TO: HONORABLE MAYOR FROM: Matt Cano
AND CITY COUNCIL Jon Cicirelli
Jim Shannon
SUBJECT: SEE BELOW DATE: January 11, 2022
Approved Date
01/14/22
COUNCIL DISTRICT: 3
SUBJECT: ACTIONS RELATED TO THE 9112 – ALL INCLUSIVE ROTARY
PLAYGARDEN PROJECT
RECOMMENDATION
(a) Report on bids and award of construction contract for the 9112 – All Inclusive Rotary PlayGarden Project to the low bidder, Redwood Engineering Construction, Inc., for the base bid in the amount of $1,698,000 and approve a ten percent contingency in the amount of $169,800.
(b) Adopt the following Appropriation Ordinance amendments in the Construction and Conveyance Tax City-wide Parks Purposes Fund:
(1) Establish the All Inclusive Rotary PlayGarden Project appropriation to the Parks, Recreation and Neighborhood Services Department in the amount of $816,000; and (2) Decrease the Matching Grant Reimbursement Reserve by $816,000.
OUTCOME
Approval of the construction contract to Redwood Engineering Construction, Inc. will enable the All-Inclusive Rotary PlayGarden Project to proceed. Approval of a ten (10) percent contingency will provide funding for any unanticipated work necessary for the proper construction of the project. The completed project will expand the existing 2.4-acre Rotary PlayGarden playground by 2 acres to offer all-inclusive play features for children of all ages and abilities.
COUNCIL AGENDA: 01/25/22
FILE: 22-034
ITEM: 2.17
HONORABLE MAYOR AND CITY COUNCIL
January 11, 2022
Subject: Actions Related to the 9112 – All Inclusive Rotary PlayGarden Project
BACKGROUND
Rotary PlayGarden is located immediately west of the Guadalupe River Park Conservancy Offices and Visitor Center at 438 Coleman Avenue, a few blocks northwest of downtown San José. This expansion will qualify the park to be renamed as All-Inclusive Rotary PlayGarden Park and shall meet the definition of an All-Inclusive Playground (AIPG) as defined by Santa Clara County. This AIPG will be designed to develop essential physical, social, and cognitive skills, encourage independent physical access, and provide equal use of integrated environments for all children and families of all abilities.
All-inclusive features include a welcoming secure environment, solitary or semi-solitary retreat areas, imaginative play opportunities and play activities that are grouped into “rooms”. The expanded playground will have amenities that include:
• Willow Tree arbor,
• California Buckeye Tree-themed sensory play structure, • Upside-down tree sensory play structure,
• Zip-line play structure,
Large canopy shade structure,
• Pyramid shade canopies (4),
• Vegetated sensory labyrinth maze,
• Swing play structure,
• Drought-tolerant sensory planting,
• Recycled water irrigation,
• Nature-themed play zone (Fallen logs, log seats)
• Adirondack chairs,
• Basalt stone pavers, and
• Stone seats and other site furnishings.
The plan set submitted for bids included four Bid Alternates outlined in the Analysis below. Bid Alternates present an opportunity for the City to include additional features in the awarded contract should the bids be lower than base project scope. Because the bids received were higher than the Engineer’s Estimate, City staff is not recommending award of any of the Bid Alternates.
Construction is scheduled to begin in March 2022, with completion in October 2022.
ANALYSIS
The Department of Public Works requested bids for the base bid work and four bid alternates as follows. Award of the base bids are not included in the recommendation as their cost exceeds available budget.
HONORABLE MAYOR AND CITY COUNCIL
January 11, 2022
Subject: Actions Related to the 9112 – All Inclusive Rotary PlayGarden Project
Bid Alternate No. 1: Third bay of Zipline and rubber surfacing Bid Alternate No. 2: Cascatta Bell Chime play structure repair Bid Alternate No. 3: Solar light and base
Bid Alternate No. 4: Child Log Seat
Bids were opened on October 7, 2021 with the following results:
Contractor Base Bid
Bid Alt
Total
Total
Bid Variance
Amount
% Over/
(Under)
Total Bid
Eng. Est.
Engineer’s Estimate 1,300,000 66,155 1,366,155 --- ---
Redwood Engineering
Construction, Inc.
