REPORT TO COUNCIL
SUBJECT
Title
Action on Award of Contract for the Harris Lass Museum Repairs Project and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Harris Lass Museum (Museum) located at 1889 Market Street was built in 1866. It is a farm that includes a house, a barn, outbuildings, and a tank house. The museum is owned by the City of Santa Clara and managed by the Historic Preservation Society of Santa Clara. Due to the age of the Museum, several items have been identified that require repair and maintenance. The Harris Lass Museum Repairs Project (Project) scope of work includes replacement of the entrance porch, restoration of the tank house, and access upgrades to the farmhouse. The work also includes Americans with Disabilities Act (ADA) site improvements to satisfy building code requirements. In July 2019 Council approved a Resolution authorizing an application for a Santa Clara County Historical Grant in the amount of $100,000. The Department of Public Works (DPW) Facilities Division applied for the grant and was notified in August 2020 that the application was successful and subsequently an agreement was executed between the City and the County.
DISCUSSION
On December 8, 2021, a competitive Request for Bids (RFB) was published on the City’s bid notification system for construction of the Project. Due to the nature of the work involved, a mandatory pre-bid conference and site visit was scheduled on December 21, 2021, which was attended by eight contractors. On January 5, 2022, one bid for the Project was received and opened using video conference. The sole bidder, S&H Construction, Inc., submitted a bid in the amount of $378,600, which is 40.8 percent above the Architect’s Estimate of $268,829.
The bid was prepared in a competitive environment with multiple contractors attending the pre-bid conference, hence, the bid price reflects the current market condition and pricing. Several factors could have contributed to the bid being higher than the architect’s estimate. 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.
S&H Construction, Inc.’s bid was reviewed by DPW 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 contract to S&H Construction, Inc.
Award of the contract will enable construction to start in the spring of 2022 with substantial completion estimated by summer 2022. These dates are subject to change based on the latest issues related to the COVID-19 pandemic and if any unforeseen conditions are 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 minor alteration of an existing street. Other eligible improvements under this exemption include minor improvements to highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety), and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes.
FISCAL IMPACT
The cost of the construction contract is $378,600 plus approximately 15 percent contingency, or $56,790, for any potential change orders for a total not-to-exceed contract amount of $435,390. Funding for construction is available in the project budget and the City will receive reimbursement of $100,000 in grant funds in accordance with the reimbursement provisions of the agreement.
The budget amendment table below recognizes Historic Grant Program funding in the amount of $100,000 and allocates these additional funds to the existing Repair to Historic Buildings Project (Project No. 6139) in the Public Buildings Capital Fund. There are no local match related funds required for this grant funding. Grant funds will be reimbursed once the project is completed and reimbursement is submitted to Santa Clara County.
Budget Amendment
FY 2021/22
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Public Buildings Capital Fund |
|
|
|
|
Revenues |
|
|
|
|
Grant Funding |
$0 |
$100,000 |
$100,000 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Repair to Historic Buildings (Project No. 6139) |
$422,049 |
$100,000 |
$522,049 |
COORDINATION
This report has been coordinated with the Finance 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>.
RECOMMENDATION
Recommendation
1. Award the Public Works Contract for the Harris Lass Museum Repairs Project (CE 21-22-05) to the lowest responsive and responsible bidder, S & H Construction; Inc. in the amount of $378,600 and authorize the City Manager to execute any and all documents associated with, and necessary for the award, completion and acceptance of this project;
2. Authorize the City Manager to execute change orders up to approximately 15 percent of the original contract price, or $56,790, for a total not to exceed amount of $435,390; and
3. Consistent with City Charter Section 1305, “At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least five members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget,” approve the FY 2021/22 budget amendment in the Public Buildings Capital Fund to recognize grant revenue in the amount of $100,000 and increase the Repair to Historic Buildings project budget in the amount of $100,000 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Deanna J. Santana, City Manager