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RESOLUTION NO. 2017-006 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; AWARDING A CONTRACT FOR THE “PARKWAY COMMUNITY CENTER IMPROVEMENTS PROJECT (CIP GG228)” TO “MARK W. FOGLE” IN THE AMOUNT OF $236,952.64; AND AWARDING A CONTRACT FOR THE “PARKWAY AQUATIC CENTER POOL IMPROVEMENTS PROJECT (CIP GG228)” TO “MISSION POOLS OF ESCONDIDO, INC.” IN THE AMOUNT OF $446,125.00; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $35,978.65
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On December 28, 2016, the Director of Public Works received three (3) sealed bids for the “Parkway Community Center Improvements Project (CIP GG228)” and one (1) sealed bid for the “Parkway Aquatic Center Pool Improvements Project (CIP GG228)”. Two separate contracts will be used to accomplish the work of CIP GG228 due to the diverse nature of the work in order to create a more competitive bidding environment and conform to industry contracting norms. The “Parkway Community Center Improvements Project (CIP GG228)” consists of repairs for the gymnasium and bathrooms, ADA retrofits, and painting for the facility. The “Parkway Aquatic Center Pool Improvements Project (CIP GG228)” consists of repairs to the pool, pool deck, pool area, and ADA retrofits.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines.
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Environmental Determination
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the projects consist of improvements to the existing Parkway Community Center building, Parkway pool and Memorial Park playground and Irrigation. Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Parkway Gymnasium and Aquatic Center are aging facilities built in the 1950s. Many areas of the facilities are in need of rehabilitation and major maintenance or do not comply with current building codes. A State of California Housing-Related Parks (HRP) Program Grant was received to complete improvements to these Parkway facilities.
The scope of the work to be done was developed collaboratively by City staff from Recreation, Public Works, and Development Services with input from Architectural and Pool Consultants. The facility needs were prioritized to provide the greatest benefit to the community from the available HRP grant funds as well as meet code requirements. The scope includes refinishing the gymnasium floor, refinishing the pool and pool deck, ADA retrofits and improvements in the path of travel, bathrooms, and pool areas, and painting the selected portions of the facility.
Engineering staff determined that two separate contracts, one for the building work and one for the pool work, would be appropriate due to the diverse nature of the work of CIP GG228. This project requires a commercial pool contractor and a general building contractor. If the work was combined into one contract, the general contractor would be required to subcontract to the commercial pool contractor. This would result in a less desirable bid environment and higher costs for the pool work due to general contractor’s markup.
Engineering staff prepared the contract documents and both projects were advertised on December 9, 2016.
On December 28, 2016, the Director of Public Works received three (3) sealed bids for “Parkway Community Center Improvements Project (CIP GG228)” as follows:
Parkway Community Center Improvements Project (CIP GG228) Bids
|
Contractor |
Bid Amount |
|
Mark W. Fogle* |
$236,952.64 |
|
De La Fuente Construction Inc.* |
$283,815.08 |
|
West Coast General Corporation |
$289,677.88 |
*the low bid and second low bid proposals contained mathematical errors and minor clerical errors. Corrections of the bid totals did not change the outcome and ranking of the bids.
On December 28, 2016, the Director of Public Works received one (1) sealed bid for “Parkway Aquatic Center Pool Improvements Project (CIP GG228)” as follows:
Parkway Aquatic Center Pool Improvements Project (CIP GG228) Bids
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ContractorBid Amount |
|
|
Mission Pools of Escondido Inc.* |
$551,519.10 |
*the low bid proposal contained a mathematical error. Corrections of the bid totals did not change the outcome and ranking of the bids.
The low bid for the “Parkway Community Center Improvements Project (CIP No.GG228)” was submitted by “Mark W. Fogle”. The bid amount of $236,952.64 is $23,098.56 (approximately 11%) higher than the Engineer’s estimate of $213,854.08. “Mark W. Fogle” is currently an active licensed Class B, General Building Contractor (License No. 600825). Staff has reviewed “Mark W. Fogle” bid package, and determined them to be a responsible and responsive bidder; therefore, staff recommends awarding the “Parkway Community Center Improvements Project (CIP GG228)” contract to “Mark W. Fogle”.
