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Home My WebLink AboutR29420A - DW Lkvw Terrace Xpnsn - Rscnd Award to GHA PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: 1) RESCIND AWARD OF CONTRACT NO. R29420A TO GHA ENTERPRISES, INC. FOR THE LAKEVIEW TERRACE PROJECT; AND 2) AUTHORIZE THE AWARD OF CONTRACT NO. R29420A TO THE LOWEST RESPONSIVE BIDDER FOR THE LAKEVIEW TERRACE EXPANSION PROJECT AT DESERT WILLOW GOLF RESORT SUBMITTED BY: Martin Alvarez, Redevelopment Manager CONTRACTOR: TBD DATE: July 27, 2010 CONTENTS: Contract No. R29420A Site Plan and Elevations Recommendation By Minute Motion: 1. Rescind award of Contract No. R29420A to GHA Enterprises, Inc.; 2. Approve project additive alternates 1-2, 4, and 6-7; 3. Authorize the Chairman to execute Contract No. R29420A to the lowest responsive bidder in the amount not to exceed $ (verbal recommendation to be provided) for the Lakeview Terrace expansion at Desert Willow Golf Resort; and 4. Authorize the Finance Director to set aside a 10 percent contingency (use of contingency requires additional action). Funds have been included in the proposed 2010/2011 Financial Plan in Project Area No. 2, Account No. 851-4663-454-4001. Executive Summary On June 24, 2010, the Agency Board authorized the award of a contract to GHA Enterprises, Inc. (GHA) in the amount not to exceed $1,089,000, with a 10 percent contingency ($108,900). The contract included additive alternates 1-2, 4, and 6-7 as listed below. 1. Seeded aggregate concrete finish at the new lower terrace area. 2. Installation of seven (7), 52" fans at existing and new canopy areas. 3. (Not Awarded) Extension of misting system along the ballroom's north facing roofline. Staff Report Aware Contact No. R29420A - Lakeview Terrace Expansion at Desert Willow July 27, 2010 Page 2 of 5 4. Addition of a decorative screen wall/landscaping at west patio stairs to screen service counter. 5. N/A 6. Installation of 20 ceiling mounted heaters at existing and new canopy areas. 7. Sandblasting and repainting of exiting canopy. GHA was unable to secure the appropriate performance and payment bonds during the required timeframe. The City Attorney has reviewed this matter, and has indicated that the contractor can be deemed non-responsive. Approval of staff's recommendation will rescind the award of contract to GHA Enterprises, Inc., and will award a contract to the lowest responsive bidder. The lowest responsive bidder will be determined after the Agency Board considers and approves the additive alternates to be included in the contract. Backqround On June 24, 2010, the Agency Board awarded a contract to GHA in the amount of $1,089,000 for the Lakeview Terrace expansion project at Desert Willow Golf Resort. The base bid included the following components: • Expansion of the existing outdoor terrace seating capacity by 100 guests and banquet capacity by 250; approximately 13,000 square feet. • New exterior bar, new steel canopy, service counters, fire pit, outdoor fireplace, and landscaping. • Expansion to the ballroom's northwest corner and to the Private Dining Room's north elevation totaling 315 square feet. The contract also included the following additive alternates: 1 � ' ct ar�c��er�at� ; nccete�in��;� ��e�r � ��rra�e a�� ..n,�� .; a��t�n �f��u� 5�.�, ��r�" t �� :� 3. Not awarded (Extension of misting system along the ballroom's north facing roofline) , �,. 4 }��tt�n c�f a a��ara�kive.,scre�n w�llll�n��c�p��at w��;�, patir� stai�s,�c� scre�n; s�r�t��.:Ct�unter.. 5. N/A. 6 ir��tallatiQn C�#�t��c�lum� . �#�t�fiec� h�:�#�rs �#�x��i�,��,.