CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
SR 2017-015
February 7, 2017
Consent Agenda

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Rob Mullane, AICP, Public Works Director

APPROVED BY: Chip Rerig, City Administrator

SUBJECT: Award a Construction Agreement to Monterey Peninsula Engineering, a Partnership,

for the Sunset Center Guard Rail Project in a Total Amount Not to Exceed $50,000
and authorize a budget adjustment of $18,450

RECOMMENDATION
1. Adopt the resolution authorizing the City Administrator to execute a construction agreement with
Monterey Peninsula Engineering for the Sunset Center Guard Rail Project in a Total Amount Not to
Exceed $50,000.
2. Authorize a budget adjustment to transfer $18,450 from the Vista Lobos Roof Project to the Sunset
Center Guard Rail Project.

BACKGROUND / SUMMARY

The Fiscal Year 2016-17 adopted Capital Improvement Program (CIP) budget includes $43,450 in funding for
the Sunset Center Guard Rail Project. This project involves the demolition of an existing guard rail at the
Sunset Center that is failing and the installation of a new guardrail that matches the look of the original guard
rail. Initially, the Public Works Department sought to utilize a procurement method known as job order
contracting. The estimated cost of the project utilizing this method was $24,711.76. However, the Department
wished to solicit bids from the local community and commenced a formal bid process based on the estimated
cost of the project.

The Department issued a formal bid package on November 21, 2016, and conducted outreach to stimulate
interest with seven local general contractors and two local specialty contractors. The bid was also advertised
in the Carmel Pine Cone on December 2, 2016 and on December 9, 2016, and bid notifications were
distributed to local plan houses. A non-mandatory pre-bid meeting was held on the site on December 13, 2016.
Bids were received and opened on December 27, 2016, and the following table summarizes the bids that were
received.

Bidder Bid Amount

Monterey Peninsula Engineering $ 46,500
D M C RESIDENTIAL INCORPORATED DBA PROPERTY
RESTORATION SERVICES $ 56,864

The Monterey Peninsula Engineering bid amount is $46,500. It is recommended that $3,500 (approximately
seven percent of the proposed cost) be included in the not to exceed amount of the agreement as a
contingency for any unforeseen issues that may arise during the construction. This item is before the City
Council as the total agreement amount exceeds $24,999 and hence, requires Council adoption by resolution in
accordance with the Citys Municipal Code.
Alternatives: Should Council adopt this resolution, work will commence immedately upon execution of the
agreement and should be completed within one month. Alternatively, the Council has the option to to reject the
bids in their entirety and direct staff to resolicit bids. However, this would delay the projects completion, and
staff notes that extensive outreach was conducted to prospective bidders.

FISCAL IMPACT
The Citys adopted CIP included an estimate of $43,450 for the total cost of this project. Following the receipt
of the formal construction cost bid, it is apparent that additional funding will be needed to complete the project.
Furthermore, there are project management/construction management costs and costs for an architectural firm
to assist with the bid design and specifications. These additional costs are estimated to be $8,100 and $3,800,
respectively. As such, the revised total project cost is $61,900, and an additional $18,450 will be needed to
complete the project. There are surplus CIP funds available from the recently-completed Vista Lobos Re-
roofing project, which was completed approximately $35,000 under the budget estimate, and staff
recommends that the City Council authorize a transfer of funds from the Vista Lobos Re-roofing project to the
Sunset Center Guard Rail project, as noted in the associated resolution (see Attachment 1).
ATTACHMENTS
02,300)
1. Resolution Authorizing Agreement with Monterey Peninsula Engineering
 Attachment 1

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2017 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AN AGREEMENT WITH
MONTEREY PENINSULA ENGINEERING FOR THE SUNSET CENTER GUARD RAIL
PROJECT FOR AN AMOUNT NOT TO EXCEED $50,000.00 AND AUTHORIZING A BUDGET
ADJUSTMENT OF $18,450

WHEREAS, the Sunset Center is used by the City and the community for performances,
meetings and other events and the existing guard rail is failing; and
WHEREAS, the City Council has included funding of $43,450 for this project within its
adopted Fiscal Year 2016-2017 Capital Improvement Program budget; and
WHEREAS, the City estimated the value of the project to be $24,712, issued a formal
solicitation for proposals November 21, 2016, and advertised the solicitation for proposals in the
Carmel Pine Cone on December 2, 2016 and December 9, 2016;

WHEREAS, the City received two responsive bids, with the lowest responsive bid
submitted by Monterey Peninsula Engineering by the stated deadline; and
WHEREAS, the amount of the bid is $46,500 to fabricate and install a new guard rail, and
the City wishes to add a project contingency for unforeseen issues; and
WHEREAS, the City wishes to award the agreement for the Sunset Guard Rail to
Monterey Peninsula Engineering, a Partnership, in the not to exceed amount of $50,000, and
the Carmel Municipal Code requires contracts of $25,000 or more to be approved by Council
resolution.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA DOES:
1. Authorize a transfer of funds between Capital Improvement Program projects, with
$18,450 in surplus funding being transferred from the Vista Lobos Roof Project (Acct.
#13-70918) to the Sunset Center Guard Rail Project (Acct. #13-70905)

2. Authorize the City Administrator to execute an agreement with Monterey Peninsula

Engineering a Partnership for the Sunset Center Guard Rail Project (13-70905) in an
amount not to exceed $50,000, which includes $3,500 of project contingency.

3. Authorize the City Administrator to execute change orders up to $3,500 as contingency.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-

THE-SEA this 7th day of February 2017, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS

SIGNED: ATTEST:

_______________________
Steve Dallas, Mayor Ashlee Wright
City Clerk