Loading...
HomeMy WebLinkAboutStaff Report 4.B 08/01/2016DATE: August 1, 2016 Agenda Item #4.B TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St, eJc��llri ASCE — Director, Public Works & Utilities Larry Zimmer, P.E. — Deputy Director, Public Works & Utilities SUBJECT: Resolution Authorizing Award of Contract for the Community Center Roof Overlay and HVAC Replacement Project to Henris Roofing Company, Revising the Project Budget, and Authorizing the Transfer of Funds RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Authorizing Award of Contract for the Community Center Roof Overlay and HVAC Replacement Project to Henris Roofing Company, Revising the Project Budget and Authorizing the Transfer of Funds. BACKGROUND The existing Community Center roof has reached the end of its useful life and needs to be rehabilitated. Approximately two - thirds of the existing roof has been overlaid in prior fiscal years. The remaining six sections of the roof, directly over the lobby and auditorium areas, require regular patching but the roof replacement project for this section has been on hold waiting for sufficient funding. The replacement of a portion of the remaining section of the roof requires that five HVAC units be removed during construction. The HVAC units are original to the 1988 construction, and at 28 years old, have exceeded their useful life and require excessive maintenance. These units need to be replaced. The Council approved $167,000 towards the Community Center Roof Overlay and HVAC Replacement Project, Project No. C16201306 in the FY 16/17 budget. DISCUSSION This project involves installation of a 60 -mil thermoplastic polyolefin (TPO) single -ply membrane over the roof area and parapet wall for the final six roof sections, and the replacement of five old rooftop HVAC units. This project will reduce the ongoing repair and maintenance costs and eliminate leaks during winter rains. Staff prepared contract documents to bid the roof overlay and the replacement of the rooftop mounted HVAC units and attached duct and conduit connections. The Notice Inviting Bids for the work was issued on June 9th and 16th, 2016. On June 23, 2016, one (1) bid was received by Henris Roofing Company for $278,768.00. The Engineer's Estimate was $167,000.00. The lowest responsive bidder, Henris Roofing Company, has performed similar projects for the City of Petaluma and local schools. Staff verified that Henris Roofing Company possesses a valid Class C -39 California Contractor's License, number 220964, expiring on 8/31/2017, which is appropriate for the work to be performed. Upon review of the higher than anticipated bid, it was determined that the roofing costs are very close to the engineer's estimate but the HVAC costs are more than double. Staff has since discussed the project with the proposed mechanical subcontractor and two other HVAC contractors and have concluded that the HVAC bid, while higher than estimated, is reasonable. While it is believed some cost savings may be achieved by rebidding the project later, that cannot be guaranteed and any delay of the project at this time will cause the City to incur other costs. For instance, one HVAC unit requires immediate repair, costing several thousand dollars, which would be essentially a throw away expense when the project, done at a later date, replaces the unit. Additional leaks this winter due to a project delay will likely increase the costs of interior repairs. It is difficult to accurately estimate the additional costs the City might incur if the project is further delayed. At the City's request, the low bid contractor provided several options to modify the bid to cut costs in the short term. These reductions would be implemented through change orders after award of the construction contract, if so desired. The City could proceed with the roof overlay and replace only the two largest HVAC units, one of which has a broken fan motor. However, the contractor would have to disconnect and crane off of the roof the other HVAC units or jack them up in place. Craning or jacking these older units to allow the roof replacement has a risk of damaging the units, ductwork, or conduits and will ultimately add costs to the project due to having to remove and reinstall these old units. The option to reject all bids was considered. While the City might get more competitive pricing with multiple bids, this option will delay roof repairs until spring 2017. Delaying repairs will allow additional leaking into the building and may cause further interior damage with no guarantee that bids will come in substantially lower at a later date. Furthermore, there will be additional staff costs to re- package and re -bid the project at a later date. If the failing HVAC unit is not replaced with this project, the City will proceed to pay for temporary repairs. After considering the pros and cons of the different options, it is recommended that the City adjust the project budget and award the full contract. Funding can be available by transfers from other community center CIP projects of lesser priority. This option will complete the roof replacement, thus preventing further leaks and building damage, and replace the five HVAC units, which increases energy efficiency and comfort. This option avoids the cost to repair one of the HVAC units, and assure consistent and more efficient heating and cooling for the multi- purpose room and lobby. If approved, construction can proceed as scheduled in September 2016. The proposed action meets Council Goal: "Plan for and implement priority capital projects as funding permits ". 