Placentia Cit Council
GENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DATE: JULY 11, 2023
SUBJECT: APPROVAL OF PLANS & SPECIFICATIONS AND AWARD OF CONSTRUCTION CONTRACT TO LOENGREEN, INC., FOR THE INTERIOR TENANT
IMPROVEMENTS FOR THE BUTLER BUILDING FOR THE PLACENTIA PUBLIC SAFETY CENTER PROJECT NO. 5213
FISCAL
IMPACT: EXPENSE: $ 1,646,000 TOTAL CONSTRUCTION CONTRACT AMOUNT $ 164,600 TOTAL CONSTRUCTION CONTINGENCY AMOUNT
$ 1,810,600 TOTAL AMOUNT
AVAILABLE
BUDGET: $2,043,041 FISCAL YEAR 2023-24 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 such 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 II of this project and authorized the City to solicit new bids. In an effort to further reduce costs, Staff worked with the City's construction management team to solicit separate bids to complete the tenant improvements and final utility connections for the Butler Building so that the facility can operate as a stand-alone building in time for the transition from the City's leased facility. Staff originally received a total of six bids for this portion of the project on April 4, 2023, and on April 18, 2023, the City Council awarded a construction contract to E. Avico, Inc. Subsequent to that action, E. Avico notified the City that it was pulling out of the project. Accordingly, working with the City Attorney's Office a claim was filed with Avico's bid bond surety to collect on the contractor's bid bond of $168,088 as a result of their decision to pull out of the project.
As a result of Avico's refusal to proceed with the project, the City solicited a new round of bids for this portion of the public safety building project and on June 16, 2023, a total of seven (7) bids
1.j.
July 11, 2023
City Council Agenda
July 11, 2023
were received. After a review of the proposals submitted, Staff has concluded that Loengreen, Inc., (Loengreen) 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 Loengreen to complete Phase I of the project.
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 Loengreen, Inc., for Placentia Public Safety Center Butler Tenant Improvements in the amount of $1,646,000; and
2. Reject all other bids received and authorize return of the bid bonds; and
3. Authorize the City Administrator to approve contract change orders up to ten percent (10%) of the contract amount, or $164,600 for a total construction contract not -to - exceed amount of $1,810,600; and
4. Adopt Resolution No. R-2023-55, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2023-24 in compliance with City Charter of the City of Placentia §§1206 and §§1209 pertaining to appropriations for actual expenditures; 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 18,805 square foot facility, which consists of two phases will house the Police Department's evidence and property storage operations (Phase I) and shooting range as well as a new public safety communications center and emergency operations and training center (Phase II). 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
City Council Agenda
July 11, 2023
current lease. Phase I construction has been completed and entailed the demolition, grading, subsurface utility work, and the footings and slab for the Butler Building. This proposed contract entails constructing all the interior tenant improvements for the Butler Building as well as the permanent utility connections needed to serve the entire facility and to complete Phase I. Phase II construction will entail the construction of the main building and shooting range. Construction of the main building under Phase II, if approved by Council via a separate action could occur concurrently and continue into July 2024.
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 upon the significant project cost increase, Staff previously recommended that the City Council reject all bids received and authorize soliciting new bids which was affirmed by the City Council.
Subsequently, in an effort to manage costs, 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 the facility can operate as a stand-alone building in time for the transition from the City's leased facility, thereby completing Phase I of the project. On April 4, 2023, the City received six (6) bids to construct the interior improvements for the Butler Building and the City Council subsequently awarded a construction contract to E. Avico, Inc. Subsequent to that action, E. Avico advised the City that it was pulling out of the project. Accordingly, City staff working with the City Attorney's Office filed a claim with Avico's bid bond surety to collect on their bond amount of $168,088. Staff and the attorney's office are still working to ensure that claim is approved by the surety and the City receives those funds.
The City solicited bids for this portion of the project a second time and on June 16, 2023, a total of seven (7) bids were received. The following table provides the total bid amounts received from each contractor:
Contractor Bid Amount
Loengreen $1,646,000
MBC Enterprises $1,841,888
Tovey/Shultz Construction, Inc. $1,865,052
G2K Construction, Inc. $1,980,000
PCN3, Inc. $2,080,000
PUB Construction $2,392,830
RT Contractor Corp. $2,530,000
City Council Agenda
July 11, 2023
The low bid submitted by Loengreen presents a cost savings of $34,880 as compared to the first contract the City Council awarded for this work. After a thorough review of the bid proposals received, it was determined that Loengreen submitted the lowest responsive, responsible bid.
Both MBC Enterprises and Tovey/Shultz submitted bid protests: however, after careful review and consideration Staff determined that they were without merit. Based upon Loengreen's reference check and submitted bid, Staff recommends awarding a construction contract to Loengreen 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 $1,810,600. This cost consists of the bid amount submitted by Loengreen in the amount of $1,646,000, and a construction contingency in the amount of $168,088. Budget Amendment R-2023-55 is presented for the City Council's consideration to allocate additional funds already included in the FY 2023-24 CIP Budget but have not yet been formally transferred into the project account. Accordingly, sufficient funds exist for the recommended actions.
Prepared by: Reviewed and approved:
(,bus f sft )
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Damien`R. Arrula
City Administrator
Jennifer Lampman
Director of Finance
Attachments:
1. Public Works Agreement with Loengreen, Inc.
2. Budget Amendment R-2023-55