AGENDA ITEM NO. 3.0

CITY OF ELK GROVE CITY COUNCIL STAFF REPORT

AGENDA TITLE: Consider a resolution amending the 2016-

2021 Capital Improvement Program and FY 2016-17 Budget for the Aquatics Center and Civic Center Commons Site Project; authorizing the City Manager to execute a construction contract with Arntz Builders, Inc. for the Aquatics Center and Civic Center Commons Site Project in the amount of $30,754,886.00; authorizing the City Engineer to approve change orders not-to-exceed $1,537,744.00; and authorizing the City Manager to execute a construction contract with the second lowest bidder if the first lowest bidder does not meet filing obligations (No further CEQA Review Required)

MEETING DATE: March 29, 2017 PREPARED BY: Rick Carter, CIP Service Manager Alvin Wong, City Architect DEPARTMENT HEAD: Robert Murdoch, Public Works Director / City Engineer RECOMMENDED ACTION: Staff recommends the City Council adopt a resolution:

1) Authorizing an amendment to the FY 2016-21 Capital Improvement

Program (CIP) relative to scope, title and budget for the “Aquatics Center and Civic Center Commons Site” Project, the “Project”; and

2) Authorizing an amendment to the FY 2016-17 Budget of the Capital

Improvement Program for the Project to add $700,000 for new heritage trees from the Tree Mitigation Fund, add $1,273,387.76

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Elk Grove City Council Special Meeting March 29, 2017 Page 2 of 8

from the Poppy Ridge CFD 2003-1 fund, add $10,000,000 from the Laguna Ridge CFD 2005-1 fund, and add $2,800,000 from the Laguna Ridge Park Fee; and

3) Authorizing the City Manager to execute a construction contract with

Arntz Builders, Inc. for the Project in the amount of $30,754,886; and

4) Authorizing the City Engineer to approve change orders not-to-exceed $1,537,744 for Project; and

5) Authorizing the City Manager to execute a construction contract with the second lowest responsive and responsible bidder, Harris Construction, should Arntz Builders, Inc. not meet its contract execution obligations.

PROJECT INFORMATION: The Project will construct facilities on approximately 20 acres of the southern Civic Center site and will include the following components:

1. Aquatics Center – Aquatics Center with an Olympic pool with springboards and dive well, an instructional pool, a recreation pool with play structure, built-in seating, trellis structures, and three associated support buildings (competition building, recreation building, and storage building) of approximately 15,400 square feet. This work is currently identified in the CIP as the “Civic Center – Aquatics Center” project number WCC002.

2. Civic Center Commons Project Phase 1 – Two parking areas, landscape areas, pedestrian walkways and plazas, lighting, veterans park, water features and other amenities and improvements surrounding and supporting the Aquatics Center, the future Community/Senior Center (WCC010) Project, and other planned facilities such as the library, including utility stubs, grading, and pad preparation for the future Community/Senior Center (WCC010) Project. The Community/Senior Center (WCC010) Project is currently in design and anticipated to be advertised for bid this fall during the construction period of this Project. The site work is currently included as portions of various Civic Center projects in the CIP and not a stand-alone project.

The Project Location Map is provided as Attachment 2.

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Elk Grove City Council Special Meeting March 29, 2017 Page 3 of 8 BACKGROUND INFORMATION:

The currently funded Civic Center projects include the Aquatics Center (WCC002), Community/Senior Center (WCC010), and Veterans Memorial Hall (WCC011) Projects, as approved by the Council on July 13, 2016 and amended January 25, 2017. The Commons Area Phase 1 work was originally planned as part of each facility (Aquatics Center, Community/ Senior Center, and Veterans Hall). As the Civic Center site was being developed and facilities consolidated, it became clear that economies of scale benefits could be created by combining the Commons Area work into a single design. A “Civic Center Commons Area Phase 1” Project (WCC024) was then created as a consolidation of the common area design work associated with all three projects. However, construction phase funding was not combined or programmed in the current fiscal year. In addition, as the Aquatics Center and Commons Area Phase 1 projects further developed, it was determined that their schedules allowed them to be bid together as a cost savings measure. For ease of construction contract administration, the construction of the Commons Area will be funded and administered as part of the Aquatics Project. For these reasons, a CIP and budget amendment are needed to revise the scope and title, and combine and advance the construction funding for the project.

Per prior Council direction, the Community/Senior Center (WCC010) and Veterans Hall (WCC011) Projects are also being consolidated. The revised scope and costs for these projects are still under development and will be included in the annual update to the CIP.

