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CC Resolution 13082 - Approve and Award a Construction Contract to Lathrop Construction Associates, Inc. for the Measure O - Police Operations Building Project (No. 23-RR) 7 RESOLUTION NO. 13082 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AWARDING THE CONSTRUCTION CONTRACT FOR THE MEASURE O — POLICE OPERATIONS BUILDING PROJECT (NO. 23-RR) TO LATHROP CONSTRUCTION ASSOCIATES, INC.; APPROVING THE CONSTRUCTION CONTRACT IN THE AMOUNT OF $29,454,000, PLUS A 10% CONSTRUCTION CONTINGENCY OF.$2,945,400; AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT AS SPECIFIED IN CAMPBELL MUNICIPAL CODE SECTION 3.20.100; AUTHORIZING THE CITY ENGINEER TO NEGOTIATE AND EXECUTE CONTRACT CHANGE ORDERS UP TO AND WITHIN THE ALLOCATED CONSTRUCTION CONTINGENCY; AND AUTHORIZING THE FINANCE DIRECTOR TO PREPARE THE BUDGET ADJUSTMENTS NECESSARY TO AWARD THE PROJECT'S CONSTRUCTION CONTRACT AND FUND THE COSTS ASSOCIATED WITH ITS PLANNED EXPENDITURES. WHEREAS, in November 2018, Campbell voters passed Measure 0 authorizing the City to issue $50,000,000 in general obligation (GO) bonds to finance the design and construction of a new Police Operations Building (with a new EOC) and renovations to the Campbell Library; and WHEREAS, in addition to its original allocation of Measure 0 funds, between 2018 and 2023, the Police Project also received additional funding from various State and local programs — increasing the project's total budget of available funds to $27,598,000; and WHEREAS, in early 2022, after evaluating the applications received in response to the separate RFQs advertised on behalf of each Measure 0 project, staff deemed the following contractors qualified to receive an invitation to bid on the Police project's construction contract pending City Council's approval of the project's final plans, specifications, and estimates (PS&E): 1) Gonsalves & Stronck Construction Company, Inc.; 2) Lathrop Construction Associates, Inc.; 3) Rodan Builders, Inc.; 4) Swinerton Builders; 5) BOBO Construction, Inc.; 6) Zovich & Sons, Inc.; and 7) Midstate Construction Corporation; and WHEREAS, on July 18, 2023, the City Council adopted a resolution (No. 13022) approving the Police project's final PS&E and authorizing staff to issue a bid invitation to the project's list of prequalified construction contractors; and WHEREAS, in August 2023, staff issued a bid invitation to the project's seven prequalified contractors which included a copy of the final PS&E, the contract document package for construction, and other information pertaining to the requirements of the bidding process; and WHEREAS, based on these instructions, Rodan Builders, Inc., and Swinerton Builders were later disqualified from bid submission for failure to attend the mandatory pre-bid meeting; and WHEREAS, of the five contractors remaining, the City received only three bids by the end of the submission deadline on October 4, 2023 — when, at which time, the results identified Bobo Construction, Inc. (BCI), Lathrop Construction Associates, Inc. (Lathrop), and Zovich & Sons, Inc., as the three submitting contractors; and WHEREAS, at the time of bid opening, BCI was the apparent low bidder with a total base bid amount of$26,513,000 and bid security bond of$2,651,300; and WHEREAS, the following day, the City received a letter from BCI requesting to be relieved of their bid due to a clerical error that omitted approximately $5M from their total base bid amount; and WHEREAS, pursuant to California Public Contract Code (PCC) Chapter 5. `Relief of Bidders' [Sections 5100 — 5110], staff notified the City Council of BCI's intent to withdrawal and the circumstances that prompted their initial request; and WHEREAS, on November 7, 2023, the City Council made a motion to relieve BCI of their bid for the Police Building project and authorize the subsequent return of their bid bond; and WHEREAS, while preparing the "intent to award"for the project's construction contract to the second lowest bidder, Lathrop, staff discovered that their total base bid amount ($29,656,000), and the separate 10% change order contingency ($2,965,600), had exceeded staff's previous funding gap projections; and WHEREAS, as a result, staff prepared and presented a financial analysis (report) to the City Council during the November 7, 2023, regular meeting, to facilitate discussions and receive feedback from the Council regarding different funding options to help staff craft a successful award strategy; and WHEREAS, at the time, the City Council directed staff to proceed with the recommendation to award the project's full base bid amount, remove the alternate bid item and associated SVCE funds, and implement the necessary budget adjustments to complete these efforts; and WHEREAS, since then, staff has received and finalized additional supplemental service contracts and adjusted the project's