The low bid for the “Parkway Aquatic Center Pool Improvements Project (CIP No.GG228)” was submitted by “Mission Pools of Escondido Inc.” The bid amount of $551,519.10 is $ $152,417.10 (approximately 38%) higher than the Engineer’s estimate of $399,102.00. “Mission Pools of Escondido Inc.” is currently an active licensed Class B, General Building Contractor (License No. 326760) and an active licensed Class C-53, Swimming Pool (License No. 326760), and has performed similar work in the City. Staff has reviewed the “Mission Pools of Escondido Inc.” bid package, and determined them to be a responsible and responsive bidder; therefore, staff recommends awarding the “Parkway Aquatic Center Pool Improvements Project (CIP GG228)” contract to “Mission Pools of Escondido Inc.”
The bids received exceeded the staff estimates of the cost of the work and the total grant funds available. The HRP grant expenditure deadline made re-bidding of the project impossible. Reducing the scope and award amount prior to award is in the best interest of the public as it allows the available grant funds to be utilized and not forfeited. To bring the project within budget, a meeting was held with the project team including staff from Public Works, Recreation, and Development Services to determine which aspects of the work should be eliminated. The team reached a consensus and the less urgent facility needs at the pool were eliminated from the project. After the items were eliminated the total contact award amount for the “Parkway Aquatic Center Pool Improvements Project (CIP GG228)” was reduced by $105,394.10 from $551,519.10 to $446,125.00. It is anticipated that a subsequent grant will be available to complete the eliminated work in the next funding cycle. The changes were agreed by the contractor as summarized below:
Revised Contract Award Amounts
|
Project |
Original Bid Amount |
Revised Award Amount |
|
Parkway Aquatic Center Pool Improvements Project (CIP GG228) |
$551,519.10 |
$446,125.00 |
The proposed resolution would also authorize the Director of Public Works to approve change orders over and above existing policy limits for both CIP GG228 contracts. Under City Council Policy No. 574-01, if an individual change order causes the cumulative increase in change orders to exceed the Director’s authority, (“Maximum Aggregate Increase in Change Orders”), City Council approval is required. The corresponding maximum aggregate contract increase that may be approved by the Director of Public Works under Policy No. 574-01 is $26,586.68 for the “Parkway Community Center Improvements Project (CIP GG228)” and $41,228.75 for the “Parkway Aquatic Center Pool Improvements Project (CIP GG228)”. Approval of the resolution would increase the Director of Public Works authority to approve change orders, as necessary, up to contingency amount of $35,978.65, an increase of $5,250.10 over Policy No. 574-01 for the “Parkway Community Center Improvements Project (CIP GG228)”. Increasing the Director’s authority will allow the project to continue without delay should unforeseen circumstances arise resulting in increased project costs during the course of construction, as well as make adjustments to bid item quantities. Unforeseen conditions include such items as utility conflicts, hazardous materials, unexpected underground conflicts, etc. If the contingency funds are not used, they will be returned to the project fund balance.
Wage Statement
The Contractor and its subcontractors are required by bid specifications to pay prevailing wage (“Prevailing Wage Rates”) to persons employed by them for work under this Contract. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City of Chula Vista has ascertained the general prevailing wage scales applicable to the work to be done. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California.
Disclosure Statement
Attachment 1 is a copy of the Contractor’s Disclosure Statement.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Parkway Community Center and Pool Improvements project supports the Healthy Community goal as it seeks to improve physical education and recreation opportunities.
CURRENT YEAR FISCAL IMPACT
Approval of the resolution will award contracts for “Parkway Community Center Improvements Project (CIP GG228)” and “Parkway Aquatic Center Pool Improvements Project (CIP GG228).” Sufficient Housing-Related Parks (HRP) Program Grant Funds are available in GG228 for improvements associated with Parkway Community Center.
The table below summarizes the anticipated project costs:
|
FUNDS REQUIRED FOR CONSTRUCTION |
|
|
A. Parkway Community Center Improvements Project (CIP No.GG228) Contract Amount |
$236,952.64 |
|
B. Parkway Aquatic Center Pool Improvements Project (CIP No.GG228) Contract Amount |
$446,125.00 |
|
C. Subtotal of Both Contracts Amount |
$683,077.64 |
|
D. Contingency (Approximately 5% of combined contract amount) |
$35,978.65 |
|
TOTAL FUNDS REQUIRED FOR CONSTRUCTION |
$719,056.29 |
ONGOING FISCAL IMPACT
Upon completion, the improvements will require only routine City maintenance.
ATTACHMENTS
1. “Parkway Community Center Improvements Project (CIP No.GG228)” Contractor’s Disclosure Statement - “Mark W. Fogle”
2. “Parkway Aquatic Center Pool Improvements Project (CIP No.GG228)” Contractor’s Disclosure Statement - “Mission Pools of Escondido Inc.”
3. Project Locations Map
Staff Contact: Jonathan Salsman, PE, Sr. Civil Engineer