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HomeMy WebLinkAbout21 - Donna & John Crean Mariners Branch Library & Tennis CourtsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 21 January 11, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Stephen G. Badum 949 -644 -3311 sbadum@city.newport-beach.ca.us SUBJECT: DONNA AND JOHN CREAN MARINERS BRANCH LIBRARY AND TENNIS COURTS - AWARD OF CONTRACT NO. 3496 RECOMMENDATIONS: 1. Approve the plans and specifications. 2. Award Contract No. 3496 to Howard S. Wright Construction Co. for the total bid price of $5,490,000.00, and authorize the Mayor and the City Clerk to execute the contract. 3. Establish an amount of $125,000.00 to cover the cost of unforeseen work. 4. Approve a Budget Amendment increasing revenue estimates by $155,043.00 in the Mariners Library Fund to reflect transfers in from the Ackerman Fund and Helen Russell Trust, appropriating $162,817.78 from the Mariners Library Fund Balance, 450 -3605, to account 7451- C5100661, and appropriating $1,312,938.32 from the General Fund Unappropriated Reserves, 010 -3605, to account 7011- C5100661. BACKGROUND: On November 27, 2001, a proposal was presented to City Council regarding joint use of a new library located at Mariner's Elementary School. The proposal detailed a new Mariners Branch Library, which would be designed to serve both as the Mariners Branch Library and the school library for the Mariners Elementary School of the Newport-Mesa Unified School District (NMUSD), providing enhanced services for both the community and the school. Thirtieth Street Architects (TSA) was retained to prepare a concept plan and assist staff in preparing a grant application to State Library Board for funding on December 11, 2001 for an amount not to exceed $104,000. On June 11, 2002, Council approved a Cooperative Agreement for the joint use library project with NMUSD. The grant application was submitted to the State on June 14, 2002 for $3.18 million and over $1 million in private contributions had been raised by the community to provide -35 % Subject: Donna and John Crean Mariners Branch Library — Award of Contract No. 3496 January 11, 2005 Page: 2 matching funds. The City was officially notified on December 2, 2002 that the grant had been approved by the State Library Board. On January 14, 2003, City Council approved a proposal from TSA in the amount of $472,867 for the final design and preparation of constructions plans, specifications, bid documents, and construction assistance. On January 28, 2003, City Council formed the Mariners Joint Use Library Steering Committee to provide a forum for public participation and an outreach program that would ensure coordination and representation from the various stakeholders within the community. Griffin Structures was retained by Council on March 11, 2003 to provide project management for the library construction program including pre- construction review and design coordination assistance at a cost not to exceed $195,000. In September 2004, the State Library Board approved our plans and specifications and authorized the City to proceed with construction contract bidding. The City elected to utilize a pre - qualification process to ensure that experienced contractors with proven track records and financial stability would be bidding on our project. On November 9, 2004, Council rejected the one bid received for the Donna and John Crean Mariners Branch Joint Use Library and Tennis Courts (Library), Contract No. 3496 and authorized staff to re- advertise the pre - qualification process to obtain qualified bidders and re -bid the project. DISCUSSION: The recent pre - qualification process resulted in six qualified firms, and at 2:00 p.m. on December 17, 2004, the City Clerk opened and read the following bids for this project: BIDDER TOTAL BID AMOUNT Low Howard S. Wright Construction Co. $5,490,000.00 2 GKK Works $5,756,267.00 3 Godbey Monroe, Inc. $5,791,916.00 4 Woodcliff Corporation $6,760,000.00 The low total bid amount is 14 percent above the engineers estimate of $4.8 million. The low bidder, Howard S. Wright Construction Co., possesses a California State Contractors License Classification B as required by the project specifications. After receiving only two bids for the tennis court project with the lowest bid still 62 percent over the engineers estimate, Council rejected bids on April 13, 2004 and combined the two projects to provide for economies of scale. The breakdown of the total bid price is as follows: Donna and John Crean Mariners Joint Use Library $5,151,303.00 Mariners Park Tennis Court Replacement $338,697.00 Total Bid Price $5,490,00.00 Subject: Donna and John Crean Mariners Branch Library — Award of Contract No. 3496 January 11, 2005 Page: 3 The following funds have been identified for the project: General Fund Contribution $299,000 State Library Grant $3,180,739 Fundraising Efforts $1,106,378 Prop 12 Appropriation $312,000 Miscellaneous Grant Funds $97,472 Interest Earnings $5,338 Total Funds $5,000,927 To date, $853,908 has been expended or encumbered for future expenses for this project. These expenditures include architectural and engineering costs, project management, geotechnical