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HomeMy WebLinkAboutItem 2f: Contract with Vargas Olson Enterprises, Inc. for City Hall Interior RenovationDATE: July 17, 2012 STAFF REPORT Development Services Department TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services DirectorAvc- Philip A. Wray, Deputy Director of Development Services /City EngineerI,'li SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH VARGAS OLSON ENTERPRISES INC. IN THE AMOUNT OF $257,673 FOR THE CITY HALL INTERIOR RENOVATION PROJECT AND APPROVE A 10% CONTINGENCY Recommended Action: Approve SUMMARY In 2009, the City began a multi -year, multi -phase project to renovate City Hall. Phase 1 was the City Hall Energy Efficiency Retrofit Project, which included a new HVAC system, new ceilings, lighting, fire sprinklers, and windows. Phase 2 is the City Hall Interior Renovation Project which includes the carpets, tile, wall coverings, painting, and doors. Phase 3 is the City Hall Exterior Renovation Project which includes cleaning, painting and repairs to facades, awnings, and doors. The purpose of this Staff Report is to authorize the contract for Phase 2. In March, 2011, the City Council approved a Professional Services Agreement with Ex/Novo, Inc., an architect/interior designer, for design services. The design was substantially completed earlier this year, but several changes were made recently while waiting for the Phase 1 project to be completed. The plans and specifications were completed and ready for bidding last month. Bids were opened on July 3, 2012, with the low bid from Vargas Olson Enterprises Inc. in the amount of $257,673. It is recommended that the City Council award a contract for the City Hall Interior Renovation Project to Vargas Olson Enterprises Inc. BACKGROUND In 2009, the City embarked upon a multi - phase, multi -year project to renovate the City Hall buildings. The first phase was the City Hall Energy Efficiency Retrofit Project which utilized grant funding through the Energy Efficiency Community Block Grant Program in Vargas Olson Enterprises Inc. July 17, 2012 Page 2 the amount of $534,700 from the American Recovery and Reinvestment Act of 2009. Phase 1 included upgrading the existing HVAC system, installing fire sprinklers, new ceilings, lighting, and replacing windows with energy efficient windows. That project is now complete. Phase 2 includes the interior renovation below the ceiling. In March 2011, the City Council approved a Professional Services Agreement with Ex/Novo, Inc., an architect/ interior designer for design services. Ex/Novo Inc. proceeded to design the interior finishes and prepare the plans and specifications. The scope of work includes the following: 1. Carpet throughout all buildings 2. Tile flooring in the entry lobby 3. Wall covering in the main hallway 4. Painting throughout all buildings 5. Door replacement in the main hallway 6. Baseboards in various locations 7. Abatement of hazardous materials in flooring and paint 8. Miscellaneous door removal and wall construction Phase 3 is the City Hall Exterior Renovation Project which is being administered as a separate project. Phase 3 is currently in design and will address the building exteriors including cleaning, painting, and repairs to facades, awnings, doors, and landscaping. DISCUSSION Ex/Novo Inc. substantially completed the City Hall Interior Renovations (Phase 2) design earlier this year, but several changes and additions were recently made to the scope. Now that the Phase 1 work is complete, Phase 2 is ready to proceed. The plans, specifications, and estimate were completed and the project was advertised for bids in June 2012. The engineer's estimate for the project was $350,000. Six (6) bids were received and opened on July 3, 2012, with the following results: COMPANY BID AMOUNT Vargas Olson Enterprises Inc. $257,673 Encorre Services Inc. $328,900 Shin Shin Construction $339,000 Prime Axis General Builders Inc. $360,000 Avi -Con Inc., dba CA Construction $417,000 Dash Construction Co., Inc. $525,000 The low bid is from Vargas Olson Enterprises Inc. (VOEI) in the amount of $257,673. Although there is a significant gap between the first and second low bidder, VOEI has indicated that they are comfortable with their bid price. In review of all bids for the eight Vargas Olson Enterprises Inc. July 17, 2012 Page 3 general items listed above, the VOEI bid is competitive in all items, but not significantly low in any one item. VOEI has completed several projects for the City and is currently under contract with the City for Construction Maintenance Services. A 10% contingency is requested for additional funding authority for unforeseen conditions. It is anticipated that work will begin in late August. The buildings are divided into nine areas and each area is planned as a separate phase of work. Each phase is anticipated to take approximately two weeks and will require the relocation of no more than nine employees at one time. Special attention will be paid to the public counters and public spaces throughout this process to minimize impacts to visitors to City Hall. Furniture moving and storage will be handled by separate contracts. FISCAL IMPACT Phase 2 of this multi -year Capital Improvement Project is planned and identified in the FY 2012 -13 CIP budget. The FY 2012 -13 budget is $895,000 and is intended to cover both Phases 2 and 3. Phase 2 was estimated at approximately $595,000. There are other elements of Phase 2 not covered in this construction contract such as furniture moving, storage, signage, partitions, and other miscellaneous work. The low bid of $257,673 is substantially below the Engineer's Estimate of $350,000. RECOMMENDATION Authorize the City Manager to enter into a contract with Vargas Olson Enterprises, Inc. in the amount of $257,673 for the City Hall Interior Renovation Project and approve a 10% contingency. APPROVED: Dominic Lazza City Manager JK: PAW:pa