CC - Item 5A - Review and Discussion of Rosemead Community Recreation Center Expansion and Facade Improvement Project E M F
4 S
ROSEMEAD CITY COUNCIL
CIVIC PRIDE STAFF REPORT
1114 if/NCORPORATEO 0.59
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER )4A,p
DATE: OCTOBER 14, 2014
SUBJECT: REVIEW AND DISCUSSION OF ROSEMEAD COMMUNITY
• RECREATION CENTER EXPANSION AND FACADE IMPROVEMENT
PROJECT
SUMMARY
On July 8, 2014, the City Council awarded a contract to CEM Construction for the
Rosemead Community Recreation Center Expansion and Façade Improvement Project.
In working through the execution of the contract, it has been determined that the
contractor does not have the economic capacity to obtain a bond to cover the contract
amount of$1,638,500. Based on a review of the Public Contract Code and conversations
with the City Attorney, it is clear that there are no alternative bonding or security options
available and the work may not be completed as originally awarded to this contractor. The
contractor's inability to complete this contract and the cost difference between the next
. lowest bid (approximately $460,000) has caused staff to evaluate other alternatives for
completing this project.
Typically, the procedure in these situations would be to award the contract to the next
lowest bidder or to reject all bids and solicit new bids for the project. Rather than simply
move this project forward, Staff has taken this opportunity to reevaluate the project
relevant to the wants and needs of the community. Recently, the City Council has
expressed a desire to build a skate park in the City. Realizing that the City lacks available
space to build a skate park, Staff believes that building a skate plaza may be a realistic
alternative to expanding the community center. The consideration of developing
alternative plan(s) or proceeding with the original plan for the community center
expansion will be presented for discussion by the City Council.
Staff Recommendation
It is recommended that the City Council provide direction to staff regarding options for re-
design of the Rosemead Community Recreation Center Expansion Project.
DISCUSSION
The existing Rosemead Community Recreation Center was built in 1975 and is
approximately 17,000 square feet in size. This facility serves as a major community
recreation facility that houses senior programs, recreation classes, special functions, and
ITEM NO. SA
City Council Meeting
October 14, 2014
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community events. In 2010, the City completed a Parks and Facilities Master Plan to
guide future capital improvement programs. Through the process the Rosemead
Community Recreation Center was identified as needing significant upgrading and
possible expansion. Together with the new Civic Center Parking Lot and Downtown
Plaza, this area will serve as an inviting space for public events and will expand on
services available to the community.
To date, a portion of the RCRC improvements have been completed, including the
replacement of roof materials and heating/cooling systems, and interior renovations. The
kitchen renovation and exterior façade improvements are still pending.
Original Expansion Plan
The originally awarded contract consists of the construction of a new, stand-alone 3,367
square foot building adjacent to the existing RCRC. This building would provide a multi-
purpose room, prep kitchen area, restrooms, and a lobby area. Façade treatments would
be completed on the existing RCRC building to upgrade the appearance of the aging
building and to create a uniform look within the recreation complex. This phase of the
project, which will be funded entirely with bond proceeds from the former redevelopment
agency, has an estimated cost of $1,800,000.00.
A Notice Inviting Bids for this project was published in local newspapers on May 22, May
29, and June 5, 2014. At 11:00 a.m. on June 5, 2014, the City Clerk publicly opened and
read eight (8) sealed bids with the following result:
Rank Bidder Base Bid Alternate Bid
Amount Items #2&3
1 California Averland Construction, Inc. $ 1,444,040.00 $ 20,100.00
2 CEM Construction $ 1,600,000.00 $ 38,500.00
3 Thomco Construction, Inc. $ 2,061,363.50 $ 47,732.38
4 Cal-City Construction, Inc. $ 2,100,000.00 $ 35,000.00
5 Nile Advanced Construction, Inc. $ 2,282,345.00 $ 33,400.00
6 Professional Services Construction, Inc $ 2,390,242.68 $ 84,045.00
7 Woodcliff Corporation $ 2,548,500.00 $ 42,900.00
8 CWS Systems, Inc. $ 3,394,000.00 $ 81,000.00
Prior to awarding a contract, staff received a request from California Averland
Construction to withdraw its bid based on a clerical error, which the City accepted.
