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Home My WebLink About06 AWARD OF CONTRACT FOR THE CONSTRUCTION OF TUSTIN EMERGENCY OPERATION CENTER & CORPORATE YARD PROJECT (CIP NO. 10067)• nda AGENDA REPORT Reeeweldm 6 City Manager Finance Director MEETING DATE: SEPTEMBER 4, 2018 TO: JEFFREY C. PARKER, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: AWARD OF CONTRACT FOR THE CONSTRUCTION OF TUSTIN EMERGENCY OPERATION CENTER AND CORPORATE YARD PROJECT (CIP No. 10067) SUMMARY Bids for the Tustin Emergency Operation Center and Corporate Yard Project CIP #10067 have been received and a construction contract is ready to be awarded to the lowest responsive/responsible bidder, Tovey-Shultz Construction, Inc. RECOMMENDATION It is recommended that the City Council; 1. Award the construction contract to Tovey-Shultz Construction, Inc., the lowest responsive/responsible bidder, in the amount of $12,187,005.00, and authorize the Mayor and the City Clerk to execute the contract documents on behalf of the City. 2. Adopt Resolution No. 18-58 authorizing the use of County of Orange Cooperative Purchasing Program Contract # RCA -017-18010014 for GM Business Interiors (GMBI) for FF&E (Furnishings, Fixtures and Equipment) and Audio and Visual in the amount of $1,020,281. FISCAL IMPACT Sufficient funds have been budgeted for this project in the Fiscal Year 2018-2019 Capital Improvement Program. The total estimated expenditure for the construction of this project is $14,113,286. The project is funded through Legacy Land Proceeds (Fund 189), Water Capital (Fund 301), and General Fund Capital Improvement (Fund 200). Project expenditures include: • Construction Contract.........................................................................$12,187,005 • Construction Management......................................................................$550,000 • Architectural Support Quality Assurance/Quality Control.........................$250,000 • Deputy Inspection and Materials Testing .................................................$106,000 • Furnishings, Fixtures, Equipment, Audio and Visual.............................$1,020,281 0 Estimated Expenditures...................................................................$14,113,286 Award Contract for Emergency Operations Center and Corporate Yard, CIP 10067 September 4, 2018 Page 2 The remaining budgetary appropriation will be set aside as project contingency for potential unforeseen conditions that may arise necessary to complete the work within the approved project scope and budget. CORRELATION TO THE STRATEGIC PLAN The construction of the Tustin Emergency Operation Center and Corporate Yard Improvements contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety and Protection of Assets: Strategy #2 to enhance Tustin's readiness to respond to major disasters and create a new emergency operations center; and Strategy #3 to ensure public safety and protection of assets through continuous maintenance and improvement of public facilities. BACKGROUND Staff has completed a number of significant steps in moving the EOC/Corporate Yard project forward. Building off our facility needs assessment that was completed by Griffin Structures, Inc. in January 2013, several iterations of conceptual layout options were evaluated and vetted. The site constraints of this project are a challenge. The existing layout of the corporate yard is not efficient, due in part to the somewhat irregular shape, as well as to the evolution of site occupancy. The overall width of the site, in combination with the fixed vehicle maintenance and warehouse buildings, has presented considerable challenges with fleet and heavy equipment/material storage, circulation and access. The relocation of Fire Station 37 to Tustin Legacy and the utilization of available public right-of-way along the Red Hill frontage provide much needed room to expand the yard facilities and repurpose these areas. Water services personnel have been operating out of temporary facilities for over 15 years. The new administration facility will be designed to Essential Services Structural requirements, meaning constructed to higher structural standards (1.5X structural code) and will contain a dedicated Emergency Operations Center (EOC), water quality lab', dedicated and secure water supervisory control and data acquisition (SCADA) center with full backup power for the entire building, including the existing vehicle maintenance shop and fuel island. Photovoltaic (solar) will be included for the new facility and canopy structures to offset nearly 100% of the electrical demand. The proposed building will be constructed to LEED standards with building materials selected to reduce long-term operation and maintenance costs. Additionally, a demonstration garden is included to promote the use of sustainable and drought tolerate planting materials for Tustin residents. Griffin Structures will continue to provide program/project administration, construction management, and related services as required to coordinate the work of the General Contractor with the activities and responsibilities of the City's Public Works Department, Building Department, Orange County Fire Authority, and project architectural design team to complete the project in accordance with the City's objectives for cost, time and quality. Experience has shown that the most successful projects involve integrating project/construction managers with the design team at the beginning of the project to ensure lessons learned from design and construction experience are applied very early on in the process. Based on the successful approach of combining project management, design services, and construction management for the Tustin Library, Police Department Briefing Room, Council Chambers and Fire Station 37 projects, the team of Griffin Structures, Inc. and LPA, Inc. was selected and approved by City Council on February 16, 2016. SACity Council Items\2018 Council Items\09-04-2018\Award