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Home My WebLink About15 - OB-1 - Lions Park Projects, City Project No.17- - 7/18/2017CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 18, 2017 ITEM NUMBER: OBA SUBJECT: THE LIONS PARK PROJECTS, CITY PROJECT NO. 17-03 DATE: JULY 6, 2017 FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION PRESENTATION BY: RAJA SETH URAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: BALTAZAR MEJIA, CITY ENGINEER, (714) 754-5335 RECOMMENDATION: For The Lions Park Projects staff recommends that the City Council: 1. Waive irregularities in the bid submitted by the low bidder and award a construction contract to Tovey/Shultz Construction, Inc., 18261 Collier Avenue, Unit A, Lake Elsinore, CA 92530, in the amount of $28,739,822.00 (Base Bid only). 2. Authorize the Mayor or City Manager to execute the Public Works Agreement. BACKGROUND: The City has prepared construction documents for The Lions Park Projects. The project site is located at Lions Park, located at 570 West 18th Street, 1845 and 1855 Park Avenue. The project site encompasses the Donald Dungan Library, the Neighborhood Community Center (NCC) building, the portion of parkland just south of the existing NCC, and the area between the Costa Mesa Historical Society Building and Anaheim Avenue. The improvements to Lions Park include the demolition of the existing Neighborhood Community Center (NCC), construction of a new, two story, LEED Gold library, renovation of the existing library to be repurposed as the new, LEED Silver NCC, landscape and irrigation improvements, off-site street improvements to Park Avenue and Anaheim Avenue, and building signs and directional/wayfinding signs. The Public Services Department, in coordination with the City Manager's Office and the Parks and Community Services Department, has worked with Johnson Favaro Architects to prepare the construction documents for The Lions Park Projects. A Request for Qualifications (RFQ) to pre -qualify General Contractors interested in submitting bids for the construction of The Lions Park Projects was issued on December 14, 2016. The RFQ required information from General Contractors relating to their safety record, bonding and insurance capacity, similar project experience, and professional references. Proposals were evaluated and references contacted. Eight General Contractors were pre -qualified to submit bids for the Project. After numerous community meetings, stakeholder meeting, City Committee meeting and Commission meetings, a joint meeting was held on March 28, 2017, with the City Council, Planning Commission, and Parks and Recreation Commission to review the Master Plan for The Lions Park Projects. At the meeting, both Commissions and the City Council unanimously approved the Master Plan and adopted and approved the Initial Study/Mitigated Negative Declaration, Planning Application PA -16-71, plans, specifications, and working details for the project; and authorized staff to advertise The Lions Park Projects for construction. ANALYSIS: The City Clerk received and opened three (3) bids for this project on June 27, 2017. The low bidder, Tovey/Shultz Construction, Inc., submitted a bid proposal in the amount of $28,739,822.00, and is recommended for award. The proposal contained irregularities that included a one dollar ($1) addition error on Proposal Page P-1. However, the sum of the prices for each phase of work and City assigned allowances yields a bid amount of $28,739,822.00, one dollar ($1) lower than the amount indicated in the base bid noted on Proposal Pages P-1 and P-2. In addition, subtotal prices for each phase were not noted on Proposal Page P-1. However, lump sum prices were provided for each phase. These irregularities have been reviewed by City staff and found to be minor as they do not change the base bid amount, which determined the low bidder. As such, Tovey/Shultz Construction, Inc., is recommended for award. The Engineer's estimate for this work was $27,465,000.00; and the average of the three (3) bids received amounted to $30,808,607.67. An analysis of the bids indicates that the low bidder, Tovey/Shultz Construction, Inc., submitted a bid proposal of $28,739,822.00 that is approximately 4.6% percent higher than the Engineer's estimate. This increase can be attributed to the competitive construction market. The Bid Recapitulation Sheet is included as Attachment 1. During