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Home My WebLink About07 - Central Library Lecture Hall Building Project — Reject All Bids for Contract No. 7444-2 (19F11)Q SEW Pp�T CITY OF z NEWPORT BEACH c<,FORN'P City Council Staff Report April 25, 2023 Agenda Item No. 7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Peter Tauscher, Senior Civil Engineer ptauscher@newportbeachca.gov PHONE: 949-644-3316 TITLE: Central Library Lecture Hall Building Project — Reject All Bids for Contract No. 7444-2 (19F11) ABSTRACT: The City of Newport Beach (City) recently advertised the Central Library Lecture Hall Building Project and, on February 28, received five bids. All of the bids were significantly higher than the Engineer's Estimate. Staff recommends rejecting all bids. Staff, the Library Lecture Hall Design Committee, and the architect, with guidance from the City Council, will continue to look for opportunities to move this project forward in the future. RECOMMENDATIONS: a) Reject all bids received for Contract No. 7444-2 and direct staff to return all bidders bonds; and b) Approve Budget Amendment No. 23-061 redirecting American Rescue Plan Act (ARPA) Funding from the Library Lecture Hall Building Project Account, 16601-980000-19F11, to the City Yard Fueling Support Facilities and Transfer Station Rehabilitation Project Account, 16601-980000-20F14. DISCUSSION: The Central Library building was built in 1994 and expanded in 2013, which incorporated a second entrance, connecting the Central Library to the Civic Center and park. Coupled with the development of the Central Library facility is the growing success of numerous, ongoing programs and community events including guest speakers and presentations, which are usually held in the Friends Room. The Library Services Department reports that such programing at the Central Library has increased annually from approximately 28,000 participants in FY 2009-10 to over 72,000 participants in FY 2018-19. At its March 12, 2019 Study Session, the City Council expressed support for the Central Library Lecture Hall Building Project and the architect team selection process. At the meeting, library supporters agreed to partner with the City on the project. City Council directed staff to return with a recommendation for awarding the design Professional Services Agreement (PSA) contract for developing concept and final design plans. 7-1 Central Library Lecture Hall Building Project — Reject All Bids for Contract No. 7444-2 (19F11) April 25, 2023 Page 2 On July 9, 2019, the City Council adopted Resolution 2019-70 establishing the Library Lecture Hall Design Committee (LLHDC), including a Council Member as one of the five committee members. The LLHDC is a City Council Advisory Committee scheduled to expire upon the opening of the Library Lecture Hall. The LLHDC formed to undertake selection of an architect, coordinate and meet with the architect and City staff on the project, and to make recommendations, as needed, to the City Council. Supported by the entire LLHDC, Robert R. Coffee Architects + Associates (RCA) was unanimously selected as the most qualified and responsive firm for this project. On November 19, 2020, RCA was awarded the design contract that includes developing conceptual designs, attending community and LLHDC meetings, and presenting concepts to Council. On September 28, 2021, City staff and LLHDC members returned to a City Council Study Session and presented the final revised Concept Design, project cost estimate, and tentative funding terms for the Memorandum of Understanding (MOU) with the Newport Beach Public Library Foundation (NBPLF). The Council provided direction on the project (with a straw vote approval on the Concept Design) and for completion of the MOU, including raising the City's funding commitment from $4,000,000 to a 50-50 match with a maximum City contribution of $6,500,000, and requested that the Concept Design and MOU come back to the City Council for consideration and formal approval. On November 30, 2021, the Council approved the current design concept, a $13,000,000 budget, and the MOU between the City and the NBPLF related to fundraising for the Central Library Lecture Hall Building. The building plans were completed by RCA and approved by City staff in the fall of 2022. The approved final design and development includes a new 9,500-square-foot lecture hall near the Central Library and seating for up to 299 people. The latest engineer's estimate as of November 2022 is approximately $14,000,000. At 2 p.m. on February 28, 2023, the City Clerk opened and read the following bids for this project: BIDDER Low AMG & Associates, Inc. 2nd TELACU Construction Management, Inc 3rd S.J. Amoroso Construction Co., LLC 4th Pinner Construction Co., Inc. 5th PCL Construction Services, Inc. TOTAL BID AMOUNT $ 17,135,000.00 $ 17,256,000.00 $ 18,327,000.00 $ 18,989,000.00 $ 20,495,900.00 The City received five bids for this project. The low bid of $17,135,000, by AMG & Associates, Inc. (AMG), was 22 percent higher than the engineer's estimate of $14,000,000. A review of the bids showed the bid pricing is consistent for all five bidders, but considerably higher than the estimate and project budget. The engineer's estimate was developed by third -party construction consultants which were included in the project design contract. 7-2 Central Library Lecture Hall Building Project — Reject All Bids for Contract No. 7444-2 (19F11) April 25, 2023 Page 3 Staff believes the timing of this bid in the current economic climate contributed to the high bid results. The recent significant increase in cost of materials, labor and fuel, especially in the last 12 months, was apparent with consistently higher bids from all five bidders. Staff discussed the project with a few of the bidding contractors and the design consultant. The discussions focused on various components of the project that could reduce the construction cost while maintaining consistency with the approved conceptual design and project goals. Although this approach is a possibility, staff does not feel these changes would adequately reduce pricing to within an acceptable budget and any further design changes would not maintain desired project goals. FISCAL IMPACT: On November 30, 2021 the City Council approved a $13,000,000 budget for the project, split evenly between the City and the NBPLF. To date $1,371,854 has been encumbered against the budget and of that $672,558 has been spent. There is negligible fiscal impact to rejecting all bids. Currently, there is sufficient encumbered design funding within the design team's contract to cover the necessary work for "shelving" and later rebidding the project as desired. Of the $13 million budgeted for the project, $6.5 million is to come from private contributions, and the other $6.5 million from City funds, including approximately $5 million from American Rescue Plan Act (ARPA) funding. This $5 million of ARPA funding will now be reallocated toward the current City Yard Fueling System Replacement project, and replaced with City FFP funds due to time of use requirements on the ARPA funding. ENVIRONMENTAL REVIEW: On November 30, 2021, Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 (Class 1 — Existing Facilities) and 15303 (Class 3 — New Construction or Conversion of Small Structures) of the California Code of Regulations, Title 14, Division 6, Chapter 3 and CEQA Guidelines, because this project has no potential to have a significant effect on the environment. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Location Map Attachment B — Budget Amendment 7-3 Attachment A LEGEND = LECTURE HALL )EL MAR ZA CITY OF NEWPORT BEACH CENTRAL LIBRARY LECTURE HALL LOCATION MAP CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-7444-2 7-4 Department: Public Works Requestor: Dave Webb City of Newport Beach BUDGET AMENDMENT 2022-23 ONETIME: ❑� Yes ❑ No Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: EZ COUNCIL APPROVAL REQUIRED City Clerk: ATTACHMENT B BA#: 23-061 Date 3115 Date EXPLANATION FOR REQUEST: Redirecting American Rescue Plan Act Funding from the Library Lecture Hall Building (LLH) Project to the City Yard ❑✓ from existing budget appropriations Fueling Support Facilities and Transfer Station Rehabilitation (CNG) Project and redirecting FFP funding for the CNG ❑ from additional estimated revenues Project to the LLH Project and appropriating remaining ARPA fund balance to the CNG Project and transfering ❑� from unappropriated fund balance associated savings from the CNG Project in the FFP Fund to FFP fund balance. REVENUES Fund # Org Object Project Description Increase or (Decrease) $ 562 56299 691512 INTERFUND TRANSFERS - TRANSFER IN MISC FFP PROJECTS 4,899,009 513 51399 691512 INTERFUND TRANSFERS - TRANSFER IN MISC FFP PROJECTS 41,272 Subtotal 4,940,281 EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 166 16601 980000 19F11 ARPA CIP - CIP EXPENDITURES FOR GL (4,899,009) 166 16601 980000 20F14 ARPA CIP - CIP EXPENDITURES FOR GL 4,940,281 512 51201 980000 2OF14 MISC FFP PROJECTS CIP - CIP EXPENDITURES FOR GL (4,940,281) 562 56201 980000 191`11 PARKS & COMM CTR CIP - CIP EXPENDITURES FOR GL 4,899,009 512 51299 991562 INTERFUND TRANSFERS - TRANSFER OUT PARKS & COMM CTRS 4,899,009 512 51299 991513 INTERFUND TRANSFERS - TRANSFER OUT FFP 41,272 Subtotal 4,940,281 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 166 300000 ARPA - FUND BALANCE CONTROL (41,272) 513 300000 FACILITIES FINANCING PLAN - FUND BALANCE CONTROL 41,272 512 300000 MISC FFP PROJECTS - FUND BALANCE CONTROL - 562 300000 PARKS & COMMUNITY CENTERS - FUND BALANCE CONTROL Subtotal No Change In Fund Balance 7-5