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Home My WebLink About05- Development Department D - VELOPMENT DEPARTME _ f OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: 201 NORTH "E" STREET - Executive Director TENANT IMPROVEMENTS DATE: May 19, 1993 Synopsis of Previous Commission/Council/Committee Action (s): On April 5, 1993, the Community Development Commission approved an allocation of$298,400 for the development and construction of office improvements at 201 North "E" Street within the former Thrifty space. ----------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Develooment Committee) MOTION A: That the Community Development Commission award a contract in the amount of $266,048 to Kirkley Development Incorporated for the construction of tenant improvements at 201 North "E" Street and authorize the Executive Director to execute same. (Motions Continued to Neat Page) 1� Administrator KENNETH Al. HEND RSON Executive Director --------------------------------------—_____—------------- Contact Person(s): Kenneth J. Henderson/David Norman Phone: 5081 Project Area(s): Central Cft-North (CCN) Ward(s): One (1) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $321.942.28 Source: Bond Proceeds Budget Authority: Requested __________________________________________________________________________________________________________________________________________—_ Commission/Council Notes: KJH:DJN:Iag:201TNT.AGD COMMISSION MEETING AGENDA MEETING DATE: 05/24/1993 Agenda Item Number: J REQUEST FOR COMMijSION/COUNCIL ACTION 201 North "E" Street - Tenant Improvements May 19, 1993 Page Number -2- ---------------------------------------------------- Recommended Motions Continued: MOTION B: That the Community Development Commission allocate$341,942 for construction, contingency and contract management of office tenant improvements at 201 North "E" Street. -------------------------------------------------------------------------------------------------------------------- KJH:DJN:lag:201TNT.AGD COMMISSION MEETING AGENDA MEETING DATE: 05/24/19933 Agenda Item Number. _.J DEVELOPMENT DEPARTMENT STAFF REPORT 201 North "E" Street Tenant Improvements On April 5, 1993, the Commission conceptually approved the construction of tenant improvements at 201 North "E" Street, otherwise known as the "Old Thrifty Building". Tenants for the improved space are Assemblyman Joe Baca, the San Bernardino Visitors and Convention Bureau and Main Street, Inc. A qualified and responsive bid in the amount of $266,068 was received from Kirkley Development which has satisfactorily completed other improvement projects for the City of San Bernardino. Adding amounts for construction contingencies and for contract management bring the total project cost to $321,942. BID PROCESS On April 28, 1993, the Development Department advertised for bids for the construction of approximately 8,000 square feet of interior tenant improvements plus minor exterior and roof rehabilitation. During the advertisement for bids, fourteen (14) general contractors purchased plans and bid documents. On May 7, 1993, the Development Department conducted a mandatory walk-through of the proposed construction space, in which twelve (12) contractors attended. Following the walk-through, staff learned from a number of the contractors that they would not qualify for the required banding due to the low net worth on their financial statements. On May 18, 1993, 9:00 a.m., only two (2) bids were received as follows: BID ITEMS Kirkley Development Pence Construction Total $266,068 $248,240 The apparent low bidder, was Pence Construction; however,Pence did not submit a sufficient bid bond. Pence's bid bond was less than 10% of the bid amount, thereby disqualifying Pence from the bidding process. The remaining qualified bidder was Kirkley Development. Staff attempted to secure a forty-eight(48) hour period for Pence Construction to cure the bid bond requirement. However, after discussion with Agency Counsel, staff was advised that it could not legally offer the curative time period. Despite the difficulties of the process, staff believes that the bid from Kirkley Development is responsive and competitive. ------------------------------------------------------------------------------------------------------------------------ KJH:DJN:lag:201TNT.AGD COMMISSION MEETING AGENDA MEETING DATE: 05/24/1993 Agenda Item Number: DEVELOPMENT DEPAK-MENT STAFF REPORT 201 North "E" Street - Tenant Improvements May 19, 1993 Page Number -2- ----------------------------------------------------------------------------------------------------------------------- Kirkley's total bid of $266,068 is within 7% of the bid by Pence. Moreover, it is less than the $278,000 previously allocated by Commission for construction and contractor's overhead and profit. Kirkley Development Inc. is currently working on several community center rehabilitation projects throughout the City. Kirkley Development Inc., has done good work in Public Works Department projects and has the necessary financial strength to meet all performance and payment bonding requirements. The question arises as to whether a substantially better bid would result from the readvertisement of this bid. Despite receiving only two bids, there was active interest in the project as evidenced by the ten contractors who viewed the site. Financial requirements of the public bidding process are the apparent bar to final bids and this would not improve from rebidding the contract. The indicated range of potential savings is likely indicated by the Pence bid which is 7% less than Kirkley. Rebidding would, however, require significant time and there is an urgency to move the tenant's, particularly Assemblyman Baca's offices to the ground floor. It, therefore, seems appropriate to recommend acceptance of the Kirkley bid. In its original request, staff provided an 8% contingency. After, however, further review of the construction site and additional building and safety requirements imposed by Building and Safety, staff seeks a fifteen percent (15%) contingency for the construction of this office space which totals $39,910. In addition, estimated staff time and expenses indicate an allocation of $15,964 (6% of total contract) for construction management and contract administration which will be performed by the City of San Bernardino Public Works/Engineering Department. RECOMMENDATION It is, therefore, staffs recommendation that the Community Development Commission award a contract for $266,048 to Kirkley Development Incorporated for the construction of tenant improvements at 201 North "E" Street, First Floor and authorize the Executive Director to execute same; and that the Community Development Commission allocate $321,942, for construction, contingency and contract management of office Tenant Improvements at 201 North "E" Street. Staff recommends adoption of the form motion. �'~'�1 KENNETH J. RENDERSON, Executive Director Development Department ------------------------------------------------------------------------------------------------------------------------- KJH:DJN:Iag:201TNT.AGD COMMISSION MEETING AGENDA MEETING DATE: 05/24/1993 Agenda Item Number: 1Rr "Im�" OIIW "wn l'�T/A1 I/WI \ W I n S.B. Main Street Future Leasable Space Aj haw. .nrp�+. afw m m N N 4 qrw eryw panw+r Visitor's and convention Bureau "W air+ Assemblyman Joe Baca Fw�M�"f ✓fNI err" — wNa4�IN °E" Street