, which
Plans and Specifications are hereby expressly referred to for a description of s aid work and all particulars
relative to the proceedings under the request for bids ; and
WHEREAS, said bids were submitted to the City Engineer, who has recommended that the bid
herein is the lowest and best bid for doing said work.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
approves the Plans and Specifications for the Project.
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby award
the Project to the lowest responsible bidder therefor, to wit, McGuire and Hester, at a base bid of one
million nine hundred sixty-four thousand and nine hundred dollars ($1,964,900) and alternate #1 at
forty thousand dollars ($40,000) and alternate #2 at twenty thousand and five hundred dollars
($20,500) the particulars of which bid are on file in the office of the City Engineer.
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby authorize
the City Manager or his designee to approve the Project Contract Change Orders based on the
appropriated funds designated for the Project up to the contingency amount of $202,540.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the Agreement
PASSED, APPROVED AND ADOPTED this 21st day of March, 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves Other
Account Amount Account Amount
PK0216.9400.9401 - Improvements $659,714
3500.9501.49999 (Transfers In)$659,714
PK0216.4106 (4104.9501.89101) - Public
Facilities Fee - Neighborhood Park Improv.
Transfers Out $659,714
3/21/2017
Posted By:Date:
As Presented at the City Council Meeting
**********Finance Use Only**********
CITY OF DUBLIN
Construction bid is higher than engineer estimate
REASON FOR BUDGET CHANGE
FISCAL YEAR 2016-17
BUDGET CHANGE FORM
DECREASE BUDGET AMOUNT INCREASE BUDGET AMOUNT
EXP: Neighborhood Park Improvement Fund - Sean Diamond
Park - Improvements
City Council's Approval Required
C:\Users\lindas\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\W3UXA3EX\14_pk0216_032117 14_pk0216_032117
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