the Bid Phase, the construction of the Kiosk Site and Maintenance Area (e.g. Cafe), the NCC Courtyard (outside patio area) and the Library 2nd floor wood paneling were removed from the Base Bid and included as Additive bid items to be considered for inclusion if the Base Bid came in at less than the Engineer's estimate. The Base Bid is higher than the Engineer's estimate, therefore, the cost and scope for these items are not included in the proposed contract amount of $28,739,822.00. Staff will include the Cafe as a separate project along with the new playground equipment and park space just south of the new library in the future. The remaining items will be added to future projects when additional funds/grants become available. An updated Project Cost Matrix, and a list of potential revenue sources and cost saving opportunities are included as Attachment 2 and Attachment 3 respectively. The license and references of Tovey/Shultz Construction, Inc., were checked and staff has found them to be in good standing. ALTERNATIVES CONSIDERED: The alternative to this Council action would be to reject all of the bids and rebid the project. Staff believes that re -advertising and rebidding the project will not result in lower bids. FISCAL REVIEW: On June 21, 2016 the City Council approved an updated financing plan for The Lions Park Projects to fund the estimated design and construction costs of the project ($36,000,000). This financing plan (Attachment 4) contemplated the accumulation of City funds during FY 16-17 through FY 19-20 from the Capital Improvement Fund, Park Development Funds and Gas Tax supplemented by an estimated $18,506,603 from a new 25 -year series of lease revenue bonds (debt financing). An updated financing plan is included as Attachment 5. This update reflects the additional cost of $492,000 paid for by $350,000 from the Drainage Fees Fund and an additional $142,000 in FY 18-19 capital funds. The amount of debt financing remains the same at $18,506,603. The current estimated pricing for the 2017 lease revenue bonds shows an estimated annual payment that will be approximately $140,000 lower than the annual payment on the recently paid off 2003 Certificates of Participation (COPs). In addition, the financing transaction will include the 1► refunding of the City's 2007 COPs without extending the term (nine years remaining after this fiscal year) and providing an estimated annual savings of about $500,000 compared to the current annual payment. In summary, the savings from the new debt financing payment compared to the 2003 COPs payment are $140,000 over 25 years or $3,500,000. The savings from refunding the 2007 COPs is $500,000 for 9 years or $4,500,000. These two are a total savings of $8,000,000 over the original plan. LEGAL REVIEW: The City Attorney's office has reviewed this report. Tovey/Shultz Construction, Inc. will furnish the necessary bonds and insurance, which will be reviewed by the City Attorney's office. After the award; approval of the bonds and insurance; and the subsequent execution of the contract, a "Notice to Proceed" will be issued. CONCLUSION: The City has received bids for The Lions Park Projects, City Project No. 17-03. Staff has evaluated all of the bids and recommends that the City Council waive the irregularities and award a contract to the low bidder, Tovey/Shultz Construction, Inc., in the amount of $28,739,822.00 (Base Bid only) and authorize the Mayor or City Manager to execute the Public Works Agreement. THOMAS R. HATCH City Manager RAJA SETHURAMAN Public Services Director BALTAZAR M EJ IA City Engineer TAMARA S. LETOURNEAU Assistant City Manager STEPHEN DUNIVENT Interim Finance Director 3 ATTACHMENTS: 1 — Bid Recapitulation Sheet 2 — Updated Project Cost Matrix 3 — Potential Revenue Sources and Cost Savings Opportunities 4 — Previously Approved Financing Plan 5 — Updated Financing Plan DISTRIBUTION: City Manager Assistant City Manager City Attorney City Clerk Staff File ATTACHMENTI Page ( of I Costa Mesa 77 Fair Dr. Costa Mesa, California 92626 (714) 754-5221 BID RECAP SHEET Project/Equipment --o a Ll ,3n5 Pa(L Pr6l-e-,C45 Project Manager Ay -4'5I/1 Kat i Mto-n Ext., i rarrr w „ i i r i r P Date of Bid Opening: _ .,lu�e� 2�'1 � 2° Li Time: 2'.� . M, 1. P� n n,�Yr Cort DOR q 00 , =Vqc 2. 5 - "� APACKrPSO Cow l • I l rtC . 3.-.1 p V 4. 5. 6. 7. 8. 9. 10. i`6)i I r - , AMOUNT OF BID 6 3Z- 130q , 000 eA 31) 15 -,7 e , i39 f z 7-3 The above bids were received and opened by Brenda Green, City Clerk City Clerk, City Of Costa Mesa 5 ATTACHMENT * Photovoltaic / Solar Panel removal in the amount of $225,000 not included in original design and paid for through a settlement agreement from the City's self-insurance fund. PROJECTSTHE LIONS PARK Design Professional Service Fees and Reimbursables (Architecture, Engineering, Survey, Geotech, etc.) $2,991,287 EIR/MND (Report and Consultants, including EIR Consultant, Traffic, Historic Resources, etc.) $26,165 Permitting Utility Agency Permits and Connection Fees (Sewer, Water, Gas, Electric, Communications) $50,000 Outsource Building Department Plan Review $33,835 Construction* Apparent Low Bidder, Tovey/Shultz Base Bid $28,739,822 Construction Manager Fees & Reimbursables (Contracted); Testing and Inspection Services; Hazardous Materials Assessment, Commissioning $2,894,056 Bid Costs (Advertising and Printing) $500 Contingency Construction Contingency ($1,000,000) Included in bid Furniture, Fixtures and Equipment (FFE) Furniture (Office systems furniture, loose furniture) $527,734 Library Bookstacks and Lighting $220,325 Community Tables, Carrels, and Lighting $135,275 Computers, Printers, Copiers $7,800 AV/IT Equipment (Servers, racks, projectors, flat panel monitor displays, security cameras, recorders) $637,000 Site Furnishings and Misc. Office Supplies $136,554 Other Communications Infrastructure Relocation $92,000 TOTAL PROJECT COSTI $36,4921353 * Photovoltaic / Solar Panel removal in the amount of $225,000 not included in original design and paid for through a settlement agreement from the City's self-insurance fund. ATTACHMENT 3 THE LIONS PARK PROJECTS Potential General Fund Cost Savings Opportunities Staff continues to explore other funding sources that will help alliviate the use of General Funds for The Lions Park Projects. The most viable opportunities for cost savings are listed below. Drainage Fees Fund Projected Savings Expected Savings Available funding from Drainage Fees from FY 17-18 will help reduce the use of General Funds towards the project. The City received favorable bids for the Arlington Drive Bioswale Project that resulted in a reduction in Drainage Funds needed to complete the project. $350,000 $350,000 Grants Staff recently submitted an application for the State of California Natural Resource Agency, Greenhouse Gas Reduction Fund (GGRF). If awarded, grant funds will be utilized to plant native trees and shrubs around the new library building and the newly created park space. $843,531 $843,531 FS #1 CIP Savings Anticipated cost savings from Fire Station #1 Capital Improvement Project. Bids received were lower than the Engineer's estimate. $300,000 $400,000 Sponsorships Various sponsorship opportunities will help reduce the use of General Funds for the purchase of soft -cost items. Sponsorship opportunities range from $11VI to $100. $100 $500,000 Project Contingency Built-in to The Lions Park Projects cost is $1M in contingency funds. If any portion of those funds are unused that remaining balance can help fund the Coffee Kiosk or other project amenities. $100,000 $500,000 Early Payoff of 2003 COP One-time savings to the FY 18-19 budget from the last payment of the 2003 COPs. The early payoff will achieve a one-time savings of $86,449. $86,449 $86,449 Reduced Annual Debt Payment Multi -Year Savings Multi -Year Savings The project Finance Team is estimating a reduction in the City's annual debt payment. The savings from the new debt financing payment compared to the 2003 COPs payment are $140,000 over 25 years or $3,500,000. The savings from refunding the 2007 COPS is $500,000 for 9 years or $4,500,000. These two are a total savings of $8,000,000 over the original plan. $8,000,000 $8,000,000 TOTAL PROJECTED SAVINGS TO GENERAL FUND $ 9,680,080 $ 10,579,980 ATTACHMENT 4 Att,.c':riio: t City of Costa Mesa Lions Park and Fire Station 1 Projects Funding Plan Total Funding $ 17,100,000 4,150,000 6,900,000 820,000 7,030,000 $ 36,000,000 $ 10,000,000 $ 46,000,000 Original (Nov. 17. 2015) Option 3: Revised debt payment calculation Lions Park Projects Fire Station 1 Total Lions Park Projects Fire Station 1 Total Loan amount Annual interest rate Monthly interest rate Loan period in years Est. Start date of loan $ 25,258,131 $ _6,823,799 4.500% 4.500% 0.375% 0.375% 30 30 01/01/2017 _ 01/01/2017 $ 32,081,930 Loan amount Annual interest rate Monthly interest rate Loan period in years Est. Start date of loan $ 18,506,603 $ _ 4.500% Community 0.375% 0.375% 25 25 01/01/2017 01/01/2017 Library Center Park Street Front Other Total Fire Station 1 Grand Total Revised Option 3 May 2016 26,437,664 Total interest $ 12,353,110 $ 12,353,110 Total cost of loan 46,072,526 12,447,067 Estimated Cost $ 17,100,000 4,150,000 6,900,000 820,000 7,030,000 $ 36,000,000 $ 10,000,000 $ 46,000,000 Annual payment 1,234,389 1;234,389,- ;234 389.'Repayment: Repayment: Existing Funds 4,000,000 2003 COPS 1,240,250 4,000,000 1,676,201 5,676,201 FY 16-17: 1,240,250 Capital 1.5% funds 295,501 414,902 710,403 Balance (5,861) Gas Tax 300,000 300,000 300,000 Cap. Facil. 1.5% Funds 1,676,201 1,676,201 1,676,201 FY 17-18: Park Fees 2,500,000 2,500,000 2,500,000 Gas Tax 300,000 300,000 C 300,000 CIP 5% Funds (75%) - 4,387,500 4,387,500 Cap. Facil. 1.5% Funds - 1,801,995: 1,801,995 FY 18-19: Park Fees 2,500,000 2,500,000 2,500,000 Gas Tax 220,000 220,000 220,000 CIP 5% Funds (50%) '794,696 790,696: 2134,304< 2,925,000 Cap. Facil. 1.5% Funds 1,755,000 1,755,000 1,755,000 FY 19-20: CIP 5% Funds (29%) 1,696,500 1,696,500 1,696,500 Cap. Facil. 1.5% Funds 1,755,000 1,755,000 1,755,000 COP or Bond Financing 4,426,66" 4,150,000 1,900,000 7,030,000 18,506,603 p: 18,506,603 Total Funding $ 17,100,000 4,150,000 6,900,000 820,000 7,030,000 $ 36,000,000 $ 10,000,000 $ 46,000,000 Original (Nov. 17. 2015) Option 3: Revised debt payment calculation Lions Park Projects Fire Station 1 Total Lions Park Projects Fire Station 1 Total Loan amount Annual interest rate Monthly interest rate Loan period in years Est. Start date of loan $ 25,258,131 $ _6,823,799 4.500% 4.500% 0.375% 0.375% 30 30 01/01/2017 _ 01/01/2017 $ 32,081,930 Loan amount Annual interest rate Monthly interest rate Loan period in years Est. Start date of loan $ 18,506,603 $ _ 4.500% 4.500% 0.375% 0.375% 25 25 01/01/2017 01/01/2017 $ 18,506,603 Monthly payment $ 127,979 $ 34,575 162,554 Monthly payment $ 102,866 $ 102,866 Number of payments 360 3601 Number of payments 300300 Total interest $ 20,814,395 $ 5,623,268 26,437,664 Total interest $ 12,353,110 $ 12,353,110 Total cost of loan 46,072,526 12,447,067 58,519,594 Total cost of loan 30,859,713 30,859,713 Annual payment 1,535,751 414,902 1,950,653 Annual payment 1,234,389 1;234,389,- ;234 389.'Repayment: Repayment: Repayment: 2003 COPS 1,240,250 1,240,250 2003 COPS 1,240,250 1,240,250 Capital 1.5% funds 295,501 414,902 710,403 Balance (5,861) ..4± (5,861): i ATTACHMENT 5 City of Costa Mesa Lions Park and Fire Station 1 Projects Funding Plan Community Library Center Park Street Front Other Total Fire Station 1 Grand Total Revised July 2017 Lions Park Projects Fire Station 1 Total - Loan amount $ 18,506,603 $ 18,506,603 Estimated Cost $ ': 17,592,000 4,150,000 6,900,000 820,000 7,030,000 $ 36,492,000;: $ 10,000,000 $ 46,492,000 Est. Start date of loan 01/01/2017 Monthly payment $ 91,659 91,659 Existing Funds 4,000,000 Total interest $ 8,991,052 4,000,000 1,676,201 5,676,201 FY 16-17: Annual payment 1,099,906 ; 1,099,9066 Repayment: 2003 COPS Gas Tax ;1,240,250 Difference 300,000 (140,344] 300,000 300,000 Cap. Facil. 1.5% Funds 1,676,201 1,676,201 1,676,201 FY 17-18: Park Fees 2,500,000 2,500,000 2,500,000 Gas Tax 300,000 300,000 300,000 CIP 5% Funds (75%) - 4,387,500 4,387,500 Cap. Facil. 1.5% Funds - 1,801,995 1,801,995 Drainage Fees ..350,000. 350,000 350,000 FY 18-19: Park Fees 2,500,000 2,500,000 2,500,000 Gas Tax 220,000 220,000 220,000 CIP 5% Funds (50%+) 932,696 932,696 2,134,304 3,067,000 Cap. Facil. 1.5% Funds 1,755,000 1,755,000 1,755,000 FY 19-20: CIP 5% Funds (29%) 1,696,500 1,696,500 1,696,500 Cap. Facil. 1.5% Funds 1,755,000 1,755,000 1,755,000 2017 Lease Revenue Bonds 5,776,603 4,150,000 1,900,000 6,680,000 18,506,603 - 18,506,603 Total Funding $ 17,592,000 4,150,000 6,900,000 820,000 7,030,000 $ 36,492,000 $ 10,000,000 $ 46,492,000 Revised debt estimated Payment calculation Lions Park Projects Fire Station 1 Total - Loan amount $ 18,506,603 $ 18,506,603 Annual interest rate 3.400% Monthly interest rate 0.283% Loan period in years 25 Est. Start date of loan 01/01/2017 Monthly payment $ 91,659 91,659 Number of payments _ 300 Total interest $ 8,991,052 8,991,052 Total cost of loan 27,497,655 27,497,655 Annual payment 1,099,906 ; 1,099,9066 Repayment: 2003 COPS 1,240,250 - ;1,240,250 Difference (140,344) - (140,344] 9