BID ANALYSIS:

The call for bids was advertised on February 17 and 24, 2017. The City Clerk received the following bids on Tuesday, March 21, 2017:

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Elk Grove City Council Special Meeting March 29, 2017 Page 4 of 8

Table 1: Bids Received

Contractor Name Location

WCC002 Aquatics Center

Bid Price

WCC024 Civic Center Commons Phase 1 Bid Price Total Bid Price

Engineer’s Estimate $18,600,000 $12,200,000 $30,800,000

Arntz Builders, Inc. Novato, CA $22,282,641 $8,750,000 $31,032,641

Harris Construction Fresno, CA $19,850,000 $11,450,000 $31,300,000

Diede Construction Woodbridge, CA $20,600,000 $12,780,000 $33,380,000

After review of the bids received, staff has determined that Arntz Builders, Inc. is the lowest responsible bidder submitting the lowest responsive total bid price of $31,032,641, which was the basis for determining the lowest bidder. The low bid exceeded the engineers estimate by $232,641, or 0.75%. There are three deductive bid alternates included in the bid. The alternates in Arntz Builders, Inc.’s bid are summarized below, with the associated deductive costs.

1. Deductive Alternate #1: Delete Large Water Slide and replace with Small Water Slide. (-$80,000)

2. Deductive Alternate #2: Delete Fountain and Fountain Plaza and replace with landscape and irrigation. (-$963,065)

3. Deductive Alternate #3: Delete Reflecting Pools and replace with landscape and irrigation. (-$277,755)

Staff recommends that Deductive Alternate #3 be selected for deletion from Arntz Builders, Inc.’s scope of work to keep the project within the construction budget and reduce the construction contract award to $30,754,886. Staff believes that the design of the Reflecting Pools can be easily integrated into the site as part of the future Library Project. The Reflecting Pools, if constructed as a part of this contract, will be a design constraint during the design of the Library. Staff also recommends that Deductive Alternates #1 and #2 not be selected for deletion, since these items are important to the overall design of the Project and costs are within the Engineer’s Estimate.

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Elk Grove City Council Special Meeting March 29, 2017 Page 5 of 8 As specified in the construction contract, the contractor must execute and return the contract, along with other specified requirements, within ten calendar days following receipt of the Notice of Award. Construction is anticipated to begin by May 1, 2017 assuming no complications with the contract execution process. The contract allows 390 calendar days to complete the required work. The work is expected to be complete by approximately May 25, 2018, dependent upon weather delays. ENVIRONMENTAL REVIEW: The California Environmental Quality Act (Section 21000, et. seq. of the California Public Resources Code, hereafter CEQA) requires analysis of agency approvals of discretionary “projects.” A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” The proposed Project is a project under CEQA. The proposed action involves contract bids for the construction of an Aquatics Center and associated site at the Civic Center site (the Project). The physical impacts of construction and operation of this Project were previously analyzed under the Laguna Ridge Specific Plan EIR, and Civic Center Aquatics Complex SEIR for the Civic Center Complex South Property Improvements, and an Addendum to the Laguna Ridge Specific Plan EIR and Civic Center Aquatics Complex SEIR. No substantive changes have occurred with the design of the Project and it remains the same as previously described and analyzed in the prior CEQA documents. Therefore, no further environmental review is required for this project. FISCAL IMPACT: The fiscal impacts are summarized in the following tables: Table 1 summarizes the total estimated project costs with the lowest responsible bid; Table 2 summarizes the total estimated project costs with the second lowest responsible bid; Table 3 summarizes the funds currently budgeted for the Aquatics Center (WCC002) and Civic Center Commons Area Phase 1 (WCC024) Projects for design and construction.

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Elk Grove City Council Special Meeting March 29, 2017 Page 6 of 8

Table 1 Total Estimated Project Costs for Aquatics Center and Civic Center Commons

Site Project (WCC002 & WCC024) with Lowest Responsible Bid Capital Costs Aquatics Center Costs Commons Site Costs

Preliminary Design $1,600,000 $1,200,000 Environmental 50,000 0 Permits, Advertising, Recordings 400,000 1,000,000 Construction Engineering/Management

1,600,000 500,000

Construction Contract 22,282,641 8,472,2451

Construction Contingency 1,114,132 423,612 Subtotal $27,046,773 $11,595,857

Total Aquatics Center & Civic Center Commons Site Project

Costs $38,642,6301,2

1. The amount shown includes deductive costs taken with Deductive Alternate #3. 2. The amount shown includes expenses or budget associated with the current project

design and does not include prior expenses from previous project designs.

