SR 10-09-2018 3B
City Council
Report
City Council Meeting: October 9, 2018
Agenda Item: 3.B
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Lane Dilg, City Attorney, City Attorney's Office
Subject: Award of Design-Build Services Agreement for the City Hall Third Floor
Building System Improvement Project
Recommended Action
Staff recommends that the City Council:
1. Award Bid # SP2378 to Gilman Builders, Inc., a California-based company, for
the City Hall Third Floor Building System Improvement Project for the Public
Works Department;
2. Authorize the City Manager to negotiate and execute a design-build services
agreement with Gilman Builders, Inc., in an amount not to exceed $1,664,769
(including a $167,189 contingency);
3. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
Summary
The third floor area of the historic City Hall, currently housing the City Attorney's Office
(CAO), has longstanding electrical and Heating, Ventilation and Air Conditioning
(HVAC) issues, as well as roof leaks. Staff recommends awarding a design-build
services agreement with Gilman Builders, Inc. to replace and upgrade the building
systems, replace the roof, and modify the staff work space. Upon completion, the
project would lower ongoing maintenance and energy costs, improve occupant safety,
and remodel a portion of the CAO’s work space to maximize the work area and allow
CAO staff to work more efficiently.
Discussion
The building systems serving City Hall’s third floor are more than 20 years old and past
their useful life. They fail frequently and require repair, and thus need to be modernized
and brought up to current building code to provide a safe and efficient work area. The
necessary building improvements would include:
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Replacing the HVAC system to be more energy efficient and consistent with the
City’s Facilities Maintenance Division standards;
Upgrading the electrical system by adding a new electrical subpanel and re-
balancing the electrical capacity to prevent power outages routinely experienced by
CAO staff;
Installing fire sprinklers in accordance with building code requirements for new
projects within historic City Hall;
Replacing 6,200 square feet of roof area over the CAO, which is more than 20 years
old and past its useful life. This work is not visible from the front of City Hall and
therefore does not impact the building’s historic character;
Fixing the existing skylights to meet current Occupational Safety and Health
Administration (OSHA) standards; and
Reconfiguring a portion of the existing work area, approximately 1,100 square feet,
to create a better and more efficient work space by creating three additional
workstations and converting the traditional legal library into a shared collaboration
work space.
In order to complete this major remodel, CAO staff would have to be temporarily
relocated to City-owned property at 1632 5th St. during construction. This property,
known as the Apple Building, has not been able to be leased in the past two years and
has been identified as a low-cost relocation space for the CAO staff. Staff anticipates
this project would be completed by June 2019.
Vendor Selection
Bid Data
Bid Posting Date Bid Posted On
Bid Advertised In
(City Charter &
Municipal Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
06/28/2018 City's Online
Bidding Site
Santa Monica
Daily Press 36 1 07/26/20
18
Submittals Received Vendor Selection Recommendation
Gilman
Builders,
Inc.
$1,799,379
Municipal Code SMMC 2.24.072
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Evaluation Criteria Price, previous experience, ability to
deliver, quality of product, and
compliance with City specifications.
Best and Only
Bidder
Gilman Builders, Inc.
Additional Vendor Outreach & Justification for Award
Staff evaluated the sole bidder, Gilman Builders, Inc., and verified that the vendor meets
City specifications. The vendor presented comparable previous projects completed for
the County of San Bernardino, LA Community College District, UCLA, the State of
California, and a current project in Pasadena which is a roof and HVAC replacement
project on a historically designated building. References from the City of Pasadena say
the vendor is on budget and schedule, and they would hire this contractor again. Staff
verified with the Contractors State License Board that Gilman Builders, Inc. has a license
that is current, active and in good standing. Staff also verified that Gilman Builders Inc. is
registered with the Department of Industrial Relations (DIR). Based on these criteria,
Gilman Builders, Inc. is recommended as the best bidder.
According to Bid #SP2378, vendors were required to attend a mandatory job walk on
July 11, 2018. Four contractors attended the job walk. Because only one bid was
received for the project, staff conducted additional outreach to the three contractors who
attended the job walk but did not submit a bid. One vendor said the scope of the project
was too large, one vendor was not comfortable pricing design-build services, and the
third vendor did not respond to inquiries.
Gilman Builders, Inc. submitted an initial bid for $1,799,379, which exceeds the project
budget estimate. Following the bid evaluation and review, staff met with the contractor,
conducted a second job walk with its subcontractors, and negotiated a lower cost for the
work. Subsequently, Gilman Builders, Inc. submitted a revised bid of $1,497,580.
Financial Impacts and Budget Actions
Staff seeks authority to award a design-build services agreement with Gilman Builders,
Inc. for design and construction services.
Contract Request
Request Amount
(including contingency)
FY 2018-19 Budget
CIP Account #
Total Contract Amount
$1,664,769 C0107450.6989000 $1,664,769
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Prepared By: Amber Richane, Architectural Associate
Approved
Forwarded to Council
Attachments:
A. Gilman Builders Inc. Oaks Initiative Disclosure Form
REFERENCE:
Agreement No. 10758
(CCS)