REPORT TO COUNCIL
SUBJECT
Title
Award of Bid No. PW17-15 for the Columbia Middle School Swimming Pool Renovation Project, Make a Finding of CEQA Categorical Exemption, and Approval of Budget Modification No. 24 to Provide $568,772 in Additional Project Funding
Report
REPORT IN BRIEF
Approval is requested to award a construction contract in the amount of $754,000 to California Waters Development Inc. of Yorba Linda for the Columbia Middle School Swimming Pool Renovation project. Approval is also requested for a 10% construction contingency in the amount of $75,400 and for Budget Modification No. 24, to provide additional project funding in the amount of $568,772.
Under a joint use agreement, the cost of the renovation is shared equally with the Sunnyvale School District.
EXISTING POLICY
Section 1309 of the City Charter requires public works 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 Class 1 categorical exemption pursuant to CEQA Guidelines Section 15301 for maintenance or repair of existing facilities involving negligible or no expansion of use beyond which presently exists.
BACKGROUND AND DISCUSSION
Capital project 825850, Swim Pools Infrastructure, provides funding for repair and/or replacement of pool infrastructure and related components, based upon annual inspections by City staff. This particular construction contract includes renovations to the existing swimming pool at Columbia Middle School located at 739 Morse Avenue. The project scope includes pool piping, pool deck, lighting, perimeter fencing, and appurtenant site work, in order to allow the pool to operate in a safe and healthy manner by the begin of the 2017 summer program.
The project was advertised for competitive bidding in October 2016. Five general contractors requested bid documents. Bids were publicly opened on November 9, with two bids received as follows:
• California Waters, Yorba Linda, $754,000
• Tricon Aquatics, Rancho Cordova, $759,723
The Bid Summary is contained in Attachment 1. The submitted bids are significantly higher than estimated. This can be attributed to the fact that both firms are out of the area and consequently have a higher premium to construct the project.
It should be noted that no local pool contractors requested bid documents (though the bid was sent to multiple Bay Area Builder’s Exchanges), likely due to the current market conditions. While the bids were higher than anticipated, there is no guarantee that re-bidding the project will produce a better bid result. Further, staff recommends proceeding with the project so that the work is completed in time for the 2017 Summer program.
Per the joint use agreement with the Sunnyvale School District, the maintenance and rehabilitation costs are shared equally between the District and the City. City staff contacted the District and the District is aware of the higher costs and agreed to pay for its portion of the project.
FISCAL IMPACT
The total cost of the project, including design, inspections, construction and contingency is estimated to be $894,340, of which $35,076 has been expended. The cost will be equally shared with the School District. Capital project 825850 currently has a balance of $340,492, but $50,000 is needed for other pool work, leaving $290,492 available for this project. A Budget Modification in the amount of $568,772 will be necessary to complete the work in this fiscal year. An increase to the revenue in the Infrastructure Renovation and Replacement Fund of $284,386 to reflect the school district’s agreement to pay half of the project costs is also included.
This project is funded by the Park Dedication Fund and contributions from the Sunnyvale School District. Budget Modification No. 24 has been prepared to appropriate additional funding the Swim Pools Infrastructure - Project 825850
Budget Modification No. 24
FY 2016/17
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Infrastructure Renovation and Replacement Fund |
|
|
|
|
Revenue - School District Reimbursement |
|
|
|
|
825850-Swim Pools Infrastructure Transfer in from the Park Dedication Fund (Swim Pools Infrastructure) |
$170,246 144,607 |
$284,386 284,386 |
$454,632 428,993 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
825850-Swim Pools Infrastructure |
$340,492 |
$568,772 |
$909,264 |
|
Park Dedication Fund Expenditures |
|
|
|
|
Capital Projects Reserve |
$32,279,192 |
($284,386) |
$31,994,806 |
|
|
|
|
|
|
Transfer out to the Infrastructure Renovation and Replacement Fund (Swim Pools Infrastructure) |
144,607 |
284,386 |
428,993 |
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.
RECOMMENDATION
Recommendation
1) Make a finding of CEQA categorical exemption pursuant to CEQA Guideline Section 15301 for alterations to existing facilities involving negligible or no expansion of use beyond that which presently exists; 2) award a contract in substantially the same form as Attachment 2 to the report and in the amount of $754,000 to California Waters Development Inc. and authorize the City Manager to execute the contract when all necessary conditions have been met.; 3) approve a 10% construction contingency in the amount of $75,400; and 4) approve Budget Modification No. 24 in the amount of $568,772 to provide additional project funding.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Manuel Pineda, Director of Public Works
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft General Construction Contract