Table 2 Total Estimated Project Costs for Aquatics Center and Civic Center Commons

Site Project (WCC002 & WCC024) with Second Lowest Responsible Bid Capital Costs Aquatics Center Costs Commons Site Costs

Preliminary Design $1,600,000 $1,200,000 Environmental 50,000 0 Permits, Advertising, Recordings

400,000 1,000,000

Construction Engineering/Management

1,600,000 500,000

Construction Contract 19,850,000 11,450,0001

Construction Contingency 975,215 562,529 Subtotal $24,475,215 $14,712,529

Total Aquatics Center & Civic Center Commons Site

Project Costs $39,187,7441,2

1. The amount shown includes no deductive costs taken. The Deductive Alternate #3 amount in the bid of Harris Construction was a token amount ($65,000) and therefore, not commensurate with the deductive scope of work.

2. The amount shown includes expenses or budget associated with the current project design and does not include prior expenses from previous project designs.

As noted previously, the construction phase costs (construction and construction engineering) for the Commons Area Phase 1 project were not programmed in the current fiscal year, necessitating a CIP and budget amendment. The proposed amendment advances those funds into the current fiscal year, as indicated in Table 3.

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Elk Grove City Council Special Meeting March 29, 2017 Page 7 of 8

Table 3 Aquatics Center and Civic Center Commons Site Project (WCC002 & WCC024)

Budget with Lowest Responsible Bid

Funding Source (Fund #)

Aquatics Budget

(WCC002)

Commons Budget

(WCC024)

Proposed Budget

Additions

Proposed Total Combined

Budget Poppy Ridge CFD 2003-1

(343) $11,070,780.02 1,376,077.42 1,273,387.76 $13,720,245.20

Laguna Ridge CFD 2005-1

(344) 10,923,489.00 0.00 10,000,000.00 20,923,489.00

Laguna Ridge Park Fee3 (360) 0.00 44,009.80 2,800,000.00 2,844,009.80

Transit Capital Fund1 (317) 1,000,000.00 0.00 0.00 1,000,000.00

Tree Mitigation Fund2 (235) 0.00 0.00 700,000.00 700,000.00

Total $22,994,269.02 $1,420,087.22 $14,773,387.76 $39,187,744.00 1. The Transit Capital Fund is reserved for use on the Civic Center Commons Area Phase 1

work for Park and Ride Lot. 2. The Tree Mitigation Fund is reserved for use on the Civic Center Commons Area Phase 1

work for new Heritage trees. 3. The Laguna Ridge Park Fee is reserved for use on the Civic Center Commons Area

Phase 1 Work. Project savings after final close-out will be returned to the appropriate funds. Included with the attached resolution are several amendments to the Capital Improvement Program for Fiscal Years 2016-2021 and the Fiscal Year 2016-17 Budget to fund the various elements of the Project. Specifically, the changes include the following:

• Including the construction phase scope and costs of the Civic Center Commons Area work as part of the Aquatics Center Project (WCC002) by CIP and Budget Amendment.

• Renaming the Aquatics Center Project (WCC002) to “Aquatics Center and Civic Center Commons Site” Project

• Allocating $700,000 in Tree Mitigation Funds for the Aquatics Center and Civic Center Commons Site Project for new Heritage trees.

• Allocating $1,273,387.76 in Poppy Ridge CFD 2003-1 funds • Allocating $10,000,000 in Laguna Ridge CFD 2005-1 funds • Allocating $2,800,000 in Laguna Ridge Park Fee funds

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Elk Grove City Council Special Meeting March 29, 2017 Page 8 of 8 ATTACHMENTS:

1. Resolution 2. Project Location Map

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ATTACHMENT 1

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE AMENDING THE 2016-21 CAPITAL IMPROVEMENT PROGRAM AND FY 2016-17 BUDGET FOR THE AQUATICS CENTER AND CIVIC CENTER COMMONS SITE

PROJECTS; AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH ARNTZ BUILDERS, INC. FOR THE AQUATICS

CENTER AND CIVIC CENTER COMMONS SITE PROJECT IN THE AMOUNT OF $30,754,886.00; AND AUTHORIZING THE CITY ENGINEER TO APPROVE CHANGE

