Subject:     MUNI WATER/TUERS YARD BUILDING B MODIFICATION

 

COUNCIL DISTRICT:  7

 

 

RECOMMENDATION

 

Report on bids and award of contract for the Muni Water/Tuers Yard Building B Modification Project to the low bidder, Tucker Construction, Inc. in the amount of $288,400, and approval of a contingency in the amount of $30,000.  CEQA: Exempt.

 

BACKGROUND

 

In summer 2000, the City relocated Parks, Recreation and Neighborhood Services Department’s staff and facilities from the Tuers Service Yard to the Central Service Yard.  Subsequently, the interior of a 1,600 square foot section of Building B at the Tuers Service Yard (see attached site plan) was modified for Muni Water occupancy and use.  In November 2000, the Department of Environmental Services requested Public Works to design and construct modifications to a 2,000 square foot section of the remaining portion of Building B for Muni Water staff occupancy and use.

 

The scope of work for the project includes demolition work, reconstruction of heating and air conditioning systems, installation of new walls, ceiling, doors, windows, carpeting, painting and other miscellaneous work.

 

ANALYSIS

 

Bids were received on May 3, 2001 with the following results:

 

 

Contractor

Bid Amount

Variance

Amount

Over/Under

Percent

 

 

 

 

Apex Construction

  (Los Gatos)

$329,550

$138,550

72

Frank Surian & Sons, Inc.

  (San Jose)

322,400

131,400

69

Demsey Construction

  (San Jose)

320,566

129,566

68

Eddie Torrez Construction

  (San Jose)

310,000

119,000

62

Tucker Construction, Inc.

  (San Jose)

288,400

97,400

51

Engineer's Estimate

$191,000

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The low bid, submitted by Tucker Construction, Inc. is 51 percent higher than the Engineer’s Estimate.  The Engineer’s Estimate was based on the cost of a construction contract that included similar modifications of a portion of the same building which was completed in June 2000.  Staff contacted several bidders to discuss the bid results.  Based on these discussions, staff attributes these bids to high current demand for contractors of building construction trades and increases in material costs, and therefore considers this to be a reasonable price for the construction of this project.

 

A contingency in the amount of $30,000 is requested for any unforeseen conditions which may arise during construction of this project.

 

PUBLIC OUTREACH

 

This proposed project was listed on the City’s Internet Bid Line and advertised in the San José Mercury News and San José Post Record.  Bid packages for all Department of Public Works construction projects are routinely provided to a standard list of various contractor organizations, builder’s exchanges, and disadvantaged business organizations, including United Minority Business Enterprises and the San José Minority Business Development Center.

 

COORDINATION

 

This proposed project has been coordinated with the Departments of Environmental Services and General Services, and the Offices of the City Attorney, Risk Manager and Equality Assurance.

 

COST IMPLICATIONS

 

1.         COST OF RECOMMENDATION:  $288,400

 

2.                  COST OF PROJECT:

                        Project Development:                                                                                       $    2,000

Construction                                                                                                       288,400

Consultant                                                                                                            37,000

Design and Construction Management                                                       64,000

Contingency                                                                                                         30,000

                        TOTAL                                                                                                            $421,400

 

3.         SOURCE OF FUNDING:  500 – Municipal Water System Capital Fund

 

4.         ESTIMATED START DATE OF CONSTRUCTION:  July, 2001

 

5.         ESTIMATED COMPLETION DATE OF CONSTRUCTION:  December, 2001

 

BUDGET REFERENCE

 

Fund:

500

APPN:

4376

RC:

106613

Amount:

$312,000*

Budget Document:

2000-2001 Appropriation Ordinance, section 11.02, item 1e. 

 

*An appropriation action for additional funding in the amount of $200,000 will be agendized by the Budget Office concurrently with the award of this proposed project.

 

DISCRIMINATION

 

The City of San José Nondiscrimination Requirements are included in this project as required by Chapter 4.08 of the San José Municipal Code.

 

CEQA

 

Exempt.

 

 

RAJEEV BATRA

Acting Director, Public Works Department