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SR-01-22-2013-3AID J City of City Council Report Santa Monica' City Council Meeting: January 22, 2013 Agenda Item: To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Award Construction Contract for City Hall Tenant Improvements Recommended Action Staff recommends that City Council: 1. Authorize the City Manager to negotiate and execute a contract with SIGMA Services, Inc., a California -based corporation, for an amount not to exceed $233,360 (includes additive alternatives and a 10% contingency) for tenant improvements of City Hall Human Resources office spaces. 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 Human Resources Offices Tenant Improvement project is the final phase of construction associated with the City Hall Seismic Retrofit project. In November 2012, the City solicited bids for this project. After reviewing the eleven bids received, staff recommends SIGMA Services, Inc. as the best bidder for tenant improvements of City Hall Human Resources office spaces for an amount not to exceed $233,360. Discussion The Human Resources (HR) Department has outgrown their existing office space. This project will expand the HR office space into the space vacated by the City Clerk; the expanded space will be renovated and reconfigured to accommodate current staff needs. The proposed improvements involve demolition; construction of new partitions, offices, and interior finishes; and installation of lighting, ceiling system, air conditioning and a public counter. The purchase and installation of workspace systems furniture for staff will be under a separate contract. The project is scheduled to be completed within eight months. 1 This project was previously considered by Council on April 12, 2011. At that time the HR tenant improvements were part of a larger project, Tenant Improvements of City Hall Human Resources, City Clerk and Swing Space offices. The construction contract for the original project was terminated for convenience before this phase was completed. It is in the City's best interest to complete the remaining tenant improvements to accommodate staffing and workflow needs through a new contract. Contractor Selection On November 13, 2012, the City published Notices Inviting Bids for the City Hall Human Resources Tenant Improvements project. The bid was posted on the City's on -line bidding site and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal code provisions. Thirty -one prospective bidders registered on the City's bidding site and 11 bids were received and publically opened on November 29, 2012. Bid results are as follows: Bidder Total Bid Amount Additive Alternates SIGMA Services, Inc. $ 202,546.64 $9,598.00 Magic Hammer Development $ 235,965.00 $9,000.00 W.E. O'Neil $ 258,044.00 $22,171.00 SC Anderson Group Int'I $ 269,702.44 $4,099.47 SBS Corporation $ 278,370.16 $10,875.42 RS Construct Inc. $ 279,973.85 $9,100.00 Monet Construction, Inc. $ 309,000.00 $13,000.00 Astra Builders, Inc. $ 335,000.00 $40,000.00 A.J. Fistes Corp. $ 339,412.00 $12,200.00 G2K Construction, Inc. $ 354,300.00 $19,000.00 Gonzalez Construction $ 366,635.00 $6,500.00 The bids were evaluated based on price, direct experience on similar projects, record performing public sector work, hourly rates for services, understanding of the project's 2 scope, approach to the work, qualifications of proposed staff, and scheduling of project activities. SIGMA Services was the lowest bidder and has completed similar tenant improvement projects in pre -1950 buildings that were occupied during construction. References listed in the bid package were contacted and all respondents reported that work performed by SIGMA was completed in a timely and cost effective manner while maintaining consistent quality. Staff also verified with the California State License Board that SIGMA Services and all subcontractor licenses are current, active and in good standing. Based on the foregoing, SIGMA Services is recommended as the best bidder to provide construction services in accordance with City specifications. Financial Impacts & Budget Actions The contract to be awarded to Sigma Services, Inc., is $233,360, includes additive alternatives and a 10% contingency. Funds are available in the FY 2012 -13 Capital Improvement Program Budget at account 0010162.589000 Tenant Improvements; the contract will be charged to account 0010162.589005 to track the expenditures associated with the Human Resources office space remodel. Prepared by: Alex Parry, Senior Architect Approved: Forwarded to Council: Martin Pastucha Ro Gould Director of Public Works City Manager 3 Reference Contract No. 9683 (CCS).