Title
Staff Report for a Resolution to Award a Construction Contract to Century Carpet, Inc., Authorization for the City Manager to Negotiate and Approve Individual and Cumulative Change Orders Up to 5% of the Original Contract Amount and City Council Approval to Additionally Appropriate $50,000 for Painting and Resilient Flooring from General Fund Balance for the Main Library Carpet Replacement, Project No. 2014.0370
Staffreport
SUMMARY AND RECOMMENDATIONS
This contract provides for replacing the existing carpeting in the Main Library.
Staff recommends the following actions:
• Awarding the negotiated construction contract and bid alternatives to Century Carpet, Inc. for the amount of $517,885.00 for the subject project;
• Authorizing individual and cumulative change orders up to 5% of the original contract;
• Appropriating additional General Funds in the amount of $50,000 for this project.
BACKGROUND
This project will replace existing carpet flooring throughout the Main Library, excluding the Auditorium and Project Literacy offices, which have less foot traffic and do not currently need replacement. Existing carpet will be changed to resilient vinyl flooring in the Karp, Estudillo and Trustees public meeting rooms.
Analysis
The project was advertised on September 2, 2016 and two mandatory pre-bid meetings were held on September 12 and September 13, 2016. Bids were opened on September 22, 2016, and there was only one bidder, Century Carpet, Inc Their original bid was $509,000 for the base bid and $586,000 for the base bid plus additive alternatives for painting and resilient flooring. The City decided to open negotiations with the sole bidder in an effort to reduce the project costs. This negotiation effort was undertaken for the following reasons:
• There was only one bidder.
• Re-bidding could not meet the proposed project schedule to start these repairs during the City’s holiday closure period.
• The bid with additive alternatives was almost 15% higher that the engineer’s estimate of $511,000 and exceeded current available project funding.
• Comparison of the bid with cost information available on a statewide contract directly with the carpet manufacturer (Shaw Industries, Inc.) indicated that the City might be able to get a lower cost.
Staff initiated negotiations with the contractor and a revised bid total of $517,885.00 was agreed to for the total project including the additive alternatives by reducing the quantity of attic stock (additional replacement material) compared to the original bid. The original bid requested an additional 20% of carpet ‘attic stock’ to provide an ample supply of replacement panels in case the carpet patterns are discontinued. Based on a review of other projects, it was determined a reduced quantity of replacement panels (10%) was suitable for this project allowing for a reduction in cost.
The additive bid alternatives for painting and resilient flooring are additions to the original project scope but are important to include in this award. Additional painting is desirable because the existing accent colors in the building would clash with the new carpet patterns. Additionally, upgrading paint and carpeting at the same time will maximize the positive impact of this project, benefitting all patrons of the library. Changing the existing carpet to resilient vinyl flooring in the Karp, Estudillo, and Trustees public meeting rooms is needed because these areas are heavily used for a wide variety of events, including activities like children’s crafts or the serving of refreshments that could potentially stain carpet materials. The new resilient flooring will be easier to clean and more durable.
Staff recommends that the City Council appropriate $50,000 from general funds to augment the current appropriation and fully fund the project with the bid alternative items for painting and resilient flooring.
Century Carpet, Inc., the low bidder, does not have an office in San Leandro that would qualify them as a local business per the Local Inclusion Policy Ordinance nor did they meet the Local Business Participation Goal by subcontracting to San Leandro businesses 25% of the total contract value. However, the bidder will utilize a local subcontractor, Crown Worldwide Moving and Storage, for moving services that represents $5,000 or approximately 1% of the total contract value. Additionally, the lowest bidder provided documentation that demonstrated completion of the required good faith efforts to meet the local business participation goal.
Staff verified that the contractor has a valid license with the Contractor’s State License Board and is registered with the California Department of Industrial Relations. At the mandatory pre-bid meetings, staff presented the requirements of the Local Inclusion Policy Ordinance, responded to bidder questions, and provided contact information for free technical assistance if needed. Bidders were also provided with a list of contractors performing trades applicable to this project’s construction that currently hold business licenses with the City of San Leandro.
As is standard in the construction industry, staff balanced site investigation costs with the risk of finding unforeseen conditions during construction as well as the design costs with the level of detail on the plans. As a result, unforeseen conditions may be encountered during construction and plan details may need to be adjusted or clarified. In order to minimize delay to the project and ensure that the scope of work is adjusted as needed to provide the highest quality project for the City, staff requests that the City Council authorize the City Manager or his designee to negotiate and approve individual and cumulative change orders up to 5% (or $25,894) of the original contract amount. This will ensure efficient completion of the project on budget and on schedule.
Committee Review and Actions
This project was presented to the City Council Facilities and Transportation Committee on July 19, 2016. Two carpet schemes were reviewed at this meeting; both were acceptable to the Committee. The additive alternatives for resilient flooring and painting were also discussed at this meeting; both additions were viewed as important and appropriate changes to incorporate into the project.
This project was presented to the City Library and Historical Commission on July 19, 2016. The Commission reviewed the two patterns presented to the City Council Facilities Committee and recommended to staff the carpet pattern to be used for the project.
Current Agency Policies
• 2015-15 City Council Goal: Maintain and Enhance the City’s Infrastructure.
• 2013-15 City Council Goal: Support and implement programs, activities and strengthen communication that enhances the quality of life and wellness, celebrates the arts and diversity and promotes civic pride.
Applicable General Plan Policies
• This project is consistent with Infrastructure Goal No. 52 for the General Plan and Action Item 52.07, Maintenance: Ensure that sufficient funding is provided for the ongoing maintenance of City-owned facilities.
• This project is consistent with Library and Information Services Goal No. 47 for the General Plan and Action Item 47.01, Library Expansion and Upgrades: Support the expansion and upgrading of public library facilities.
Environmental Review
A categorical exemption form CEQA per Section 153019(c) for ‘Existing Facilities’ was field with Alameda County Recorder’s Office for this project on October 2, 2015.
Summary of Public Outreach Efforts
• The Notice to Bidders was published in the Daily Review, the South County Post, Visión Hispana and the World Journal.
• Staff also notified twenty-one builders’ exchanges and construction data firms as well as a list of contractors that asked to be notified of bidding opportunities via email.
• Notices were sent directly to three local carpet companies as well as two other firms who worked on prior City carpeting projects by email.
• The project is described on the Engineering and Transportation Department website.
• Two mandatory pre-bid meetings were held on September 12 and 13, 2016. The intent of these meetings was to inform bidders of the project details including the City’s Local Business Preference Ordinance.
Fiscal Impacts
Total project cost is estimated to be $592,000 as follows:
|
Design and Bid |
$ 14,000 |
|
Construction Preparation Tasks |
$ 16,000 |
|
CM and Inspection |
$ 18,221 |
|
Sub Total (Design, Prep & CM) |
$ 48,221 |
|
Construction |
$517,885 |
|
Construction Contingency |
$ 25,894 |
|
Total |
$592,000 |
Budget Authority
This project construction will be funded as follows:
Account No. Resolution, Appropriation Date Amount
210-38-372 Res. 2015-100, FY 2015-16 $542,000
Additional appropriation requested from City Council as follows:
210-38-372 General Fund $50,000
Total Project Appropriation $592,000
ATTACHMENT(S)
Attachment(s) to Staff Report
• Bid Summary
• Negotiated Contract Costs
PREPARED BY: Mark Goralka, Associate Engineer, Engineering and Transportation Department