Subsequently, staff recommended that the City Council award a contract to CEM
Construction, the second low bidder, in an amount of $1,638,500, which includes
Alternate Bid Items No. 2 & 3. These items pertain to additional work to be completed on
the exterior of the existing RCRC facility.
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October 14,2014
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Pursuant to the Public Contract Code, all bids are valid for a period of sixty-one (61) days,
meaning that all bids have since expired and the City cannot simply award a contract to
the next lowest bidder. Should the Council direct staff to reject the bid of CEM
Construction and rebid the project as previously prescribed, staff believes, based on the
bids received, that the new bids will be in excess of $2 Million. As our bond funds are
limited and these values exceed initial cost estimates for the project, staff would
recommend that the plans be reviewed and amended in an effort to reduce the cost of
construction. By rebidding the project in its current state, the award of contract would not
be brought to the council prior to December and construction would not begin until well
into 2015.
Renovate Existing Building and Provide Direction Regarding Expansion
The City does have some alternatives to re-bidding the project and accepting the
additional three to four month delay. The initially awarded bid includes cost values for all
necessary work and trades involved in the project. Per our Project Specifications and
Contract Documents, the City reserves the right to adjust quantities and the scope of work
included in the original bid. As such, the quantities could be reduced to include only the
work necessary to complete the façade, landscaping and exterior improvements to the
existing building foregoing construction of the new building. The contractor is capable of
obtaining a bond for the reduced scope of approximately $425,000 and work could begin
immediately. This would enable all work to be completed on the existing RCRC facility in
as little as four months, which is critical as the facility has re-opened for classes and
programs.
In order to still complete the expansion using this approach, the plans and specs would
need to be amended so that a new bid package could be developed for the new building
without the remodel of the existing building. This would require a minimum of 6-8 weeks
and significant work from the architect, Carde-Ten. Due to the time and financial
expenses, as well staff turnover with the consultant during the initial design phase, staff
would prefer to pursue an option that did not require modified plans and specifications.
A second alternative, and one that provides a completely new option, would be to forego
construction of the expansion building and utilize the existing open space to meet another
youth oriented need of the community. On at least two recent occasions, the City Council
has discussed a desire to construct a skateboard friendly facility in the City. In light of the
recent issues with this project, staff has re-evaluated the planned RCRC expansion to
consider the incorporation of a skateboard area into this space. Significant research has
been conducted in recent weeks regarding the various configurations of skateboard
friendly facilities and the amount of land necessary to accommodate them. Staff has
discovered the concept of "skate plazas" which have been developed when a complete
Skateboard Park isn't feasible. The idea behind a skate plaza is that they are designed
like a typical open gathering space, such as our recently opened Downtown Plaza, but
with skateboard friendly amenities. The benefit of the plaza style design is that it use is
not limited to skateboarding but it can also serve as an open space for special events or
facility rentals. Some photos of existing skate plazas have been included as reference.
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October 14, 2014
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Based upon a conceptual preliminary site plan (attached) the skate plaza portion would
be directly adjacent to the east side of the RCRC building and would include a significant
green space, multiple trees, and a green wall to provide relief for the surrounding
residential properties. The City Engineer has provided a rough estimate of $500,000 to
complete this project. By reducing the costs from $1.2 million for a new building to
$500,000 for the plaza, these valuable bond funds could be used to make additional
improvement to the existing RCRC space or be directed to other bond funded projects
such as Zapopan Park, Rosemead Park or the Garvey Sewer Expansion.
FINANCIAL REVIEW
This project had an initial estimate of $1 .75 million at the time the bonds were issued in
2010. The current cost, including the recently awarded construction contract as well as
project management, design, and the previously completed improvements is $2.7 million.
If the project is rebid without changes, the total cost will likely increase by at least
$400,000 to $3.1 million. If the project is modified to construct an outdoor space and Skate
Plaza, in lieu of the building expansion, initial estimates reduce the total cost by $500,000
to $2.2 million.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301 (C) of the CEQA Implementing Guidelines.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared By: Prepared By:
Se. livan Rafael Fajardo
• Acting Public Works Manager City Engineer
Submitted By:
t�
Matth w E. H wkesworth
Assistant City Manager/Acting Director of Public Works
Attachments:
1. Conceptual Civic Center Park Site Plan
2. Skate Plaza Samples
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