Construction EOC & Corp Yard\Award of EOC Corp Yard CIP 10067.docx Award Contract for Emergency Operations Center and Corporate Yard, CIP 10067 September 4, 2018 Page 3 DISCUSSION On December 19, 2017, the City Council approved plans and specifications for construction of the Tustin Emergency Operation Center and Corporate Yard Project (CIP No. 10067) and authorized the City Clerk to advertise to receive bids from the six (6) pre -qualified general contractors approved. The engineer's estimate for construction is $11,435,120. The pre - qualification procedure was selected for this project due to the very specialized nature of constructing an EOC, the complex phasing of the project which allows for the vehicle maintenance bay and fuel island to remain operational continually, and the desire to build to a standard set forth by the United States Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED). Four (4) formal bids were received from the pre -qualified list of potential bidders and were publicly opened on August 7, 2018 and reviewed by the design team. These four bids are summarized below by order of least dollar amount: • Tovey-Shultz Construction, Inc ...................................... $ 12,187,005.00 • ProWest Constructors................................................... $ 12,271,734.00 • KPRS Construction Services, Inc .................................. $ 12,831,685.00 • Macro -Z Technology...................................................... $ 13,399,000.00 The current construction market has experienced significant upward pressure as a result of a shortage of labor. This is due to two primary factors: The demand for construction labor (specifically skilled trade contractors) has increased exponentially while at the supply of trade contractors has contracted since the last recession. This has resulted in bidders making pricing decisions based on their current work load and preferences rather than need, and therefore placing a premium on their bids. 2. Additionally, recent federal tariffs on steel imports has impacted steel, rebar, sheet metal, steel studs, etc. which are all major components of commercial construction projects. These increases in steel have also reverberated to wood based products as the market seeks to pivot away from steel, thus wood framing, plywood, siding and millwork are also seeing significant increases. As a result of this market pressures, many public agencies are seeing cost estimates coming in over the engineer's estimate by as much as 10% to 20% over. In light of this context, we interpret a premium of 7%-8% over the engineer's estimate, as experienced on the Tustin EOC and Corporate Yard project, to be well within industry standards. The State Contractor's License for Tovey-Shultz Construction, Inc. has been checked and is active and in good standing, the references for Tovey-Shultz Construction, Inc. have indicated good performance satisfaction, and Tovey-Shultz is currently registered with the Department of Industrial Relations database for processing of Certified Payroll verification. The new Tustin Emergency Operations Center and Corporate Yard will include a two story structure of approximately 17,284 square feet for the Emergency Operations Center and City Yard Operations. The project also includes some miscellaneous roof replacements, canopy structures to house solar implements and equipment, some minor shop renovations and new material bins. SACity Council Items\2018 Council Items\09-04-2018\Award Construction EOC & Corp Yard\Award of EOC Corp Yard CIP 10067.docx Award Contract for Emergency Operations Center and Corporate Yard, CIP 10067 September 4, 2018 Page 4 The construction will include all necessary offsite improvements including driveways, sidewalk and paving, street restriping, and utility connections. On-site facilities will include parking areas, walls and fences, landscaping, utility facilities, emergency electrical power generator, building equipment, ancillary and incidental fixtures, structures, audio-visual equipment and improvements necessary to provide an emergency operations center and corporate yard facilities. GMBI will provide the FIFE and the Audio Visual components. FFE items include desk, chairs, EOC furnishings, etc. while the audio visual equipment is primarily for the EOC. ,6. Stack, P.E. of Public Works/City Engineer Attachment: Resolution 18-58 SACity Council Items\2018 Council Item s\09-04-201 8\Awa rd Construction EOC & Corp Yard\Award of EOC Corp Yard CIP 10067.docx RESOLUTION NO. 18-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AUTHORIZING THE COUNTY OF ORANGE COOPERATIVE PURCHASING PROGRAM TO PURCHASE CERTAIN ITEMS WHEREAS, the City has need to purchase various material, supplies and equipment in order to conduct the operations of the City; and WHEREAS, Section 1625, Item C of the Tustin Municipal Code authorizes the County of Orange Cooperative Purchasing Program to purchase materials, supplies, and equipment if it can be acquired more cheaply or efficiently by the County of Orange Cooperative Purchasing Program; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin, California, does hereby authorize the County of Orange Cooperative Purchasing Program, to utilize contract # RCA -017-180100.14 for GM Business Interiors, for and on behalf of the City of Tustin pursuant to Section 10324 of the California Public Contract Code, and that Mr. Jeffrey C. Parker, City Manager, is hereby directed to sign and deliver all necessary requests and, other documents in connection therewith and for and on behalf of the City of Tustin. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 4t" day of September, 2018. ELWYN A. MURRAY, Mayor ATTEST: Erica N. Yasuda, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. 18-58 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 4t" day of September, 2018 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES; COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT Erica N, Yasuda, City Clerk