TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Marzena Laskowska, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution Awarding a Construction Agreement to RAMCO General Engineering Contractors, Inc. for the Ceramic Studios Renovation Kiln Installation Project for $301,150.30 Including Contingency, Re-Appropriating $160,000.00 in the CIP Fund to the Project, and Determining that the Project Qualifies for a Categorical Exemption Pursuant to Section 15303 of the State CEQA Guidelines (Public Works Director Lee).
A) ADOPT RESOLUTION NO. 24-0002
B) APPROVE RE-APPROPRIATION OF FUNDS
C) MAKE DETERMINATION OF EXEMPTION PURSUANT TO CEQA
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that City Council:
1. Adopt Resolution No. 24-0002:
a. Awarding Construction Agreement to RAMCO General Engineering Contractors, Inc. for the Ceramic Studios Renovation Kiln Installation Project (Kiln Project) for $273,773;
b. Approving re-appropriation of $160,000 in the CIP Fund from Parks Improvements Program to fund the Kiln Project construction.
c. Authorizing the City Manager to execute the agreement and authorizing the City Manager and/or his or her designee to approve an extra work contingency up to $27,377.30; and
d. Approving the Plans and Specifications for the Project.
2. Determine that pursuant to CEQA, the project is categorically exempt pursuant to State CEQA Guidelines Section 15303.
FISCAL IMPLICATIONS:
The construction agreement under consideration with RAMCO General Engineering Contractors, Inc. is for $273,773.00 with a $27,377.30 contingency for a total amount not to exceed $301,150.30.
The Kiln Project currently has a total authorized budget of $367,000 in the Capital Improvement Project (CIP) Fund for design and construction, an amount that is not sufficient to fund the award of this construction contract. The bid amount exceeds the Kiln Project’s budgeted amount by $160,000. If the City Council approves, $160,000 from the Parks Improvement Program in the CIP Fund will be re-appropriated for use on this project. A Budget and Expenditures Summary Report is attached.
BACKGROUND:
The Kiln Project will install a new ceramics kiln adjacent to two existing kilns in the outside area of the Ceramic Studios building located in Live Oak Park. The new kiln will replace the two existing kilns that have reached the end of their useful lives and will become backup systems, thereby enhancing offerings of the Ceramic Studio programs and classes available through the Parks and Recreation Department. The major components of the project include:
• Constructing a shading structure with equipment pad, relevant utility hook-up, and lighting;
• Removal and replacement of concrete path of travel to meet current Americans with Disabilities Act (ADA) standards; and
• Removal of existing fence and replacement with new perimeter fencing and gate.
In December 2022, a revised design incorporating additional features on the project, such as the ADA path-of travel walkway and exterior lighting, was completed. Due to the California Building Code requiring building permits for the concrete foundation and open, covered structure, the plans were submitted to the Building Division for review. Approval was received in May 2023.
In April 2023, it was determined that a Coastal Development Permit is required for the project because the kiln shading structure is detached from the existing Ceramics Studio building and is located within the Local Coastal Non-Appealable Zone. The Coastal Development Permit was received on July 28, 2023 (attached).
DISCUSSION:
Bids for the Kiln Project were solicited on a competitive basis in accordance with the provisions of the California Public Contract Code in August 2023. The Project was advertised in The Beach Reporter and on the City of Manhattan Beach Public Works Department Bid Opportunities webpage and the City’s Bid Portal with PlanetBids (an online service that connects vendors, suppliers, and contractors to government procurement opportunities). In addition, to allow for adequate examination of the project site prior to bidding, staff conducted an onsite pre-bid meeting for contractors, material suppliers, and interested parties.
No bids were received in the initial competitive bidding process. Staff therefore repackaged the bid solicitation with extended completion days, inclusion of construction laydown area, and simplified bid items. The repackaged bid solicitation was re-advertised on a competitive basis in November 2023.
One bid was received on December 13, 2023 as follows:
|
Contractor |
Total Bid Amount |
|
RAMCO General Engineering Contractors, Inc. |
$ 273,773 |
The original Engineer’s Estimate was $140,000 and the updated 2023 estimate was $270,000. The updated estimate included updated rates and additional scope for ADA pathway and lighting.
RAMCO General Engineering Contractors, Inc.’s bid was analyzed by staff for arithmetical errors, completeness, accuracy, etc. and found to be responsive. Representatives of agencies where work has been performed by RAMCO General Engineering Contractors, Inc. have indicated that the work performed was comparable to the Kiln Project scope of work and to their satisfaction. The current project was discussed with representatives of the firm and they expressed confidence in their bid and a desire to perform the work in a timely and acceptable manner.
Staff therefore recommends that the City Council award a Construction Agreement to RAMCO General Engineering Contractors, Inc. for $273,773, and authorize the City Manager and/or his or her designee to approve change orders up to $27,377.30 (10% of construction contract cost) for additional work if necessary.
Due to the escalation of construction costs across the industry, the bid received was on par with the updated 2023 Engineer’s Estimate but higher than the original Engineer’s Estimate utilized to establish the budget. Staff is therefore also recommending a re-appropriation of $160,000.00 from the Park Improvements Program in the CIP Fund to construct the Kiln Project.
The Notice to Proceed to fulfill preconstruction requirements and order materials will be issued as soon as the Construction Agreement is executed. Construction is anticipated to be performed starting in Spring 2024 and ending before Summer 2024. Allowable construction hours will be from 7:30 AM to 4:30 PM, Monday through Friday. Programming for the Ceramics Studio will be canceled during the course of construction.
PUBLIC OUTREACH:
The Project has been developed based on direct requests for improvements from the Parks and Recreation Department. Additionally, staff has provided frequent updates about this project to the regular users of the ceramics studio throughout the design process. During planning, Community Development issued notices to residents of the project pursuant to the City’s Local Coastal Permit requirements. Once the project progresses to the construction phase, public outreach will include posting construction update notices, social media updates, and updates on the City website.
ENVIRONMENTAL REVIEW:
As determined in the Coastal Development Permit issue for this project, the Project is Categorically Exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to State CEQA Guidelines Section 15303 (New Construction or Conversions of Small Structures) based on staff's determination that the proposed new construction of accessory structures (kiln and shade structure) is a negligible expansion of the existing kiln facilities located in Live Oak Park (public park), in an area where all public services and facilities are available to allow for the proposed development permissible in the General Plan, and the area in which the project is located is not environmentally sensitive. The Project will neither individually nor cumulatively have an adverse effect on wildlife resources, as defined in Fish and Game Code Section 711.2. Furthermore, there are no features that distinguish this project from others in the exempt class; therefore, there are no unusual circumstances.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 24-0002
2. Agreement - RAMCO General Engineering Contractors, Inc.
3. Bid Proposal
4. Plans and Specifications
5. Budget and Expenditures Summary
6. Local Coastal Permit
7. Location Map