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CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

December 3, 2018
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Robert M. Harary, P.E., Director of Public Works

APPROVED BY: Chip Rerig, City Administrator

Resolution 2018-123, awarding a construction contract to Smith Electric Service for an


amount, including contingency, of $134,812 for HVAC modifications and upgrades at the
SUBJECT:
Harrison Memorial and Park Branch Libraries, and approving a supplemental budget
allocation of $48,562 from the Measure D fund balance to the capital project account.

RECOMMENDATION:

Adopt Resolution 2018-123, awarding a construction contract to Smith Electric Service for an amount, including
contingency, of $134,812 for HVAC modifications and upgrades at the Harrison Memorial and Park Branch
Libraries and approving a supplemental budget allocation of $48,562 from the Measure D fund balance to the
capital project account.
BACKGROUND/SUMMARY:

In April 2018, the City Council awarded a Professional Services Agreement to Axiom Engineers for a not-to-
exceed fee, including contingency, of $30,000, for design and construction support services associated with
replacing and upgrading the heating, ventilation, and air conditioning (HVAC) systems at both the Harrison
Memorial and Park Branch Libraries.

In June 2018, Council adopted the Fiscal Year (FY) 2017/18 Capital Improvement Program which allocated
$116,250 from Measure D revenue for construction of this project.

Construction plans and specifications for this project were prepared by Axiom and checked by Public Works
staff. This project includes: removing expired, outdated, and inefficient mechanical heating and air conditioning
equipment, and installing new HVAC equipment and temperature controls in both libraries. The new equipment
will be far more energy-efficient reducing ongoing electric costs, and will allow for both buildings to maintain
comfort for patrons and staff without resorting to personal space heaters or fans.

The project was extensively advertised for bids. Legal announcements were placed in the Carmel Pine Cone
and The Weekly, and the project was posted on construction industry, public bidding, and the City's websites. In
addition, courtesy calls and notification letters were sent to local HVAC contractors.
Three bids were received and announced at the public bid opening held on November 20, 2018 as follows:

Smith Electric Della Mora Heating Geo. H. Wilson


Service Mech. Contractors
Bid Amount $122,557 $136,035 $151,915
Non-Responsive

Award of this contract is based on the lowest responsive, responsible bidder. The second lowest bidder, Della
Mora, was non-responsive because their bid proposal failed to acknowledge an addendum that was issued prior
to the bid opening. No bid alternatives were used.

The bids are detailed in Attachment #2, Tabulation of Bids. Submitted by Smith Electric Service, the low bid is
10% below the second lowest bid and 20% below the highest bidder.

Smith Electric Service, of Santa Maria, has specialized in heating, air conditioning, and HVAC repair projects
along the Central Coast since 1980. They submitted a responsive bid proposal, are properly licensed, and well
qualified to successfully execute this project.

The total amount for award of the Base Bid to Smith Electric Service is $122,557. A 10% contingency of
$12,255 is recommended for unforeseen extra work items typically associated with building renovations and
equipment repair projects. The total amount of award is not-to-exceed $134,812. The work is scheduled to be
completed within four months following issuance of the Notice to Proceed.
FISCAL IMPACT:

In June 2018, Council adopted the FY 2017/18 Capital Improvement Program which allocated $116,250 from
Measure D revenue for construction of this project. The available unencumbered balance for this project in
account 301-311-00-43008 is $86,250. The cost of this construction contract, with contingency is $134,812.

To award this contract, a supplemental appropriation of $48,562 would need to be transferred from the Measure
D fund balance to this capital project account. The current Measure D fund balance is approximately $183,000.
Transfer of the needed $48,562 supplement would leave the Measure D fund balance at $134,438
PRIOR CITY COUNCIL ACTION:

In April 2018, the City Council awarded a Professional Services Agreement to Axiom Engineers for a not-to-
exceed fee, including contingency, of $30,000, for design, bidding, and construction support services for this
project.

In June 2018, Council adopted the FY 2017/18 Capital Improvement Program which allocated $116,250 from
Measure D revenue for construction of this project.
ATTACHMENTS:

Attachment #1 - Resolution 2018-123


Attachment #2 - Tabulation of Bids
CITY OF CARMEL-BY-THE-SEA Attachment 1
CITY COUNCIL

RESOLUTION NO. 2018-123

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AWARDING A


CONSTRUCTION CONTRACT TO SMITH ELECTRIC SERVICE FOR HVAC MODIFICATIONS AND
UPGRADES AT THE HARRISON MEMORIAL AND PARK BRANCH LIBRARIES FOR A NOT-TO-EXCEED
FEE, INCLUDING CONTINGENCY, OF $134,812 AND AUTHORIZING A SUPPLEMENTAL ALLOCATION
OF $48,562 FROM THE MEASURE D FUND BALANCE TO THE CAPITAL PROJECT ACCOUNT

WHEREAS, in April 2018, the City Council of the City of Carmel-by-the-Sea awarded a Professional
Services Agreement to Axiom Engineers for a not-to-exceed fee, including contingency, of $30,000, for design
and construction support services associated with replacing and upgrading the heating, ventilation, and air
conditioning (HVAC) systems at both the Harrison Memorial and Park Branch Libraries; and

WHEREAS, in June 2018, the City Council adopted the Fiscal Year 2018/19 Capital Improvement Plan
Budget which included $116,250 from Measure D revenue for construction of this project; and

WHEREAS, three construction bids were received and announced at the public bid opening held on
November 20, 2018; and

WHEREAS, Smith Electric Service submitted the lowest responsive, responsible proposal with a bid
amount of $122,557; and

WHEREAS, a 10% contingency of $12,255 is recommended for unforeseen extra work; and

WHEREAS, sufficient funding is available in the Measure D fund balance to make up the shortfall of
$48,562 needed to fund construction of this project.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-
THE-SEA DOES HEREBY:

Awards a construction contract to Smith Electric Service for HVAC modifications and upgrades at the
Harrison Memorial and Park Branch Libraries for a not-to-exceed fee, including contingency, of $134,812.

BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA


DOES HEREBY:

Appropriates supplemental funding of $48,562 from the Measure D fund balance to this capital project
account 301-311-00-43008.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this
3rd day of December 2018, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
SIGNED: ATTEST: Attachment 1

_______________________ __________________________
David Potter, Mayor Tom Graves, City Clerk
TABULATION OF BIDS

Harrison Memorial & Park Branch Libraries


Bid Opening: November 20, 2018 2pm

BASE BID: Smith Electric Service Della Mora Heating, Sheetmetal & AC GeoHWIIson

# Description Quantity Unit Price Amount Price Amount Price Amount

1 Mobilization & Demobilization 1 LS $ 2,000.00 $ 2,000.00 $ 1,000.00 $ 2,000.00 $ 4,000.00 $ 4,000.00

2 Storm Water Compliance 1 LS $ 200.00 $ 200.00 $ 750.00 $ 1,500.00 $ 1,500.00 $ 1,500.00

3 Harrison Memorial Library Heating System 1 LS $ 20,950.00 $ 20,950.00 $ 23,875.00 $ 23,875.00 $ 22,457.00 . $ 22,457.00

4 Park Branch Library HVAC System 1 LS $ 99,407.00 $ 99,407.00 $ 108,660.00 $ 108,660.00 $ 123,958.00 $ 123,958.00

GRAND TOTAL: $ 122,557.00 $ 136,035.00 $ 151,915.00

QUALIFICATION: Qualified Non-Responsive Qualified

Della Mora did not acknowledge Addendum No. 1.

Attachment 2