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Home My WebLink AboutR29450C - Ktchn/Bldg Xpnsn @ DWGRCITY OF PALM DESERT / PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: AUTHORIZE THE EXECUTIVE DIRECTOR TO AWARD CONTRACT NO. R29450C TO THE LOWEST RESPONSIVE BIDDER FOR THE DESERT WILLOW KITCHEN/BUIDLING EXPANSION PROJECT AT DESERT WILLOW GOLF RESORT SUBMITTED BY: Martin Alvarez, Redevelopment Manager CONTRACTOR: TBA ,I DATE DATE: July 8, 2010�MTINUEDM 9 CONTENTS: Floor Plan/Elevations 3 El PA82SEM TO 2NQ READING Resolution No. 2010-61 * Continued this matter to a Special or Adjourned Meeting with date to be determined Recommendation by the City Manager. 4-0 (Kelly ABSENT) By Minute Motion: 1. Authorize the Executive Director to award Contract No. R29450C to the lowest responsive bidder for the Kitchen/Building expansion at Desert Willow Golf Resort up to the project budget of $2.95 million, plus 20 percent (bids scheduled to open July 20, 2010); 2. Authorize the Finance Director to set aside a 10 percent contingency (based on lowest responsive bid amount). Use of contingency requires additional action; and 3. Waive further reading and adopt Resolution No.2010-61 approving a loan in the amount not -to -exceed $500,000 from the City,s Golf Course Maintenance Fund (Fund 241) to the Desert Willow Golf Course Operating Fund (Fund 520) Funds for the construction have been included in the proposed 2010/2011 Financial Plan in Project Area No. 2, Account No. 851-4663-454-4001. Executive Summary Approval of staff's recommendation will authorize the Executive Director to award a contract to the lowest responsive bidder (not -to -exceed project budget of $2.95 million, plus 20 percent), based on the bid opening date of July 2010 for the Kitchen/Building expansion project at Desert Willow Golf Resort. This approval will provide the necessary flexibility to meet the accelerated construction completion by the end of 2010. Approval will also authorize the City to loan up to $500,000 from the Golf Course Maintenance Staff Report Aware Contact No. R29450C — Kitchen/Building Expansion at Desert Willow July 8, 2010 Page 2 of 4 Fund (241) to the Desert Willow Operating Fund (520) in order to mitigate the direct impact of closure of the restaurant during the renovation. Loan funds will be repaid by 2015 with interest. Staff recommends approval. Background At the January 7, 2010, study session, the Agency Board reviewed the concept plan for the Desert Willow Kitchen/Building expansion. The concept plan included, but was not limited to the following components: • A 5,264 square foot expansion to the kitchen/building at the east end of clubhouse. • Remodel of the existing lobby/bar area to accommodate an expanded bar area with the relocation of two offices. • Expansion of the lobby/ballroom hallway to eliminate the pinch point. • Enclosure of the existing ballroom to reduce noise. • Modification to the ballroom audio visual, window shading, and lighting. On January 14, 2010, the Agency Board approved the concept plan and authorized staff to secure an architect to finalize the construction documents. On January 28, 2010, the Agency Board awarded a contract to Melzer, Deckert & Ruder Architects, Inc. The project adds flexibility to host multiple events simultaneously while preserving the ability to service residents and guests (see attached site plan and elevations). The project received approval by the Architectural Review Commission on March 23, 2010, and Planning Commission approval on April 6, 2010. Pre -qualified Contractors/Sealed Bids On June 24, 2010, the Agency Board ratified the list of pre -qualified contractors that are eligible to bid on the project plans and specifications. After review of an appeal by one of the declined contractors, a revision to the prequalified list adding Orr Builders (Palm Desert, CA) will be presented to the Agency Board on July 8, 2010. On June 28, 2010, Agency staff published a notice in The Desert Sun inviting sealed bids for the Kitchen/Building expansion project. Due to the accelerated project schedule and the Agency Board summer meeting schedule, staff requests authorization to allow the Executive Director to award a contract to the lowest responsive bidder based on the results of the July 20, 2010, bid opening. The construction estimate is $2.95 million, including the additive alternates proposed below: 1. Replacement of nine chandelier light fixtures with dimmable chandelier fixtures in the Firecliff Ballroom and Palm Desert Room. 2. Provide alternate Bone Simple (colored silk light fixture) pendant lights in lieu of Hubbardton Forge pendants occurring at new east banquet lobby. G'\rda\Martin A1varez\2010\SR\7-8-10 Award DWK