To: Honorable Mayor and Members of Town Council
From: Brian Peterson, Project Manager
Title
Resolution Approving the Town of Castle Rock Construction Contract with Mark Young Construction, Inc. for the Construction of the Public Works Service Center Expansion Project [4175 N. Castleton Court]
Body
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Executive Summary
The purpose of the memo is to obtain a favorable recommendation from the Public Works Commission for Town Council to approve a Resolution approving a Construction Contract (Attachment A) with Mark Young Construction, Inc. for the construction of the Public Works Service Center Addition/Renovation. This project will add additional office space, provide two new service bays and renovate existing office spaces to create a more open/collaborative environment. Currently, the department has the Streets Maintenance Operations Division working in a small trailer. During shift changes of Snow Plow Operations, there can be as many as 40 individuals in the space. This project will provide for expected growth well into the future.
It is important to note that Mark Young was not the low bidder, Golden Triangle Construction provided the low bid for this project. The decision to recommend the second bidder is explained in the Discussion section.
Based on Mark Young’s base bid number of $4,263,933, in addition to six alternates, as well as permit/system development fees, materials testing, contingency, and other “soft costs” that are not considered directly part of construction, result in a total project cost of $5,302,389. These additional costs are summarized below. This project is paid for primarily with Impact Fees from Development.
History of Past Town Council, Boards & Commissions, or Other Discussions
In October of 2014, HB+A Architects performed a Town wide Facility Space Study. The study’s primary focus was to, “…develop option for Town line operation and maintenance space needs for the next three to ten years and position them to be able to accommodate future growth beyond the next ten years.” The Public Works Service Center was identified in the study to be expanded. As the Town Hall expansion is complete and the new Parks/Facilities building is nearing completion, the time has now come to build the addition/expansion for Public Works in order to properly serve the community.
The Town entered into a Service Agreement with D2C Architects in April, 2017 to commence design services.
Public Works Commission is scheduled to review this item on February 4, 2019. They will provide a formal recommendation to Town Council, which staff will provide during the presentation at the Town Council Meeting.
Discussion
For this bidding process, a multi-selection process was used. First, a request for qualifications (RFQ) was advertised on BidNet on October 8, 2018. On October 19, 2018, the RFQ’s were received a total of fourteen were evaluated and eight were approved to move forward in the process. The qualifications were based on several items including but not limited to; the General Contractors provided all the requested information, worked on similar types of projects, and exhibited staff experience on similar projects.
A pre-bid conference was held on-site to provide the contractor’s information for the proposed project, contractors to ask questions, provide clarification on the bidding process, and to meet the Town’s project staff. Of the pre-qualified bids received, the three lowest bidders were asked to attend interviews. They included:
• Golden Triangle Construction,
• Mark Young Construction, Inc.
• MW Golden.
Interviews were scheduled with the contractors and assessed. An agenda was provided ahead of time to the contractors which had questions for the interviews. The decision to recommend Mark Young as best qualified contractor was based on the following reasons:
• Contractor had reviewed and answered the interview questions ahead of time
• Contractor would have a Superintendent and Project Engineer on-site 100% of the time
• Contractor has performed similar work environment experience (working in occupied spaces)
• Presented a detailed schedule and logistics plan
• Stated and agreed to waive overhead and profit fees on change orders unless they are self-performing the work
Although Golden Triangle’s base bid was $256,233 lower than Mark Young’s, it is important to note that on page three of the RFQ, it stated the following:
“The Town of Castle Rock anticipates selection through a best value evaluation of qualifications and total bid pricing. Contracting is subject to Town of Castle Rock purchasing and procurement code.”
The Town’s Procurement Code that is referenced above, particularly Section 3.02.070 states the following:
“Bids shall be awarded to the lowest, best and responsive, responsible bidder as determined by the Town.”
As a result, we expect that this will lead to an efficient construction phase, and likely minimize potential change orders.
The base bid results for the Public Works Service Center Addition/Renovation are listed below:
General Contractor (hard costs): Base Bid:
Golden Triangle Construction, Inc. $4,007,700
Mark Young Construction, Inc. $4,263,933
MW Golden Constructors $4,568,450
White Construction Group $4,739,731*
Basset & Associates, Inc. $4,971,000
Alliance Construction Solutions $5,548,534*
*The General Contractors provided an overall lump sum number and a breakdown of the number as well. When the breakdown was added up, the number totaled more than the lump sum provided.
In addition to the base bid, six alternates were also requested to be priced, all of these alternates will be accepted. The alternates are listed below, along with the pricing provided by Mark Young.
Description of Alternates (hard costs): Alternate Pricing:
Alternate #1 - Exterior Covered Storage $30,000
Alternate #2 - 5 - Ton Bridge Crane $85,273
Alternate #3 - Refinish Restrooms $48,400
Alternate #4 - Refinish Showers $12,900
Alternate #5 - Remove Trailers $12,996
Alternate #6 - Floor Finish Upgrade $55,906
ALTERNATE TOTAL: $245,475
Taking the base bid ($4,263,933) and the alternates ($245,475) listed as well as a ten percent Town managed contingency ($450,941) into consideration the total construction cost with Mark Young will be $4,960,349.
In addition to this price ($4,960,349), the materials testing, permit/system development fees, IT infrastructure and client devices, furniture, fixtures and equipment (FFE) costs totaling $342,040 are not part of this construction contract with Mark Young but would result in an overall total construction project cost of $5,302,389. Below is a breakdown of costs that are not included in the recommended contract with Mark Young but will be paid for separately.
Additional Project Costs Outside of Mark Young’s Construction Contract (soft costs)
Materials Testing $16,539
Permit & System Development Fees $30,322
IT Infrastructure & Client Devices $81,946
Furniture, Fixtures and Equipment (FFE) $213,233
TOTAL: $342,040
Schedule
Upon approval, Mark Young would be provided with a Notice of Award and a Notice to Proceed on February 6, with construction starting in late February. The overall completion date is anticipated for February, 2020.
Budget Impact
The total construction cost is $5.3 million, or about $1 million over the original construction budget. The source of this funding is primarily Development Impact Fees. A future budget amendment for approximately $1 million is planned to be requested in March 2019. Funding for this project is included in the Transportation Capital Fund account number 135-3175-431.70-20. Funds in the amount of $1.3 million are planned to be recouped from other departments to accommodate the construction of the fleet bay portion of the project, based upon the number of vehicles in each department that are maintained by Fleet Services Division. The Finance Department has reviewed the proposed funding and supports the funding mechanism. Sufficient funding is available in the Transportation Capital fund to cover the additional $1 million, until the budget amendment is completed.
TOTAL PROJECT FUNDS NEEDED:
Mark Young Construction Costs (hard costs) $4,960,349
Additional Project Costs (soft costs) $ 342,040
TOTAL FUNDS NEEDED: $5,302,389
AVAILABLE BUDGET:
Current Available Funds for Construction $4,297,242
Budget Amendment Amount (March 2019) $1,005,147
TOTAL COSTS ALLOCATED: $5,302,389
Staff Recommendation
Staff recommends the Town Council approve of the Resolution as introduced by title.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Attachment B: Bid Tabulation