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HomeMy WebLinkAboutStaff Report 3.I 03/20/20063.1 CITY of PCTALumA, CALIFORNIA March 20, 2006 AGENDA BILL Aeenda Title: Meetine Date: Resolution Approving the Project Budget and Authorizing the March 20, 2006 Award of Contract for the Airport Hangar Fire Damage Repair Meetine Time: ® 3:00 PM ❑ 7:00 PM Cateeory (check one): N Consent Calendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business ❑ P -esentation Department: Directr: Contact Person: Phone Number: UA Public Works Vince Marengo Jeanne Miche 776-3672 Cost of Pronosal: $133,980 recoverable expense to City Account Number: 3298-54270 Amount Budeeted: $25,000 deductible initial cost to City, Name of Fund: recoverable from tenant and tenant's carrier Airport Hangars Attachments to Aeenda Packet Item: 1. Resolution Approving the Project Budget and Awarding the Contract for Construction (Attachment 1) 2. Location Map (Attachment 2) Summary Statement: An accidental fire occurred on May 27, 2004, in hangar 11-D at the City of Petaluma Municipal Airport. The procedure for an insurable event on City property is for the City to pay the first $25,000 in costs and then the City and their excess coverage carrier, California Joint Powers Risk Management Authority, to subrogate against the carrier of the tenant and the tenant who caused the fire to recover all costs associated with this event. Since the damage was in excess of $50,000, competitive bidding for the repairs is required. The total cost of the repairs, inspection, construction management, design, administration and bidding is the amount that the City and their excess coverage carver will pursue. The repairs include removal and replacement of steel structural members, siding and roofing, skylight, roof vent, door repairs, cleaning, concrete repair, electrical and drywall work. The proposed construction package, prepared by Cornerstone Structural Engineers, Inc. was advertised on February 9, 2006 and a mandatory pre bid conference was held at the site on February 21, 2006. Two (2) bids were received on February 28, 2006. The purpose of this item is to approve the project budget and award a construction contract to Kenridge Builders, Inc. for the total sum of $74,800. Recommended Citv Council Action/Sueeested Motion: Adopt the City of Petaluma Resolution, as described, approving the project budget and awarding the contract for construction. Reviewed by Admin. Svcs. Dir: 7�31i3 rf'odav's Date: March 2, 2006 Reviewed by City Attornev: NO Appr.,ved by City Manaeer: Date: Revision # and Date Revised: File Code: # S:\econdev\CIP\Airport Hangar - Fire Damage Repair Project\Design\330 PCDC-City Council\Wward of Bid Airport Hangar Fire Damage Repair 3-01-06 JC.doc CITY OF PETALUMA, CALIFORNIA MARCH 20, 2006 AGENDA REPORT FOR RESOLUTION APPROVING THE PROJECT BUDGET AND AUTHORIZING THE AWARD OF CONTRACT FOR THE AIRPORT HANGAR FIRE DAMAGE REPAIR 1. 2. EXECUTIVE SUMMARY: An accidental fire occurred on May 27, 2004, in hangar 11-D at the City of Petaluma Municipal Airport. The procedure for an insurable event on City property is for the City to pay the first $25,000 in costs and then the City and their excess coverage carrier, California Joint Powers Risk Management Authority, to subrogate against the carrier of the tenant and the tenant who caused the fire to recover all costs associated with this event. Since the damage was in excess of $50,000, competitive bidding for the repairs is required. The total cost of the repairs, inspection, construction management, design, administration and bidding is the amount that the City and their excess coverage carrier will pursue. The repairs include removal and replacement of steel structural members, siding and roofing, skylight, roof vent, door repairs, cleaning, concrete repair, electrical and drywall work. The proposed construction package, prepared by Cornerstone Structural Engineers, Inc. was advertised on February 9, 2006 and a mandatory pre bid conference was held at the site on February 21, 2006. Two (2) bids were received on February 28, 2006. The purpose of this item is to approve the project budget and award a construction contract to Kenridge Builders, Inc. for the total sum of $74,800. BACKGROUND: Two (2) bids were opened for the Airport Hangar Fire Damage Repair on February 28, 