Title
Recommendation to Award a Contract to Oregon Romtec Inc. in the Amount of $970,613 for the Krusi Park Recreation Center Replacement Project. (Recreation and Park 280)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The Krusi Park Recreation Center is in dire need of replacement and is currently unusable for the public except for the restrooms. Measure WW funds have been allocated to replace the Center; however, the city has been unsuccessful in its three previous attempts to secure a construction contract within the existing budget.
The contract with Oregon Romtec (Romtec) to build and install a new recreation center is a cost effective, controlled cost, turnkey solution available as a pre-bid contractor through the California Multiple Award Schedule (CMAS). CMAS is a state purchasing agency whose cooperative purchasing contracts have been competitively solicited so that government agencies, such as the City of Alameda, can utilize their contracts meeting all local, state, and federal purchasing requirements, including prevailing wage rates.
BACKGROUND
The Krusi Park Recreation Center renovation is a project funded by the East Bay Regional Park District's (EBRPD) Measure WW grant funding, in the amount of $1,365,489, including both design and construction costs. EBRPD extended the deadline for this funding for current projects and all funds must be fully expended and projects completed by December 31, 2020.
In the fall of 2012, the City issued a Request for Proposals to renovate the Krusi Park Recreation Center. On February 5, 2013, the City Council rejected all bids due to the lowest bid exceeding the construction budget by over 40%.
In May 2015, the City issued a Request for Qualifications for design and construction of a modular recreation building, but none of the responding firms were considered responsive.
Based on staff review and discussions with the firms who submitted bids, staff engaged the architectural firm Group4, to re-design the recreation center with a modular design firm, which would provide more detailed direction for a subsequent bid.
The City put the revised modular design out to bid again and closed bids on March 12, 2018. On June 5, 2018, the City Council rejected all bids because the lowest bid exceeded the construction budget by 25%.
DISCUSSION
In the report to City Council on June 5, 2018 to reject all bids, staff identified Romtec as an alternate option to get the project built. The City can directly contract for a turnkey project with Romtec, which is a state pre-bid contractor through the California Multiple Award Schedules (CMAS). CMAS is a state purchasing agency whose cooperative purchasing contracts have been competitively solicited so that government agencies can utilize their contracts meeting all state, local and federal purchasing requirements, including prevailing wage rates. The City already utilizes this CMAS process for all playground products and installations. Romtec is pre-approved with pre-negotiated pricing with CMAS. The City, therefore, does not need to go to bid, but can contract directly with Romtec. In addition, the cost for the Romtec building and installation is a pre-determined cost, which makes it a known quantity rather than the uncertainty of the bid process that has twice been significantly over the available budget.
Romtec is a well-established company that provides restrooms and buildings for many California government agencies, including the Hayward Area Recreation District and the East Bay Regional Park District. Rather than a modular building, Romtec products are designed using the existing project plans and specifications and then all building supplies are shipped and installed onsite. The City will need to issue a separate call for bids for the additional site work that includes utility work, ADA curb and ramp and pathway repair.
On May 8, 2017, the Planning Board approved the Krusi Park Recreation Center design and use permit. The Romtec building adheres to this approved design. The final colors and materials palette will be presented to the Planning Board in October 2018.
If no action is taken on this item, then the Krusi Park Recreation Center will most likely not be rebuilt as the City has gone out to bid twice, including with significant value engineering, and attempted a design build modular option once, all of which have been unsuccessful to secure a bid within the existing budget. Identifying additional funding for replacement of existing park infrastructure is more challenging than new park infrastructure due to more limited funding options.
In addition, the Measure WW funds allocated for this project will expire at the end of 2020. EBPRD extended the funding deadline by two years for all of the uncompleted projects with the caveat that jurisdictions cannot apply for any new projects or, otherwise, reallocate the funding.
FINANCIAL IMPACT
Budget for the contract is included in the Capital Improvement Program Fund, Recreation Department (Project No. 91003). The project is funded with monies allocated from the Measure WW grant and the Dwelling Unit Tax.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action has no effect on the Municipal Code.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 (existing facilities), 15302 (replacement or reconstruction), and 15303 (new construction or conversion of small structures).
RECOMMENDATION
To award a contract to Oregon Romtec Inc. in the amount of $970,613 for the Krusi Park Recreation Center Replacement Project.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Contract