2 FINANCIAL IMPACTS The project is included in the FY 16/17 CIP Budget as C16201306 and is scheduled for the current fiscal year with an approved total project budget of $214,000. Because of the higher than expected HVAC costs, it is recommended that $121,000 be transferred from the Community Center Interior Repairs project, C16201304, to this project. The interior repairs are necessary due to water damage from the prior roof leaks and therefore it is appropriate that some of these funds be expended to assure that the existing leaks stop. The following table shows the existing FY 16/17 CIP Budget for the subject project compared to the proposed budget as recommended. This action would reduce the funding available for the Interior Repairs project from $514,000 to $393,000. It is believed that the remainder is sufficient to meet the core goals of that project. If the recommended action is approved, a budget transfer from the Community Center Interior Repairs project will be brought forward in conjunction with the first quarter budget adjustments. ATTACHMENTS 1. Resolution 3 FY 16/17 CIP Project Budget Bid Budget Design $6,000 $6,000 Administration $5,000 $2,000 Construction Contract $167,000 $279,000 Construction Management $15,000 $13,000 Contingency $16,000 $27,000 CIP Overhead $5,000 $8,000 Total $214,000 $335,000 Budget Adjustment* n/a $121,000 This action would reduce the funding available for the Interior Repairs project from $514,000 to $393,000. It is believed that the remainder is sufficient to meet the core goals of that project. If the recommended action is approved, a budget transfer from the Community Center Interior Repairs project will be brought forward in conjunction with the first quarter budget adjustments. ATTACHMENTS 1. Resolution 3 Attachment 1 RESOLUTION AUTHORIZING AWARD OF CONTRACT FOR COMMUNITY CENTER ROOF OVERLAY AND HVAC REPLACEMENT PROJECT, REVISING THE PROJECT BUDGET, AND AUTHORIZING THE TRANSFER OF FUNDS WHEREAS, City staff has prepared construction bid documents and advertised for construction of this Project; and WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code, California Public Contract Code Section 20162 and other applicable law, City staff solicited bids for the Project; and WHEREAS, the project was bid on June 9 and 16, 2016, and one (1) bid was received and opened on June 23, 2016 in accordance with-applicable law; and WHEREAS, the lowest responsive bid for the Project was submitted by Henris Roofing Company from Petaluma, CA for $278,768.00; and WHEREAS, staff has determined that the Contractor's bid satisfies the bidding requirements for the Project; and WHEREAS, staff has verified that Contractor possesses a valid California Contractor's License, Class C -39, number 220964 that is appropriate for the work to be performed for the Project; and WHEREAS, the Project is categorically exempt pursuant to California Environmental Quality Act ( "CEQA ") and Title 14, the California Code of Regulations ( "CEQA Guidelines "), Section 15301, because the project consists of the operation, repair, maintenance or minor alteration of existing public structures involving negligible or no expansion of use beyond that previously existing; and WHEREAS, the estimated project cost based on the low bid is $121,000.00 higher than estimated in the FY 16/17 Capital Improvement Program budget; and WHEREAS, the FY 16/17 budget for the Community Center Interior Repairs, project 016201304, has sufficient funds to pay the overage. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 1. Awards the contract for the Community Center Roof Overlay and HVAC Replacement Project, Project No. C16201306 to Henris Roofing Company in.the amount of $278,768.00, the amount of the lowest responsive bid, conditioned on Henris Roofing Company's timely executing the project contract and submitting all required documents, rd including but not limited to, executed bonds, certificates of insurance, and endorsements, in accordance with the project bid documents. 2. Directs staff to issue a Notice of Award to Henris Roofing Company. 3. Authorizes and directs the City Manager to execute the project contract on behalf of the City of Petaluma upon timely submission by Henris Roofing Company of the signed project contract and all other required documents, including but not limited to, executed bonds, certificates of insurance, and endorsements, in accordance with the project bid documents. 4. Revises the FY 16/17 CIP budget for the subject project to a total of $335,000. 5. Authorizes $121,000 from the Community Center Interior Repairs, project C16201304, to be transferred into the CIP Project budget for the subject project in conjunction with the next mid -year Budget Adjustment.