2006, ranging from $92,319. to $74,800. Kenridge Builders, Inc. was the lowest responsible bidder. Copies of the bid packages are available for review in the City Cleric's Office. Summary of Bid Data NAME OF BIDDER Bid Engineer's Estimate $60,000 B.C.C. $92,319. Kenridge Builders $74,800. ALTERNATIVES: A. Award a contract to Kenridge Builders Inc. for a total award of $74,800. B. Reject all bids and re -advertise. C. Reject all bids. Ll 5. FINANCIAL IMPACTS: The following table outlines the estimated costs to design, bid and complete repairs to the damaged airport hangar. Costs General Fund Overhead $2,000 (1.5%) City of Petaluma Permit fees 700 Design 12,000 Construction Management 12,000 Construction 74,800 Contingency 7,480 Administration 25,000 Total $133,980 The cost of the repairs and associated design and construction management will be charged to the Airport Hangar cost center; repair and maintenance account code. When the costs are recovered from the tenant's insurance company, those funds will be credited into the same account. Copies of the bids have been forwarded to the insurance company. Upon completion of the project the insurance adjustor will verify that the repairs have been made and begin subrogation against the tenant's insurance carrier and the tenant. CONCLUSION: Following the award, the contractor will enter into a contract with the City of Petaluma and submit the required contract documents, bonds and insurance. Repair of the Airport Hangar space 11-D will begin immediately after the construction contract is executed. Construction is anticipated to start in May 2006. 6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION: The repair of the Airport Hangar 11-D will be completed by late summer and accepted in FY 06-07 RECOMMENDATION Adopt the resolution approving the project budget and awarding the contract. Attachment 1 RESOLUTION # 2006 - City of Petaluma RESOLUTION APPROVING THE PROJECT BUDGET AND AUTHORIZING THE AWARD OF CONTRACT FOR THE AIRPORT HANGAR FIRE DAMAGE REPAIR WHEREAS, City staff has worked diligently with Cornerstone Structural Engineers, Inc. to prepare construction bid documents and advertise for construction of this Project; and WHEREAS, in accordance with California Public Contract Code Section 20688.2 and other applicable law, City staff solicited bids for the Project; and WHEREAS, the project was bid on February 28, 2006, and two (2) bids were received and opened in accordance with applicable law; and WHEREAS, the lowest bid for the Project, was from Kenridge Builders Inc. for $74,800.; and WHEREAS, staff has determined that Kenridge Builders Inc.'s. bid satisfies the bidding requirements for the Project; and WHEREAS, staff has verified that Kenridge Builders Inc. possesses a valid California Contractor's License, Class B, number 767709 that qualifies Kenridge Builders Inc. to perform the Project; and WHEREAS, the Project has a Negative Declaration pursuant to the California Environmental Quality Act ("CEQA") pursuant to Article 19, Section 15301, of Title 14 of the California Code of Regulations ("CEQA Guidelines"). NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: Approves the Project Budget in the amount of $133,980. 2. In accordance with California Public Contract Code Section 20688.2 and other applicable law, waives any and all non -conformities in the bid of Kenridge Builders, hic. for the Airport Hangar Fire Damage Repair Project, and finds the bid of $74,800 to be the lowest, responsible bid. 3. Awards the contract for the Airport Hangar Fire Damage Repair Project to Kenridge Builders, Inc. in the amount of $74,800, the amount of the lowest responsible bid, conditioned on Kenridge Builders, Inc. timely executing the project contract and submitting all required documents, including, but not limited to, executed bonds, certificates of insurance, and endorsements, in accordance with the project bid documents 4. Directs staff to issue a notice of award to Kenridge Builders, Inc. Authorizes and directs the City Manager to execute the project contract on behalf of the City of Petaluma upon timely submission by Kenridge Builders, Inc 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. Attachment 2 OLD REDWOOD HIOHHAY (101) SOUTH ELY BLVD 50NAMA MOUNTAIN FARKHAY 5KYRAN6H ROAD AIRPORT OFFICE F� FETALUMA MUNIGIFAL AIRPORT NORTH