expenditure plan (table) to reflect their actual costs; and WHEREAS, staff updated its previous recommendation to remove the trash enclosure (revocable bid item no. 1) from the award since its location and size can be addressed by staff and implemented later as a separate project, thereby reducing the project's contract amount by $202,000 and 10% contingency by $20,200; and WHEREAS, based on these updates, the project's expenditure plan (table) has been revised with a. new total of$35,692,975, while the project's CIP budget has been updated to $27,400,000, resulting in a budget deficit of approximately $8,292,975; and WHEREAS, to avoid delaying the project's tentative construction schedule, staff is recommending City Council's award and approval of the construction contract for the Measure O—Police Operations Building Project (No. 23-RR) to Lathrop Construction Associates, Inc., in an amount not to exceed $29,454,000, plus a 10% change order contingency of$2,945,400, and allowing staff to remove the trash enclosure as a separate project to be bid and implemented later in the construction phase; and WHEREAS, staff is also requesting City Council's authorization for the City Manager to execute said agreement, as specified in Campbell Municipal Code Section 3.20.100, and authorization for the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency amount; and WHEREAS, since sufficient funding is not available in the City's approved CIP budget for `Civic Center Improvements — Police Operations Building (Project No. 23-RR)' to award the proposed contract amount and 10% contingency, staff is also requesting the City Council's authorization for the Finance Director to execute the budget adjustments necessary to supplement these funds as needed; and . WHEREAS, budget adjustments will be prepared to initiate the following allocation of funds to the balance of the Police project's budget: • Budget Adjustment No. 1: Reallocate $3.7M in projected savings from the Library Renovation project (No. 23-SS) to the Police Operations Building project (No. 23-RR). • Budget Adjustment No. 2: Redistribute$1.3M from the Unallocated Shared Improvement Costs project (No. 21-MM) to the balance of the Police Operation Building project (No. 23-RR). • Budget Adjustment No. 3: Accessing and allocating $1.5M in interest earnings that the City has accrued through Q1 FY 2024 from the Measure 0 bonds to the balance of the Police Operation Building project (No. 23-RR). • Budget Adjustment No. 4:Allocating $342,000 in anticipated interest earnings from Q2 FY 2024 to Q4 FY 2024. • Budget Adjustment No. 5: Shift $939,000 of remaining ARPA funds to the Police Operation Building project (No. 23-RR). • Budget Adjustment No. 6: Shifting $512,000 of the Operating Budget Surplus for FY 2023 to Police Operation Building project(No. 23-RR). If other funding sources are greater than expected, or project costs are less than expected, staff will return to Council with a recommendation to return these funds to the General Fund so as to sufficiently maintain reserve balances: • Budget Adjustment No. 7: Remove the $198,000 in SVCE grant funds from the current Police Operation Building project (No., 23-RR) budget for re-allocation to the balance of a different improvement project currently programmed in the City's CIP budget for FY 2023/24. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell hereby: 1) award the construction contract for the Measure 0 — Police Operations Building Project (No. 23- RR) to, Lathrop Construction Associates, Inc.; 2) approve the construction contract in the amount of$29,454,000, plus a 10% construction contingency of$2,945,400; 3) authorize the City Manager to execute said agreement as specified in Campbell Municipal Code Section 3.20.100; 4) authorize the City Engineer to negotiate and execute contract change orders up to and within the allocated construction contingency; and 5) authorize the Finance Director to prepare the budget adjustments necessary to award the project's construction contract and fund the costs associated with its planned expenditures. BE IT FURTHER RESOLVED should the City Council approve and award this contract, and pending its subsequent execution, a Notice to Proceed will be issued in December 2023 to authorize the commencement of construction at the project site. PASSED AND ADOPTED this 21st day of November, 2023, by the following roll call vote: AYES: Councilmembers: Lopez, Scozzola, Furtado, Landry, Bybee NOES: Councilmembers: None ABSENT: Councilmembers: None APPROV Anne Bybee, Mayor ATTEST: e1-0 Andrea Sanders, ity Clerk City of Campbell Request for Budget Adjustments Department/Program Division Date Request No. 23RR Measure 0-Police Operations Public Works Building November 15,2023 BA-13 Budget to be Reduced Fund/Program Account Number Description Amount Adjustment No.1 448.23SS 7883 Transfer from Library Project(23SS)to Police