06 Staff Report - Neighborhood Center Fresh Air Exchange~pW No
!ps ~ G A:~OS
DATE:
4
MEETING DATE: 6/6/05
ITEM NO. 6
COUNCIL AGENDA REPORT
MAY 16, 2005
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: AWARD OF CONSTRUCTION CONTRACT FOR PROJECT 04-31 -
NEIGHBORHOOD CENTER FRESH AIR EXCHANGE
A. ADOPT RESOLUTION DECLARING THERMA CORPORATION
TO BE THE LOWEST RESPONSIBLE BIDDER ON THE PROJECT
AND AWARDING A CONSTRUCTION CONTRACT IN THE
AMOUNT OF $ 51,460.00
B. AUTHORIZE STAFF TO ISSUE CHANGE ORDERS TO THE
CONSTRUCTION CONTRACT UP TO AN AMOUNT OF $3,000.00
C. AUTHORIZE BUDGET ADJUSTMENT OF UP TO $9,279 FROM
PROJECT 400-0339 TO PROJECT 400-0531.
RECOMMENDATION:
1. Adopt Resolution (Attachment 1) declaring Therma Corporation to be the lowest responsible
bidder on the project and awarding a construction contract (Exhibit A) in the amount of
$51,460.00
2. Authorize staff to issue change orders to the construction contract up to an amount of
$3,000.00
3. Authorize budget adjustment to transfer $6,279.00 from available balance in completed CIP
project 400-0339 to project 400-0531 for the construction contract, and up to an additional .
$3,000 for change orders, if needed.
BACKGROUND:
On March 21, 2005, Council approved the plans and specifications for the Neighborhood Center
Fresh Air Exchange authorizing staff to advertise the project for bids.
C~Gti~vuq
PREPARED BY: J HN E. CURTIS
Director of P s and Public Works
Reviewed by: lb)-Assistant Town Manager Town Attorney Clerk Administrator
.Finance Community Development Revised: 6/1/05 4:33 pm
Refonnatted:5/30/02 N:\FINANCE\Counci1 Agenda R e p o r t s \ M i s c - Other
Departments\04-31.N. Uresh. air. change. award. wpd
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: PROJECT NO. 04-31 - NEIGHBORHOOD CENTER FRESH AIR EXCHANGE
MAY 16, 2005
This project is necessary because currently there is no fresh air exchange serving the second floor of
the Neighborhood Center. Full and complete fresh air is necessary to eliminate current issues with
odor and potential health problems. This project will provide a comfortable and safe environment for
the public and the staff.
DISCUSSION:
Bids for the Neighborhood Center Fresh Air Exchange- were received on May 25, 2005. The
following contractors submitted bids for this project:
Therma Corporation $51,460.00
Airco Commercial Services Inc. $54,398.00
Staff has checked all of the bids received and has determined that Therma Corporation is responsible
and its bid is responsive. It is recommended that the Council adopt the attached Resolution declaring
Therma Corporation to be the lowest responsible bidder on the project and award a construction
contract to this firm in the amount of $51,460.00.
Further, it is recommended that the Council authorize staff to execute future Change Orders to the
construction contract up to an amount of $3,000. Given the variables associated with this type of
construction, staff should be able to manage the construction work and the change order amount is
adequate to cover the cost of unforeseen circumstances that may arise during the course of
construction, and/or for additional quantities of work that may exceed those included in the awarded
contract. The construction of this project is anticipated to be completed by July 2005.
CONCLUSION:
Staff recommends that the Council accept the staff recommendations noted above.
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 153010)). A Notice
of Exemption will not be filed.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: PROJECT NO. 04-31 - NEIGHBORHOOD CENTER FRESH AIR EXCHANGE
MAY 16, 2005
FISCAL IMPACT:
The construction cost estimate for this project is $51,460.00, which exceeds the original estimated
cost of $50,000 for this project. With $4,819 of budgeted funds previously used for engineering
inspection and the review of construction work needed on this project, only $45,181 of funding is
available in Project 400-0531. Staff requests a budget transfer of the additional $6,279 of funding
from the completed Building Environment Improvement project (400-0339) to Project 400-0531 to.
complete this project, and up to an additional $3,000 more for change orders, as required.
