Staff recommends award of contract to Argo Construction, Inc. of San Francisco in the bid amount of $3,050,469.00 for the Union City Teen Center Remodel Project. 

The project currently has a $1,400,000 short fall in funds.  Staff recommends that additional funds be appropriated from the General Fund reserve to supplement the project construction cost.  These funds will be replaced by revenues associated with the purchase of the Waste Containment Area from the Pacific States Steel corporation later this Spring.

Built in the early 1970’s, the Union City Kennedy Community Center and Park was the brain child of Charles F. “Chuck” Kennedy, Union City’s first Park and Recreation Director.  His passion and commitment to providing green space & recreation facility for residents and their families to enjoy help propelled the passing of a bond in 1966 for construction of new parks and playgrounds all over the city.  After his untimely death in 1971, the community center was renamed to Charles F. Community Kennedy Center in honor of his work and dedication to beautifying the city.

In 2008, East Bay voters approved the East Bay Regional Park District Park Bond, Measure WW, thereby enabling the issuance of bonds to fund Capital Improvement Projects related to recreational facilities and public arts in local agencies; Union City applied with the remodeling of Kennedy Center in mind and was awarded $2,027,174.00 for this project.  The construction plans for the remodeling work was completed last year and some of the improvements to the center includes a new computer lab, a new arts & crafts room, study rooms, and a café to complement the modern façade of the facility. 

Public Works has also been working with students from Logan High School, representatives from the Union City Public Art Board, and a local contemporary art group known as the Illuminaries to come up with public art works for the Kennedy Center that will best reflect Union City’s multicultural demographics and aspiring youth.  After almost 50 years of opening its doors to Union City residents and to the public, the Charles F. Kennedy Center is finally ready for a modernization and upgrade.

Five (5) bids were received on February 14, 2017 for the Union City Teen Center Remodel Project.  The low bidder is Argo Construction, Inc. of San Francisco, California in the bid amount of $3,050,469.00.  A copy of the bid summary is attached for reference (Exhibit A).

Construction Contingency Reserve:  It is important to set aside contingency funds for potential change orders. A $300,000 construction contingency is recommended for this project.  It is also important that change order decisions be made quickly so as not to delay the contractor’s operations and expose the City to delay damage.  It is, therefore, proposed that staff be given authority to approve contract change orders within this contingency, provided the Council is informed at the next available Council meeting of any change orders in excess of $75,000.

Moving forward, the estimated total project cost is at $4,677,174.00.

Available Funding:  Currently, this project has an approved budget of $3,277,174 from a combination of Regional Measure WW Fund of $2,027,174, General Fund of $1,000,000, and Public Art Fund of $250,000.  This leaves a funding gap of $1,400,000.  Staff recommends the City Council to approve an additional appropriation of $1,400,000 from the General Fund reserve for the project.  It should be noted that the City is to receive a $2.6 million profit participation payment from PSSC after the City closes on the purchase of the WCA and PSSC closes the books on the PSSC project.

Union City has worked with Argo Construction, Inc. before and their previous work with the Union City Police Department Remodel & Addition Project was satisfactory.  Public Works staff recommends that construction of the project be awarded to Argo Construction, Inc. in the total amount of $3,050,469.00.

The East Bay Regional Park District grant Measure WW (Fund 4150) will provide $2,027,174.00 towards the project, $250,000.00 coming from the Public Arts Fund (Fund 2655), and $1,000,000.00 from the General Fund (Fund 1110).  With the requested City Council approval, the remaining balance of $1,400,000.00 will come from the General Fund reserve.

Staff recommends that City Council adopt the attached resolution to:

1. Appropriate $1,400,000.00 from the General Fund reserve to the Union City Teen Center Remodel Project.

2. Award the construction contracts in the amount of $3,050,469.00 to Argo Construction, Inc. of San Francisco for construction of the Union City Teen Center Remodel Project.