REPORT TO COUNCIL
SUBJECT
Title
Award a Contract with all Additive Alternate Bid Items to Bobo Construction, Inc. in the Amount of $23,178,824.25 for the Lakewood Branch Library and Learning Center Project (PW24-11); Adopt the Mitigated Negative Declaration and Mitigation Monitoring, and Reporting Program for the Project; and Approve Budget Modification No. 23 in the Amount of $2,731,329
Report
REPORT IN BRIEF
Approval is requested for certain actions related to the Lakewood Branch Library and Learning Center project (Public Works Project No. PR-14-01). Specifically, Council approval is recommended to authorize the City Manager to take the following actions:
- Award all five Additive Alternate Bid items in the contract at a cost of $651,000 for a contract total amount of $23,178,824.25;
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $23,178,824.25 to Bobo Construction, Inc. of Elk Grove, which includes the base bid of $22,527,824.25 and the five Additive Alternates which amount to $651,000;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Make the findings required by the California Environmental Quality Act as stated in the Mitigated Negative Declaration, as Attachment 6 to the report, adopt the Final Mitigated Negative Declaration, as Attachment 3 to this report, and Mitigation Monitoring and Reporting Program, as Attachment 4 to the report, for the project;
- Approve a Budget Modification No. 23 in the amount of $2,731,329 to provide additional funding for this project; and
- Approve a 10% construction contingency in the amount of $2,317,882.
BACKGROUND
The Lakewood Branch Library and Learning Center project consists of the construction of a 22,771 square foot branch library and learning center facility in the Lakewood Village neighborhood of Sunnyvale.
Lakewood Branch Library and Learning Center is a partnership between the City of Sunnyvale, the Sunnyvale School District and Fremont Union High School District. The Center will serve as a primary resource for literacy, learning and wellness activities for the residents of north Sunnyvale. The facility will consist of a single-story library and learning center building that will also include a library program room, community room, program rooms for each of the school district partners, storage, a maker’s space, and a small kitchen.
EXISTING POLICY
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for awards of public works contracts exceeding $250,000.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
In October 2023, the environmental sub-consultant for the project, David J. Powers & Associates, Inc., prepared an Initial Study (IS) for the Lakewood Branch Library and Learning Center Project (Attachment 5). The IS identified one or more potentially significant effects on the environment for which the City, before the public release of the Mitigated Negative Declaration (MND), has made or agreed to make project revisions that clearly mitigate the effects to a less than significant level.
A draft IS/MND for the Lakewood Branch Library and Learning Center Project was prepared and circulated for public review from November 8, 2023, to November 28, 2023. No comments were received from the public or other agencies during the public review period. The Final Mitigated Negative Declaration (Attachment 3) and the Mitigation Monitoring and Reporting Program (Attachment 4) are presented today for Council adoption.
DISCUSSION
On April 28, 2020, Council Awarded a Contract to Anderson Brulé Architects, Inc. for Design and Construction Support Services for the Lakewood Branch Library and Learning Center project (RTC No. 20-0377). An extensive community outreach process was undertaken to review the objectives of the project with the community and receive input on desired design features for the new facility. Using input from the community, the school district partners and other stakeholders, a final Design Concept was presented to Council and approved on December 8, 2020 (RTC No. 20-0983). Design and preparation of construction documents were completed, and all permitting was approved in December 2023.
During the design phase of the project, construction costs in the Bay Area increased at higher-than-expected rates. Staff undertook several exercises to keep the project as close to the approved budget as possible. This includes conducting a value engineering exercise to reduce costs without cutting the approved size and program of the project as well as creating some Additive Alternate bid items. These Additive Alternate bid items provide the City with an opportunity to award a smaller construction contract for the minimum base bid work, or to include additional items that provide increased benefit and flexibility for the facility. The alternate bid items consist of operable partition walls between the program rooms, additional conduit and other infrastructure in the parking lot to make it easier to install additional electric vehicle charging stations in the future, a trellis structure in the outdoor courtyard, and a fence enclosure around the staff delivery area. Council may choose to award any, all, or none of the Additive Alternate bid items. The sum total of all five of the Additive Alternate bid items is $651,000.
In addition to design changes and creating additive alternate bid items, staff sought additional outside funding to offset some of the increased project costs. The City was able to secure a commitment letter from the Friends of the Sunnyvale Library to fund construction of the operable partition wall between the library program room and the community room. Similarly, the partner school districts have agreed to split the cost of an operable partition wall between the school program rooms with the City three-ways. Staff also secured a decarbonization grant amount of $481,000 from Silicon Valley Clean Energy to help offset the costs of making the building all-electric.
The project was advertised for competitive bidding on the City’s DemandStar public procurement network and distributed to the Bay Area Builder’s Exchange on February 16, 2024. Fifty-five (55) contractors requested bid documents and seven responsive bids were opened on March 27, 2024. Bobo Construction, Inc. was the lowest responsive and responsible bidder with a base bid in the amount of $22,527,824.25 (Attachment 1 - Bid Summary).
FISCAL IMPACT
Project construction costs consist of the construction contract in the amount of the base bid of $22,527,824.25 and a 10% contingency in the amount of $2,252,782, for a total of $24,780,607.25. Staff is recommending that the five additive alternate bid items also be awarded with the construction contract, in order to complete the project vision.
The individual cost of each of the additive alternate bid items is listed in the bid summary and it is Council’s decision to award none of them, any of the items individually, or all of them.
