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TO: |
Roger Stancil, Town Manager |
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FROM: |
Bruce Heflin, Assistant Town Manager |
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Bill Webster, Interim Director of Parks & Recreation |
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SUBJECT: |
Acceptance of Bids for Homestead Park Aquatic Center Project |
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DATE: |
November 20, 2006 |
The attached resolution would authorize the Manager to negotiate and execute a contract with the lowest responsive bidder, Resolute Building Company, general contractor, in an amount not to exceed $5,238,000 for the construction of the Homestead Park Aquatics Center.
The resolution would authorize the Manager to continue value engineering negotiations with Resolute Building Company to identify savings that would not alter the basic building program but that could be used for alternates identified in the bid package. The resolution contains a recommended priority listing of alternates that could be accepted if savings are realized.
The resolution would authorize the Manager to approve change orders for this project as necessary up to a cumulative total of $530,000, but not to exceed the combined total project cost of $5,768,000 (construction cost plus contingency) without additional Council action.
In 1996, Town voters approved a $5,000,000 bond referendum which, among other things, was to fund an aquatics center at Homestead Park. Approximately $1,167,000 from that bond authorization has been appropriated for the aquatics center project.
In November 1997, Orange County voters authorized general obligation bonds for Parks. The Board of Orange County Commissioners pledged $1,000,000 from the Parks bond for Homestead Park. Of that amount, $855,000 remains that could be used for the aquatics facility.
The Council established a Homestead Park Aquatic/Community Center Conceptual Plan Committee. The Council considered the Committee’s report and held a public forum on January 29, 2001.
On March 5, 2001, the Council adopted a conceptual plan for the facility. On September 2, 2003, the Board of Orange County Commissioners approved the concept plan.
In November 2004, a Special Use Permit application was submitted for the Homestead Park Aquatics Center. The permit was approved in November 2005.
Three bids were received and opened on September 12, 2006. The three firms failed to submit bid bonds for subcontractor work, as stipulated in the Instructions to Bidders. The failure to provide bonds was likely an oversight. However, in our opinion, the failure to include these bid bonds required that they be rejected under the terms of State law.
On September 2 7, 2006 the Council rejected all bids. The project was re-bid the first week in October. New bids were opened on November 2, 2006.
Project Description: Bids were opened for a building that would consist of about 26,845 square feet of space. The building program includes a pool that is 25 yards by 25 meters and a family/warm water pool 25 yards by 10 yards with zero depth entry. The larger pool could accommodate competitions and team practice, lap swimming, adult lessons and general swimming. The smaller pool could accommodate three lap lanes, a teaching area suitable for children and individuals with disabilities, and general swim activities for those wanting or needing a higher temperature than would be available in the larger pool.
The program also includes:
Site work includes utility extensions, detention and retention ponds, landscaping, and an access area for Duke Energy’s transmission line. The design and footprint of the building would allow for a future expansion to provide for other future parks and recreation amenities such as a gymnasium, classroom space, or offices.
Relationship to the Comprehensive Plan: The May 2002 Parks and Recreation Master Plan, which is a chapter of the Comprehensive Plan, specifically recommends that the Town build an Aquatics Center at Homestead Park.
Bids: Based on the plans and specifications for this project prepared by G.G.A. Inc., bids were solicited from general contractors on a single-prime basis. The notice to bidders was published on the Town website and in the Greater Diversity News on October 5, 2006. Three bids were received and opened on November 2, 2006 at 3:00 p.m. The bid results are as follows:
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RESOLUTE BUILDING COMPANY |
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Base Bid |
5,229,300 |
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Add Alternates |
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Add Alt. A-1 Rainwater Collection and Use |
72,575 |
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Add Alt. A-2 Waterless Urinals |
1,321 |
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Add Alt. A-3 Automatic Flush Valves (Toilets) |
9,832 |
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Add Alt. A-4 Increase Deep End of Main Pool |
15,045 |
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Grand Total Resolute Building Co. (Base plus Add Alternates) |
5,328,073 |
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Deduct Alternates |
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Deduct Alt. D-1 Eliminate Front Canopy |
67,682 |
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Deduct Alt. D-2 Reduce Size of North Deck |
53,183 |
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Deduct Alt. D-3 Simplify Lobby Floor (percent for art) |
1,059 |
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Deduct Alt. D-4 Eliminate Lobby/Office Casework |
14,171 |
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Deduct Alt. D-5 Eliminate Underwater Lights |
9,322 |
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CT WILSON CONSTRUCTION CO. |
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Base Bid |
5,429,974 |
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Add Alternates |
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Alt. A-1 Rainwater Collection and Use |
70,486 |
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Alt. A-2 Waterless Urinals |
1,282 |
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Alt. A-3 Automatic Flush Valves (Toilets) |
9,545 |
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Alt. A-4 Increase Deep End of Main Pool |
12,960 |
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Grand Total Bar Construction Company (Base plus Add Alternates) |
5,524,247 |
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Deduct Alternates |
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Deduct Alt. D-1 Eliminate Front Canopy |
64,057 |
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Deduct Alt. D-2 Reduce Size of North Deck |
22,690 |
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Deduct Alt. D-3 Simplify Lobby Floor (percent for art) |
5,238 |
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Deduct Alt. D-4 Eliminate Lobby/Office Casework |
14,448 |
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Deduct Alt. D-5 Eliminate Underwater Lights |
9,152 |
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BAR CONSTRUCTION COMPANY |
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Base Bid |
5,655,000 |
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Add Alternates |
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Alt. A-1 Rainwater Collection and Use |
78,000 |
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Alt. A-2 Waterless Urinals |
1,500 |
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Alt. A-3 Automatic Flush Valves (Toilets) |
10,300 |
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Alt. A-4 Increase Deep End of Main Pool |
13,000 |
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Grand Total CT Wilson Construction Co. (Base plus Add Alternates) |
5,757,800 |
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Deduct Alternates |
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Deduct Alt. D-1 Eliminate Front Canopy |
50,000 |
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Deduct Alt. D-2 Reduce Size of North Deck |
53,100 |
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Deduct Alt. D-3 Simplify Lobby Floor (percent for art) |
0 |
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Deduct Alt. D-4 Eliminate Lobby/Office Casework |
13,500 |
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Deduct Alt. D-5 Eliminate Underwater Lights |
8,800 |
We have reviewed the bids with the project architect and concluded that the lowest responsive bidder is Resolute Building Company for the base bid of $5,229,300.
