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AGENDA REPORT
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| | | | | | | | DATE:
| April 20, 2021
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager
| | SUBJECT: | Resolution 2021-72 of the City Council of the City of Fairfield Approving the Plans and Specifications, and Awarding a Contract to Legion Contractors, Inc. for the Rancho Solano and Paradise Valley Clubhouses Flooring and Painting Improvements Project and Updating the Fiscal Year 2020/2021 Budget |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | After nearly 30 years, much of the clubhouse flooring and paint at the two City owned golf courses has met the end of its usefulness. The proposed renovation project modernizes the two facilities, bringing a fresh look and feel, and ensures the City remains compliant with the terms of the lease and management agreements between the City of Fairfield and Sports Restaurant of Fairfield, Inc. (SRF) and Sports Restaurant of Rancho Solano, Inc. (SRR).
The proposed resolution approves the plans and specifications for the Rancho Solano and Paradise Valley Clubhouses Flooring and Painting Improvements (Project) and awards the contract in the amount of $173,500 to Legion Contractors, Inc. (Legion), and updates the fiscal year 2020/2021 budget. |
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| | | | | | | | | DISCUSSION | The City owns two golf courses, Rancho Solano Golf Course (Rancho Solano) and the Paradise Valley Golf Course (Paradise Valley), with clubhouse facilities that include a restaurant, bar, and banquet amenities at each location. The restaurant and banquet facilities are operated by SRR (Rancho Solano) and SRF (Paradise Valley) through exclusive lease and management agreements. These agreements specify and assign certain improvement and maintenance obligations, some of which include City-obligated capital improvements for each clubhouse facility.
Pursuant to Resolution No. 2008-310 authorizing Lease and Management Agreements dated January 1, 2009, the City is obligated to perform the following:
• Replace the carpet in the banquet facilities at Paradise Valley;
• Replace floor tile in the banquet facility lobby and restrooms at Rancho Solano.
During the design development for the Project, staff conducted a condition assessment and is recommending additional capital improvements beyond the City’s Lease and Management Agreements obligation. At Paradise Valley, in addition to carpet replacement, the Project includes painting and dance floor replacement; at Rancho Solano, in addition to the tile replacement, the Project includes carpet replacement in the adjoining offices. The City has been partnering with the operator to ensure capital and maintenance obligations are fulfilled as COVID-19 restrictions are lifted. The City and the operator will be working together to coordinate and schedule all improvements around banquet reservations.
Five bids were received and opened on March 9, 2021. The bids range in price from $173,500 to $299,200. The Engineer’s Estimate was $184,835. The apparent low bid was submitted by Legion Contractors, Inc. (Legion) in the amount of $173,500.
On March 10, 2020, a letter of protest was submitted by the second lowest bidder, Pinguelo Construction, Inc. (Pinguelo), claiming the apparent low bid submitted by Legion was non-responsive. Both the letter of protest from Pinguelo and the response letter from Legion are attached to this report. The protest was carefully examined by staff and the City Attorney’s office. Pinguelo’s reason for protest and the City’s response to the protest is summarized as follows:
REASON FOR PROTEST: Legion did not list a flooring subcontractor and Pinguelo did not believe Legion could self-perform the work with the Class B license.
RESPONSE: Legion responded that they can self-perform the work with their Class B license.
It is staff’s recommendation that the protest be denied as the facts presented by Pinguelo do not support a finding that the bid submitted by Legion is nonresponsive. Legion is appropriately licensed and experienced in the State of California to perform this type of work. Staff reviewed the bid and found it to be in compliance with the bid requirements and recommends that the contract be awarded Legion Contractors, Inc. of San Francisco, California.
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| | | | | | | | | FINANCIAL IMPACT | The construction authorization for this project will be $208,200, which is the total bid amount, plus a 20% contingency ($173,500 total bid + $34,700 contingency). Staff is requesting a 20% contingency in lieu of the traditional 10% because of the nature of remodel projects, where issues related to a change in existing conditions are often uncovered and not monetarily accounted for. During construction there is potential that unforeseen issues to prepare the new flooring may arise. For example, the current tile installed at Rancho Solano is a mortar set stone that is roughly 2” thick. This 2” thick mortar base is not common for tile and may require more work to prepare for the new thin set mortar base tile being installed.
A budget adjustment of $208,200 is required to fund this work. This will be offset fully by unexpected increases in golf revenue resulting in a net zero adjustment. The budget adjustment for the expense will be recorded in the Rancho Solano Golf Course and Paradise Valley Golf Course Funds (Fund 471 $128,400 and 472 - $79,800, Division and Responsibility Code 61005). The budget adjustment to reflect the increase in revenues will be recorded in the Rancho Solano Golf Course and Paradise Valley Golf Course Funds (Fund 471 $128,400 and 472 - $79,800, Division and Responsibility Code 99000). Ongoing maintenance for this Project will be paid for by the Rancho Solano and Paradise Valley Golf Course Funds (Fund 471 and Fund 472 Division 61). |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | A notice inviting bids for this project was advertised twice in the Daily Republic newspaper on February 3 and February 10, 2021. In addition, the Plans and Specifications were hosted through BPX Printing & Graphics online Planroom. The initial advertisement emailed a notice of the project and complete bid package to a total of 17 builder’s exchanges in the State of California covering the area from Redding to San Jose and Stockton to Santa Rosa.
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| | | | | | | | | ALTERNATIVE ACTION | | The City Council could choose not to award the contract, reject all bids and restart the bid process. This is not recommended because this could have significant impacts to the construction schedule and potentially breach the City’s contractual obligations of the License and Management agreement to SRF and SRR. |
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| | | | | | | | | STAFF CONTACT | Caroline Vedder, Associate Civil Engineer
(707) 428-7484
cvedder@fairfield.ca.gov
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| | | | | | | | | COORDINATED WITH | City Attorney's Office, Finance Department
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| REVIEWERS: | | Reviewer | Action | Date | | Panganiban, Ryan | Approved | 4/5/2021 - 8:06 PM | | Kaushal, Paul | Approved | 4/5/2021 - 9:07 PM | | Alexander, Amber | Approved | 4/8/2021 - 7:06 PM | | Alexander, Amber | Approved | 4/12/2021 - 12:10 PM |
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