HomeMy WebLinkAboutPW City Hall HVAC System Upgrades Project°"y "� Agenda Item No: 3 k.
Meeting Date: June 18, 2012
Department: Public Works
Prepared by: -ty Manager Approva
Director of Public Works (KM)
File No.: 06.01.191
SUBJECT: REPORT ON BID OPENING FOR THE CITY HALL HEATING,
VENTILATION AND AIR CONDITIONING SYSTEM UPGRADES, PROJECT
NO. 11154 (BID OPENING HELD THURSDAY, JUNE 7, 2012), AND
AUTHORIZE THE PUBLIC WORKS DIRECTOR TO AWARD THE
CONTRACT TO TRAHAN MECHANICAL, INC. IN THE AMOUNT OF
$869,000.
RECOMMENDATION: Adopt resolution
BACKGROUND: On December 21, 2009, the City, secured a federal grant for $575,400 from the
Department of Energy for its Energy Efficiency and Conservation Block Grant (EE&CBG) program. The
amount of money granted was based on the current population of the City and not the actual project
improvements needed.
On March 15, 2010, the City Council approved a contract with Lefler Engineering to design the
replacement of the main heating and cooling system within City Hall and reconstruct the first floor duct
system. The actual Heating, Ventilation and Air Conditioning (HVAC) units were purchased previously
and are now stored in the Public Works Corporation Yard.
Last year in May 2011 this project was bid and bids were received in July 2011. Due to inadequate
funding the bids were rejected. Public Works staff has worked over the last year to select other grants and
funding sources to close the funding gap and staff was successful in securing a no interest loan from
PG&E to support this project. On May 16, 2012 this project was rebid and on June 7, 2012 the following
bids were received:
ase
Trehan Mechanical, Inc.
Bangar Contractors Corp
Engineer's Estimate
FOR CITY CLERK ONLY
File No.: —I �{
Council Meeting:
Disposition:.L—fic "6
Contractor Withdrew Bid.
Lowest Responsive bidder
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
A bid from S&H Construction, Inc. was also received at the bid opening; however this contractor
has requested withdrawing of their bid proposal based on an error in their bid. Therefore, we
recommend authorizing the Public Works Director to award the contract to the second
responsive bidder, Trahan Mechanical Inc. In addition, the Department of Public Works has
been in contact with the second low bidder to discuss various value engineering techniques with
hopes of lowering the cost for the project.
This bid includes the repair of the east roof as well as any abatement that is necessary to perform
the work.
The bid contained several alternatives for Demolition of the first floor condenser, providing
additional temperature controls in the Council Chambers and modifying the dual duct system on
the 2nd floor of the building. We do not recommend moving forward with these modifications at
this time. However, the City does have the ability to add these items at a later point in time as
the budget allows.
ANALYSIS:
This is a complex project which will affect all those working and visiting City Hall. As part of this
project, a majority of the first floor (Police Department) will need to be vacated to allow for ventilation
upgrades to occur. This coordination issue with the City Police Department has already begun with the
ordering of a temporary trailer to house a portion of Police Staff for several months. The Police Dispatch
will remain open and operational. Public Works will be working closely with the Police and other
departments to address problems that arise and minimize the inconvenience to City staff as well as the
general public.
The actual replacement of the main HVAC mechanical equipment will affect all departments in the
building. Noise, heating and cooling issues, as well as a temporary loss of parking on the upper parking
facility, should be expected with this project. The large mechanical HVAC units located on the easterly
brick section of the building will be replaced. In order for this to be accomplished, the contractor will
most likely need to jackhammer a portion of the brick wall to remove and reinstall these units. Public
Works will be meeting with affected departments weekly to inform them of the work and what to expect
as the project progresses.
Construction work within an occupied building tends to be complex and involves a significant amount of
coordination, not only with the contractor and the work being performed, but also with those who are
occupying the building. Public Works is recommending hiring a construction inspection firm to inspect
and help coordinate the work due to the fact that insufficient staff is available at this time to cover this
complex project as well as other important public works projects.
Public Works is working with the City's IT Department to remove old computer wiring from the first
floor ceiling and install new wiring to better service this floor. This work is a separate construction
project administered by the IT Department but will need to be coordinated with this contract in order to
minimize problems and conflicts of multiple contractors working is one area.
In order to construct this project the contractor will need to utilize a portion of the upper parking lot to
store materials and stage equipment. At least 10 to 15 parking spaces in the upper parking lot will be
affected with this project. In addition, the some police vehicles will be displaced with the installation of
the temporary trailer for the Police Department. Police Department and Public Works staff are working
with the Parking Services Department to locate suitable parking areas for City staff and Police vehicles.
Construction materials utilized when this system was constructed are now considered to be hazardous.
This construction contract requires the contractor to take necessary steps to remove this material safely as
fi
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
well as provide all necessary precautions for workers, inspectors, employees and the public who utilize
the building. Public Works is also recommending utilizing an outside building hygienist to monitor this
particular issue during construction.
The contract for this project allows 75 working days to complete the project. The intent, with some luck,
is to perform the majority of the work during the fall season when the weather is neither hot nor cold such
that the HVAC system can be turned off without significant inconvenience to those occupying the
building. Coordination with the contractor on this issue will be necessary, and there will probably be
several occasions when the weather or the work is not aligned. If this occurs, additional fans or heaters
will be brought in to minimize the inconvenience.
FISCAL IMPACT:
Working within existing older buildings is complex such that is difficult to anticipate all the issues that
will be encountered. This system was originally constructed with the building. Standards of construction
were not the same as they are today such that in many cases unexpected modifications will be necessary
to install the new duct work on the first floor as well as installing the mechanical systems. Due to the
complexity of this project and the unknown problems that are generally found in this age of structure, we
recommend authorizing additional contingency to allow for field modifications in a timely manner.
The Federal Grant for this project received in 2009 has a funding deadline which expires this year. If the
project is not completed, the Federal Government will request a refund of the funds we have already
received.
In order to fund this project some creative financing was needed to address a portion of the shortfall.
Public Works, in working with the Marin Energy Commission and PG&E, developed a loan program to
help fund this project. The loan, which is also linked to replacing lighting systems at City Parking
garages, provides funding that is paid back over a period of 10 years with energy savings. The general
funding for this project is as follows:
Revenue Source
Amount
Notes
Department of Energy
$575,400.00
Energy Efficiency and Conservation Block
Design and Consultation -01
$84,928.71
Grant (EE&CBG)
PG&E Loan
$385,000.00
Loan linked with Energy Saving Projects for
Supplies & Services -07
$4,659.49
the City's Parking Garages
General Fund
$428,600.00
General Fund Transfer to Project Account —
Approximately $90,000 was previously set
Remaining Expenses
aside for the roof repair which is now included
Construction -02
$869,000.00
with this project.
Total Budget
$1,350,000.00
Contingency (Approximately 15%)
Category -Eden Ex ease Code
Amount
Notes
Already Obligated Expenses
Design and Consultation -01
$84,928.71
Design (Multiple Consultants)
Material
$159,793.38
Equipment Purchase
Supplies & Services -07
$4,659.49
Reproduction of Plans and Specifications
Already Obligated Expenses Sub Total 1
$249,381.58
Remaining Expenses
Construction -02
$869,000.00
Contract Amount
$150,350.00
Contingency (Approximately 15%)
Subtotal Construction
$1,019,350.00
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SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
Construction Inspection Services $120,268.42 Currently Acquiring
Remaining Expenses Subtotal $1,139,618.42
Total Project Cost $1,389,000.00
In order to complete this project, an additional amount of $338,600 ($428,600-$90,000) is needed from
the general fund. Staff has identified one-time general fund resources in fiscal year 2011-2012
and fiscal year 2012-2013 that will be available to cover this one-time funding gap. The largest
source results from the repayment of a 1972 City loan to the Redevelopment Agency, totaling
$299,489. The Oversight Board overseeing the dissolution of the Redevelopment Agency
approved the repayment of the loan and we expect to receive a lump sum payment of tax
increment this year or next year, depending on the County's process for release of funds. The
remaining approximately $39,000 will come from one-time funds reallocated to the general fund
that should have been charged to an assessment district for work completed in accordance with
the assessment.
ACTION REQUIRED:
At this time, we recommend authorizing the Public Works Director to award the construction contract to
S&H Construction Inc. and instructing the finance director to transfer the necessary funds noted above to
the project account. The Council may elect to reject all bids; however this option would equate to
forfeiting a portion of the grant amount of $159,793.38 which the City has already received.
Enclosure: Resolution
40 0
RESOLUTION NO. 13361
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
AUTHORIZING THE PUBLIC WORKS DIRECTOR TO AWARD THE
CONSTRUCTION CONTRACT FOR THE CITY HALL HEATING, VENTILATION
AND AIR CONDITIONING SYSTEM UPGRADES, PROJECT NO. 11154, TO TRAHAN
MECHANICAL, INC IN THE AMOUNT OF $869,000.00
WHEREAS, on the 7th day of June, 2012, pursuant to due and legal notice published in
the manner provided by law, inviting sealed bids or proposals for the work hereinafter
mentioned, as more fully appears from the Affidavit of Publication thereof on file in the office of
the City Clerk of the City of San Rafael, California, the City Clerk of said City did publicly open,
examine, and declare all sealed bids or proposals for doing the following work in said City, to
wit:
"City Hall Heating, Ventilation and Air Conditioning System Upgrades
Re -Bid"
Project No. 11154
in accordance with the plans and specifications therefore on file in the office of said City Clerk;
and
WHEREAS, the City Council recognizes that the apparent low bidder S&H
Construction, Inc. made an error on their bid and it is acceptable to withdraw their bid;
WHEREAS, the bid of Trahan Mechanical Inc., at the unit prices stated in its bid was
and is the lowest responsible and best bid for said work and said bidder is the lowest responsible
bidder.
WHEREAS, the contract will be awarded after the final project financing is secured.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Rafael,
that the bid of Trahan Mechanical Inc. is hereby accepted at said unit prices and the Council
hereby authorizes the contract to be awarded to Trahan Mechanical, Inc. and the unit prices
mentioned in said bid, conditioned upon the City securing project financing.
IT IS FURTHER ORDERED AND RESOLVED that the Public Works Director and
the City Clerk of said City be authorized and directed to execute a contract with Trahan
E
is
Mechanical, Inc. in a form approved by the City Attorney, for said work and to return the bidders
bond upon the execution of said contract.
RESOLVED, FURTHER, that the Public Works Director is hereby authorized to take
any and all such actions and make changes as may be necessary to accomplish the purpose of this
resolution.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the
Council of said City held on the 18`h day of June, 2012 by the following vote, to wit:
AYES: COUNCILMEMBERS: Connolly, Heller, Levine, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER C. BEIRNE, City Clerk
File No.: 06.01.191
City of San Rafael ♦ California
Form of Contract Agreement
for
City Hall Heating, Ventilation and Air Conditioning System Upgrades "Re -Bid"
City Project No. 11154
This Agreement is made and entered into this 18'h day of June, 2012 by and between the City of San
Rafael (hereinafter called City) and Trahan Mechanical, Inc. (hereinafter called Contractor).
Witnesseth, that the City and the Contractor, for the considerations hereinafter named, agree as follows:
I - Scope of the Work
The Contractor hereby agrees to furnish all of the materials and all of the equipment and labor necessary,
and to perform all of the work shown on the plans and described in the specifications for the project
entitled: City Hall Heating, Ventilation and Air Conditioning System Upgrades "Re -Bid", City
Project No. 11154, all in accordance with the requirements and provisions of the Contract Documents as
defined in the General Conditions which are hereby made a part of this Agreement. The liability
insurance provided to City by Contractor under this contract shall be primary with respect to any other
insurance available to the City.
II - Time of Completion
(a) The work to be performed under this Contract shall be commenced within FIVE (5) WORKING
DAYS after the date of written notice by the City to the Contractor to proceed.
(b) All work, including punehlist items, shall be completed within SEVENTY-FIVE (75) WORKING
DAYS and with such extensions of time as are provided for in the General Conditions.
III - Liquidated Damages
It is agreed that, if all the work required by the contract is not finished or completed within the number of
calendar days as set forth in the contract, damage will be sustained by the City, and that it is and will be
impracticable and extremely difficult to ascertain and determine the actual damage which the City will
sustain in the event of and by reason of such delay; and it is therefore agreed that the Contractor will pay
to the City, the sum of $1,300 for each and every working day's delay in finishing the work in excess of
the number of working days prescribed above; and the Contractor agrees to pay said liquidated damages
herein provided for, and further agrees that the City may deduct the amount thereof from any moneys due
or that may become due the Contractor under the contract.
1V - The Contract Sum
The City shall pay to the Contractor for the performance of the Contract the amounts determined for the
total number of each of the units of work in the following schedule completed at the unit price stated.
The number of units contained in this schedule is approximate only, and the final payment shall be made
for the actual number of units that are incorporated in or made necessary by the work covered by the
Contract.
ITEM 11
NO. DESCRIPTION
ESTIMATED
QUANTITY UNIT
UNIT
PRICE
TOTAL
PRICE
BASE BID
, #
1. City Hall HVAC System Upgrades
I LS
$788,000.00
$7,W000.00
2. Reroaf East Roof Section
I LS
$42,800.00
$42,800.00
3. Hazardous Material Abatement
I LS
$38,800.00
$38,800.00
GRAND TOTAL
$869,600.(}0
age 1
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V - Progress Payments
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(a) On not later than the 6th day of every month the Public Works Department shall prepare and submit
an estimate covering the total quantities under each item of work that have been completed from the
start of the job up to and including the 25th day of the preceding month, and the value of the work so
completed determined in accordance with the schedule of unit prices for such items together with
such supporting evidence as may be required by the City and/or Contractor.
(b) As soon as possible after the preparation of the estimate, the City shall, after deducting previous
payments made, pay to the Contractor 95% of the amount of the estimate as approved by the Public
Works Department.
(c) Final payment of all moneys due shall be made within 15 days after the expiration of 35 days
following the filing of the notice of completion and acceptance of the work by the Public Works
Department.
(d) The Contractor may elect to receive 100% of payments due under the contract from time to time,
without retention of any portion of the payment by the public agency, by depositing securities of
equivalent value with the public agency in accordance with the provisions of Section 4590 of the
Government Code. Such securities, if deposited by the Contractor, shall be valued by the City's
Finance Director, whose decision on valuation of the securities shall be final.
VI - Acceptance and Final Payment
(a) Upon receipt of written notice that the work is ready for final inspection and acceptance, the Engineer
shall within 5 days make such inspection, and when he finds the work acceptable under the Contract
and the Contract fully performed, he will promptly issue a Notice of Completion, over his own
signature, stating that the work required by this Contract has been completed and is accepted by him
under the terms and conditions thereof, and the entire balance found to be due the Contractor,
including the retained percentage, shall be paid to the Contractor by the City within 15 days after the
expiration of 35 days following the date of recordation of said Notice of Completion.
(b) Before final payment is due the Contractor shall submit evidence satisfactory to the Engineer that all
payrolls, material bills, and other indebtedness connected with work have been paid, except that in
case of disputed indebtedness or liens the Contractor may submit in lieu of evidence of payment a
surety bond satisfactory to the City guaranteeing payment of all such disputed amounts when
adjudicated in cases where such payment has not already been guaranteed by surety bond.
(c) The Contractor shall provide a "Defective Material and Workmanship Bond" for 50% of the Contract
Price, before the final payment will be made.
(d) The making and acceptance of the final payment shall constitute a waiver of all claims by the City,
other than those arising from any of the following: (1) unsettled liens; (2) faulty work appearing
within 12 months after final payment; (3) requirements of the specifications; or (4) manufacturers'
guarantees. It shall also constitute a waiver of all claims by the Contractor, except those previously
made and still unsettled.
(e) If after the work has been substantially completed, full completion thereof is materially delayed
through no fault of the Contractor, and the Engineer so certifies, the City shall, upon certificate of the
Engineer, and without terminating the Contract, make payment of the balance due for that portion of
the work fully completed and accepted.
Such payment shall be made under the terms and conditions governing final payment, except that it shall
not constitute a waiver of claims.
Page 2
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IN WITNESS WHEREOF, City and Contractor have caused their authorized representatives to execute
this Agreement the day and year first written above.
ATTEST:
Esther C. Beirne
City Clerk
APPROVED AS TO FORM:
Robert F Epstein
City Attorney
File No.: 06.01-191
CITY OF SAN RAFAEL:
Nader Mansourian
Public Works Director
CONTRACTOR:
For: Trahan Mbebanical Inc.
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