Title
Recommendation to Authorize the City Manager to Execute a Contract with Redgwick Construction Co. for Chuck Corica Golf Course Parking Lot Improvements, No. PW 02-20-12 in an Amount, Including Contingency, Not to Exceed $406,471.50;
OR
In The Alternative to Reject All Bids for Chuck Corica Golf Course Parking Lot Improvements, No. PW 02-20-12 and Provide Direction for a Lease Amendment with Greenway Golf for a Rent Reduction and Requirement to Fund and Construct the Chuck Corica Golf Course Parking Lot and Sewer Line. (Public Works 310)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Public Works solicited bids for the construction of the Chuck Corica Golf Course (Corica Park) parking lot improvements. The project scope of work includes installation of additional storm drain inlets, storm drain pipe, repairs of the existing parking lot pavement, installation of a two-layer pavement cape seal and parking lot restriping to create parking stalls compliant with the Americans with Disability Act (ADA). Redgwick Construction Company (Redgwick) submitted the lowest bid for a total price of $368,471.50.
Greenway Golf Associates (Greenway) has a long-term lease agreement (Lease) for operation and maintenance of Corica Park and requested that the City of Alameda (City) consider a higher quality asphalt option of a 2” overlay to provide better surface drainage which also provides the base required for a more environmentally-friendly “Red Earth” paving option. This is a significantly more expensive repair alternative and in connection with negotiation of the current lease, Greenway has proposed a three-year rent reduction in exchange for Greenway taking financial and construction management responsibility for the parking lot project and for replacement of the sewer line from Island Drive to the facility, which is required by 2024 for the EBMUD Consent Decree. The sewer project is not currently funded by the City. All work would be performed by Greenway with union labor.
Staff recommends awarding the contract to Redgwick for a contract price of $368,471.50, with a contingency of $38,000 for an authorized total of $406,471.50. Alternatively, the Council could reject all bids and provide direction for a lease amendment memorializing this deal to be brought back to City Council.
BACKGROUND
The Fiscal Year 2018-19 Mid-Cycle Budget amendment appropriated a total of $500,000 to the Corica Park parking lot improvement project. This parking lot improvement is required as part of the City’s Lease with Greenway. This project will renovate and improve drainage for 60% of the parking lot with the remaining 40% being completed later this year as part of the street paving project on Bay Farm Island. The ADA improvement aspect of the project also addresses the City’s portion of responsibility for a settlement agreement for an ADA lawsuit where the City, Greenway, and Dialemi, dba Jim’s on the Course (Jim’s), the food and beverage operator at Corica Park, were named plaintiffs. The remaining ADA compliance issues will be addressed by Greenway and Jim’s.
In 2012, the City entered into a 25-year Lease with Greenway for renovation, operation and maintenance of Corica Park. In March 2018, the City Council authorized an amendment that extended the Lease term to 50 years and required Greenway to perform additional improvements to the North Course and Clubhouse at Corica Park, and install a new water main and fire lines.
The Lease requires the City to renovate Corica Park parking lot, while subsequent long-term maintenance is Greenway’s responsibility.
DISCUSSION
To solicit the maximum number of bids and most competitive price, plans and specifications were provided to builders exchanges throughout the Bay Area and published in the Alameda Sun on March 5, 2020. After the bidding period of 35 days, three contractors submitted bids, and the bids were opened on April 9, 2020. The bid results are summarized below.
|
Bidder |
Location |
Base Bid Amount |
|
Redgewick Construction Company |
Oakland, CA |
$368,471.50 |
|
Suarez and Munos Construction, Inc. |
Hayward, CA |
$434,287.92 |
|
Mark Lee & Yong Kay, Inc. dba Bay Construction Co. |
Oakland, CA |
$435,463.20 |
After reviewing the bids, staff recommends awarding the contract to Redgewick for a contract price of $376,741 with a contingency and reserve not-to-exceed $38,000 for an authorized total of $406,471.50. The contractor is not guaranteed any of the contingency and its use will be at the sole discretion of the Public Works Director for work not originally anticipated in the specification. The specification also informed the successful bidder that they shall not pay less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. Construction of this project is anticipated to commence on or about July 20, 2020 and is expected to be complete by early September 2020. A copy of the proposed contract is attached as Exhibit 1.