Expenditures/
Adjusted
Encumbrances
Available
CIP Project Funding
Budget
To Date
Balance
400-0531 NC Fresh Air Exchange
50,000
4,819
45,181
400-0339 Building Environment Improvements
32,956
-
32,956
Project Totals
82,956
4,819
78,137
Attachment:
Resolution authorizing (Exhibit A) Construction Contract with Therma Corporation
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AWARDING A CONSTRUCTION CONTRACT TO
THERMA CORPORATIONFOR PROJECT 04-31
NEIGHBORHOOD CENTER FRESH AIR EXCHANGE
WHEREAS, bids were sought in conformance with State and Town law for Project
04-31 - Neighborhood Center Fresh Air Exchange; and
WHEREAS, Therma CORPORATION submitted the lowest bid which the Town
Council deems to be responsive to the Town's solicitation.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of
Los Gatos, County of Santa Clara, State of California, that Therma CORPORATION is declared
to be the lowest responsible bidder for Project 04-31 - Neighborhood Center Fresh Air Exchange.
BE IT FURTHER RESOLVED that the Town Manager is hereby authorized and
directed to execute a construction contract (Attached as Exhibit A) for said project on behalf of
the Town in the amount of $ 51,460.00.
BE IT FURTHER RESOLVED, that staff is authorized to execute future change
orders, as necessary, up to an amount of $3,000.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the day of , 2005, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS
ABSENT:
ABSTAIN:
SIGNED: MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CONTRACT
THIS AGREEMENT is between the Town of Los Gatos (hereinafter referred to as
"Owner") and Therma Corporation (hereinafter referred to as "Contractor"). Owner
and Contractor, for the consideration hereinafter named, agree as follows:
A. SCOPE OF WORK
Contractor shall furnish all materials and perform all of the work for the construction of
PROJECT #04-31 Neighborhood Center Fresh Air Exchange in accordance with the
Contract Documents.
B. CONTRACT PRICE
As full compensation forfurnishing all materials and for doing all the work contemplated and
embraced in this Contract, also for all loss or damage arising out of the nature of the work
aforesaid, or from the actions of the elements, or from any unforeseen difficulties or
obstructions which may arise or be encountered in the prosecution of the work until its
acceptance by Owner, and for all risks of every description connected with the Work, also
forall expenses incurred by or in consequence of the suspension or discontinuance ofwork,
and for well and faithfully completing the Work, and the whole thereof, in the manner and
according to the Contract Documents, Owner shall pay fifty one thousand four hundred
sixty dollars 51,460.00), which shall supersede any other amount specified in the
Contract Documents.
C. CONTRACT DOCUMENTS
All rights and obligations of Owner and Contractor are fully set forth and described in the
Contract Documents. All parts of the Contract Documents are intended to be correlated so
that any work called for in one part and not mentioned in the other, or vice versa, is to be
executed the same as if mentioned in all said documents. The Contract Documents are
defined in Part I, Section 1-1.01(A) of these Specifications and are incorporated herein by
reference the same as though set out in full.
D. BEGINNING OF WORK
Following the execution of this Contract and the approval of bonds and insurance policies
and certificates, Owner shall issue a Notice to Proceed with the Work. Commencing work
or the entrance of equipment or materials on the site of the Work by Contractor before
receipt of the Notice to Proceed is at the sole risk and expense of Contractor, and the
Contractor shall be fully liable for any damage or injury sustained by Owner or third persons
resulting therefrom.
E. TIME OF COMPLETION
The Work called for herein shall be fully completed within TWENTY-FIVE (25) working days
of Contractor's receipt of the Notice to Proceed.
I
F. CORRECTION OF WORK AFTER ACCEPTANCE AND FINAL PAYMENT BY
TOWN
Contractor shall remedy any defects due to faulty materials and/or workmanship and pay
for any damages to other work and/or existing facilities resulting therefrom which shall
appear within a period of 2 years from the date of recording of the Notice of Completion.
G. LIQUIDATED DAMAGES
The undersigned has reviewed and is thoroughly familiar with the appropriate sections of
the Contract and Part I, Section 8-1.03 of these Specifications pertaining to liquidated
damages.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
day of , 20
TOWN OF LOS GATOS, by:
CONTRACTOR, by:
Debra J. Figone, Town Manager
RECOMMEND BY:
Director of Parks and Public Works .
(Contractor's License Number)
APPROVED AS TO FORM:
Orry P. Korb, Town Attorney
ATTEST:
Marlyn Rasmussen, Clerk Administrator