Title
a. Award a contract to John F. Otto, Inc., dba Otto Construction the lowest responsible and responsive bidder, for Integrated Health Clinic Services Center, 298 12th Street, Marina, CA Project No. 8834, Bid Package No. 10351, in the total amount of $2,576,050;
b. Approve the Performance and Payment Bonds executed and provided by John F. Otto, Inc., dba Otto Construction;
c. Authorize a contingency in the amount of $257,605 to ensure funding to complete the project as determined by the Director of Public Works; and
d. Authorize the Director of Public Works to execute the contract and, subject to the terms of the Public Contract Code, approve contract change orders where each change order does not exceed 10% of the original contract amount, and do not significantly alter the scope of work.
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RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Award a contract to John F. Otto, Inc., dba Otto Construction the lowest responsible and responsive bidder, for Integrated Health Clinic Services Center, 298 12th Street, Marina, CA Project No. 8834, Bid Package No. 10351, in the total amount of $2,576,050;
b. Approve the Performance and Payment Bonds executed and provided by John F. Otto, Inc., dba Otto Construction;
c. Authorize a contingency in the amount of $257,605 to ensure funding to complete the project as determined by the Director of Public Works; and
d. Authorize the Director of Public Works to execute the contract and, subject to the terms of the Public Contract Code, approve contract change orders where each change order does not exceed 10% of the original contract amount, and do not significantly alter the scope of work.
SUMMARY/DISCUSSION:
The project consists of tenant improvements to the site and building for the purpose of providing homeless assistance and various outreach services to the County. On April 11, 2012, bids were received from seven contractors. The lowest responsible bidder was Otto Construction for a total construction bid of $2,576,050 (base bid plus three add alternates), approximately 17% below the final construction estimate. Including a 10% contingency of $257,605, $2,833,655 is required for the construction budget. Health and Department of Public Works (DPW) staff met to review the bid results and determined that the Health Department is able to cover the base bid and all three add alternates with an additional $534,411. The Clinic Services Fund will fund $235,625 and the remaining balance of $298,786 will be funded from unexpended Mental Health monies.
Negotiations on the purchasing of this site at Fort Ord were brought before the Capital Improvement Committee (CIC) on November 6, 2008, and to the Budget Committee (BC) on January 28, 2009, by the Behavioral Health Division. On September 13, 2010, and September 29, 2010, the CIC and BC supported the selection of an architectural firm to design the tenant improvements and on March 15, 2011, approved a contract award to The Paul Davis Partnership.
During negotiations to secure the site, a pre-programmatic estimate was used based on very limited understanding of the project scope. Historically, this project was allocated approximately $1.6 million for construction plus contingency. As design and functional requirements developed a professional construction estimate was prepared at the end of each design phase.
On October 6, 2011, the CIC received a status report on the development of the project and construction estimates received. The Schematic Phase estimate was $2,990,748 and final Design Development Phase estimate was $3,317,870 after value engineering. On October 31, 2011, the project site was reviewed with Supervisors Potter and Salinas. Staff was then tasked to identify how the current terms of the deed agreement would be affected if the project's program was adjusted and how and from what source the budget deficit would be closed. In December 2011, staff informed the CIC via a memorandum an alternative funding source had been identified by Behavioral Health and changes to the project program were allowed within the terms of the deed.
On January 9, 2012, the CIC supported the final project program of a base bid with three add alternate areas and to bid the project to determine final construction costs. In addition, staff was instructed to return to the BC with the bid results before starting the award of a construction contract process. The final construction estimates were received for the base bid and three add alternates after the CIC meeting. The final total construction estimate was $3,105,793 with a base bid of $2,050,645. Behavioral Health agreed to fund the budget shortfall for the base bid only to be covered by unexpended Mental Health monies and the construction budget was adjusted to $2,278,494 which included a 10% contingency.
On March 13, 2012, the Board approved the plans and specifications and authorized the advertising of the project. At this time the final estimates were reported and if the bids conformed to the estimates, then only the Base Bid could be awarded.
On April 25, 2012, the BC supported the award of this contract.
OTHER AGENCY INVOLVEMENT:
The Department of Public Works is working closely with Behavioral Health and their Financial Analysts and CAO Financial Analysts during the development of this project.
FINANCING:
There is no financial impact to the General Fund. This project is fully funded by the Health Department's Behavioral Health (Unit HEA002). Funding for this project is derived from the Mental Health Services Act Proposition 63, Capital Facilities and Technological Funds (MHSA) and unexpended Mental Health monies. The project budget is $3,733,555. Total costs to date are $274,312 for a project balance of $3,459,243.
Prepared by: Richard P. Sauerwein, Jr., P.E., Architectural Services Manager (831) 796- 3071
Approved by:
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Paul H. Greenway, P.E., Acting Director of Public Works
Approved by:
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Benny J. Young, RMA Director
Dated: May 11, 2012
Attachments: Project Budget; Bid Summary; Agreement and Bonds; Location Map