Ops Building(23RR) $ (3,700,000) Adjustment No.2 448.21MM 7883 Transfer Unallocated Shared Costs(21MM)to Police Building(23RR) (1,300,000) Adjustment No.7 448.23RR 7883 Remove allocation of SVCE grant funds from Police Building(23RR) (197,972) Budget to be Increased Fund/Program Account Number Description Amount Adjustment No.1 448.23RR 7883 Transfer from Library Project(23SS)to Police Ops Building(23RR) $ 3,700,000 Adjustment No.2 448.23RR 7883 Transfer Unallocated Shared Costs(21MM)to Police Building(23RR) 1,300,000 Adjustment No.3 448.23RR 7883 Allocate Accrued Bond Interest to Police Building(23RR) 1,500,000 Adjustment No.4 448.23RR 7883 Allocate FY24 Anticipated Bond Interest to Police Building(23RR) 341,975 Adjustment No.5 221.990 9999 Partial Use of ARPA Funds towards Police Building(23RR) 939,000 448.990 6999 Partial Use of ARPA Funds towards Police Building(23RR) 939,000 448.23RR 7883 Partial Use of ARPA Funds towards Police Building(23RR) 939,000 Adjustment No.6 101.990 9999 Partial Use of FY23 Operating Budget Surplus 512,000 448.990 6999 Partial Use of FY23 Operating Budget Surplus 512,000 448.23RR 7883 Partial Use of FY23 Operating Budget Surplus 512,000 REASON FOR REQUEST-BE SPECIFIC: To prepare budget adjustments necessary to award the Measure 0-Police Operations Building Project construction contract and fund the costs associated with its planned expenditures. Will Fuentes Todd Capurso Brian Loventhal Finance Director Public Works Director City Manager CONTRACT BETWEEN CITY OF CAMPBELL AND LATHROP CONSTRUCTION ASSOCIATES, INC, FOR CONSTRUCTION OF CAMPBELL POLICE OPERATIONS BUILDING, PROJECT NO. 23-RR THIS AGREEMENT, made and concluded in duplicate, this I "b"4- ' , day of 10 e.47., 2023 by and between Lathrop Construction Ass(zolges, Inc hereinafter referred to as "CONTRACTOR", and the City of Campbell, a Municipal Corporation, hereinafter referred to as"CITY": ARTICLE I. WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by CITY, and under the conditions expressed in the two (2) bonds, bearing event date with these presents, and hereunto annexed, the CONTRACTOR agrees with the CITY, at his own proper cost and expense,to do all the work and furnish all plant, labor, services, tools, equipment, supplies,transportation, utilities, and materials, except such as are mentioned in the Specifications to be furnished by the CITY, necessary to construct and complete to the satisfaction of the City Engineer, in accordance with this Contract, the Notice Inviting Bids, the accepted Bid Proposal, the Plans, the Special Provisions, the City of Campbell Standard Specifications and Details for Public Works Construction (CCSS) dated July 1994, General Provisions Sections 1 —9 dated March 2022 (General Provisions), and Standard Details (SJSD) dated July 1992, Standard Specifications (SS) and Standard Plans (SSP) dated May 2006 and 2018, the Labor Surcharge and Equipment Rental Rates of the California Department of Transportation, and the General Prevailing Wage Rates, each of which documents are on file in the office of the City Clerk and all of which are hereby specifically referred to and by such reference made a part hereof. The work to be done is shown upon the project plans and specifications entitled, CAMPBELL POLICE OPERATIONS BUILDING, PROJECT NO. 23-RR, which said project plans, specifications, and referenced specifications are hereby made a part of this Contract. ARTICLE II. The CITY hereby promises and agrees with the CONTRACTOR to employ, and does hereby employ, the CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the price aforesaid, and hereby contracts to pay the same at the time, and in the manner and upon the conditions herein set forth; and the CITY and the CONTRACTOR, for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained. Contract C-2 CONTRACT Contract C-1 ARTICLE IiI. The CONTRACTOR agrees to receive and accept the prices indicated in the Contractor's signed proposal as full compensation for furnishing all materials and for doing all the work contemplated and embraced in this Contract; also for all loss or damage, arising out of the nature of the work aforesaid,or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by the CiTY, and for all risks connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work and for well and faithfully completing the work, and the whole thereof, in the manner and according to the Plans and Specifications, and the requirements of the Engineer, and also for furnishing the.required bonds and insurance, and for doing all other things mentioned, contemplated or embraced in this agreement, and the contract documents. ARTICLE IV. In accordance with the provisions of Section 3700 of the Labor Code, the Contractor will be required to secure the payment of worker's compensation to his employees. ARTICLE V. By my signature hereunder, as CONTRACTOR, I certify that I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' 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. ARTICLE VI: The improvement contemplated in the performance of this Contract .is an improvement over which the CITY shall exercise, general supervision. The CITY shall have the right to assume full and direct control over this Contract whenever the CITY,at its sole discretion, shall determine that its responsibility to the United States or the State of California so requires. ARTICLE ViI. The general prevailing wage rates as heretofore specified, and any minimum wage rates indicated in the.Special Provisions are hereby specifically referred to and by this reference are made a part of this Contract. