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Home My WebLink AboutAGENDA REPORT 2025 0716 CC REG ITEM 09ACITY OF MOORPARK, CALIFORNIA City Council Meeting of July 16, 2025 ACTION DIRECTED STAFF TO RETURN TO THE AUGUST 6, 2025, SPECIAL MEETING FOR CONSIDERATION OF AWARD OF CONTRACT FOR THE LIBRARY FOLLOWING THE AGENDIZED DISCUSSION OF CAPITAL IMPROVEMENT PROJECTS INCLUDED IN THE ADOPTED 2025/26 TO 2029/30 CIP PROGRAM. BY A. Hurtado. A. Consider Bids for Construction of the New Moorpark City Library. Staff Recommendation: Provide direction to staff. (Staff: Jeremy Laurentowski, Parks and Recreation Director) Item: 9.A. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jeremy Laurentowski, Parks and Recreation Director BY: Jessica Sandifer, Deputy Parks and Recreation Director DATE: 07/16/2025 Regular Meeting SUBJECT: Consider Bids for Construction of the New Moorpark City Library BACKGROUND A new Library has been a long-standing City project, with recent planning efforts underway since 2016. In 2022, the City Council approved the Library’s architectural design. The entitlement application was submitted in February 2023 and the City Council reviewed the preliminary estimated budget in July 2023. The Planning Commission approved the project entitlements in February 2024 , and in March 2025 a contractor prequalification process was conducted identifying 11 general contractors interested in bidding the project. On May 21, 2025, the City Council approved the plans and specifications and authorized staff to bid the project. DISCUSSION A notice inviting bids was published on May 27, 2025, and June 2, 2025. One mandatory pre-bid site meeting was held on June 12, 2025, and was attended by eight of the 11 prequalified contractors. The three following bids were received by the due date of July 1, 2025: AMG & Associates, Inc. $27,183,000.00 The Nazerian Group $27,888,123.00 Bowe Contractors, Inc. $29,920,000.00 The estimate presented to the City Council in July 2023 was $30,400,000 with the construction hard costs totaling $24,161,437. The construction bid price for the lowest bid is $3,000,000 higher than the original estimate. Staff has determined that the higher costs are attributable to construction cost escalations, low material supply, and current pricing uncertainties of construction materials related to tariffs. Item: 9.A. 54 Honorable City Council 07/16/2025 Regular Meeting Page 2 Staff has analyzed the Special Projects Fund to determine if there is sufficient funding to cover the added costs. Below is a comparison of the projected fund balances presented in July 2023 using the estimated costs vs. the current bid. Due to General Fund cost savings, the Special Projects Fund has had an additional infusion of $5,362,744 since July 2023. As noted below, there will also be an additional estimated $3,000,000 deposited into the fund at the close of Fiscal Year 2024/25. Therefore, the City’s reserves at the completion of the library project are anticipated to be higher than was projected in July 2023 ($18,250,307 in 2023 vs. $24,379,318 in 2025). JULY 2023 BUDGET (Presented to City Council)CURRENT BID & BUDGET Item Budget Item Costs Construction Estimate 23,174,465.00$ Construction Bid 27,183,000.00$ FFE City Purchase Estimate 228,150.00$ FFE City Purchase Estimate 228,150.00$ Furniture Scope Estimate 1,271,679.00$ Furniture Scope Estimate 1,271,679.00$ Escalation (4%) 986,972.00$ Sub-total 28,682,829.00$ Sub-total 25,661,266.00$ Contingency 10%2,868,282.90$ Contingency 10%2,467,429.00$ Permit Fees (See Below)1,005,305.00$ Permit Fees Estimate 271,305.00$ Construction Management ($1,800,000)1,800,000.00$ Construction Management Estimate 2,000,000.00$ Sub-total 34,356,416.90$ Sub-total 4,738,734.00$ Permit Fees Budget TOTAL 30,400,000.00$ Plan Review/Permitting Costs 271,305.00$ Geotechnical Engineer CA 299,000.00$ Building Inspections Services 45,000.00$ Special Testing and Inspection 125,000.00$ Utility Connections 200,000.00$ Transition from Existing Library 65,000.00$ FUNDING ANALYSIS Sub-total 1,005,305.00$ CH Improvement Fund (1,827,122.25)$ ARPA (5,688,798.00)$ TOTAL 34,356,416.90$ Library Infrastructure Grant (4,600,000.00)$ Available Budgeted Funding (CIP C0056)31,171,060.75$ Federal Library Grant (750,000.00)$ Funding Needed 3,185,356.15$ Funding Needed 17,534,079.75$ FUNDING ANALYSIS Funding Options Special Projects Fund Balance (Current)14,315,408.60$ Library Facilities Fund 2,044,328.00$ Less Funding Needed 3,185,356.15$ Endowment Fund 8,293,080.00$ Sub-Total Special Projects Fund Balance 11,130,052.45$ Special Projects Fund 7,196,671.75$ Sub-Total 17,534,079.75$ Grants (Reimbursed to Special Projects Fund) Library Infrastructure Grant 2,600,000.00$ Estimated Fund Balances Post Construction Federal Library Grant 1,600,000.00$ Special Projects 21,020,307.25$ Sub-total Grants 4,200,000.00$ Less City Hall TI expenses (7,370,000.00)$ Sub-total Special Projects Fund 13,650,307.25$ Sub-Total Special Projects Fund 15,330,052.45$ Other Funds & Reserves Other Funds & Reserves GF Emergency/Contingency (FY25/26)5,101,069.85 GF Emergency/Contingency 4,600,000.00$ GF Uncertainty 500,000.00 Endowment Fund -$ Endowment Fund 448,195.90 Library Facilities Fund -$ GF FY 24/25 GF Transfer (estimate)3,000,000.00$ Sub-Total Other Funds 4,600,000.00$ Sub-Total Other Funds 9,049,265.75$ Total with Reserves 18,250,307.25$ Total with Reserves 24,379,318.20$ 55 Honorable City Council 07/16/2025 Regular Meeting Page 3 As is often the case on projects of this magnitude, bid protests were received. In this case, protests were received from the second and third lowest bidders against the lowest bidder. However, staff has reviewed the protests with the City Attorney’s office and has determined that the claimed “errors” are administrative in nature and do not materially affect the bid price. Because the current bid and associated budget exceeds the 2023 estimate, staff is seeking direction from the City Council on how to proceed. The following options may be considered: 1)Delay the award of the bids until the City Council’s Capital Improvement Program (CIP) workshop scheduled as a Special meeting on August 6, 2025, which would allow the City Council to fully discuss this and all future projects to determine whether the Library can be funded while maintaining capacity to do other projects; or 2)Accept the low bid provided by AMG & Associates, Inc. and direct staff to award a contract for the construction of the Library. The contract would have to come back for approval at the Special City Council meeting on August 6, 2025; or 3)Reject all bids and re-bid the project to seek lower construction costs. The City Council would also be able to have the CIP discussion, while the re-bid is underway. Re-bidding the project would allow for review of the documents to ensure there are no ambiguities in the project plans, specifications, or addenda that may have led to higher pricing assumptions. It is hoped that re-bidding the project due to costs will result in a price decrease. However, there is a risk that re- bidding could result in a price increase. City Council consideration of the new bids would occur at the City Council meeting on September 17, 2025; or 4)Reject all bids and provide direction to staff on whether to move forward with the project. ENVIRONMENTAL DETERMINATION The Project has been reviewed in connection with the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code § 21000, et seq.) and the State CEQA Guidelines (14 C.C.R. § 15000, et seq.). The EIR prepared for the Project analyzed the potential development and operation of a new 17,272 square foot City library and associated site improvements located at 83 High Street (“Project Site”), and demolition of the existing 7,900 square foot public library structure located at 699 Moorpark Avenue (“Project”). The EIR analyzed the potential environmental impacts from this Project in the areas of: aesthetics, air quality, biological resources, cultural resources, energy, geology and soils, greenhouse gas emissions, hydrology and wate r quality, noise, population and housing, recreation, transportation, tribal cultural resources, utilities and service systems and wildfire. The EIR concluded that the Project had the potential to cause potentially significant effects to biological resources, cultural resources, geology and soils and noise/vibration, but with the imposition of mitigation measures, the 56 Honorable City Council 07/16/2025 Regular Meeting Page 4 levels of impact to these resources would be reduced to less than significant impact. No significant and unavoidable impacts were identified in the Project. The Final EIR (FEIR) was certified by the Moorpark Planning Commission on February 27, 2024, and a Notice of Determination was posted with the State Clearinghouse or County Clerk on February 28, 2024. The FEIR was never challenged, is now final, and conclusive in all respects. The construction of the project as proposed is consistent with the previously certified FEIR. Therefore, no additional environmental review is required pursuant to Section 15162 of CEQA. FISCAL IMPACT There is minimal fiscal impact from re-bidding the project beyond incurring costs for newspaper advertising, estimated at $2,000. COUNCIL GOAL COMPLIANCE This action is consistent with City Council Goal 1, Objective 1.2: “Construct New Moorpark Library.” STAFF RECOMMENDATION Provide direction to staff. 57