REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW16-13 for Fair Oaks Park Auxiliary Restroom and Parking Lot Renovation, and Finding of CEQA Categorical Exemption
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $685,738 (based bid in the amount of $617,383 and two additive alternates for $68,355) to Redgwick Construction Company of Oakland, for the Fair Oaks Park New Auxiliary Restroom and Parking Lot Renovation (Public Works Project No. PR-14/10-16). The two additive alternates include landscaping/irrigation modifications and the abandonment of a sanitary sewer pipe that is no longer needed. These items were part of the original project but listed as an additive alternate in case bids came in too high. Since the low bid is within budget staff is recommending awarding the two additive alternates to maximize the use of grant funding.
Approval is also requested for a 15% construction contingency in the amount of $102,861. A construction contingency higher than the customary 10% is being requested because of the potential unforeseen conditions associated with the underground work required to install new sewer, water, storm drain and electrical utility lines. Staff and the consultant team have designed for all known underground conflicts based on all available information and potholing. However, it has been staff’s experience that when building underground utilities in older parts of the city unexpected items sometimes arise.
EXISTING POLICY
Section 1309 of the City Charter requires construction contracts to be awarded to the lowest responsive and responsible bidder.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for this project is a categorical exemption pursuant to Class 2, section 15302 for replacement of existing structures and facilities, and Class 4, section 15304(b) for replacement of existing landscaping with water efficient landscaping.
BACKGROUND AND DISCUSSION
Council adopted a resolution on April 7, 2015 authorizing the receipt of $973,525 in Housing-Related Program (HRP) grant funds from the state Department of Housing and Community Development (HCD) to design and construct the improvements at Fair Oaks Park (RTC 15-0299). Council also adopted Budget Modification No. 42 to appropriate the grant funding, and awarded a contract in the amount of $144,883 to Harris Design of Berkeley to design the project and provide construction support services. The design has been completed and the construction project was recently advertised for bid.
The scope of the construction provides for a new modular auxiliary restroom/storage building, including new sewer, water and electrical services; renovation of the parking lot, including upgrade of storm drainage and new pavement striping; removal of an existing restroom; and minor landscape renovation.
The project was advertised for competitive bidding in The Sunnyvale Sun on October 30, 2015, distributed to eighteen Bay Area Builder’s Exchanges, and published on the City’s website through the Demandstar public procurement network. Twelve contractors requested bid documents. Sealed bids were opened on November 18, 2015, with a total of six bids received. The bid summary is contained in Attachment 1.
Two of the bids were non-responsive: One bid was submitted on an incorrect bid form which had different bid quantities and one bid had significant math errors which materially affected the bid price (the sum total of the 35 bid line items was $84,200 higher than the stated total). Of the four responsive bids, two of these contained math errors as well, but these did not materially affect the bid price relative to the other bids (the minor errors were corrected on the bid summary).
The lowest responsive and responsible bid was submitted by Redgwick Construction Company of Oakland, in the amount of $617,383. The lowest bid contained no math errors. Staff recommends accepting the bid from Redgwick. Also recommended is the award of additive alternates 1 and 2, in the amounts of $58,375 and $9,980 respectively, which maximizes the use of the grant funding.
FISCAL IMPACT
Project costs are as follows:
Construction $617,383
Additive Alternate A1 $58,375
Additive Alternate A2 $9,980
Construction Contingency (15%) $102,861
Total Cost $788,599
Budgeted funds are available in Capital Project 831430 (Fair Oaks Park: New Auxiliary Restroom and Parking Lot Renovation).
Funding Source
This project is funded by a Housing-Related Park Program (HRP) grant provided by the California Department of Housing and Community Development. Sunnyvale qualified for the grant because of the nearby development of low cost housing on the site of the old National Guard Armory.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website. Public workshops were held on May 21, 2015 and June 11, 2015 in the Fair Oaks Park Community Room and presented to the Parks and Recreation Commission on August 12, 2015.
RECOMMENDATION
Recommendation
1) Make a finding of CEQA categorical exemption pursuant to Class 2 Section 15302 for replacement of existing structures and facilities, and Class 4 Section 15304(b) for replacement of existing landscaping with water efficient landscaping; 2) award a contract, in substantially the same format as Attachment 2 to the report and in the amount of $685,738 to Redgwick Construction Company; and 3) approve a 15% construction contingency in the amount of $102,861.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Department of Finance
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Kent Steffens, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract