Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: ACTING DIRECTOR OF PUBLIC WORKS
DATE: JULY 2, 2024
AGENDA REPORT
SUBJECT: ACCEPTANCE OF CONSTRUCTION WORK AND NOTICE OF COMPLETION
FOR THE PURCHASE, FABRICATION, AND INSTALLATION OF A
MANUFACTURED BUTLER BUILDING FOR THE PLACENTIA PUBLIC SAFETY CENTER PROJECT, NO. 5213
FISCAL
IMPACT: EXPENSE: $ 939,809 ORIGINAL CONSTRUCTION CONTRACT $ 34,826 CONTRACT CHANGE ORDERS NO. 1-2
$ 974,635 TOTAL CONSTRUCTION COST
BUDGETED: $ 974,635 FY 2023-24 CIP BUDGET (105213-6850) SUMMARY:
On December 6, 2022, the City Council approved a contract for the design, fabrication and installation of a new steel Butler Building for the Placentia Public Safety Center. The procurement of the building was facilitated using the piggyback provision in the City's existing purchasing policy. This process allows the City to purchase goods and services through leveraged procurement agreements that have previously been competitively bid by other governmental agencies. Given the long lead time to fabricate the building and the fact that the City's lease for its existing rented evidence and property storage facility expired in March 2023, this element of the project was advanced to keep the delivery of the facility on schedule.
The Butler Building, now fully occupied and being used for property and evidence storage, has been completed to the satisfaction of the City. This recommended action concludes the Project and authorizes filing a Notice of Completion with the Orange County Clerk -Recorder's Office in the amount of $974,635.
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Accept the work performed by BlueScope Construction, for the Purchase, Fabrication, and Installation of a Manufactured Butler Building for the Placentia Public Safety Center Project, for a grand total amount of $974,635; and
1.d.
July 2, 2024
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2. Authorize the City Administrator to file a Notice of Completion with the Orange County Clerk -Recorder's Office for the Project; and
3. Authorize the City Administrator to release retention funds in accordance with the terms of the contract.
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 December 6, 2022, the City Council approved a contract for the design, fabrication and installation of a new steel Butler Building for the Placentia Public Safety Center. The procurement of the building was facilitated using the piggyback provision in the City's existing purchasing policy. This process allows the City to purchase goods and services through leveraged procurement agreements that have previously been competitively bid by other governmental agencies. Given the long lead time to fabricate the building and the fact that the City's lease for its existing rented evidence and property storage facility expired in March 2023, this element of the project was advanced to keep the delivery of the facility on schedule.
The facility is a manufactured steel Butler Building being used for property and evidence storage.
Since the City's lease for its existing property and evidence building expired in March 2023, the project was phased to allow the construction of the Butler Building to proceed with the goal to be completed prior to the expiration of the City's lease. Phase I construction, completed by a separate contractor, has been completed and entailed the demolition, grading, subsurface utility work, and the footings and slab for the Butler Building. Phase II construction, is currently underway by another contractor and entails the construction of the main building and shooting range.
Additionally, interior improvements are now substantially completed by another separate contractor for the newly installed Butler Building. However, construction delays during the interior improvements phase required the City to extend the lease an additional two months and resulted in the building being occupied on June 1st. In addition, long lead times for the final design and fabrication of the Butler Building required the City to advance this portion of the project work scope sooner rather than later to keep the project delivery on schedule. The Butler Building had its own separate construction documents that required additional engineering and plan check review.
The contract with BlueScope Construction was for the design/build and installation of the Butler Building. The building was manufactured offsite and then transported and placed on the newly completed slab and footings and connected to utilities. This type of building is less expensive than traditional construction and was incorporated into the project scope as part of the value engineering process. The Butler Building was purchased from an existing mass procurement agreement with Sourcewell. Sourcewell serves local government and schools by managing large scale leveraged procurement agreements that are competitively bid and vetted by Sourcewell.
Once Sourcewell has approved contracts with vendors and contractors, they are then able to offer local governments and school districts set low bid pricing for various commodities as well as
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discounted construction costs. The City has used Sourcewell in the past for various vehicle and equipment purchases. Pursuant to the City's existing purchasing policy, the City can piggyback off existing competitively bid contracts such as Sourcewell's contract with BlueScope construction for engineered Butler Buildings.
During the course of the project, there were unforeseen conditions that were encountered that resulted in additional work to include the addition of stairs, platform landing, railing, and fire -retardant sheeting for the new building. As a result, a total of two (2) change orders were issued for this project that totaled $34,826, which was less than 10% of the total contract amount and was approved by the City Administrator under his administrative approval limit. The total construction cost of this work amounts to $974,635. This amount includes the contract by BlueScope in the amount of $939,809 and change orders in the amount of $34,826. This recommended action concludes the Project and authorizes filing a Notice of Completion with the Orange County Clerk -Recorder's Office in the amount of $34,826 and starts the 30 -day window to file claims against the contractor's retention payment.
FISCAL IMPACT:
The final construction cost amounts to $974,635. This cost consists of the contract amount with BlueScope Construction, in the amount of $939,809 and an additional $34,826 in approved contract change orders. Sufficient funds were budgeted and available in the Fiscal Year 2023-24 Operating Budget to cover this expense. As such, sufficient funds exist for the recommended actions.
Prepared, Reviewed, and Approved by:
Chris Tanio
Acting Director of Public Works
Reviewed and approved: Reviewed and approved:
Jennifer Lampman Damien R. Arrula
Director of Finance City Administrator
Attachment:
Notice of Completion — BlueScope, Inc.