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the Bid or Proposal of CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said Proposal conflicting herewith. ARTICLE VIII. Contractor shall be responsible for complying with the provisions of California Labor Code Section 1771.1(a) which states: A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded. ARTICLE IX. Contractor and any subcontractors under the Constructor shall comply with Section 1775 of the California Labor Code regarding prevailing wages. ARTICLE X. Contractor shall be responsible for complying with the provisions of Section 1776 of the California Labor Code concerning payroll records,as more specifically described in Section 7-1.01A(4) "Payroll Records"of the General Provisions. Contract C-3 ARTICLE Xl. Contractor shall be responsible for complying with the provisions of California Labor Code Sections 1777.5 through 1777.7, inclusive, concerning apprentices, as more specifically described in Section 7-1.01A(8) "Apprentices" of the General Provisions. ARTICLE XII. Contractor shall be responsible for complying with the provisions of California Labor Code Sections 1810 through 1815, inclusive, concerning working hours, as more specifically described in Section 7-1.01A(2) "Working Hours" of the General Provisions. ARTICLE XII I. Contractor's attention is directed to Section 7-1.01 D "Trench Safety" of the General Provisions, regarding trench excavation. ARTICLE XIV. In accordance with Section 8-1.07 "Liquidated Damages" of the General Provisions, the sum of Nine Thousand Five Hundred Dollars ($9,500.00) will be assessed as liquidated damages for each and every calendar day's delay in finishing the work in excess of the number of working days prescribed. The City further agrees that the Contractor shall not be assessed liquidated damages for delay in completion of the project, when such delay was caused by the failure of the City or the owner of the utility to move or relocate such utility facilities as set forth in California Government Code Section 4215. ARTICLE XV. Contractor shall be responsible for complying with the provisions of California Public Contracts Code Section 7104 regarding trenching and excavations that extend deeper than four (4) feet below the surface. No change order issued pursuant to California Public Contracts Code Section 7104 shall provide for any increase in compensation that would exceed the recovery allowed pursuant to Section 7 "Legal Relations and Responsibility" of the Special Provisions. ARTICLE XVI. The City of Campbell shall notify Contractor of the receipt of any third-party claim relating to this contract within 30 days of receipt. The City of Campbell may recover its reasonable costs incurred in providing such notification, pursuant to subdivision (c) of Public Contract Code Section 9201. Notwithstanding this notification provision, the City of Campbell reserves its full authority to compromise or otherwise settle any claim relating to this contract at any time. IN WITNESS WHEREOF, the parties of these present have hereunto set their hands the year and date first above written and having fully read and understood the terms and conditions of this contract, acknowledge their agreement to be bound thereby. Contract C-4 CO TRA TOR ByetT Title: Ricky J. Martellaro, President (Attach Contractor's Acknowledgment/Signature Must Be Notarized) CITY OF CAfPB LL By: ‘-'7Z) Brian Loventhal Title: City Manager ATTEST: Andrea Sandeis, City Clerk Contract• C-5 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of California County of (( Solaro On i 12a2.?, before me, NCA4'tri ra.��ltar\ Itt, AI , Dote Here Insert Name and Title of the Officer personally appeared L 9 73- e> Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under PENALTY OF PERJURY under the _._ laws of the State of California that the foregoing MARIA CALLICAN = rc-.� Notarj Public-California paragraph is true and correct. z L V Solana County ' ' Commission,2337352 WITNESS my hand and official seal. My Comm.Expires Nov t5,2D24 Signature t y Place Notary Seal and/or Stamp Above Signature of N ary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. 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