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sr-041211-3kCity Council Meeting: April 12, 2011 Agenda Item: 3K To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Construction Contract for City Hall Tenant Improvements Recommended Action Staff recommends that the City Council 1. Authorize the City Manager to negotiate and execute a construction contract with California Averland Construction, Inc., aCalifornia-based company, in an amount not to exceed $531,300 (includes a 15% contingency) for tenant improvements of City Hall Human Resources, City Clerk and swing space offices. 2. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within budget authority. Executive Summary The City Hall Tenant Improvements project is a significant phase of the City Hall Seismic Retrofit project and provides the temporary offices (swing space) needed to relocate City Hall staff while the structure is seismically upgraded. This construction also includes tenant improvements to the Human Resources and City Clerk's offices. California. Averland Construction, Inc. is recommended for the construction of this tenant improvement project at a cost not to exceed $531,300. Background The City received funding from the Federal Emergency Management Agency (FEMA) as a result of the 1994 Earthquake that partially funded a seismic upgrade to City Hall to meet current code requirements. While the office spaces are seismically upgraded in City Hall, staff in the affected space will need to be relocated to a swing space. Staff has identified the former Information Systems Department (ISD) office as the swing space. ISD is scheduled to move-into its new space where the old jail was located in spring 2011. The overall seismic work is being completed in phases. City Hall staff 1 affected by seismic construction activities will be moving in and out of the "swing space" on an as-needed basis to accommodate the seismic upgrades phasing schedule. In addition, the Human Resources and City Clerk Departments have outgrown their existing office spaces. This project includes tenant improvements to the Human Resources and City Clerk's offices and involves expanding the office space that was vacated by the Revenue Division. This expanded space will be renovated and reconfigured to accommodate current staff needs. The proposed Human Resources and City Clerk's tenant improvements involve demolition and asbestos removal; construction of new partitions, offices, and interior finishes; and installation of lighting, public counters, and air conditioning and ceiling systems. The purchase and installation of workspace systems furniture for staff will be under a separate process. This project is scheduled to be completed within 12 months. Discussion The City published a Notice Inviting Bids in the Santa Monica Daily Press and on the City's website on January 24, 2011. A total of 27 potential contractors attended the pre- bid job walk held on February 2, 2011. The City Clerk's office received nine sealed bids that were publicly opened by the Deputy City Clerk on February 23, 2011. The bid results are as follows: Bidder California Averland Construction, Inc. G2K Construction Acon Development Co., Inc. West Valley Investment Group Y.Ko. Construction Co., Inc. Coral Blue Construction Gonzales Construction Axis Construction, Inc. Total Bid Amount $ 462,000 $ 512,000 $ 564,185 $ 578,980 $ 738,300 $ 774,241 $ 789,174 $ 837,206 2 Bidder Total Bid Amount Fast-Track Construction* Non-responsive Total bid amount was omitted from their bid. All bids were evaluated on competitive pricing, understanding of the project's scope, accuracy in bidding, past experience, and references. Staff recommends California Averland Construction, Inc. as the best bidder based on their price, past project experience, staff experience, and responsiveness. Projects completed by California Averland Construction, Inc. include City Hall renovation for the City of West Hollywood, adult center renovations for the City of Burbank, and tenant improvements for the Boys and Girls Club in Wilmington, California. References were contacted and all respondents reported that California Averland Construction, Inc. performed well on their projects and would likely be considered for future projects. The California State Contractors License Board verified that California Averland Construction, Inc.'s license is current and in good standing. Staff requests a contract contingency of 15% based on past experience with unforeseen conditions. This construction includes demolishing offices spaces that have not been disturbed for over 80 years. Record drawings do not show all existing conditions and there is a high probability of significant. structural and infrastructure variants. Furthermore, contractor bids were based on the existing hazardous material report that took samples from accessible spaces only. When demolition begins, the previously non-accessible spaces will mostly likely expose additional hazardous materials requiring remediation. 3 Financial Impacts & Budget Actions The contract amount to be awarded to California Averland Construction, Inc. is $531,300. Funds are available in account 0010162:589000, City Hall Expansion. Prepared by: Sam Aslanian, Architectural Associate Approved: Forwarded to Council: y d.=~ Martin Pastu ha Rod Gould Director of Public Works City Manager 4 Reference Contract No. 9354 (CCS).