18 Staff Report - Police Operations Building Facility Project~q N 0 MEETING DATE: 12115108
- ITEM NO:
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os ~~tos COUNCIL/AGENCY AGENDA REPORT
DATE: DECEMBER 11, 2008
TO: MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: GREG LARSON, TOWN MANAGER/EXECUTIVE DIRECTOR
SUBJECT: PPW JOB NO. 07-22 - LOS GATOS / MONTE SERENO POLICE
OPERATIONS BUILDING FACILITY PROJECT 821-2401
A. ADOPT RESOLUTION DECLARING SANTA CLARA VALLEY
CORPORATION DBA SWENSON DEVELOPMENT AND
CONSTRUCTION INC. TO BE THE LOWEST RESPONSIBLE BIDDER
ON THE PROJECT AND AWARD A CONSTRUCTION CONTRACT IN
THE AMOUNT OF $3,061,000.
B. AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS TO
THE CONSTRUCTION CONTRACT AS NECESSARY UP TO AN
AMOUNT OF $306,000.
C. AUTHORIZE BUDGET ADJUSTMENT IN THE AMOUNT OF
$375,000 FROM THE GENERAL FUND DESIGNATED RESERVE
FOR POLICE OPERATIONS BUILDING
RECOMMENDATION:
1. Adopt resolution (Attachment 1) declaring Santa Clara Valley Corporation DBA
Swenson Development and Construction Inc. to be the lowest responsible bidder on the
project and award a construction contract in the amount of $3,061,000. This award
includes the awarding of the Add Alternative Construction of the Emergency
Operations Center.
2. Authorize staff to execute future change orders to the construction contract as necessary
up to an amount of $306,000.
3. Authorize budget adjustment in the amount of $375,000 from the General Fund
Designated Reserve for Police Operations Building.
BACKGROUND:
The adopted Capital Improvement Program designates funding in the amount of $3.8 million for
the new Los Gatos/Monte Sereno Police Operations Building Facility Project. This project
proposes the remodel of an existing structure of approximately 9,000 square feet ocated at
PREPARED BY: TODD CAPURSO
Director of Parks and Public Works
CADocuments and Settingslpjacobs.LOSGATOSCAIDesktop107-22.police. department.awardPIdoc
Reviewed by: Assistant Town Manager/Deputy Director Town Attorney/General
Counsel/ Clerk Administrator/Secretary Finance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
DECEMBER 11, 2008
SUBJECT: PPW JOB NO. 07-22 - POLICE OPERATIONS BUILDING FACILITY
PROJECT 821-2401
15900 Los Gatos Boulevard and the construction of an additional structure of approximately
3,000 square feet to accommodate the operational needs of the Police Department and better
serve the communities of Los Gatos and Monte Sereno.
The design and development of this project began in early 2007. The design was completed in
June 2008 and the construction documents were bid at that time. The Town received four bids
for the project and all bids were substantially over the project budget and estimates. The Town
Council/Redevelopment Agency rejected the bids at the Council meeting of August 18, 2008.
DISCUSSION:
Revised Bid Package
To gain a full understanding of the cause of the prior high bids and bidding inconsistencies, staff
conducted an in-depth review of the project documents. In coordination with the comprehensive
internal review, a professional engineering consultant with expertise in the construction of public
safety facilities performed detailed value engineering on the project. This consultant also
performed a constructability review of the project to ensure that it could be constructed as
designed and would not require major changes in the field, resulting in additional claims and
change orders by the contractor.
As a result of the above review and analysis, a number of changes to the project documents were
approved by the Town Manager for final design and preparation of the construction documents
to re-bid the project. Town Council adopted a resolution on November 3, 2008, approving the
revised plans and specifications for this project and authorizing staff to advertise the project for
bid.
In developing the bid package, staff determined that the best approach was to require a base bid
for the remodel of the existing 9,000 square foot structure and an "add alternate" for the 3,000
square foot Emergency Operations Center (EOC). The EOC, which would also serve as a Police
briefing room and would be available as a community meeting room, was not included in the
initial construction budget for the project, as it was added to the design subsequently. Thus, the
EOC was presented in the bid package as an "add alternate." Using this bid approach, the Town
has the ability to award the base bid independently ($2,662,000) or with the EOC add alternative
proposal ($399,000) for a total of $3,061,000.
