Placentia City Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DATE: APRIL 18, 2023
SUBJECT: APPROVAL OF PLANS & SPECIFICATIONS AND AWARD OF CONSTRUCTION CONTRACT TO E. AVICO, INC., FOR THE INTERIOR TENANT IMPROVEMENTS
FOR THE BUTLER BUILDING FOR THE PLACENTIA PUBLIC SAFETY CENTER PROJECT NO. 5213
FISCAL
IMPACT: EXPENSE: $ 1,680,880 TOTAL CONSTRUCTION CONTRACT AMOUNT $ 168,088 TOTAL CONSTRUCTION CONTINGENCY AMOUNT
$ 1,848,400 TOTAL AMOUNT
AVAILABLE
BUDGET: $ 2,110,969 FISCAL YEAR 2022-23 CIP BUDGET
(105213-6850 JL# 229999-6850)
SUMMARY:
The City has broken ground on the Placentia Public Safety Center which is being delivered in two separate project phases. The project was phased in order to advance construction of the new police evidence and storage space ahead of the main building so that the City could complete that portion of the project before the lease expires on its rented facility. In addition to breaking ground on Phase I of the project, the City has also approved contracts for the new shooting range equipment as well as the prefabricated engineered Butler Building that will serve as the new evidence and property storage facility.
On March 7, 2023, the City Council rejected all bids received for Phase 11 of this project and authorized the City to solicit new bids. Staff worked with the construction management team to solicit separate bids to complete the tenant improvements and final utility connections for the Butler Building so that facility can operate as a stand-alone building in time for the transition from the City's leased facility. A total of six bids for this portion of the project were received on April 4, 2023. After a review of the proposals submitted, Staff has concluded that E. Avico, Inc., (Avico) has submitted the lowest responsive, responsible bid. Staff recommends that the City Council award a construction contract for the tenant improvements and final utility connections for the Butler Building to Avico.
1.f.
April 18, 2023
City Council Agenda
April 18, 2023
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the engineered and architectural construction plans & specifications prepared by PBK Architects, Inc., and approve a Public Works Agreement with E. Avico, Inc., for Placentia Public Safety Center Butler Tenant Improvements in the amount of $1,680,880; and
2. Reject the bid proposal submitted by SPAREA as non-responsive; and
3. Reject all other bids received and authorize return of the bid bonds; and
4. Authorize the City Administrator to approve contract change orders up to ten percent (10%) of the contract amount, or $168,088, for a total construction contract not -to - exceed amount of $1,680,800; and
5. Authorize the City Administrator to approve all agreements in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item conforms to Strategic Plan Goal 5, Implement Public Infrastructure to Meet Community Needs, and Objective 5.4, Construct the Placentia Public Safety Center.
DISCUSSION:
On March 1, 2022, the City Council selected a preferred project alternative for the Placentia Public Safety Center and directed Staff to finalize the construction drawings and bid documents to construct this facility. The new 18,000+ square foot facility will house the Police Department's evidence and property storage operations and shooting range as well as a new emergency communications center and emergency operations and training center. The City currently leases a light industrial/commercial building for property and evidence storage.
The new facility will consist of a manufactured steel Butler Building that will be used for property and evidence storage and the main building that includes the shooting range which will be constructed with CMU block. Since the City's lease for its existing property and evidence building is set to expire in December 2023, the project is being phased to allow the construction of the Butler Building to proceed first so that it can be completed prior to the expiration of the City's current lease. Phase I construction is already underway and entails demolition, grading, subsurface utility work, and the footings and slab for the Butler Building. Phase II construction will entail the construction of the main building. This proposed contract will construct all the interior tenant improvements for the Butler Building as well as the permanent utility connections needed to serve the entire facility. Construction of the main building under Phase II will occur concurrently and continue into mid -2024. Staff anticipates starting operations in that portion of the facility late in June 2024.
City Council Agenda
April 18, 2023
The current runaway inflationary environment has dramatically increased construction costs at a pace not seen in two generations. Contractors, vendors, and specialty subcontractors are raising prices faster than most entities can match and the high demand for construction services has not softened. The City solicited competitive bids from pre -qualified contractors to construct Phase II of this project. A total of three (3) bids were received and the low bid submitted far exceeded the estimate previously prepared for this project. Based on the significant project cost increase, Staff recommended to the City Council that it reject all bids received and authorize soliciting new bids which was affirmed by the City Council.
Subsequently, Staff worked with the construction management team to solicit separate bids to complete the tenant improvements and final utility connections for the Butler Building so that facility can operate as a stand-alone building in time for the transition from the City's leased facility.
On April 4, 2023, the City received six (6) bids to construct the interior improvements for the Butler Building. The following table provides the total bid amounts received from each contractor:
Contractor Bid Amount
SPAREA $1,452,000
E. Avico, Inc. $1,680,880
Y4M Developing Inc dba Construction
Masters $1,896,039
M.S. Construction Management Group $2,154,818
Harry H Joh Construction, Inc. $2,462,000
G2K Construction, Inc. $2,688,000
After reviewing the bid proposals received, it was determined that SPAREA, the apparent low bidder, submitted a non-responsive bid and did not meet the bid solicitation requirements. These requirements included a provision that bidders submit three references for similar work provided.
SPAREA was unable to provide any references that showed they have ever performed this kind of work. Given the highly complex nature of this project it is crucial that the City work with contractors whom have the skill and experience in delivering similar projects. The City Council has the right to reject any and all bids and waive any bid irregularities. Given the complex nature of this project, Staff recommends that the City Council reject the bid submitted by SPAREA.
Once it was determined that the apparent low bidder submitted a non-responsive bid, Staff reviewed the next lowest bid which was submitted by E. Avico, Inc. (Avico). Staff reviewed and analyzed their bid proposal, and it was found to be responsive and valid. A bid protest was submitted to the City Engineer by the fourth low bidder, M.S. Construction Management Group, upon the basis that Avico did not properly identify all the subcontractors they plan to use on this project and the subcontractors listed were not registered with the Department of Industrial Relations prior at the time of the bid. Avico listed a total of five (5) subcontractors and did not list subcontractors for the roofing, studs, and drywall scope of work. Avico maintains a Class B Building License with the California Contractor's State License Board which allows them to self-
City Council Agenda
April 18, 2023
perform the remaining project work scope not identified as being subcontracted. Accordingly, the bid protest submitted by M.S. Construction Management Group was rejected by the City Engineer as unfounded. Based upon Avico's reference check and submitted bid, Staff recommends awarding a construction contract to Avico for the interior tenant improvements for the Butler Building portion of the Public Safety Center Project.
FISCAL IMPACT
The total construction cost for the interior tenant improvements and final utility connections for the Butler Building amounts to $1,848,968. This cost consists of the bid amount submitted by Avico in the amount of $1,680,880, and a construction contingency in the amount of $168,088.
Accordingly, sufficient funds exist for the recommended actions.
Prepared by:
Masoud S 'pahi, ' .E.
City Engi eer
Review •.ti d . • proved:
Luis Estevez
Deputy City Administrator
Attachment:
Reviewed and approved:
Jennifer ampman
Director of Finance
Reviewed and approved:
Public Works Agreement with E. Avico, Inc.
Da terrl7Arrula
City Administrator