EN13-014 Downtown Theater Construction

STAFF REPORT

Town Council, October 11, 2012

 

Downtown Theater Construction (EN13-014) 

Consideration of a Bid Award for the Downtown Theater, “The Cary” Renovation and Building Addition Construction and Chatham Street Improvements Update

Speaker:  Mr. Tim Bailey

 

From:  Tim Bailey, PE, Engineering Director

Prepared by:  Eric Simpson, PE, Transportation Engineer

Approved by:  Benjamin T. Shivar, Town Manager

Approved by:  Michael J. Bajorek, Assistant Town Manager

 

Executive Summary:  The Town received five bids for the Downtown Cary Theater “The Cary” construction project (DT1101) on August 28, 2012; three bidders were responsive.  Staff has reviewed the bids and recommends awarding the project to DeVere Construction Company, Inc. in the amount of $3,990,170, which includes both the Base Bid with unit price allowances and the Alternate Bid 7 for the video projection and Alternate Bid 8 for the portable audio system.

 

Background:  At the November 15, 2011 Town Council Work Session, Town Council approved the final plans and the marquee at the July 26, 2012 Town Council meeting.  The Downtown Theater project began advertisement on August 7, 2012, and the public bid opening was held at the Engineering Department in Town Hall on August 28, 2012 at 3:00 p.m.

 

Discussion:  Staff received a total base bid price for the theater renovation and building addition.  In addition, staff received Alternate Bids for:  1) add a unisex bathroom, room 202, with a base bid to include roughed plumbing and electrical;  2) add a unisex bathroom, room 201, with a base bid to include roughed plumbing and electrical; 3) provide café area casework, plumbing fixtures and food service equipment with a base bid to include roughed plumbing and electrical; 4) add a trellis green screen panels on the east façade of the building; 5) finish the third floor for an assembly area with limited food service ability; 6) add a unisex bathroom to the second floor of the addition; 7) provide video projection for the theater; and 8) provide portable sound equipment and components.   

 

The architect’s estimate including the base bid and the eight bid alternates provided by Quinn Evans Architects is approximately $3,224,057 for the base bid and an additional $348,420 for alternates one through eight for a total of $3,572,477, see Attachment A for the Architect’s estimate including the alternates in the bid tabulation.

 

After reviewing the bids and negotiating with DeVere Construction Company, Inc., there are three options available for the project.

 

Option 1 –Construction of Base with Alternates 7 and 8

Option 1 is to award the contract to DeVere Construction Company, Inc. in the amount of $3,990,170, which includes both the Base Bid with unit price allowances and the Alternate Bid 7 for the video projection and Alternate Bid 8 for the portable audio system.  See Attachment A for bid tabulation.  This bid includes renovation of the existing theater building, the construction of the new three story building and a portion of the sidewalk in front of the theater and new addition.

 

Since the time of the bid opening, staff has negotiated with the low bidder to look for ways to reduce cost. There were very limited opportunities to reduce cost at this point because prior to advertising the project for bid, staff had already evaluated the design for cost saving measures since the estimates were close to the budget. While staff continues to review and analyze items provided by the architect and DeVere Construction Company to reduce the cost of construction, additional work is needed to finalize the amounts and details.  After initial negotiation with the low bidder, a few cost saving items were identified that are considered viable. These potential items include:  providing a different manufacturer for the packaged roof top mechanical units; providing precast concrete in lieu of limestone as accents on the upper façade; and revising the poster boxes to standard size.  These items total a possible savings of approximately $40,000.

 

In addition, the loose furniture in the contract would be removed from the contract, and the Town would purchase the loose furniture separately to potentially result in cost savings.  At this point, the budget for the loose furniture would remain at the same amount with an anticipated future savings.

 

This option does not include Alternate Bid 3 for the café area casework, plumbing fixtures and food service equipment, because this item could most likely be accomplished at a cost savings outside of the contract.  Funding in the estimated amount of $100,000 is needed for tenant up fitting for the café when a vendor is secured and is therefore included in this option.

 

Construction cost of Option 1 is $3,990,17, plus a five percent contingency of $200,000, plus $275,000 for fixtures, furnishings, and equipment, plus $100,000 for the café up fit, plus $200,000 for the marquee bringing the total cost to $4,765,170.

 

Opening of the facility is anticipated by the end of calendar year 2013.

 

Option 2 – Reduced Scope

The architect and DeVere Construction Company proposed items to reduce the cost of construction.  These items include:  providing economical packaged roof top mechanical units; providing precast concrete in lieu of limestone as accents on the upper façade; eliminating the third floor; revising poster boxes to standard size; and eliminating sheet rock in the theater ceiling.  These items total a possible savings of approximately $300,000 although this has not been finalized.

 

This option does not include Alternate Bid 3 for the café area casework, plumbing fixtures and food service equipment, because this item could most likely be accomplished at a cost savings outside of the contract.  Funding in the estimated amount of $100,000 is needed for tenant up fitting for the café when a vendor is secured and is therefore included in this option.