ORDERS FOR THE AQUATICS CENTER AND CIVIC CENTER COMMONS SITE PROJECT NOT-TO-EXCEED $1,537,744.00; AND AUTHORIZING THE CITY

MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH THE SECOND LOWEST BIDDER IF THE FIRST LOWEST BIDDER DOES NOT MEET FILING

OBLIGATIONS

WHEREAS, the Project will construct facilities on approximately 20 acres of the southern Civic Center site and will include the following components:

1. Aquatics Center with an Olympic pool with springboards and dive well, an

instructional pool, a recreation pool with play structure, built-in seating, trellis structures, and three associated support buildings (competition building, recreation building, and storage building) of approximately 15,400 square feet; and

2. The Civic Center Commons area, which includes two parking areas, landscape areas, pedestrian walkways and plazas, lighting, water features and other amenities and improvements surrounding and supporting the Aquatics Center, as well as the future Community/ Senior Center Project. This work also includes utility stubs, grading, and pad preparation for the future Community/Senior Center Project; and

WHEREAS, the Civic Center - Aquatics Center Project (Project #WCC002) and

the Civic Center Commons Area Phase 1 work (Project #WCC024) are being constructed as a single “Aquatics Center and Civic Center Commons Site” Project (the “Project”); and

WHEREAS, the Project work is included in the approved Fiscal Year 2016-21

Capital Improvement Program and is partially budgeted with funds in the approved Fiscal Year 2016-17 Budget; and

WHEREAS, the Project is a project under California Environmental Quality Act

(Section 21000 et seq. of the Public Resources Code, hereinafter referred to as CEQA) and the National Environmental Policy Act (NEPA); and

WHEREAS, the physical impacts of construction and operation of the Project

were analyzed under CEQA in the Laguna Ridge Specific Plan EIR, and Civic Center Aquatics Complex SEIR for the Civic Center Complex South Property Improvments, and an Addendum to the Laguna Ridge Specific Plan EIR and Civic Center Aquatics Complex SEIR and no further environmental review is required under CEQA; and

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WHEREAS, an invitation to bid was duly advertised on February 17, 2017 and February 24, 2017, and bids were opened on March 21, 2017; and

WHEREAS, Arntz Builders, Inc. was determined to be the responsible bidder

submitting the lowest responsive bid and Harris Construction was determined to be the responsible bidder submitting the second lowest responsive bid.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk Grove hereby:

1) Amends the FY 2016-21 Capital Improvement Program relative to scope, title and costs for the Project “Aquatics Center and Civic Center Commons Site” Project as follows: a. Rename the “Civic Center- Aquatics Center” Project to “Aquatics Center

and Civic Center Commons Site” Project (Project #WCC002) b. Include the construction scope and costs of Civic Center Commons Site

construction work as part of Aquatics Center and Civic Center Commons Site Project (Project #WCC002)

2) Amends the FY 2016-2017 Budget of the Capital Improvement Program for

the Aquatics Center and Civic Center Commons Site Project to add $700,000 for new heritage trees from the Tree Mitigation Fund, add $1,273,387.76 from the Poppy Ridge CFD 2003-1 fund, add $10,000,000 from the Laguna Ridge CFD 2005-1 fund, and add $2,800,000 from the Laguna Ridge Park Fee; and

3) Authorizes the City Manager to execute a construction contract with Arntz Builders, Inc. for the Aquatics Center and Civic Center Commons Site Project in the amount of $30,754,886.00 upon receipt of all required bonds and insurance and the approval of such bonds and insurance by the City Attorney; and,

4) Authorizes the City Engineer to approve change orders not-to-exceed

$1,537,744.00; and, 5) Authorizes the City Manager to execute a construction contract with the

second lowest responsive and responsible bidder, Harris Construction, should Arntz Builders, Inc. not meet contract execution obligations.

PASSED AND ADOPTED by the City Council of the City of Elk Grove this 29th

day of March 2017

STEVE LY, MAYOR of the CITY OF ELK GROVE

ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS,

CITY ATTORNEY

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CIVIC CENTER DR

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RCivic Center – Aquatics Center and Civic Center Commons Site –

WCC002

Project Location

4 Elk Grove City GIS - March 2017

G:\PROJECTS\PUBLIC_WORKS\CIP\LOCATION_MAPS\Layouts\WCC002_2017_for staff report.mxd

0 300 600 900 1,200150Feet

ATTACHMENT 2

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