HomeMy WebLinkAboutR29420A - Const of the DWGR Lkvw Terrace XpnsnPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: 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: TBA
DATE: June 24, 2010
CONTENTS: Contract No. R29420A
Site Plan and Elevations
Recommendation
By Minute Motion:
Authorize the Chairman to award Contract No. R29420A to the lowest
responsive bidder in the amount not -to -exceed $ for the
Lakeview Terrace expansion at Desert Willow Golf Resort (verbal
recommendation to be provided); and
2. Authorize the Finance Director to set aside the amount of $
(verbal recommendation to be provided) as 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 December 10, 2009, the Agency Board authorized the design of the Lakeview Terrace
expansion project. The design includes the expansion of the existing terrace deck to
accommodate 100 new dining seats, an outdoor bar, new canopy, fire pit, fireplace,
additional banquet seating space, and two minor interior expansions to the Ballroom and
Private Dining Room.
On May 27, 2010, Agency staff published a notice requesting sealed bids. The bids are
scheduled to be opened by the City Clerk on June 22, 2010. After review of the bids and
contractor's qualifications, staff will provide the Agency Board a verbal recommendation at
the June 24, 2010, meeting.
Following consideration of staff's recommendation, approval will authorize the Chairman to
award a contract to the lowest responsive bidder for the Lakeview Terrace expansion
project at the Desert Willow Golf Resort.
Staff Report
Aware Contact No. R29420A - Lakeview Terrace Expansion at Desert Willow
June 24, 2010
Page 2 of 3
Backaround
At the October 15, 2009, Lake View Terrace study session, the Agency Board reviewed the
conceptual plans for the proposed Lake View Terrace expansion. On December 10, 2009,
the Agency Board awarded a contract to SMS Architects in the amount of $82,300 (plus a
reimbursable allowance of $4,100) with a 10 percent contingency ($8,230) for architectural
design services for this project. The design scope includes, but is not limited to 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 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 9, 2010, and Planning
Commission approval on April 6, 2010.
On May 27, 2010, staff advertised requesting sealed bids for the Lakeview Terrace
expansion project at the Desert Willow Golf Resort. The base bid includes the scope as
described above and incorporates several bid additive alternates in the following priority
order:
Additive Alternates:
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. Addition of a decorative screen wall/ landscaping at west patio stairs to screen
service counter.
4. Installation of 20 ceiling mounted heaters at existing and new canopy areas.
5. Extension of misting system along the ballroom's north facing roofline.
6. Sandblasting and repainting of exiting canopy.
The additive alternates may be incorporated as part of the base bid, if the lowest responsive
bid is below the project budget or if the Board desires to add to the scope. Staff will provide
a complete recommendation of the base bid and additive alternates at the June 24, 2010,
Agency Board meeting.
Sealed Bids
On May 27, 2010, Agency staff published a notice in The Desert Sun inviting sealed bids for
the Lakeview Terrace expansion project. A pre -bid conference was held at Desert Willow on
June 7, 2010. Due to the aggressive design and project schedule, bids are scheduled to be
opened on June 22, 2010. A complete summary of the bid results and a verbal
recommendation will be provided to the Agency Board on June 24, 2010.
G:\rda\Martin A1varez\2010\SR\6-24-10 Award t-VT Expansion.doc
Staff Report
Aware Contact No. R29420A - Lakeview Terrace Expansion at Desert Willow
June 24, 2010
Page 3 of 3
Schedule
If staff is authorized to award a contract to the lowest responsive bidder, the project would
commence in July 2010 with a 75-day duration period and a completion date by the end of
September 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 the Agency Board authorize the Chairman to execute a contract with
the lowest responsive bidder for the Lakeview Terrace expansion project, and set aside a
10 percent contingency based on the final contract amount. A written and verbal
recommendation will be provided to the Agency Board on June 24, 2010.
Fiscal Anahisis
The estimated construction cost for the project is $1 million. The preliminary construction
cost has been considered, and 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 are available in the Unobligated Project Area 2 Fund;
therefore, there is no immediate fiscal impact to the General Fund.
Submitted By:
s
Mart'. Ivarez, RedevelolAnent Manager
Paul S. Gibson, Director of Finance
Department Head:
�L
J i McCarthy, ACM f r-F .�4development
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A?.ohl
4-
ONn Cd BY RDA � `
VERIFIED BYJth, Executive Director Original on file with City C le�rl�'s (�f�ico
* B Minute Motion, authorize: 1)� The Chairman to awar su ect contract
in an amount not to exceed $1,089,000 (base bid and additive alternates
1-2, 4-7) to GHA Holdings, Cathedral City, California, for the Lakeview
Terrace Expansion Project at Desert Willow Golf Resort; 2) Director
of Finance to set aside the amount of $108,900 as 10Z contingency
for the project (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. 5-0,
WrdaWartin Alvarez\2010\SR\6-24-10 Award LVT Expansion.doc
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 Project, 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:
Contract Documents: The entire contract consists of the following: (a) The Notice
Inviting Sealed Bids [Section 00200]; (b) The Instructions to Bidders [Section
00300]; (c) Bid [Section 00400]; (d) Bid Schedule [Section 00410]; - (e) The Bid
Guaranty Bond [Section 00420]; (t) Designation of Subcontractors [Section
00430]; (g) Schedule of Manufacturers and Suppliers, Major Equipment, and
Material Items [Section 00440]; (h) Non -Collusion Affidavit [Section 00450],
Certification of Bidder and Qualifications [Section 00470]; (i) The Agreement
[Section 00500]; U) Liability and Insurance Requirements [Section 00600], (k)
Special Insurance Endorsement [Section 00610]; (1) The Faithful Performance
Bond [Section 00620]; (m) The Payment Bond [Section 00640], (n) The
Supplementary Conditions; (o) the General Conditions; (o) Modifications to
General Conditions [Section 00810]; (p) The Plans; (q) Addenda Nos.
