SR-06-10-2014-3H - 911-000City of
City unit Report
Santa Monled
City Council Meeting: June 10, 2014
Agenda Item:
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Award Construction Contract for the former Public Works Warehouse Site
Improvement Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a contract with DLS
Builders, a California -based company, in an amount not to exceed $1,119,713
(includes 10% contingency) for the former Public Works Warehouse Site
Improvement Project.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete the work within budget authority.
Executive Summary
This project would renovate and repurpose the warehouse located at 2500 Michigan
Avenue for use by other City groups including the Print Shop, Facilities Maintenance,
and Architecture Services. The improvements include accessibility and life safety
upgrades as required by current code as well as upgrades to the building's structural
envelope and electrical, mechanical, and plumbing systems to support the planned new
uses. After reviewing seven bids received, staff recommends DLS Builders to complete
the former Public Works Warehouse Site Improvement Project in an amount not to
exceed $1,119, 713. This project is scheduled to begin in July 2014 for a period of
approximately 120 days.
Background
Historically, the Public Works warehouse was used to store miscellaneous equipment,
furniture, and other unused or unwanted City property. As technology expanded and
global supply chains tightened, the warehouse no longer met the needs of the City's
trade functions in a cost - effective fashion and was closed in 2012.
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Since 2012 the warehouse has been used primarily as storage space, a workshop for
the City's Carpentry Shop, and project work space for the City's Rosie's Girls program.
Although real estate is at a premium citywide, the warehouse cannot be utilized to its full
capacity in its current state.
Discussion
This project would renovate and repurpose the existing 8,400- square -foot warehouse
for use by other City groups including the Print Shop, Facility Maintenance, and
Architecture Services. Needed office space, meeting rooms, restrooms, and an ADA-
accessible ramp would be constructed as well as accessibility and life safety upgrades
as required by current code. The project would also include a voluntary upgrade to the
building's structural envelope and all necessary upgrades to the electrical, mechanical
and plumbing systems to support the building's new functions.
Currently, the City's Print Shop and Mail Services are located in leased space at 1660
Lincoln Blvd. at a cost of approximately $100,000 per year. In addition, the City is
contemplating the renovation of the City Yards that has been delayed due to financial
considerations. If the City Yards project were approved today it would take
approximately eight years to get to demolition of the warehouse building and
construction of new facility. Based on the $100,000 in annual savings for Print
Shop /Mail Services office space and the benefit involved in the renovation of this space
the investment in this property is a financially responsible investment.
Contractor Selection
On April 2, 2014, the City published Notices Inviting Bids to renovate and convert the
existing warehouse to house the City's Print Shop, Custodial Services, the HVAC shop,
and dedicated storage area. The bid was posted on the City's online bidding website
and notices were advertised in the Santa Monica Daily Press in accordance with the
City Charter and Municipal Code provisions. Forty -nine vendors downloaded the Notice
Inviting Bids and twenty -three prospective bidders attended a mandatory pre -bid job
walk. Seven bids were received and publicly opened on April 30, 2014. The bid results
are as follows:
Bidder
Lee Capital Builders, Inc.
Calco Construction Services
RMS:lillrmp
Oak Tree Construction, Inc.
Professional Services
Construction, Inc.
ACON Development, Inc.
A.J. Fistes Corporation
Base Bid
$ 739,950.00
$ 1,028,815.00
$ 1,035,464.00
11075,200.00
Additive Alternate
Total Bid Amount
$ 5,000.00
$
744,950.00
$ 8,350.00
$
1,037,165.00
$ 4,495.00
$
1,039,959.00
$ 6,000.00
$
1,081,200.00
1,138,294.00 $ 10,800.00 $ 1,149,094.00
$ 1,178,377.40 $ 5,900.00 $
$ 1,217,726.00 $ 5,500.00 $
1,184,277.40
1,223,226.00
Bids were evaluated on price, experience, qualifications and references. Lee Capital
Builders, Inc. was the lowest bidder, but was non - responsive as the submitted bid
omitted significant scope of work. Calco Construction Services was the second lowest
bidder, but lacked municipal experience. DLS Builders was the third lowest bidder with
a base bid amount $6,649 over Calco Construction's, a difference representing less
than 1 % of the bid amount.
DLS Builders is considered the best bidder based on its demonstrated quality service as
regards staff experience, quality control, scheduling and finished product and ability to
provide services related to this project if warranty issues arise in the future.
Additionally, with relevant experience with University of California projects, staff believes
DLS Builders will more readily adapt to municipal policies and procedures. Staff
contacted references provided by DLS Builders for prior project experience at three
occupied medical buildings for University of California campuses (one at UCLA and two
at UC Irvine) that included a 3,000- square -foot tenant improvement, retrofit, and
addition and a 14,000- square -foot tenant improvement. All respondents reported that
work was completed in a timely and cost - efficient manner while maintaining consistent
quality. Staff also verified with the Contractors State License Board that DLS Builders'
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license is current, active, and in good standing. Based on these criteria, DLS Builders is
recommended as the best bidder.
Construction Schedule
Construction work is tentatively scheduled to begin in July 2014 for a period of
approximately 120 days.
Financial Impacts & Budget Actions
The contract to be awarded to DLS Builders is for an amount not to exceed $1,119,713
(includes a 10% contingency). Funds in the amount of $1,119,713 are included in the
FY 2013 -14 Capital Improvement Program budget. The contract would be charged to
the following accounts:
C010162.589000 $600,000
M010085.589000 $519,713
Total $1,11 9,713
Prepared by: Danny Welch, Project Manager
Approved:
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Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager