REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Central Park Magical Bridge Playground Project to Robert A Bothman Construction, S&H Construction Bid Withdrawal, Related Budget Amendments, and Adopting a Class 1 CEQA Categorical Exemption
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure and Enhance Community Sports, Recreational and Arts Assets
BACKGROUND
The Central Park Magical Bridge Playground Project (Project) is located in Central Park, bounded by Saratoga Creek to the east and south, Kiely Boulevard to the west, and the Community Recreation Center to the north. The Project proposes to replace the existing Central Park Arbor Playground, built in the 1960s, which is in poor condition and requires replacement to meet current building codes and playground standards per the Facility Condition Assessment report prepared in 2018.
The Project scope of work includes demolition of the existing playground, installation of a new all-inclusive playground, technology-related equipment, a playhouse, pathways, site furnishings, landscaping, and utilities. The work also includes rehabilitation of an existing restroom to meet accessibility standards. All-inclusive playgrounds help to improve the physical, social, emotional, and mental health of everyone in the community, regardless of age or ability. The playgrounds are designed to be socially inclusive and physically accessible to all including those living with physical and cognitive disabilities, autism, visual and hearing impairments, and those who are aging or medically fragile.
On March 29, 2019, the City was awarded an All-Inclusive Playground Grant from the County of Santa Clara in the reimbursable amount of $1,765,020 to construct the Project; the grant term expires in April 2024. On June 25, 2019, City Council approved two agreements with the Magical Bridge Foundation and Groundswell Landscape Architects for the design of the Project and licensing, community outreach, and fundraising. On January 12, 2021, City Council approved the Magical Bridge All-Inclusive Playground Schematic Design and the design consultant moved forward with developing design documents for construction. In FY 2022/23, the City was awarded a specified grant from the State of California in the reimbursable amount of $800,000, which was appropriated on December 6, 2022 in RTC 22-1449. To date, the Magical Bridge Foundation has reportedly raised approximately $500,000 of their $1,000,000 expected total funding. To the extent the fundraising falls below the budgeted $1.0 million level, it is anticipated that park in-lieu fees would be used to cover the difference.
DISCUSSION
In December 2022, a competitive Request for Bids (RFB) for construction of the Project was published on the City’s bid notification system, Periscope S2G. The RFB was viewed by over 90 vendors, including contractors, suppliers, plan rooms, and builder exchanges, among others. Additional vendors were able to view the RFB as members of various plan rooms and builder exchanges. Staff also reached out directly to contractors and vendors who had viewed similar past projects.
On January 19, 2023, bids for the Project were opened via video conference. Three bids were received ranging from $5,647,315 to $7,724,852. The Bid Summary is included as Attachment 1. The lowest bid submitted by S&H Construction (S&H) was in the amount of $5,647,315. Immediately following the bid opening S&H submitted a letter requesting relief of their bid for the Project. S&H sent a follow-up letter on January 26, 2023 stating that due to an error in filling out the bid, S&H’s bid was materially different ($700,000) from what the company had intended to submit.
S&H’s request to withdraw (Attachment 2) was received within the required statutory period, and reviewed by the Department of Public Works and City Attorney’s Office, which determined it met the necessary grounds for relief criteria stated in the California Public Contract Code section 5103.
To relieve S&H of its bid under Section 5103, the bidder must establish the following four elements:
(a) A mistake was made.
(b) He or she gave the public entity written notice within five working days, excluding Saturdays, Sundays, and state holidays, after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred.
(c) The mistake made the bid materially different than he or she intended it to be.
(d) The mistake was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications.
After reviewing S&H’s request and written explanation, staff recommends that the City Council consent to S&H’s written request for relief of the bid based on the following findings:
(a) That S&H made a mistake in its bid for the Project;
(b) That Bids on the Project were opened on January 19, 2023, and S&H gave sufficient notice of its mistake to the City on January 26, 2023 (Attachment 2), which was within five (5) working days of January 19, 2023 after factoring in the weekend of January 21-22, and S&H’s notice specified in detail how the mistake occurred;
(c) That S&H’s mistake made its bid materially different than they intended it to be, by an amount of approximately $700,000; and
(d) That S&H’s mistake was made in filling out the bid, specifically by transcribing incorrect unit costs on the City’s Bid Schedule form that was submitted with the bid, and S&H’s mistake was not due to any error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications.
The second lowest bid was submitted by Robert A Bothman Construction (“Bothman) in the amount of $7,595,000, which is 27 percent higher than the Engineer’s Estimate (“EE”) of $5,980,000. Several factors could have contributed to the bid being higher than the EE. Regionally, there has been an upward trend in industry pricing for some construction components with materials being more expensive and taking longer to obtain. Furthermore, due to COVID-19, there have been more requirements for employers to follow and impacts to the labor force due to worker exposure or testing positive. Staff recommends awarding the contract as there is no guarantee that re-bidding the Project will produce additional bidders or a substantially lower bid result. Additionally, re-bidding the Project will delay the start of construction, which may increase project costs and jeopardize the County grant.
Bothman’s bid was reviewed by Public Works staff and the City Attorney’s Office for compliance with the terms and conditions of the bid documents and has been determined to be a responsive and responsible bid. Staff recommends awarding the construction contract to Robert A Bothman Construction. Award of contract will enable construction of the Project to commence with substantial completion anticipated later in 2024. The date is subject to change based on any unforeseen conditions discovered during construction. The contract includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
This project being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 (c), “Existing Facilities,” as the activity consists of the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of the use beyond that presently existing.
FISCAL IMPACT
The approximate cost of the contract is $7,595,000, plus a 15 percent contingency of $1,139,250 for any potential change orders, for a total not-to-exceed contract amount of $8,734,250. Staff recommends including the 15 percent contingency to cover any potential unforeseen issues that may arise when working with existing park infrastructure.
The Central Park Magical Playground project has a current budget of $4,520,500 in the Parks & Recreation Capital Fund. The recommended budget amendment would increase the budget by $4,363,500 to $8,884,000 to cover the anticipated construction costs as well as other project costs, such as permitting and plan review. The additional funding would be provided from Mitigation Fee Act funds received in FY 2022/23. As discussed above, this project is also partially funded from County of Santa Clara All Inclusive Playground grant funds, state grant funds and donations raised by the Magical Bridge Foundation. If any of the budgeted funds from these sources are not received, it is anticipated that park in-lieu fees would be needed to cover the difference.
Budget Amendment
FY 2022/23
|
Parks and Recreation Capital Fund |
Current |
Increase/ (Decrease) |
Revised |
|
|
|
|
|
|
Revenues |
|
|
|
|
Mitigation Fee Act |
$0 |
$4,363,500 |
$4,363,500 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Central Park Magical Bridge |
$4,520,500 |
$4,363,500 |
$8,884,000 |
|
Playground |
|
|
|
COORDINATION
This report has been coordinated with the Finance Department, Parks and Recreation Department, and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt the findings of Council contained in this report, pursuant to California Public Contract Code section 5103, et seq., and relieve S&H Construction, Inc., of its bid for the Central Park Magical Bridge All-Inclusive Playground Project;
2. Adopt a Class 1 Categorical Exemption under CEQA Guidelines Section 15301;
3. Award the Public Works Contract for the Central Park Magical Bridge All-Inclusive Playground Project to the lowest responsive and responsible bidder, Robert A Bothman Construction, in the amount of $7,595,000 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion, and acceptance of this Project;
4. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $1,139,250, for a total not to exceed amount of $8,734,250; and
5. Approve the following FY 2022/23 budget amendment in the Parks and Recreation Capital Fund to increase the Central Park Magical Bridge Playground project appropriation by $4,363,500 and increase the Parks and Recreation Capital Fund Mitigation Fee Act revenue estimate by the same amount (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Office of the City Manager
ATTACHMENTS
1. Bid Summary
2. S&H Letter to Withdraw