Expansion.doc Staff Report Aware Contact No. R29450C — Kitchen/Building Expansion at Desert Willow July 8, 2010 Page 3 of 4 3. Decorative glass at aluminum framed folding partition wall separating the Firecliff Ballroom from lobby and lobby bar. The additive alternates may be incorporated as part of the base bid, if the lowest responsive bid is below the project budget. Schedule In order to expedite the project and meet the early August 2010 start date, staff is requesting authorization by the Executive Director to execute a contract with the lowest responsive bidder. This authorization is requested due to the Agency Board's modified summer schedule, which includes cancellation of the second meeting in July and the first meeting in August. If the Executive Director is authorized to award a contract to the lowest responsive bidder, the project would commence in August 2010 with completion date by the end of December 2010. From an operation standpoint, the majority of the work will be completed during the non -peak period minimizing impacts to the golf resort. Desert Willow Food and Beverage Operations The Desert Willow Golf Resort management agreement requires that Kemper Sports Management, Inc. (Kemper) maintain a minimum cash balance of $500,000 at all times in the Desert Willow operating account. As part of the Kitchen/Building expansion project, it is anticipated that the Desert Willow restaurant operation will be closed for the first half of fiscal year 2010-2011. Limited food and beverage operations will continue with the use of the Willows Room (former Intrawest Room) and the use of Cooks' Grill. A proposed loan in the amount not -to -exceed $500,000 will mitigate the impact of the business interruption, and provide a good faith measure towards the management agreement between the City and Kemper. Kemper will continue to be held to the daily $500,000 cash reserve requirement as per the language of the management agreement. Financial Impact The loan of up to $500,000 will mitigate the direct impact of the closure of the restaurant for approximately six months caused by the anticipated building renovations. The loan will commence on October 1, 2010, for five years at an annual interest rate of 4 percent. Interest income on an annual basis will be $20,000 on a $500,000 loan, payable on September 30 of each of the five years. The principal along with the final interest payment will be paid on September 30, 2015. Total interest revenue for the five-year loan will be $100,000. G \rda\Martin A1varez\2010\SR\7-8-10 Award DWK Expansion doc Staff Report Aware Contact No. R29450C — Kitchen/Building Expansion at Desert Willow July 8, 2010 Page 4 of 4 Recommendation Staff recommends that the Agency Board authorize the Executive Director to execute a contract with the lowest responsive bidder for the Kitchen/Building expansion project based on the results of the July 20, 2010, bid opening. Staff will return to the Agency Board on August 26, 2010, to ratify the award of contract. Staff also recommends approval of the attached resolution authorizing an operating loan in the amount not -to -exceed $500,000 from the City Golf Course Maintenance Fund (Fund 241) to the Desert Willow Golf Resort Operating Fund (Fund 520), to be repaid by September 30, 2015, with interest. Fiscal Analvsis The estimated construction cost for the project is $2.95 million. The preliminary construction cost of $2.95 million, plus 20 percent has been considered and included in the proposed 2010/2011 Financial Plan. The kitchen and building expansion is necessary to meet the current and future space and demands. The kitchen will assist with the additional dining demand created by the Lakeview Terrace expansion and minor expansion to the ballrooms. Additional revenues produced as a result of the Lakeview Terrace expansion may augment future General Fund revenues. Funds are available in the Unobligated Project Area 2 Fund; therefore, there is no immediate fiscal impact to the General Fund. Funds are available in the City's Golf Course Maintenance Fund 241 to facilitate the loan to the Desert Willow Operating Fund. Repayment of the loan is required by September 30, 2015, with interest earnings of $100,000; therefore, there is no immediate impact to the General Fund. Submitted By: Kfartin Alvar evelopment Manager Paul Srlt�on, Director of Finance me Department Head: sti McCarthy, �!n Redevelopment J 0 M. Wohlmuth, Executive Director/City Manager G.