CITY COUNCIL STAFF REPORT
August 20, 2024 {{section.number}}g
AUTHORIZE CONTRACT, BUDGET APPROPRIATION AND LOAN AGREEMENT FOR
INSTALLATION OF FEAST AND FAREWAY HEATERS
RECOMMENDATION:
Award and authorize the City Manager to execute a construction contract in a form approved by the City Attorney with American Wiring, Inc., for the Feast and Fareway Outdoor Heaters project in an amount not to exceed $89,583; appropriate an additional $58,556 from Capital Fund 400; approve a total project budget of $108,556; authorize the City Manager to execute a loan agreement with Feast and Fareway, LLC with a secured promissory note in an amount up to $33,556 to be repaid within three years; and find the project categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 of the CEQA Guidelines (14 CCR 15301, Existing Facilities).
BACKGROUND:
In Fiscal Year (FY) 2023-24, the City Council authorized the Feast and Fareway Outdoor Heaters project as part of the Capital Improvement Program (CIP) with a total project budget of $50,000.
The installation of the heaters would allow the restaurant to offer an improved outdoor dining experience year-round.
ANALYSIS:
Three bids were received in response to the informal Request for Bids conducted in accordance with the Coronado Municipal Code Section 8.06 and Public Contract Code 22032 (b). All qualified bidders on the City‘s California Uniform Public Construction Cost Accounting Act (CUPCAA) list were invited to bid on the project. On July 3, 2024, bids were opened with the following results:
BIDDER BID
American Wiring, Inc. $89,583.00
Willy Management LLC $148,996.00
GQ Builders, Inc. $220,649.25
The project’s scope of work includes furnishing and installing fourteen (14) electric heaters on the exterior trellis structure of the Feast and Fareway restaurant along with the electrical work necessary for their operation. The work involves adding an electrical subpanel, circuits, controls, and secure anchorage for fourteen (14) electric heaters to the existing trellis. Installation of the heaters will allow for expanded service options and greater comfort levels for patrons of the restaurant outside of the summer season.
It is recommended to award the contract to American Wiring, Inc. as they were the lowest responsive and responsible bidder.
FISCAL IMPACT:
As part of the FY 2023-24 CIP budget, $50,000 was appropriated for the Feast and Fareway Outdoor Heaters project (40070000-98987-24001). To date, a total of $9,973 has been expended, including $7,240 for preliminary electrical and structural engineering and design services, and $2,733 for permits and publication expenses. With a project balance of $40,027 remaining, an additional appropriation of $58,566, which includes a 10% contingency, is required to complete the project.
The City will need to appropriate an additional $58,566 from the Golf Course Fund (520020-9045), with up to $33,556 of that amount being the responsibility of Feast and Fareway, LLC, the City’s food & beverage concessionaire for Golf Course operations.
During the design phase, Feast and Fareway, LLC agreed to pay the remaining project costs based on the current estimate of $108,556, after deducting a total City contribution of $75,000.
The City is recommended to contribute more than the originally appropriated $50,000 due to a scope increase from site conditions and optimal heater design. Feast and Fareway, LLC would be responsible for up to $33,556, which they have agreed to repay over a three-year term as outlined in a pending loan agreement. The final portion that Feast and Fareway, LLC is responsible for will be determined upon project completion and will be based on the actual construction costs.
PROJECT BUDGET
City of Coronado Project Budget $50,000
DESIGN
Design Fees $7,240
Additional Expenses (printing and advertisement) $362
Building Permit Fee $2,371
Total Design Cost Estimate $9,973
CONSTRUCTION
Construction Contract Award $89,583
Contingency 10% $9,000
Total Construction Cost Estimate $98,583
TOTAL ESTIMATED PROJECT COST
Total Design Cost Estimate $9,973
Total Construction Cost Estimate $98,583
Total Estimated Project Cost $108,556
ADDITIONAL APPROPRIATION REQUIRED $58,556
City of Coronado Appropriation (Final) $25,000
Feast and Fareway Contribution (Up to) $33,556
ALTERNATIVE:
The City Council may elect to cancel the project and reject all bids.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
Categorically exempt per Section 15301 – Existing Facilities.
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
None.
Submitted By: Public Services and Engineering Department / Jackie Lu