(Redwood City)
$1,698,000 $113,000 $1,811,000 $444,845 32.6
NBC Construction, Inc.
(San Francisco)
1,895,960 63,642 1,959,602 593,447 43.4
Galeb Paving, Inc. (Saratoga) 1,951,665 74,200 2,025,865 659,710 48.3 Suarez & Munoz Construction,
Inc. (Hayward)
2,071,000 126,292 2,197,292 831,137 60.8
Robert A. Bothman, Inc.
(San Jose)
2,125,000 168,000 2,293,000 926,845 67.8
Contractor
Bid Alt
No. 1
Bid Alt
No. 2
Bid Alt
No. 3
Bid Alt
No. 4
Engineer’s Estimate $34,466 $9,113 $20,326 $2,250
Redwood Engineering
Construction, Inc. 60,000 20,000 25,000 8,000
NBC Construction, Inc. 29,251 17,636 7,800 8,955
Galeb Paving, Inc. 42,100 8,600 15,000 8,500
Suarez & Munoz Construction,
Inc.. 63,172 30,120 25,000 8,000
Robert A. Bothman, Inc. 90,000 48,000 25,000 5,000
Section 1.01D - Bid Alternate of the Project’s Special Provisions states “If there are Bid Alternates, the low bid will be determined by adding each of the Bid Alternate Bids to the Base Bid in ascending numerical sequence, until a total is reached to which no further Bid Alternate Bids may be added without exceeding $1,300,000. The low bidder will be the bidder whose total amount calculated under the preceding sentence (1) includes the greatest number of Bid Alternates, or (2) offers an equal number of Bid Alternates for the lowest price. If the addition of the first Bid Alternate Bid to the Base Bid results in a figure greater than the above-stated dollar amount in the case of every responsive bidder, the low bid will be determined by the Base Bid alone. Once the low bidder has been identified in the preceding manner, the City may elect to award the Base Bid item alone or any or all Bid Alternate items in any sequence to that low
HONORABLE MAYOR AND CITY COUNCIL
January 11, 2022
Subject: Actions Related to the 9112 – All Inclusive Rotary PlayGarden Project
bidder, even if the resulting contract amount no longer represents the lowest total price for the particular items chosen.”
All five bidders had a base bid cost that exceeded the above-stated Engineer’s Estimate dollar amount of $1,300,000. Therefore, the low bid was determined by Base Bid alone. The low base bid was submitted by Redwood Engineering Construction, Inc. Although their base bid was over the Engineer’s Estimate, staff considers this reasonable for the work involved in consideration of current market conditions and recommends awarding the base bid work only to Redwood Engineering Construction, Inc. Staff is not recommending the inclusion of any of the Bid Alternate items due to funding limitations and nonessential scope of the Bid Alternates.
Several factors are considered to have contributed to the higher bids that were received. At the time of design completion and bid advertisement, impacts of the COVID-19 pandemic on the construction industry were uncertain. Over the course of several months, the effects of the pandemic saw the manufacturing of construction materials facing operational restrictions and the slowdown in production. This significant decrease in material production led to higher demand and inflated costs. Repercussions of the pandemic included increased prices in materials, a shortage of skilled labor, project delays, and a supply unable to keep up with the demand of economic recovery.
Redwood Engineering Construction, Inc. has constructed two City capital improvement projects in the last eight years. Most recently, they constructed the All-Inclusive Lincoln Glen Park Renovation project, completed in October 2021. Staff was also informed that this contractor has satisfactorily completed numerous park construction projects in the Bay Area, notably in the cities of Berkeley, Sunnyvale, and Santa Clara.
San José Municipal Code Section 27.04.050 provides that the normal contingency for all public works contracts (except those involving the renovation of a building or buildings) is not more than ten percent of the total contract amount. Staff recommends a ten percent contingency, which should be sufficient to account for unforeseen conditions that might arise in the construction of the project.
Project Labor Agreement Applicability
A project labor agreement (PLA) is not applicable to this project as the Engineer’s Estimate is under three million dollars.