\ro\Marhn AIvarez\2010\SR\7-8-10 Award DWK Expansion doc RESOLUTION NO. 2010-61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING A LOAN FROM THE GOLF COURSE MAINTENANCE FUND 241 FUND TO THE DESERT WILLOW GOLF RESORT OPERATING 520 FUND WHEREAS, the City Council has authorized the construction of Desert Willow Golf Resort Lakeview Terrace expansion to accommodate projected increase demands from golf resort outings, dining, and banquet services; and WHEREAS, the City has authorized the Kitchen/Building expansion at the Desert Willow Clubhouse to accommodate projected demands on the clubhouse from the expanded Lakeview Terrace; and WHEREAS, the current management agreement requires Kemper Sports Management Company to maintain a daily cash balance of $500,000 in the operating account; and WHEREAS, the City Council has determined it is desirable to proceed at this time with capital improvements to the clubhouse and to loan the necessary funds from the Golf Resort Maintenance Fund 241, subject to repayment, as described below. NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY DETERMINE, ORDER AND RESOLVE, as follows: The City Council herby authorizes a loan from the Golf Course Maintenance Fund 241 to the Desert Willow Golf Resort Operating Fund 520 in the amount not to exceed $500,000, subject to simple interest on the unpaid principal balance thereof, computed at a per annum rate of four percent 4% from the date of loan disbursement to the date of repayment. The principal on loan will be repaid to the golf course maintenance fund on September 30, 2015. Interest on the outstanding principal will be paid annually on September 30. to wit: PASSED, APPROVED and ADOPTED this day of 2010, by the following vote AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY CINDY FINERTY, CHAIRMAN \ i 0 z (E) STONE U) FLOORING (E) FOYER �ECEPTIOI' 106 - L)\\] --7-11 -",/) H 0 0 (E) STONE FLOORING (E) GALLERY _ —_-- (E) LAKEVIEW TERRACE NO CHANGE - ��-------�� \ III -- — — — — —- �__-----III III III _________� JJ L� �_____ I O I I i V I I 1 (E) GRILL L� (E) CPT y y I II II III I II JII (E) BANQUET RM 1 (E) BANQUET RM 2 (E) CPT I O FYI IFT P 2 2 2 VESTIBULE 2 z co 1 GRILL (E) CPT (E) CPT VESTIBULE �F—IM-11 o STN z (INSET) KITCHEN Oxz ESTIBUL OOV O 127 0 0 COL (TAN LOBBY BAR COLOR) r -55 �n� 4 3 QT -1 J ICK-U BACK BAR 126 105 Da QT-1 (TA (E) I.T. (E) ELECT. COLOR) CLOSET RM ADMIN � 107 CPT-3 A (E) OFFICE 1 (E) OFFICE 2 (E) OFFICE 3 NO CHANGE NO CHANGE I NO CHANGE I a Op I I I I KITCHEN 108 QT-2 ® 1XI F — — — — — — — — - ILCHEF'S L__1 L OFFICE DRY 0 01 115 STORAGE I QT-2 116 — — — — — — — — — QT-2 I I I I I L 000000 00 00 0 000000c �000000 0000 noo,.noc LIQUOR STORAGE 117 (E) PRIVATE DINING (E) CPT i III III III III n III III � II III III � i�� NEW CARPET TILE + PATTERN (E) CPT STN-1 TO MATCH EXISTING �— CHINA STORAG 118 QT-2 C.J. U vl � — U ?I INTEGRAL COLORED 00000° U b U CONCRETE SIDEWALK - °oo 0 0 00 MATCH EXISTING SIDEWALI .-,,00°a, o0111"0 o°a FOR COLOR, FINISH, AND JOINT3 � II II II It— E.J. I � BANQUET LOBBY---1-� 101 STN-1----L--- C.J.----- Cil cil DECORATIVE CONCRETE PAVING TO MATCH EXISTING AGGREGATE PAVING WITH INTEGRAL COLOR AT MAIN { ENTRY ® u CONTROL JOINTS QUET TO BE SAWCUT RAGE JOINTS, TYP. 12 0 C.J. o )NC I I o — — C.J. o ITT TI OLE4 0 C.J. o C I I OFFICE 5 o C.J. o 121 \ FOR CPT -2 122 \ -2 VIPLOYE C.J. 123 _ VCT-1 /DECORATIVE CONCRETE PAVING TO MATCH EXISTING AGGREGATE PAVING WITH INTEGRAL COLOR AT MAIN CARVED STONE ENTRY MONUMENT SIGN TO MATCH EXISTING - TYPE A - SEE SPECS \ — — — C.J. — I ?I U VI CONTROL JOINTS U U 00�o� TOO�QBEE SAW�CUT — aoo°o°o< o00°000000°°°00°00° 00O. °°°� �° a8000°U°o°° -�o°° o°o50 °< _.nC �O°_n0°,.n0°.,o°_ 0°.,°°�n0°,. O Floor Finish Plan Keynotes: 1 EXISTING WOOD BASE - REPAIR HOLES, DIVETS, ETC. PREP + SAND WOOD BASE. RESTAIN + FINISH, STAIN COLOR TO BE AS PER FINISH SCHEDULE ❑2 EXISTING DOORS WHERE INDICATED - REPAIR HOLES, DIVETS, ETC. PREP + RESTAIN + FINISH, STAIN COLOR TO BE AS PER FINISH SCHEDULE. RE -INSTALL ALL EXISTING HARDWARE. 03 STOP REFINISHED WOOD BASE HERE ® LINE OF THRESHOLD BELOW SHOWN DOTTED - SEE DETAIL 18/A-9.4 Lice end: Note: INTEGRAL COLORED CONCRETE SIDEWALK - MATCH EXISTING SIDEWALK FOR COLOR, FINISH, AND JOINTS U _ U �000000 n � HATCHED AREA DENOTES DECORATIVE CONCRETE PAVING TO MATCH EXISITNG AGGREGATE PAVING WITH INTEGRAL COLOR AT MAIN ENTRY 1. REFER TO SHEET A-6.1 FOR FINISH SCHEDULE AND LEGEND 2. SEE SHEET A-9.4 FOR FLOOR TRANSITION DETAILS 3. PROVIDE TYPE C ROOM SIGNAGE @ LOCATIONS APPROVED BY THE LOCAL INSPECTOR (SEE SPECS) 7) NORTH Melzer Deckert & Ruder Architects, Inc. 9511 Irvine Center Drive Irvine, CA 92618 949 / 474-8188 Voice 949 / 474-8189 Fax Revisions BLDG PERMIT SUBMISSION 05/26/10 ISSUED FOR BID 06/23/10 Golf Resort �I r h•� v� o � N •�W 3 0 � �v �� AA M � Consultants ARC c� MARK H. MELZER (P NO.C17918 '9J en.9/30/11 Off C P� Issue Date: 05/26/10 MDR Ref. No.: Scale: 1 /8" = 1'-0" Drawn By: PAV Title: Floor Finish & Control Joints Plan Sheet No. A-704