CITY COUNCIL STAFF REPORT
Meeting Date: November 04, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-24 ACCEPTING BID AND AWARDING
THE CONSTRUCTION CONTRACT FOR THE CITY HALL/PUBLIC
SERVICES CENTER & COMMUNITY CENTER EMERGENCY
GENERATOR INSTALLATION PROJECT NO. 03-24 AND AUTHORIZE
THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT
WITH CD & POWER; AND ALLOCATE AN ADDITIONAL $115,440.53
IN AVAILABLE FUNDING
SYNOPSIS
The City Hall/Public Services Center (PSC) & Community Center Emergency Generator Installation Project No. 03-24 provides for backup electrical power systems at City Hall, the PSC, and the Recreation and Parks District’s (District) Community Center buildings. The purpose of this item is to consider the acceptance of the lowest responsive, responsible bid from CD & Power for the project and to seek authorization to award the construction contract.
DISCUSSION
Background
The City Hall/PSC & Community Center Emergency Generator Installation Project, identified in the approved Capital Improvement Plan Fiscal Year 2022 – 2027 (CIP), will install a new emergency generator at City Hall, and a second, shared emergency generator for the PSC and Community Center. The cost of the shared generator at the PSC and Community Center will be split equally between the City and the District.
These generators will provide backup power to City Hall, the PSC and the Community Center during power outages. The City and/or the District may need to activate the Emergency Response system during power outages caused by an earthquake or a major weather event. This project will provide a backup electrical power system for all three buildings and allow staff from both agencies to respond to an emergency situation in a more safe and efficient manner. Power for the backup generator could be maintained for a week or longer, depending on fuel deliveries required to power the generator.
On October 7, 2024, the City Council approved Resolution No. 68-24, authorizing a Memorandum of Understanding with the District to finance its portion of the project at 0% interest over three years, beginning in Fiscal Year 2024/25 and ending in Fiscal Year 2026/27. If the District’s Bond Measure S (on November 5, 2024 ballot) is successful, the District shall pay the entire balance due the City within 30 days of the first Bond Series being sold.
Environmental Review
The Zoning Administrator has determined that the City Hall/PSC & Community Center Emergency Generator Installation Project No. 03-24 is categorically exempt from environmental review.
Analysis
Staff issued a Request for Proposals (RFP) on August 26, 2024, to four qualified contractors known to complete these types of projects: North American Power & Controls; Alpine Power Systems; PowerGen; and CD & Power. In response, only CD & Power submitted a complete project proposal for the City’s consideration by the September 26, 2024 deadline.
In order to ensure a quality project for the City, staff reviewed CD & Power’s proposal and conducted an oral interview with the firm’s owner. CD & Power was evaluated based on the following evaluation criteria: qualification of the project team, project understanding, and ability to meet the project schedule. In addition, CD & Power has successfully installed the small emergency generator that supplies temporary power to the server room at City Hall, as well as the emergency generator utilized at the Police Department. Under a separate contract, CD & Power has serviced and maintained both of these generators for the last several years. Staff believes that CD & Power has the expertise and professional competency that will result in a successful project delivery within the project schedule and budget.
A review of CD & Power’s bid proposal has revealed a fair and balanced bid, in line with current construction costs for this type of work. The approved budget amount identified in the FY 2022- 2027 CIP for the project is $755,260, and CD & Power’s bid is $829,238.60 (See Exhibit A), which is $73,978.60 (9.7%) higher than the approved budget. It is reasonable to include a construction contingency of five percent, or $41,462.00, which is typical for a construction project of this type.
Staff does not believe that rebidding the project will result in lower bid prices; therefore staff is requesting an additional allocation of $115,440.53 in available Capital Project Funds to award and construct the Project.
FISCAL IMPACT
The total construction cost, including contingency, is $870,700.53, and the project is funded by American Rescue Plan Funds, Capital Project Funds, and a loan from the General Fund for the District’s portion. The Finance Division has confirmed that sufficient funds are available for the construction of this project. The District will repay the City $240,000 for its fair share cost of the project (50% of the shared generator). The corresponding ARPA funds identified in the CIP for this project will be returned to the ARPA fund for use on other authorized projects.
The following tables outline the project expenses and funding:
Funding Sources Projected Expenses
ARPA $515,260.00 Construction Contract $829,238.60
Rec and Park Loan $240,000.00 Contingency (5%) $ 41,462.00 Capital Project Fund $115,440.53 __________________________________ Total $870,700.53 Total $870,700.53
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.
The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt a resolution to accept the bid and award a construction contract for the City Hall/Public Services Center and Community Center Emergency Generator Installation Project No. 03-24, authorize the City Manager to execute a construction contract with CD & Power, and authorize the allocation of an additional $115,440.53 of Capital Project Funds.
ALTERNATIVES TO RECOMMENDED ACTION
Decline to award the Project and provide direction to staff.
ATTACHMENT(S):
Proposed Resolution
Agreement
Exhibit A
Prepared by: Ann James, Public Works Director
Reviewed by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager