To: HONORABLE MAYOR AND From: Katy Allen

CITY COUNCIL Larry D. Lisenbee

Subject: MUNICIPAL ROSE GARDEN Date: 05-13-03

RENOVATION PROJECT

Council District: 6

REASON FOR SUPPLEMENTAL MEMO

To provide additional information after bids were opened.

RECOMMENDATION

1. Report on bids and award of contract for the Municipal Rose Garden Renovation Project to the lowest responsive bidder, Robert A. Bothman, Inc., to include the base bid and Add Alternate Nos. 1 and 2 in the amount of $1,511,000, and approval of a contingency in the amount of $151,000.

2. Adoption of the following Appropriation Ordinance Amendments in the City-Wide Construction and Conveyance Tax Fund:

a. Establish the Municipal Rose Garden Renovation Project for $210,000.

b. Decrease the Ending Fund Balance by $210,000.

3. Adoption of the following Appropriation Ordinance Amendments in the Parks and Recreation Bond Fund:

a. Increase the Municipal Rose Garden Project by $66,000.

b. Decrease the Ending Fund Balance by $66,000.

ANALYSIS

Bids were opened on April 17, 2003 with the following results:

Contractor	Base Bid	Add Alt Total	Total Bid	Variance Amount	Over/ (Under) Percent
Frank Surian and Sons, Inc. (Gilroy)	$1,647,596	$229,342	$1,876,938	$267,938	16
Kin Wo Construction, Inc. (San Francisco)	1,463,176	208,417	1,671,593	62,593	4
Chegwin Construction, Inc. (San José)	1,351,000	151,000	1,502,000	(107,000)	(6)
Engineer’s Estimate	1,275,000	334,000	1,609,000	---
Robert A. Bothman, Inc. (San José)	1,254,000	257,000	1,511,000	(98,000)	(6)
John Plane Construction, Inc. (San José)	964,003	126,000	1,090,003	(518,997)	(32)

Contractor	Add Alt. No. 1	Add Alt. No. 2
Frank Surian and Sons, Inc. (Gilroy)	$31,282	$198,060
Kin Wo Construction, Inc. (San Francisco)	23,855	184,562
Chegwin Construction, Inc. (San José)	60,000	91,000
Engineer’s Estimate	119,000	215,000
Robert A. Bothman, Inc. (San José)	31,000	226,000
John Plane Construction, Inc. (San José)	23,000	103,000

John Plane Construction, Inc. submitted the lowest base bid in the amount of $964,003. Three working days after bid opening, John Plane Construction, Inc. sent a faxed letter to the Director of Public Works indicating they made a mathematical error in their bid price and requested to withdraw their bid. According to City of San Jose Standard Specifications Section 2-1.095, the contractor submitted supplemental documentation showing that masonry work associated with bid item “brick columns and walls” was entered incorrectly as $18,000 when the actual amount was $180,000.

City staff reviewed the documentation provided and verified that the contractor made a clerical error in the bid. Staff recommends that John Plane Construction, Inc. be released from its bid on the basis of their claim.

The withdrawal of John Plane Construction, Inc. makes the lowest responsive bidder Robert A. Bothman, Inc. Robert A. Bothman’s bid is six percent below the Engineer’s Estimate and is considered reasonable for the work involved in the project. Add Alternative No.2 which is an integral part of the original Parks Bond scope of work, requires an additional $66,000 be appropriated from the Parks and Recreation Bond Fund Ending Fund Balance.

Although the project is primarily financed by the Parks Bond Fund, State Proposition 12/Roberti-Z’-Berg Harris Urban Open Space and Recreation Grant Funding provides funding for the new maintenance/office building and security lighting improvements totaling $210,000. The City applied for this grant funding and was directed from the State of California to proceed with this project in December 2002. Because Proposition 12 funding is available on a reimbursement basis, it is anticipated that the City would receive this funding in 2003-2004 when the Proposition 12 funded portion of this project is completed. In the current year, the Department of Parks, Recreation and Neighborhood Services recommends the use of the Parks City-Wide Construction and Conveyance Tax Fund Ending Fund Balance to establish a project appropriation. This fund would be replenished in Fiscal Year 03-04 when the grant funds are received.

Council Policy provides for a standard contingency of ten percent on public works building projects. The standard contingency is appropriate for this project.

An alternative to hiring a contractor for this work is for the work to be done by existing City staff. Staff considered this alternative and recommends using a contractor because current City staff is fully utilized for coordination and construction management services and there are no

available existing City staff resources with appropriate expertise or licensing requirements to perform construction work related to historic buildings.

COST IMPLICATIONS

1. AMOUNT OF RECOMMENDATION: $1,511,000

2. COST OF PROJECT:

Construction	1,511,000
Project Delivery*	421,900
Contingency	151,100
TOTAL	$2,084,000

* $135,603 for the consultant agreement was expended/encumbered in FY 2001-02.

3. SOURCES OF FUNDING: 471 - Parks and Recreation Bond Projects Fund

391 - Parks City-Wide C&C Fund

4. FISCAL IMPACT: This project is consistent with the Council-approved Budget Strategy’s Economic Recovery section in that it will spur construction spending in our local economy. However, the adopted Capital Improvement Program includes the following annual operating and maintenance impacts.

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC #	Total Appn.	Amt. for Contract	Adopted Budget Page	Last Budget Action (Date, Ord. No.)
471	6928	Municipal Rose Garden	11910X	1,618,000**	1,511,000	Page 620	10/15/02-Ord. No. 26755
		Total		1,618,000**	1,511,000

**An additional $54,000 is budgeted in 2003-2004 for this project.

CEQA

Exempt; HP02-020.

KATY ALLEN LARRY D. LISENBEE

Director, Public Works Department Director, Budget Office