CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 6 Section Name: {{section.name}} Account Number: 610027 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: March 17, 2025
SUBJECT:
Central Park Playground Improvements Project - Contract RECOMMENDATION:
Adopt a Resolution to approve an alternative purchasing procedure for awarding a contract for construction with Public Restroom Company, Inc. (Contractor) for a prefabricated, turnkey restroom building, including installation, for the Central Park Playground Improvements Project in the amount of $824,568. Authorize a contingency of $82,457, for a total amount not to exceed $907,025. Authorize the Parks & Recreation Director to execute the contract in substantially the form presented, approve change orders within the contingency amount, and amend the contract to name the construction manager once selected.
BACKGROUND:
On September 6, 2024, competitive sealed bids for the Central Park Playground Improvements Project were received and opened. All bids exceeded the budget. On October 7, 2024, the City Council adopted Resolution No. 91 (2024), rejecting all bids and authorizing staff to negotiate a lower contract price through value engineering of the project design with the lowest bidder, Suarez & Munoz Construction, Inc. (SMC). Value engineering is a systematic approach to provide necessary functions in a project at the lowest cost by substituting materials and methods with less expensive alternatives, without sacrificing functionality.
During the remaining months of 2024, City staff, RRM Design Group (the contracted design consultant) and SMC value engineered the project to yield significant construction cost reductions while maintaining the integrity of the project design. As part of this effort, the pre-engineered site-built restroom was replaced with a prefabricated turnkey restroom to reduce labor costs associated with installation. The turnkey restroom would be prefabricated offsite by Public Restroom Company, Inc., delivered to the project site, and lifted by crane onto a building pad prepared by a general contractor.
Additional savings would be achieved by utilizing an alternative purchasing procedure to procure the prefabricated restroom directly from Public Restroom Company, Inc., securing a 5 percent discounted price and avoiding a general contractor markup. Public Restroom Company, Inc. is a participating vendor with Sourcewell, a purchasing cooperative for educational, governmental, and nonprofit agencies, ensuring competitive pricing while saving time and resources for participating agencies. The original cost of the pre-engineered, site-built restroom was $1,070,000.
The value-engineered cost for a turnkey prefabricated restroom is $824,568, resulting in cost savings of $245,432.
For these reasons, it is in the City’s best interest to use an alternative purchasing procedure pursuant to San Mateo Municipal Code Section 3.60.070(h)(3) in this case.
CITY OF SAN MATEO
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Based on the above, staff recommends that the City Council adopt a Resolution approving an alternative purchasing procedure for awarding a construction contract to Public Restroom Company, Inc. for a prefabricated turnkey restroom building, including installation, in the amount of $824,568. Staff also recommends establishing a 10 percent contingency reserve of $82,457 to address any unanticipated costs due to market volatility, inflation, building permit review, and/or installation, for a total budget not to exceed $907,025.
BUDGET IMPACT:
The Project currently has an available budget of $13,275,586. There are sufficient budget funds for the Project to cover the purchase of the prefabricated restroom and contingency reserve.
ENVIRONMENTAL DETERMINATION:
An Initial Study and Mitigated Negative Declaration (IS/MND) was prepared for the Central Park Master Plan, which includes the Playground Improvements Project, and approved in 2018. The IS/MND concluded that the project would not have any significant effects with the incorporation of mitigation measures that have been included in the project’s Conditions of Approval to ensure compliance during project implementation. In addition, City Council’s authorization of the requested budget appropriations is not a project subject to CEQA review, because it consists of a government fiscal activity which does not involve any commitment to any specific project which may result in a significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Proposed Contract
STAFF CONTACT
King Leong, Sr. Project Manager
[email protected]
(650) 522-7542