�'��w �ar��r�.ar��s.. ? ,��r�dblast[r�t��r�t�r�pam#�� th��ext#tnr�;c�n�py> The total bid including the above highlighted additive alternates was authorized for award in the amount not to exceed $1,089,000, with a 10 percent contingency of$108,900. GHA Enterprise, Inc. Non-Resqonsive Staff worked with GHA to secure the required faithful performance and payment bonds required per the project specifications. Per the project specifications, GHA was given 10 business days to provide bond documents by a surety company authorized to carry on G:\rda\Martin Alvarez�2010\SRV-27-10 Award LVT ExpansionDR.doc Staff Report Aware Contact No. R29420A - Lakeview Terrace Expansion at Desert Willow July 27, 2010 Page 3 of 5 business in the State of California. The bond provided by GHA did not meet the project specifications. GHA indicated that they could not meet the bonding requirements for approximately four to six weeks. The City Attorney reviewed this matter and has indicated that the Agency Board may deem GHA non-responsive. If the Agency Board desires it may direct the City Attorney to exercise our right to the 10 percent bid bond in the amount of $108,900 to off-set the project delay and portion of the bid cost. Bids Results Below is the summary of the bid results, including the additive alternates. COMPANY NAME BID AMOUNT GHA Enterprises Inc. — Cathedral City, CA $999,390.00 Additive Alternates (1-7) $122,766.00 Total $1,122,156.00 DavisReed — San Diego, CA $1,223,000.00 Additive Alternates (1-7) $77,500.00 Total $1,300,500.00 Orr Builders — Bermuda Dunes, CA $1,212,700.00 Additive Alternates (1-7) $134,500.00 Total $1,347,200.00 RSM2 — La Mesa, CA $1,397,157.00 Additive Alternates (1-7) $122,755.00 Total $1,519,912.00 JM Builders, Inc. — Redlands, CA $1,594,000.00 Additive Alternates (1-7) $125,000.00 Total $1,719,000.00 Doug Wall — Bermuda Dunes, CA $1,552,611.00 Additive Alternates (1-7) $204,500.00 Total $1,757,111.00 AVI-CON, Inc. — Riverside, CA $1,633,000.00 Additive Alternates (1-7) $198,000 Total $1,831,00.000 Base Bid/Additive Alternates The projects base bid includes the full scope of the project including the expansion of the terrace deck, new canopy, outdoor bar, fire pit, and fireplace. As part of the bid, staff requested additive alternate bid pricing for several items that would enhance the project if budget allowed. G:1rdalMartin Alvarez�2010\SR\7-27-10 Award LVT ExpansionDR.doc Staff Report Aware Contact No. R29420A - Lakeview Terrace Expansion at Desert Willow July 27, 2010 Page 4 of 5 The additive alternates included in the bid are listed below: 9 � ��i ` ��'��c� �'�r�[s�i � ��w Ic��r�:r" �r� ,��}{�,� � ��:�s�a x �ir�.'c�f se' ._�..��a a��"�'� . �.. �"��r�� n�w c��t�y�r��a��,� � �:. 3. Not Recommended Extension of misting system along the ballroom's north facing roofline ($5,000). u ��„W- 4� �c�d��r�r�� e�c�� u� ,screen w�Elllands��;�g "��„w�� , .� �a �t�� r��n ��sA ��rv�c�;��? ,,n��r��'�a;�� 5. N/A 6 ��tall�t�� .. �t��r r�� -�he�t � ��+�x�s � lr��an�� ' f�s{�� .��. 7 �a�r� .�,y.�. � � ....,�.� t... ��.� ,�� }.. ..t��l�s�t�n.�.�� arr�t�� '°��fi��. . . �Y��{��,:. If the Agency Board rescinds the contract with GHA, the next lowest responsive bidder will be determined based on the additive alternates the Agency Board wishes to include in the contract. Including the additive alternates under this contract will enhance the projects aesthetics, provide additional amenities, and minimize disruptions to business operations if these amenities are added at a later date. Contractor Qualifications As part of the bid package, the Agency requested that bidders provide a listing of a minimum of three projects with similar scope within the last five years. Agency staff and our construction manager have reviewed the qualifications submitted by the next two lowest bidders. Staff has determined that the bidders in contention for award of the contract meet the criteria set forth in the bidding process, and can provide the appropriate bonding documents for the project. Both DavisReed and Orr Construction are also pre-qualified for the bidding on the Desert Willow Kitchen/Building expansion currently out to bid. Desert Willow Capital Budqet In January