If the EOC facility is not constructed as a part of this project, the Town has the option to
construct it at a later date, providing that funding can be identified at that time. However, the
Town would incur additional costs to re-bid the EOC separately at a later date, with higher costs
on a stand-alone project. Re-bidding the EOC separately would require the production of a new
set of plans and specifications. Also, if there are any updates to the building code in the interim,
appropriate design changes would have to be included; these normally result in higher
construction costs. There may also be additional costs for inflation and higher labor and
construction material costs. These are unknown at this time; however, recent construction
history indicates that if the Town decides to construct the EOC five years in the future, the cost
PAGE 3
MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
DECEMBER 11, 2008
SUBJECT: PPW JOB NO. 07-22 - POLICE OPERATIONS BUILDING FACILITY
PROJECT 821-2401
to construct this section separately is estimated to be 40 to 45% above the cost of awarding it
now as an add alternative.
Project Cost Components
In addition to the direct construction costs, the total project costs include a construction
contingency, project management costs, Furniture, Fixtures & Equipment (FF&E) costs, and
facility re-use design and improvements costs. For construction projects of this scale it is a
common practice to allocate approximately 10% of the bid price as a contingency to cover
unanticipated work due to unforeseen conditions that may be encountered during the course of
the project. This contingency amount ($306,000 for the total project) will only be used to
address such conditions and is not intended to add features to the project. If a sufficient balance
remains in the contingency as the project approaches completion, a portion of that balance may
be used for material upgrades. All remaining funds would revert to the general fund.
Project management costs include construction management services, engineering inspection,
and amendments to the architect contract required for any unforeseen redesign work. The total
estimated cost for these services is $320,000 for the total project.
In conjunction with the design of the building, staff has been working on a strategy to fumish the
new building. FF&E includes not only desks, chairs, and cabinets, but also security systems,
lockers, and other specialty components that will be used by staff who will occupy the building.
The approximate cost estimate for these items for the entire facility is approximately $400,000,
with $80,000 being attributed to the EOC. Staff is working closely with potential vendors to
reduce this amount. Among the options being considered is using re-furbished furniture and
using generic instead of name brand components. Parks & Public Works staff will continue to
collaborate with Police Department staff to reach an agreement that will provide the most
economical and functional FF&E package for the building.
In addition, staff is recommending that funding be set aside for design work and preliminary
improvements that are needed for the re-use of space being vacated by Police personnel at Town
Hall. Police staff currently working in the houses along Villa Street will be relocated into the
Town Hall space. Some reconfiguration and improvements to the Town Hall space being re-
utilized is required to accommodate this relocation.
Bid Award
On December 10 2008, nine (9) bids were received for this project (see Bid Summary,
Attachment 2). Staff has reviewed the bids, and after tabulation of the bid results determined
that Santa Clara Valley Corporation DBA Swenson Development and Construction Inc. is a
responsible entity and that its bid is responsive to the Town's formal bid process.
The Town has sufficient furlding in place to award the base bid; however, additional fluids are
required to cover the costs associated with construction of the EOC. The current available fields
budgeted for this project is $3,800,000. The additional arnount needed to fully fiend this project
PAGE 4
MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
DECEMBER 11, 2008
SUBJECT: PPW JOB NO. 07-22 - POLICE OPERATIONS BUILDING FACILITY
PROJECT 821-2401
($375,000) is identified in the year end fund balance reserve report, which is on the agenda for
the December 15, 2008 Town Council meeting. This additional funding is required to construct
the project in its entirety and would be allocated as follows:
Base Bid
Add Alternate
Base Bid plus
Costs
Costs
Add Alternate
Construction
$2,662,000
$399,000
$3,061,000
Costs
Construction
$266,000
$40,000
$306,000
Contingency
Project
$280,000
$40,000
$320,000
Management
Costs
Furniture,
$320,000
$80,000
$400,000
Fixtures and
Equipment
Facility Re-Use
$60,000
$28,000
$88,000
Costs
TOTAL COSTS
$3,588,000
$587,000
$4,175,000
While the construction of the EOC requires the addition of $587,000 to the project, $212,000 of
this is available in the project budget as a result of the base bid coming in below the budgeted
amount. Additional funding of $375,000 would enable the construction of the entire project.
CONCLUSION:
It is recommended that the Town Council/Redevelopment Agency adopt the attached Resolution
declaring Santa Clara Valley Corporation DBA Swenson Development and Construction Inc. to
be the lowest responsible bidder on the project and award a construction contract in the amount
of $3,061,000, including award of both the base bid and the add alternate.
ENVIRONMENTAL ASSESSMENT:
Funding of this project is not a project defined under CEQA, and no further action is required.
