April 16, 2024
Public Works
DATE: April 16, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria PE, Director of Public Works
Robert Armijo PE, Deputy Director of Public Works/City
Engineer
Josef Munoz, Capital Projects Manager
Subject:
Amendment #1 Arntz Builders, Inc. Construction Contract for Booker T. Anderson Community Center
FINANCIAL IMPACT: The work will be funded through BTA Community Center HVAC Renovate & Rebuild Project [Account String:
13636031-400708-AR247] and Booker T. Anderson Center
Infrastructure Project [Account String: 13636031-400708- 23045]. There is no impact to the General Fund.
PREVIOUS COUNCIL
ACTION:
February 1, 2022, August 19, 2022, October 4, 2022
STATEMENT OF THE
ISSUE:
As the City's Booker T. Anderson Community Center Fire
Restoration Project is nearing completion, more funds are needed to address areas of the facility that were not
damaged by the fire that took place on October 28, 2020, due to an encampment fire adjacent to the facility. As a result, the contract with Arntz Builders, Inc. will need to be amended to include additional work.
RECOMMENDED
ACTION:
ADOPT a resolution authorizing an amendment to the
construction contract with Arntz Builders, Inc. for the Booker T. Anderson Infrastructure Projects (#23008, #AR247 and #23045), in an amount of $676,537, for an amended total contract amount not to exceed $3,978,715; and AUTHORIZE the Director of Public Works to approve additional project budget and contingency usage, if necessary, for an amount of $397,871 that may increase the total contract not-to- exceed amount to $4,376,586 – Public Works Department
(Robert Armijo 510-620-5477/Josef Munoz 510-672-2407).
AGENDA
REPORT
April 16, 2024
DISCUSSION:
The Booker T. Anderson Community Center (BTA), located at 960 South 47th Street, suffered major fire damage on October 28, 2020, due to an encampment fire adjacent to the facility. The fire affected the west side of the building, including the library, multi-use rooms, and graphic arts room. The City mitigated the fire damage by demolishing and shoring all affected materials and removing all non-salvageable or non-cleanable building materials.
On February 1, 2022, the City Council awarded a contract to Angotii & Reilly, Inc. for the repair of the fire damage in an amount not to exceed $2,583,900, which included a 10 percent contingency. However, the contractor failed to comply with the insurance and bond requirements of the contract and did not proceed with the work as scheduled. The City Council terminated the contract on August 19, 2022, after several attempts to resolve the issues.
The City contacted Arntz Builders, Inc., the second lowest bidder, and requested a revised proposal based on the original scope of work. Arntz Builders, Inc. submitted a revised proposal of $2,933,200, which includes 36 percent local participation. The City Council reviewed the proposal and the need to minimize damages in a Closed Session on October 4, 2022, and directed the City staff to present the contract award to Arntz Builders, Inc. for approval. As part of the contract execution process, Arntz Builders, Inc. was required to sign a First Source and Compliance Agreement with the City to meet the local employment ordinance goal.
On October 25, 2022, the City executed a contract with Arntz Builders, Inc. for $3,302,178 which included the following:
Item Quantity
Bid $2,933,200
Contingency $300,198
Alternate #1 $43,780
Copper Vandalism $25,000
Total $3,302,178
Arntz Builders, Inc. proceeded with construction and reached substantial completion during Fall 2023. Prior to substantial completion, it was determined that the portion of the Heating, Ventilation, and Air Conditioning (HVAC) system that was not impacted by the fire should be replaced as well. On July 1, 2023, City Council approved to reallocate $500,000 Richmond Museum HVAC Project to BTA under #AR247 BTA Community Center HVAC Renovate & Rebuild Project for the eastern part of the building not impacted by the fire.
During the substantial completion phase, City staff sought to fund additional scope outside of the original contract amount of $3,303,178 to ensure a uniform renovation throughout the building. On December 5, 2023, City Council approved an additional
April 16, 2024
$1,000,000 in financing from the American Rescue Plan Act (ARPA) fund for BTA under #23045 Booker T. Anderson Infrastructure Project. Public Works collaborated with Public Works Operations Division, the Fire Department, and Community Services - Recreation to determine the additional work required for the structure. The additional scope includes, but is not limited to, various interior finish work, exterior building work, facility equipment, window replacement, fire alarm system, accessible parking spaces, closed-circuit television surveillance cameras, and HVAC system.
Projects Budget
#AR247 BTA Community Center HVAC Renovate & Rebuild $500,000 #23045 BTA Infrastructure $1,000,000
Total $1,500,000
In January 2024, the City asked Arntz Builders, Inc. to produce estimates for the additional change order work. Using the existing contractor for the additional scope has several advantages, the most important of which being their experience with the project's complexities, timetable, and quality expectations. Leveraging their current knowledge and experience shortens the onboarding period, providing a smooth integration of the additional scope into the present project. Furthermore, keeping continuity with the same contractor promotes consistency in communication, workflow, and execution, thereby expediting project development and lowering the likelihood of errors or delays. This method not only maximizes efficiency but also demonstrates prudent resource management, hence increasing the value proposition for project stakeholders.
City staff is recommending that the City Council approve a contract amendment to increase Arntz Builders, Inc. contract in the amount of $676,537 for an amended total contract amount not to exceed $3,978,715 and authorize the Director of Public Works to approve the use of the remaining project budget and contingency of $397,871 for any unforeseen or potential change order work that may be performed by Arntz Builders, Inc. In the event all the remaining work is completed through Arntz Builders, Inc. City staff is requesting that the Director of Public Works be given the authority to approve construction change orders of up to $397,871, potentially increasing the total contract to a total not-to-exceed amount of $4,376,586.
City staff is in negotiations with Arntz Builders, Inc. and intends to utilize existing on-call contractors and Public Works Operations for the remaining additional change order work to complete and close out the project. The cost of such work is not anticipated to exceed $397,871. Any balance remaining at the completion of the project will be returned to the ARPA fund or allocated to another project.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Original Construction Contract
Attachment 3 – 1st Amendment to the Construction Contract