of 2010, staff presented the Agency Board with an estimated construction estimate of$5.45 million for all three proposed Desert Willow projects: 1. Lake View Terrance $1 million 2. OverFlow Parking Lot $1.5 million 3. Kitchen/Building Expansion $2.95 million Total: $5.45 million Funds for all three projects are included in the Redevelopment Agency's 2010/2011 Financial Plan (Project Area No. 2, Account No. 851-4663-454-4001). The bids for the Lakeview Terrace and the Overflow Parking Lot projects have been secured as follows: 1. Lake View Terrace $1,295,000, plus 10% contingency ($129,500) 2. Overflow Parking Lot 515 366, plus 10% contingency ($51,536.60) Total: $1,991,402 G:\rda\Martin Alvarez�2010\SR\7-27-10 Award LVT ExpansionDR.doc Staff Report Aware Contact No. R29420A - Lakeview Terrace Expansion at Desert Willow July 27, 2010 Page 5 of 5 The actual costs for the terrace and parking lot projects are $1,991,402, leaving a balance of $3,458,597.40. The estimated construction estimate for the Kitchen/Building expansion project is $2.95 million. The kitchen's project estimate including contingency can be covered by the remaining budgeted funds. Bids for the Kitchen/Building Expansion are due July 23, 2010, and a verbal recommendation will be provided to the Agency Board at the July 27, 2010, meeting. Schedule If staff is authorized to award a contract to the lowest responsive bidder, the project would commence in mid August 2010. The project has a 75-day construction period and is estimated to be complete by mid October 2010. From an operation standpoint, work will be completed during the non-peak period (i.e., summer months) minimizing impacts to the golf resort. Recommendation Staff recommends that Agency Board approve additive alternates 1-2, 4, and 6-7. If the Agency Board approves these additive alternates (also included in GHA's contract), staff recommends award of contract to DavisReed, San Diego, California, in the amount not to exceed $1,295,500, plus a 10 percent contingency ($129,500) for the Lakeview Terrace expansion project. Fiscal Analvsis The architecYs construction estimate was $1.1 million. The next lowest responsive bid in the amount of $1,295,000, with additive alternates 1, 2, 4, and 6-7 has been considered. The estimated return on investment is approximately three to four years. Additional revenues produced as a result of the expansion may augment future General Fund revenues. Funds have been budgeted for this purpose in Project Area 2 Desert Willow Capital Outlay; therefore, there is no fiscal impact to the General Fund. Submitted By: Department Head: . ` M in rez, Redevelopment Manager J in McCarthy, AC edevelopment Paul S. Gibson, Director of Finance Approval: � ' ` - �,� � .C� �v�aA�-U ��:Cj� 6a��r��T� , - �-�.�-�-�-�-� �/ r JohrX . Wohlmuth, Executive Director ON / � `��' �v/� � VERIFIED BY �'� /�tZ'" G:\rda\Martin Alvarez�2010\SR17-27-10 Award LVT ExpansionDR.doc , Origin�t on fil� �nrith City �:�� 7ffic€4 Contract No. R29420A SECTION 00500 AGREEMENT THIS AGREEMENT is made and entered into this day of , 2010, by and between Palm Desert Redevelopment Agency, California, hereafter called "OWNER," and hereinafter called "CONTRACTOR." WITNESSETH RECITALS: CONTRACTOR has submitted to OWNER its CONTRACTOR's Proposal for the construction of OWNER's Project, 1. Desert Willow Lakeview Terrace Proiect, Contract No. R29420A in strict accordance with the Contract Documents identified below and OWNER has accepted said Proposal, inclusive of the base bid plus the following alternates: 2. CONTRACTOR states that it has re-examined its CONTRACTOR's Proposal and found it to be correct, has ascertained that its subcontractors are properly licensed and possess the requisite skill and forces, has examined the site and Contract in accordance with the Contract Documents for the money set forth in its Proposal to be paid as provided