Alternatively, City Council may reject all bids and provide direction for staff to bring to Council a Greenway Lease amendment that requires Greenway to fund and construct the parking lot in exchange for rent abatement. Greenway requested that the City undertake a higher quality of paving with a 2” asphalt overlay that will extend the life of the pavement, reduce maintenance and provide better surface drainage. Greenway would also utilize a new “Red Earth” product that is more environmentally friendly because it reflects sunlight and reduces the ambient heat above the parking lot. This is a significantly more expensive proposal. Greenway has offered to take full responsibility (both project management and financial) for the parking lot renovation and for the sewer replacement from Island Drive to the facility as required by the EBMUD Consent Decree. In exchange, Greenway asked to renegotiate the rental obligation in its Lease. If City Council directs that staff pursue this course of action, the Lease amendment would come before City Council for a vote in September 2020.
In any event, the City’s ADA obligations in the settlement terms will be addressed as the parking lot will be restriped to create ADA compliant stalls.
ALTERNATIVES
1. Accept the Redgwick bid and contract with Redgewick to complete the project.
2. Reject all bids and direct staff to rebid the project.
3. Reject all bids and direct staff to negotiate a Lease amendment with Greenway that memorializes an arrangement where Greenway undertakes the parking lot and sewer work described above in exchange for rent abatement/relief.
4. Reject all bids and provide different direction on Lease amendment terms with Greenway.
FINANCIAL IMPACT
1) Accept Bids. Budget for the contract is included in the Capital Improvement Program (Project No. 91853). The project is funded with monies allocated from Capital Project Fund 310.
Source of Funds (Previously Appropriated)
|
|
CIP 91853 |
$500,000.00 |
|
|
|
|
Total |
$500,000.00 |
Estimated Project Costs
|
|
Plans & Specifications |
$ 60,000.00 |
|
|
|
Contract No. PW 02-20-12 |
$368,471.50 |
|
|
|
Reserve and Contingency |
$ 38,000.00 |
|
|
|
Construction Administration |
$ 15,000.00 |
|
|
|
Construction Testing and Inspection |
$ 15,000.00 |
|
|
|
Admin Overhead, Supplies & Materials |
$ 3,000.00 |
|
|
|
|
Total |
$499,471.50 |
|
|
Remaining Fund Balance |
|
$ 528.50 |
2) Greenway Lease Amendment Alternative
Specific Lease amendments terms will be included in the final Lease amendment presented to City Council in September 2020.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt pursuant to CEQA Guidelines Section 15301(c), Existing Facilities.
CLIMATE IMPACTS
The proposed “Red Earth” asphalt has an additive with a reddish color that reflects more sunlight than standard black asphalt. This reduces ambient surface temperature above the parking lot. Red coloring has been shown in studies to reduce the surface temperature by up to 7%. Black asphalt absorbs the sun’s radiation, stores it and releases the excess heat back into the environment, contributing to what is called the Urban Heat Island effect. The amount of greenery and natural areas are also factors in this effect.
RECOMMENDATION
Authorize the City Manager to execute a contract with Redgwick for Chuck Corica Golf Course Parking Lot Improvements, No. PW 02-20-12 in an amount, including contingency, not to exceed $406,471.50; OR
Reject all bids for Chuck Corica Golf Course Parking Lot Improvements, No. PW 02-20-12 and provide direction to staff to negotiate a Lease amendment with Greenway for rent reduction and a requirement to fund and construct the Chuck Corica Golf Course Parking Lot and Sewer Line.
CITY MANAGER RECOMMENDATION
City Manager concurs with staff recommendation.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Liam Garland, Public Works Director
By,
Scott Wikstrom, City Engineer
Sarah Lee, Associate Civil Engineer
Financial Impact section reviewed,
Nancy Bronstein, Interim Finance Director
Exhibit:
1. Contract
cc: Eric Levitt, City Manager