work, reprographics, and application fees for the State Architect. This leaves $4,147,019 in remaining funds for the construction of the project. To award this project, an additional $1,467,981 is needed to fund the construction cost. Together with FF &E (Furnishings, Fixtures, and Equipment) cost which is estimated at $496,895, the total project deficit is $1,964,876. The total cost for the project including preliminary engineering, grant application assistance, design, construction with contingency, and estimated FF &E is projected to be $6,965,803. Funds Available $5,000,927 Expended or Encumbered _ _ _ ___ ($853,908) Remaining Funds $4,147,019 Construction Cost (Including Continqencv) $5,615,000 Construction Deficit ($1,467,981) Estimated FF &E Costs ($496,895) Total Project Deficit ($1,964,876) The current balance of appropriated funds is $4,139,244. An additional $7,774.78 must be appropriated to account for applied interest earnings and additional funds received in the Mariners Library Fund. In addition, $60,000 from the Helen Russell Trust and $95,043 from the Ackerman Trust will be transferred into the Mariners Library Fund to help fund the project. It is recommended that the City utilize its General Fund reserve to advance the $1,312,938 needed to award the construction project, but continue to pursue other funding sources and contributions to reimburse the General Fund reserve and /or fund the estimated FF &E costs. If funds are raised to fund FF &E costs, the City's participation in this project will be approximately 25% of the overall construction cost with grant funds at approximately 50 %, and private contributions at 25 %. 139 Mariners Library Fund Available Unappropriated Fundsy___ $7,775 _Helen Russell Trust Transfer Ackerman Trust Transfer $95.043 1.31 Total Cost to Award (Does not include FF&E) 5,000 Over the last two years, the Steering Committee, City staff, Griffin Structures, and TSA have been working together to complete plans for the library's construction and to get approval from the State Library Board. Also during this time period, construction costs Subject: Donna and John Crean Mariners Branch Library —Award of Contract No. 3496 January 11, 2005 Page: 4 rose significantly. Steel costs have increased by 30% and other construction materials such as concrete, timber, and petroleum derived materials have risen over 15 to 20% due to global demands for construction materials. Upon award, Griffin Structures will meet with Howard S. Wright Construction and explore additional cost reduction strategies. Mobilization is expected to begin by the 1St of February, and per the Contract Specifications the Contractor will have 240 consecutive working days to complete the work. It is anticipated that the Library will be open to the public in March of 2006. Environmental Review: Under the California Environmental Quality Act Implementing Guidelines (CEQA), Planning Department Staff has determined a Notice of Exemption is appropriate for this project. Staff has determined that it qualifies for a categorical exemption pursuant to Section 15332 (Class 32, In -Fill Development Projects) of the CEQA Guidelines and recommended Council approval of the Notice of Exemption. Council approved a Notice of Exemption for this project on June 11, 2002. Funding Availability: Upon approval of the recommended Budget Amendment, sufficient funds for the project will be available in the following accounts: Account Description Mariners Library General Fund Contributions Prepared by: J 1 te. .4 dstratiManager Attachments: Budget Amendment Account Number 7451- C5100661 7011- C5100661 7251- C4120734 Total Submitted by: Amount $4,002,741.82 $1,311,657.26 $300,600.92 $5,615,000.00 Mum Director City of Newport Beach BUDGET AMENDMENT 2004 -05 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AND Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X NX from unappropriated fund balance EXPLANATION: NO. 05BA -036 AMOUNT: 51,475,756.10 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To appropriate funds from the General Fund, Ackerman Fund, Helen Russell Trust and Mariners Library Improvement Fund for the additional anticipated costs needed to award the Mariners Library construction contract. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Amount Fund Account Description Debit Credit 010 3605 General Fund - Fund Balance $1,312,938.32 ' 450 3605 Mariners Fund - Fund Balance $7,774.78 850 3605 Mariners Fund - Fund Balance $95,043.00 REVENUE ESTIMATES (3601) Fund /Division Account Description 450 6000 Transfers In - Ackerman Fund $95,043.00 450 5901 Private Donations - Helen Russell Trust $60,000.00 EXPENDITURE APPROPRIATIONS (3603) Description Division Number 7011 General Fund - Facilities Account Number C5100661 Mariners Library $1,312,938.32 Division Number 7451 Mariners Library Fund Account Number C5100661 Mariners Library $162,817.78 Division Number 9850 Ackerman Trust Account Number 9900 Transfer Out $95,043.00 Division Number Account Number Automatic System Entry. Signed: Fin'a/n�cii /al Approval: Administrat' Xervices Director Date Signed: 4f - if / /J�� Administrative Approval City Manager Date Signed: City Council Approval: City Clerk Date