The Friends of the Sunnyvale Library has committed to providing the funds for the cost of Additive Alternate No. 1 for the operable partition wall between the library program room and the community room, if Council decides to include that additive alternate in the contract. In addition, the operable partition wall between the school program rooms is highly desired and the two school district partners have offered to split the costs of the additive alternate item for the school program room operable partition wall three-ways with the City. The total cost of all five additive alternates is $651,000 which, when added to the base bid, would result in a total contract amount of $23,178,824.25 and a 10% construction contingency in the amount of $2,317,882, for a total of $25,496,706.25.
The available funds for construction for the project are $22,770,380. Additional contributions from Friends of Sunnyvale Library and the two school districts increase the available construction funding to $23,116,712 resulting in the need for an additional $2,379,995 from the City. Including the external contributions, the total amount added to the project will be $2,731,329.
If none of the additive alternate bid items are awarded, the total construction costs (including 10% contingency) would be $24,780,606.25, requiring an additional $2,010,227 from the City.
There is no fiscal impact with the adoption of the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program.
Budget Modification No. 23 has been prepared to appropriate Infrastructure Fund funds and contributions from the Friends of the Sunnyvale Library, Sunnyvale Unified School District and Fremont Union High School District in the amount of $2,379,995 for Project 830600 - Lakewood Branch Library Facility.
Budget Modification No. 23
FY 2023/24
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|
Current |
Increase/ (Decrease) |
Revised |
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|
|
|
|
|
Infrastructure Renovation and Replacement Fund Revenues Friends of the Library Contribution |
$500,000 |
$190,000 |
$690,000 |
|
Sunnyvale Unified School District Contribution |
$3,000,000 |
$80,667 |
$3,080,667 |
|
Fremont Union High School District Contribution |
$3,000,000 |
$80,667 |
$3,080,667 |
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|
|
|
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Funding Use Category |
|
|
|
|
Project 830600 - Lakewood Branch Library Facility |
$26,462,441 |
$2,731,329 |
$29,274,437 |
|
Reserves |
|
|
|
|
Infrastructure Contingency Reserve |
$336,904,368 |
($2,379,995) |
$34,524,373 |
|
|
|
|
|
|
|
|
|
|
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Authorize the City Manager to take the following actions:
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $22,527,824.25 to Bobo Construction, Inc. of Elk Grove;
- Award all five Additive Alternate Bid items in the contract at a cost of $651,000 for a contract total amount of $23,178,824.25;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Make the findings required by the California Environmental Quality Act as stated in the MND, as Attachment 6 to the report, adopt the Final Mitigated Negative Declaration, as Attachment 3 to this report, and Mitigation Monitoring and Reporting Program, as Attachment 4 to the report, for the project;
- Approve a Budget Modification No. 23 in the amount of $2,731,329 to provide additional funding for this project; and
- Approve a 10% construction contingency in the amount of $2,317,882.
2. Authorize the City Manager to take the following actions:
- Award at least one, but not all, of the five Additive Alternate Bid items;
- Award a contract in the amount of $22,527,824.25, plus the cost of the awarded Additive Alternative Bid items as provided for in Attachment 1 to the report, to Bobo Construction, Inc. of Elk Grove;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Make the findings required by the California Environmental Quality Act as stated in the MND, as Attachment 6 to the report, adopt the Final Mitigated Negative Declaration, as Attachment 3 to this report, and Mitigation Monitoring and Reporting Program, as Attachment 4 to the report, for the project;
- Approve a Budget Modification No. 23 in the amount of $2,010,227, plus the cost to the City regarding the awarded Additive Alternative Bid items, to provide additional funding for this project; and
- Approve a 10% construction contingency in the amount of the total contract amount which includes the base bid and the awarded Additive Alternate Bid items.
3. Authorize the City Manager to take the following actions:
- Award a contract in the amount of $22,527,824.25 to Bobo Construction, Inc. of Elk Grove for the base bid only;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Make the findings required by the California Environmental Quality Act as stated in the MND, as Attachment 6 to the report, adopt the Final Mitigated Negative Declaration, as Attachment 3 to this report, and Mitigation Monitoring and Reporting Program, as Attachment 4 to the report, for the project;
- Approve a Budget Modification No. 23 in the amount of $2,010,227 to provide additional funding for this project;
- Approve a 10% construction contingency in the amount of $2,252,782.
4. Reject all bids for the project, and do not make the CEQA findings or adopt the MND for the project; and
5. Provide other direction to staff as Council deems appropriate.
STAFF RECOMMENDATION
Recommendation
Alternative 1:
Authorize the City Manager to take the following actions:
- Award a contract in substantially the same form as Attachment 2 to the report in the amount of $22,527,824.25 to Bobo Construction, Inc. of Elk Grove;
- Award all five Additive Alternate Bid items in the contract at a cost of $651,000 for a contract total amount of $23,178,824.25;
- Authorize the City Manager to execute the contract when all necessary conditions have been met;
- Make the findings required by the California Environmental Quality Act as stated in the MND, as Attachment 6 to the report, adopt the Final Mitigated Negative Declaration, as Attachment 3 to the report, and Mitigation Monitoring and Reporting Program, as Attachment 4 to the report, for the project;
- Approve a Budget Modification No. 23 in the amount of $2,731,329 to provide additional funding for this project; and
- Approve a 10% construction contingency in the amount of $2,317,882.
Justification for Recommendation
Staff recommends Alternative 1. The new Lakewood Branch Library and Learning Center will serve as a primary resource for literacy, learning and wellness activities for the residents of north Sunnyvale.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_Y_ Contract or franchise*
*The additive items are discretionary, not competitively bid
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
___ General policy and legislative actions
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract
3. Final Mitigated Negative Declaration
4. Mitigation Monitoring and Reporting Program
5. Initial Study
6. Notice of intent to Adopt a Mitigated Negative Declaration