Authorization to Negotiate and Execute a Contract: We are recommending that the Council authorize the Manager to continue value engineering negotiations with Resolute Building Company and to enter into a contract for the base bid and some combination of add alternates, in an amount not to exceed $5,238,000.
We believe there are value engineering opportunities that could result in significant savings that would not affect the basic building program. We recommend that the Council authorize the Manager to continue value engineering talks and to use any savings realized to accept add alternates identified in the bid package. If the Council agrees, we would execute a contract that would include add alternates, in the following priority order. The items at the top of the list would receive the highest priority for inclusion in the building program. We would add items until the budget amount established by the Council is reached. Language in the resolution would authorize the Manager to pick items out of sequence of the Council’s preferred order only in the event that a higher rated option would exceed budget and a lower rated item would be within the negotiated budget. Following is our recommended priority order of accepting add alternates:
Rainwater Collection and Use System (add $72,575) – This would allow us to install a system to collect rainwater for such gray water uses as landscape irrigation and toilet flushing. We believe that we would realize substantial savings in water utility payments over the life of the project. Accepting this alternate would eliminate the need to accept alternate A2 which is the waterless urinal system, which was proposed as a backup system if we were not able to use the rainwater collection method.
Increase Depth of the Main Pool (add $15,045) – This alternate would allow us to increase the depth of the deep end of the main lap pool from 6 feet to 9 feet. This would allow us to teach a wider variety of classes, including lifeguard training, which would not be possible in the shallower pool.
Automatic Flush Valves (add $9,832) – This alternate would provide for automatic flushing systems in all toilets and urinals in the building. We believe that this would increase the cleanliness of the building and reduce problems such as unpleasant odors and clogged toilets.
Waterless Urinals (add $1,321) – This alternate would be accepted only if the Rainwater Collection System cannot be funded.
We believe that all but one deduct alternate should remain in the building program. We do recommend accepting one deduct alternate:
Underwater Lights (deduct $9,322) – Accepting this deduct would eliminate the underwater lighting system in the main pool. The lights were requested by some swimmers, but are not necessary for program or safety purposes.
Change Orders: The Council’s policy requires that Council approval is necessary for change orders for construction contracts, which cumulatively total more than 10 percent of the contract, or $50,000, whichever is less. Because this is a large and complex project, we anticipate that change orders will be necessary, quite possibly totaling more than $50,000. Often, the delay needed to request Council approval of a change order can be expensive and detrimental to the progress of the work. Therefore, we have included in our recommended resolution authorization for the Manager to approve change orders up to a total of $530,000 (project contingency), but not to exceed the combined total project cost of $5,768,000 (construction cost plus contingency) without additional Council action.
Budget for Homestead Park Aquatics Center: Until the value engineering process is complete we will not know the exact required budget for this project. The proposed preliminary budget contains revenues which are already in hand and revenues that would have to be approved by the Council in a future meeting. The budget shown below would reflect a scenario in which no value engineering savings would be realized. The amount would still allow us to build the basic building, but without a Rainwater Collection System, a deep end in the main pool, and automatic flush valves in all toilet and sink fixtures. However, we believe that value engineering would likely realize some savings and that some of the add alternates would eventually be included in the contract.
Alternatively The Council could direct the Manager to use any negotiated savings to reduce the project budget instead of accepting add alternates.
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PROPOSED REVENUES |
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1996 Town Parks Bond |
1,158,000 |
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1997 Orange County Parks Bond |
855,000 |
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2001 Orange County Parks Bond |
3,500,000 |
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Proposed Borrowing |
750,000 |
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Accrued Interest from Current Bond Funds 1 |
118,000 |
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Interest Savings 2 |
37,000 |
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Total Funds for Homestead Park Aquatics Center |
6,486,000 |
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1. These interest funds are available from current 1996 park bonds. Use of this revenue source is newly proposed. 2. Bond issue of $4.95 million was sold at 4.1% interest, but budgeted at 5% interest. Use of this revenue source is newly proposed. |
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PROPOSED EXPENDITURES |
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Construction Costs |
5,238,000 |
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Contingency |
530,000 |
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Design (including past concept plan development) |
456,000 |
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Misc. Expenses, furnishing, testing, fees, permits, etc. |
262,000 |
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Total Expenditures for Homestead Park Aquatics Center |
6,486,000 |
That the Council adopt the attached resolution, which would authorize the Manager to negotiate and execute a contract with the lowest responsive bidder, Resolute Building Company, general contractor, in an amount not to exceed $5,238,000 for the construction of the Homestead Park Aquatics Center.
The resolution would authorize the Manager to continue value engineering negotiations with Resolute Building Company to identify savings that would not alter the basic building program, but that could be used for alternates identified in the bid package. The resolution contains a recommended priority listing of alternates that could be established by the Council for use of any savings.
The resolution would also authorize the Manager to approve change orders for this project as necessary up to a cumulative total of $530,000, but not to exceed the combined total project cost of $5,768,000 (construction cost plus contingency) without additional Council action.