 

Construction cost of Option 2 is $3,690,170, plus a five percent contingency of $200,000, plus $275,000 for fixtures, furnishings, and equipment, plus $200,000 for the marquee, plus $100,000 for the café up fit bringing the total cost to $4,465,170.

 

Option 3 – Rebid

Bids received were above the architect’s estimates. Staff believes by bidding the project again, the Town may only see a nominal cost savings.  If this option were selected, the Town would work with the design consultants to modify contract and construction documents in an effort to receive lower bids. 

 

This option will delay the project as the Town goes through document modifications and a new advertisement for bids, without a guarantee of receiving lower bids.

 

Chatham Street Improvements

The improvements to Chatham Street are separate projects and are funded separately.  The Chatham Street utilities and sidewalk improvements project from Walker Street to Academy Street will be forthcoming to Town Council.  The construction documents are at about ninety percent, and are anticipated to be bid by the end of 2012.

 

The original budget of $550,000 will need to be increased as there have been additional items added to the project, and there have been increases in the engineer’s estimates.  At this time, these items are projected to cost another $300,000.  The scope is in the process of finalization, and may include additional items.  Staff will present a recommendation to Council at a future date when bids are received.

 

Fiscal Impact:

Operating:  Project DT1101 “The Cary” Downtown Theater anticipated operating costs include one additional PRCR full-time position and one PRCR part-time temporary position. The full time Facility Supervisor position was approved as part of the fiscal year 2013 budget to be hired in April 2013.  Including additional support from public works and other operating and maintenance costs once the facility is operational, the total annual operating costs are estimated to total $320,589.  Programming revenues associated with the new theater project will be targeted to recover approximately $80,000.  Both the estimated operating costs and revenues reflect facility operations for established programs for a full year and will be refined as the facility establishes itself in the overall downtown and PRCR program mix.

 

Funding:  $3,700,000 has been appropriated to date to the DT1101 DT – Chatham Theater project for site acquisition, contracted services and construction.  $1,238,518 has been encumbered/expended leaving an available balance of $2,461,482.

 

The following actions would be necessary to support Option 1:

 

1.      Transfer $1,005,000 from the DT1000 – Downtown Available Funds project to the DT1101 - Downtown – Chatham Theater project.  This will leave approximately $986,000 remaining in DT1000 for future appropriations.  Approximately $800,000 of this balance is restricted to street and sidewalk improvements.

2.     Appropriate an additional $1,300,000 from general fund fund balance to the DT1101 – Downtown – Chatham Theater project.  The current estimate of general fund fund balance designated as available for pay as you go capital funding after this transfer will be approximately $15 million.

 

If approved, the transfer and appropriation noted for Option 1 would bring the DT1101 budget to $6,005,000 yielding an adjusted available balance of $4,766,482.  The transferred and appropriated funds should be budgeted within the DT1101 construction account for expenditure purposes.

 

The following actions would be necessary to support Option 2:

 

1.     Transfer $1,005,000 from the DT1000 – Downtown Available Funds project to the DT1101 – Downtown – Chatham Theater project.  This will leave approximately $986,000 remaining in DT1000 for future appropriations.  Approximately $800,000 of this balance is restricted to street and sidewalk improvements.

2.     Appropriate an additional $1,000,000 from general fund fund balance to the DT1101 – Downtown – Chatham Theater project.  The current estimate of general fund fund balance designated as available for pay as you go capital funding after this transfer will be approximately $15.3 million.

 

If approved, the transfer and appropriation noted for Option 2 would bring the DT1101 budget to $5,705,000 yielding an adjusted available balance of $4,466,482.  The transferred and appropriated funds should be budgeted within the DT1101 construction account for expenditure purposes.

 

Staff Recommendation:  Staff has reviewed the bids and recommends “Option 1 –Construction of Base with Alternates Seven and Eight” and awarding the Downtown Theater, “The Cary” Renovation and Building Addition construction to DeVere Construction Company, Inc. in the amount of $3,990,170.00, which includes both the Base Bid with unit price allowances and Alternate Bid 7 for the video projection and Alternate Bid 8 for the portable audio system.  Town Staff will continue to evaluate cost saving opportunities based on the aforementioned items prior to issuing the Notice of Award. 

 

The recommendation of award represents a preliminary determination as to the qualifications of the bidder and no legally binding acceptance of the bid or offer occurs until the Town has executed a written agreement.  The contract award is subject to the contractor providing all bonds, insurance and other required documents set forth in the Bid Documents and executing a contract in a form agreeable to the Town.

 

Staff also recommends the transfer of $1,005,000 in already appropriated funds from the DT1000 DT – Available Funds project to the DT1101 DT – Chatham Theater project and the appropriation of an additional $1,300,000 of general fund fund balance to DT1101.  These funds should be budgeted in the DT1101 construction account for expenditure purposes.