in the Contract Documents. AGREEMENT: IT IS AGREED BY THE PARTIES AS FOLLOWS: 1. Contract Documents: The entire contract consisfs of the following: (a) The Notice Inviting Sea/ed Bids (Section 00200]; (b) The Instructions to Bidders �Section 00300]; (c) Bid [Section 00400J; (d) Bid Schedule �Section 00410J; (e) The Bid Guaranty Bond (Section 00420]; (� Designafion of Subcontractors �Secfion 00430]; (g) Schedule of Manufacturers and Suppliers, Major Equipment, and Material Items �Section 00440]; (h) Non-Collusion Affidavit (Section 00450J, Certification of Bidder and Qualifications (Section 00470J; (i) Contractor Qualification Statement jSection 00471J, (j) The Agreement �Section 00500J; (k) Liability and lnsurance Requirements �Section 00600J; (l) Special lnsurance Endorsement (Section 00610]; (m) The Faithful Performance Bond �Section 00620J; (n) The Payment Bond �Section 00640j; (o) The Supplementary Conditions; (p) the General Conditions; (q) Modifications to Genera/ Condifions (Section 00810]; (r) The Plans; (s) Addenda Nos. ; (t) The Determination of Prevailing Wage Rates for Public Work; (u) Any Change Orders issued; (v) Any additional or supplemental specifications, notices, instructions and drawings issued in accordance with the provisions of the Contract Documents. A/l of said Documents presently in existence are by this reference incorporated herein as if here set forth in full and upon the proper issuance of their documents they shall likewise be deemed incorporated. Contract No. R29420A 2. CONTRACTOR shall commence the work within five (5) calendar days after the date of the Notice to Proceed and will do all things necessary to construct the work generally described in Recital No. 1 in accordance with the Contract Documents and will complete said work within seventv-five (75) consecutive calendar days from the Notice to Proceed date to the satisfaction of the Owner's Representative. 3. That the CONTRACTOR agrees to indemnify, defend, and hold harmless the OWNER, and its officers, and employees, the ARCHITECT, Owner's Representative from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, material men, laborers, and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this Agreement. 4. Attention is directed to Section 00700-6.5, "Liquidated Damages" of the General Conditions. Liquidated damages shall be $2,000 dollars per calendar day of delay. 5. Should any litigation or arbitration be commenced between the parties concerning the works of improvements as referenced herein, the prevailing party in any such litigation, being the OWNER or the CONTRACTOR, should be entitled to a reasonable sum for attorney's fees and costs incurred in any such litigation relating to this Contract. 6. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. 7. CONTRACTOR shall be paid in the manner set forth in the Contract Documents the amount of its proposal as accepted by OWNER, subject to such additions and deductions as may be made pursuant to the Contact Documents and applicable law. 8. Execution of the Agreement by the parties constitutes their agreement to abide by all applicable provisions of the California Labor Code; constitutes CONTRACTOR's certification that he is aware of the provisions of said Code and will comply with them; and further constitutes CONTRACTOR's certification as follows: "I am aware of the provisions of Section 3700 of the California Labor Cade which requires every employer to be insured against liability for worker's compensation or to undertake self insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the perFormance of the work of this contract." Contract No. R29420A IN WITNESS WHEREOF the parties hereto have executed or caused to be executed by their duly authorized officials, this Agreement which shall be deemed an original on the date first above written. 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