CITY COUNCIL STAFF REPORT
Meeting: May 2, 2023
Subject
Consider award of a construction contract for the Service Center Security Gate Project (Project No. 2023-103) for the construction of a new motorized security gate, including associated improvements.
Recommended Action
1. Award a construction contract for the Service Center Security Gate Project and authorize the City Manager to execute a contract in the amount of $365,750 with VNH Builders;
2. Authorize the Director of Public Works to execute any necessary change orders up to a construction contingency amount of $36,575 (10%) for a total authorized contract amount of $402,325; and
3. Adopt Resolution No. 23-xxx approving budget modification #2223-266 increasing appropriations in the General Fund Service Center Facilities Maintenance Fund (budget unit 100-87-829) by $249,001.
Reasons for Recommendation
On November 16, 2021, the City Council approved the Public Works Department’s budget request to install a motorized gate at the Service Center, located at 10555 Mary Avenue. Currently, the existing gate that provides access to the back of the Service Center is manually opened at the beginning of the workday and is manually closed at the end of the workday.
In August 2021, a member of the public walked through the open gate and threatened the safety of a City of Cupertino employee on City property. Although no staff were injured, the Public Works Department recognized the security risk and initiated the Service Center Security Gate Project to limit unauthorized access to the property.
The City contracted with Freyer & Laureta, Inc. on April 6, 2022, to assist in developing the design, specifications, and cost estimate for the project. The scope of work consisted of performing field reconnaissance to understand the existing electrical system and point of connection for the proposed motorized gate. An electrical design was conducted for the gate along with civil design for repaving the driveway.
The proposed improvements will provide security enhancement at the Service Center. The normally opened gate will be closed but will automatically open when a City vehicle approaches the gate. When exiting the Service Center, the gate will open when the vehicle crosses the in pavement sensor and will automatically close after the vehicle passes through the gate. For delivery vehicles, the system is capable of communicating with Service Center staff. Prior to entering the site, the delivery personnel will need to communicate with staff using the telephone entry system. Staff will be able to communicate with the delivery personnel using live streaming video prior to access being granted into the Service Center.
In addition to the installation of the security gate, the scope of work includes resurfacing a portion of the pavement near the gate entrance as well as repairing areas of failing pavement within the Service Center property. Since some pavement restoration is necessary to facilitate the gate project, additional pavement repairs were incorporated into the project to take advantage of cost savings that would be realized with the mobilization of a pavement contractor. The additional pavement resurfacing is necessary to repair the deteriorated pavement, to prevent further failures, and to remove safety issues associated with the current pavement condition. The existing pavement at the service center has not been resurfaced in more than 25 years.
On February 20, the City advertised the project for bid. A non-mandatory pre-bid meeting was held at the Service Center on March 9, but no contractors attended the meeting. On March 23, the City received three bids for the project which were as follows:
Bidder
Total Bid Amount
Golden Bay Fence Plus Iron Works
$509,119.00
VNH Builders
$365,750.00
JJ Construction and Design, Inc.
$325,000.00 – Non-responsive
Engineer’s Estimate
$320,000.00
After a thorough review of all bid proposals for responsiveness, compliance with bid specifications, and reference checks, the bid received from JJ Construction and Design, Inc. was deemed non-responsive as the bidder did not completely fill out the bidder’s questionnaire nor did they submit the wet-inked original bid bond per City’s specification requirement. In addition, the bidder submitted incorrect totals in the bid schedule.
Staff recommends awarding the contract to VNH Builders of Burlingame, California. The contractor, VNH Builders, is a responsible bidder and submitted the lowest responsive bid in the amount of $365,750 and satisfactorily completed projects for City of San Carlos, City of Brisbane, Santa Clara Unified School District, City of Burlingame, and City of San Jose. Based on their experience and performance, staff has determined that VNH Builders meets the qualifications to perform the work for the Service Center Security Gate Project as specified in the contract documents.
The authorized contract amount requested for the project construction includes a 10% contingency. Contingency amounts are a typical contracting best practice which is available to be used for any unforeseen conditions that may arise through construction. Prior to using contingency, staff will determine the validity of the change order and negotiate the cost with the contractor.
The project will also require services from CSG Engineers to provide quality assurance and inspection for the paving work. The firm is one of the City’s on call consultants which provides construction management services. The work includes on-site inspections to ensure the paving is performed per specifications and field and laboratory testing of materials to ensure the contractor is delivering materials (primarily asphalt) in accordance with the contract specifications. This oversight is essential in assuring the City is receiving quality workmanship and materials for the project.
Sustainability Impact
No sustainability impact.
Fiscal Impact
On November 16, 2021, the City Council approved the First Quarter Financial Report for Fiscal Year 2021-22, which included an appropriation of $199,514 for the Service Center Security Gate Project. The existing budget is inadequate to implement the project due to overall increases in the cost of goods and services. An additional appropriation of funds in the amount of $249,001 is being requested in the Public Works Service Center Facilities Maintenance Fund budget unit 100-87-829. The additional appropriations are to be funded by unassigned fund balance in the General Fund The current balance is estimated at $53 million.
California Environmental Quality Act (CEQA)
This project is exempt from the CEQA under 14 C.C.R. Section 15301 (minor alterations to existing facilities). _____________________________________
Prepared by: Jimmy Tan, Assistant Director of Public Works Reviewed by: Chad Mosley, Interim Director of Public Works Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Draft Contract
B – Draft Resolution
C – Bid Document Project Manual
D – Bid Document Project Drawings
E – Bid Document Addendum 1