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Agenda Item 30.
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| City Council Meeting |
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| Subject: |
| Laurel Elementary Magnet School/Lagos de Moreno Park Upgrades, Project 7929. |
| RECOMMENDATION |
- Adopt Resolution to Appropriate an Additional $915,000 from the Park Development Fund (Fund 250) for Project Construction, Contingency, and Administration;
- Receive Bids and Award Contract to Lucas Builders, Inc. in the Amount of $1,799,000.00; and
- Authorize the Public Works Director or his Designee to Issue Contract Change Orders up to a “Not to Exceed” Amount of 10% of the Contract Price.
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| BACKGROUND/DISCUSSION |
The Laurel Elementary Magnet School/Lagos de Moreno Park Upgrades, Project 7929 (Project), is included in this year's Capital Improvement Program (CIP). The Project will make upgrades to the Laurel Elementary Magnet School playground and Lagos de Moreno Park adding the following amenities:
- Provide ADA access at three (3) separate locations
- Install a new restroom building
- Install new asphalt playground and ball walls
- New benches and tables
- New swings
- New playground equipment for 2-5 and 5-12 year olds
- A 30' by 30' shade structure between the two playgrounds
On April 18, 2017, City Council approved the plans and specifications and authorized staff to advertise and receive bids for construction. On May 22, 2017, eight bids were received with the following results:
See next page.
| 1. |
Lucas Builders |
$1,799,000.00 |
| 2. |
Clean Cut Landscape |
$1,946,272.00 |
| 3. |
C. S. Legacy |
$2,191,895.57 |
| 4. |
Environmental Construction |
$2,195,206.00 |
| 5. |
Roadway Engineering |
$2,398,000.00 |
| 6. |
States Link Construction |
$2,732,434.00 |
| 7. |
Access Pacific |
$2,795,000.00 |
| 8. |
Green Building Corp. |
$2,880,000.00 |
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Engineer's Estimate |
$1,676,473.00 |
Additionally, the bid proposals included 3 Bid Alternatives; 1) Removal of the CMU Restroom from Base Bid ($140,000 credit), 2) Monument Sign ($22,500 add), and 3) Substitute Hydroseed for Big Roll Sodded Turf ($6,500 credit). Sum total for the three bid alternatives (1-3) combined would be a $124,000 credit to the Base Bid price. The award of the Contract shall be based on the lowest Base Bid amount. However, the City Council has the exclusive discretion to include any of the three alternatives as part of the Contract Award Amount, which would be specified as the Total Bid Amount.
The lowest responsive bidder was Lucas Builders, Inc. ("LBI") in the amount of $1,799,000.00. LBI has a valid contractor's license and has been in the construction business for 12 years. LBI has previous public works construction experience in various other cities in Southern California, such as El Segundo, San Clemente, Baldwin Park and is currently constructing Segment 2 of the Tracks for our City. References received prior to starting the Segment 2 project were above satisfactory and their work on this project has been acceptable. If awarded, the Project could start in late June of 2017. Initial phases of the Project will take place during school summer break with completion when school is back in session. |
| COMMISSION/COMMITTEE RECOMMENDATION |
| This item was reviewed by the Parks, Recreation and Human Services Commission at a Special Meeting on Wednesday, May 24, 2017 and the use of Park Development funds for the shortfall was approved unanimously. The Commission recognizes the significant project cost increase and hopes future estimates are more precise. The Finance Committee reviewed staff’s recommendation at the May 30, 2017 meeting and recommended for City Council approval. |
| FISCAL IMPACT/SUMMARY |
Current funding for the project is from the Brea Olinda Unified School District ($250.000), Fund 560 - Valencia Median Improvement Program savings ($1,200,000) and Fund 250 - Park Development Fund ($226,473) for a total original estimated Project cost of $1,676,473. This was a programmatic estimate as developed within the CIP budget. However, as the concept design continued into full plans and specifications there were several design and improvement requirements by the Division of State Architect (DSA) with more specific design details of the site which resulted in increases to the original programmatic Project costs. The following table reflects these cost differences:
| Cost Item Description |
2015 Estimate |
Current Costs |
Difference |
| Playground Improvements and Restroom Facility (1) |
$ 1,002,063 |
$1,799,000 |
($ 796,937) |
| Contingency |
190,810 |
180,000 |
10,810 |
| Design and Construction Engineering (1) |
213,600 |
386,635 |
(173,035) |
| Monument Sign and Electrical (1) |
35,000 |
32,500 |
2,500 |
| Playground Equipment (Materials only) (1) |
160,000 |
162,295 |
(2,295) |
| Shade Structure (Material only) (1) |
75,000 |
$28,452 |
46,548 |
| Total |
$ 1,676,473 |
$ 2,588,882 |
($ 912,409) |
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Rounded to |
($ 915,000) |
(1) - As noted, the shortfall for the Project is calculated at $915,000. Since the original budget was prepared in 2015, several items have contributed to the increase in cost. Most significantly, DSA added site requirements such as new retaining walls and mandated inspections. There was also significant cost increases in purchasing and installation of the playground equipment. The costs associated with these items are as follows:
| Item |
Cost |
| Added Major Retaining Wall along Birch Street |
$151,690 |
| Added DSA full time inspection |
100,000 |
| Added Plan check fees |
16,635 |
| Added material testing |
20,000 |
| Total Added Costs |
$ 288,325 |
Furthermore, construction costs have increased significantly over this last year due to an extremely busy bidding environment, which has resulted in further budget shortfalls.
At the March 21, 2017 City Council meeting, staff shared a rough order-of-magnitude shortfall number of $500,000 with the City Council. Unfortunately, missing from this number was the design cost of approximately $200,000, which should have increased the estimated budget shortfall to $700,000. Regardless, it was decided that the Project would be advertised for bids to accurately assess the actual shortfall before any request for an appropriation was made. The difference between the anticipated budget shortfall and the current costs can be attributed to items mentioned previously.
It is anticipated that Fund 250 - Park Development Fund will provide the additional funding needed. Therefore, there will be no General Fund Impact.
Staff recommendation is to receive bids, adopt attached Resolution authorizing the additional funding in the amount $915,000, award the Contract to lowest responsible bidder LBI in the amount of $1,799,000, and authorize the Public Works Director or his designee to issue Contract Change Orders up to a "not to exceed" amount of 10% of the Contract price. |
| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Bill Bowlus, Public Works Superintendent
Concurrence: Tony Olmos, Director of Public Works
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