Local and Small Business Outreach
Procurement staff used Biddingo to outreach to local and small business enterprises. Chapter
4.12 of the San Jose Municipal Code defines a “local business enterprise” as one with a legitimate business presence in Santa Clara County and “small business enterprise” as a local business enterprise with 35 or fewer employees. Procurement staff sent bid invitations to 2,880 vendors, and documents were downloaded by 30 venders, approximately 11 of which were
HONORABLE MAYOR AND CITY COUNCIL
January 11, 2022
Subject: Actions Related to the 9112 – All Inclusive Rotary PlayGarden Project
located within Santa Clara County and therefore local. The recommended contractor is a local business enterprise because they have a local office in San José. None of the listed subcontractors is a small business enterprise.
EVALUATION AND FOLLOW-UP
No additional follow up action with the City Council is expected at this time.
CLIMATE SMART SAN JOSE
The recommendation in this memo has no effect on Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
The Public Outreach phase of the project included two Community Workshops on January 9, 2020 and February 25, 2020, at the Guadalupe Gardens Visitor Center to engage the public in the design development of the park.
This memorandum will be posted on the City’s website for the January 25, 2022 Council agenda.
COORDINATION
This proposed project and memorandum has been coordinated with the Planning, Building and Code Enforcement Department and the City Attorney’s Office.
COST SUMMARY/IMPLICATIONS
1. COST OF PROJECT:
Project Delivery $963,172*
Construction $1,698,000
Contingency $169,800
TOTAL PROJECT COSTS $2,830,972
Prior Years’ Expenditures & encumbrances
$469,798
TOTAL REMAINING PROJECT COSTS $2,361,174
*Project delivery includes $505,172 for Design Services and $458,000 for Construction Management and Inspection Services.
HONORABLE MAYOR AND CITY COUNCIL
January 11, 2022
Subject: Actions Related to the 9112 – All Inclusive Rotary PlayGarden Project
2. COST ELEMENTS OF AGREEMENT/CONTRACT
Mobilization, Temporary Controls & Water Pollution Control $95,000 Site Preparation/Demolition & Grading $77,000
Storm Drain Utilities $150,000
Signage & Site Furnishings $61,000
Shade Structures $130,000
Play and Exercise Equipment $305,000
Fencing $120,000
Hardscape $215,000
Landscape & Irrigation $288,000
Resilient Surfacing $250,000
Maintenance $7,000
Total Base Bid Amount (Items 1 Through 11, Inclusive)
For The Lump Sum Total Of:>>>>>>>>>>>>
$1,698,000
SOURCE OF FUNDING: 375 – Subdivision Park Trust Fund
391 – Construction and Conveyance Tax Fund - Citywide
3. OPERATING COST: This facility is anticipated to open in Fall 2022 and was included as a Committed Addition in the 2021-2025 General Fund Forecast. Subsequently, these costs were incorporated in the ongoing operating budget for the Parks, Recreation, and Neighborhood Services Department. The annual operating and maintenance costs associated with the expanded facility is approximately $61,000 in the General Fund.
HONORABLE MAYOR AND CITY COUNCIL
January 11, 2022
Subject: Actions Related to the 9112 – All Inclusive Rotary PlayGarden Project
BUDGET REFERENCE
The table below identifies the fund and appropriations to fund the contract recommended as part of this memo and remaining project costs, including project delivery, construction, and contingency costs.
Fund
#
Appn # Appn. Name Total
Appn
Rec.
Budget
Action
Amt. for
Contract
2021-2022
Adopted
Capital
Budget
Page
Last Budget
Action
(Date, Ord.
No.)
391 NEW
(412F)
All Inclusive
Rotary
PlayGarden
Phase II
N/A $816,000 $816,000 N/A N/A
391 8711 Matching Grant
Reimbursement
Reserve
$2,950,000 ($816,000) N/A 570 30682,
10/19/21
375 412F All Inclusive
Rotary
PlayGarden
Phase II
$1,546,000 N/A $882,000 607 30682,
10/19/21
CEQA
Categorically Exempt, File No. PP19-002, CEQA Guidelines Section 15301 Existing Facilities.
/s/ /s/
MATT CANO JON CICIRELLI
Director of Public Works Director of Parks, Recreation, and Neighborhood Services
JIM SHANNON
Budget Director
For questions, please contact Katherine Brown, Deputy Director of Public Works, at (408) 795- 1679.