PAGE 5
MAYOR AND TOWN COUNCIL/
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
DECEMBER 11, 2008
SUBJECT; PPW JOB NO. 07-22 - POLICE OPERATIONS BUILDING FACILITY
PROJECT 821-2401
FISCAL IMPACT:
Sufficient funds are available for this project pending the Town Council's approval of $375,000
from General Fund Designated Reserve. Staff will adjust the detailed accounting line items to
allocate remaining project budget according to the revised plan as detailed below:
POLICE FACILITY PROJECT
Original
Prior Years
FY 2008109
FY 2008109
Proposed
Ava labk:
Budget
Expenditures
Budget
ExplEnc
Contract/
ltalance
FY 2007108 Fiscal Impact
To Date
Planned Exp
Project 411-821-2401
$ 5,118,548
$ 2,521,791 $
2,596,757
$ 78,457
$ 2,507,410
$ 10,890
Project 911-821-2401
2,720,000
1,280,886
1,439,114
146,524
I M,590
Proposed Budget Adjustment (411)
375,000
375,000
TOTALS
$ 7,838,548
$ 3,802,677 $
4,410,871
$ 224,980
$ 4,175,000
$ 10,890
Expenditure Detail
Services Supplies & Equipment
$ 1,627
$ 20,981
Site Acquisition & Preparation
3,201,718
Design & Consulting Services
540,574
186,449
Project Construction Management
$ 320,000
Engineering
1,800
Furniture, Fixture and Equipment
400,000
Project Construction
58,758
15,750
3,061,000
Facility Re-Use Costs
88,000
Contingency
306,000
TOTALS
$ 3,802,677
$ 224,980
$ 4,175,000
Attachments:
1. Resolution declaring Santa Clara Valley Corporation DBA Swenson Development and
Construction Inc. to be the lowest responsible bidder on the project and award a
construction contract in the amount of $3,061,000 (with Exhibit A).
2. Bid Summary
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL/REDEVELOPMENT AGENCY
OF THE TOWN OF LOS GATOS
AWARDING A CONSTRUCTION CONTACT TO SANTA CLARA VALLEY CORPORATION DBA
SWENSON DEVELOPMENT AND CONSTRCUTION INC.
FOR PPW JOB NO. 07-22
LOS GATOS / MONTE SERENO POLICE OPERATIONS BUILDING FACILITY PROJECT
WHEREAS, bids were sought in conformance with State and Town law for PPW Job
No.07-22 - Police Operations Building Facility Project; and
WHEREAS, Santa Clara Valley Corporation DBA Swenson Development and Construction
Inc. submitted a bid which the Town Council/Redevelopment Agency deems to be responsive to the
Town's solicitation.
NOW, THEREFORE, BE IT RESOLVED by the Town Council/Redevelopment Agency of
the Town of Los Gatos, County of Santa Clara, State of California, that Santa Clara Valley
Corporation DBA Swenson Development and Construction Inc. is declared to be the lowest responsible
bidder for PPW Job No. 07-22 Los Gatos / Monte Sereno Police Operations Building Facility Project;
BE IT FURTHER RESOLVED that the Town Manager/Executive Director 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 $3,061,000.
BE IT FURTHER RESOLVED, that the staff is authorized to execute future change orders, as
necessary, up to an amount of $ 306,000.
PASSED AND ADOPTED at a regular meeting of the Town Council/Redevelopment Agency of
the Town of Los Gatos, California, held on the 15th day of December, 2008 by the following vote:
COUNCIL/AGENCY MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED: MAYOR/CIIAIR OF THE REDEVELOPMENT AGENCY
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR/SECRETARY OF THE REDEVELOPMENT AGENCY
LOS GATOS, CALIFORNIA
ATTACHMENTI
CONTRACT
THIS AGREEMENT is between the Town of Los Gatos/Redevelopment Agency (hereinafter
referred to as "Owner") and Santa Clara Valley Corporation DBA Swenson Development
and Construction Inc. (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 407-22 Los Gatos / Monte Sereno Police Operations Building in accordance with the
Contract Documents,
B. CONTRACT PRICE
As full compensation for furnishing 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 for all expenses incurred by
or in consequence of the suspension or discontinuance of work, and for well and faithfully
completing the Work, and the whole thereof, in the manner and according to the Contract
Documents, Owner shall pay Three million sixty one thousand dollars
3,06 1,000), 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 General
Conditions of the 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 there from.
E. TIME OF COMPLETION
The Work called for herein shall be fully completed by two hundred forty (240) Calendar days.
EXHIBIT A
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 1 year 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 Bid form section B-3 of these Specifications pertaining to liquidated damages.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day of _ , 2009.
TOWN OF LOS GATOS, by:
Greg Larson, Town Manager/Executive Director
RECOMMENDED BY:
Todd Capurso, Director of Parks & Public Works
APPROVED AS TO FORM:
Orry P. Korb, Town Attorney/General Counsel
ATTEST:
Jackie Rose, Clerk Administrator and
Secretary of the Redevelopment Agency
Los Gatos, California
CONTRACTOR, by:
(Signature)
(Print Name)
(Address)
(City, State, Zip)
(Contractor's License Number)
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ATTACHMENT 2