(r) The Determination of Prevailing Wage Rates for Public Work; (s) Any Change
Orders issued, (t) Any additional or supplemental specifications, notices,
instructions and drawings issued in accordance with the provisions of the
Contract Documents. All 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.
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
Contract No. R29420A
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 Code 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.
PALM DESERT REDEVELOPMENT AGENCY "CONTRACTOR" (Signature to be notarized)
By:
Chairman
Attest:
Agency Secretary
Approved as to Form:
City Attorney
M
Attest:
***END THIS SECTION***
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PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
To: Agency Board
From: Martin Alvarez, Redevelopment Manager �.
Date: June 24, 2010
Subject: Desert Willow Lakeview Terrace Expansion: Bid Opening
Recommendation for June 24, 2010, Agency Board Meeting
Staff recommends the following action:
By Minute Motion:
1. Authorize the Chairman to award Contract No. R29420A in the amount
not -to -exceed $1,089,000 (base bid and additive alternates 1-2, 4-7) to
GHA Holdings for the Lakeview Terrace expansion at Desert Willow
Golf Resort; and
2. Authorize the Finance Director to set aside the amount of $108,900 as
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.
Bid Results
On June 23, 2010, the City Clerk publicly opened and read seven sealed bids. Below is
a summary of the bids received:
COMPANY NAME
GHA Companies — Cathedral City, CA
Additive Alternates (1-7)
Davis Reed — San Diego, CA
Additive Alternates (1-7)
BID AMOUNT
$999,390.00
$122,766.00
Total $1,122,156.00
$1,223,000.00
$77,500.00
Total j $1,300,500.00
G-\rda\MarBn Alvarez\2010\Memo-Desert Willow LVF Bid Update 5-24-10.doc
Desert Willow Lakeview Terrace Bid Opening Results
June 24, 2010
Page 2 of 3
Orr Builders — Bermuda Dunes, CA
Additive Alternates (1-7)
RSM2 — La Mesa, CA
Additive Alternates (1-7)
JM Builders, Inc. — Redlands, CA
Additive Alternates (1-7)
Doug Wall — Bermuda Dunes, CA
Additive Alternates (1-7)
AVI-CON, Inc. — Riverside, CA
Additive Alternates (1-7)
Base Bid/Additive Alternates
$1,212,700.00
$134,500.00
Total $1,347,200.00
$1,397,157.00
$122,755.00
Total $1,519,912.00
$1,594,000.00
$125,000.00
Total $1,719,000.00
$1,552,611.00
$204,500.00
Total $1,757,111.00
$1,633,000.00
$198,000
Total $1,831,00.000
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. The additive alternates included:
1. Sandblasting and repainting of exiting canopy ($19,841).
2. Addition of a decorative screen wall/landscaping at west patio stairs to screen service
counter ($12,548).
3. Extension of misting system along the ballroom's north facing roofline ($33,156).
4. Seeded aggregate concrete finish at the new lower terrace area ($6,641).
5. N/A
6. Installation of 20 column mounted heaters at existing/new canopy areas ($43,880).
7. Installation of seven (7), 52" fans at existing and new canopy areas ($6,700).
The lowest bid price of $999,390.00 is within staffs anticipated construction estimate of $1
million. Staff is recommending approval of additive alternates 1-2, 4, and 6-7. The total bid
price including the recommended additive alternates is $1,089,020,00. Including these
items 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.
G 1rdalMartin Alvarez120101Memo-Desert Willow LVT Bid Update 5-24-10.doc
Desert Willow Lakeview Terrace Bid Opening Results
June 24, 2010
Page 3of3
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 5 years. Agency staff and our
construction manager have reviewed the qualifications submitted by the lowest responsive
bidder. Staff has determined that the apparent low bidder, GHA Holdings meets the criteria
set forth in the bidding process. GHA Holdings has completed projects of similar scope.
Staff recommends approval of a contract with GHA Holdings in the amount not -to -exceed
$1,089,000 (including base bid and additive alternates 1-2, 4, 6-7).
cc: Rachelle D. Klassen, Secretary
John M. Wohlmuth, Executive Director
Justin McCarthy, ACM for Redevelopment
G \rda\Martin Alvarez\2010\Mama-Desert Willow LVT Bid Update 5-24-10.doc