CC SR 20230905 E - Ladera Linda AV Vendor Change
CITY COUNCIL MEETING DATE: 09/05/2023
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to change the audio-visual equipment vendor for the
Ladera Linda Community Park Project.
RECOMMENDED COUNCIL ACTION:
(1) Authorize using AMG & Associates, the project’s primary general contractor and
the existing project budget, to procure and install audio-visual equipment for the
Ladera Linda Community Park project by increasing the contract contingency in
the amount of $179,119.98 above the existing 7.5% contingency.
FISCAL IMPACT: The recommended action will be funded from the available unspent
existing budget from other line items including, but not limited to, furniture, fixtures, and
equipment.
Amount Budgeted: $18,770,084
Additional Appropriation: N/A
Account Number(s): 330-400-8405-XXXX (CIP Funds – Ladera Linda Community Park)
333-400-8405-XXXX (ARPA Funds – Ladera Linda Community Park)
334-400-8405-XXXX
(Quimby Funds – Ladera Linda Community Park) VR
ORIGINATED BY: James O’Neill, Public Works Project Manager
REVIEWED BY: Ramzi Awwad, Director of Public Works
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. March 1, 2022 City Council Staff Report
BACKGROUND AND DISCUSSION:
On March 1, 2022, the City Council approved a project budget of $18,770,084 for the
Ladera Linda Community Park Project. The budget included $140,000 for audio-visual
equipment procurement, installation, and associated work. At the time of project budget
approval, the audio-visual equipment work was planned to be executed through a vendor
who specializes in audio-visual equipment, rather than the primary construction
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contractor, AMG & Associates (AMG), because of the special nature of the work. A vendor
had not yet been solicited at the time of budget approval because it would have been too
early to bring on an audio-visual equipment vendor, as that part of construction would be
occurring in the latter stages. Table 1 shows the approved project budget.
Table 1- Approved Ladera Linda Community Park Project Budget
As construction of the project progressed, the architect, consultant construction manager,
and Staff considered contracting for the audio-visual equipment work through AMG rather
than a separate vendor as had originally been envisioned. The benefit of this approach is
a reduction in the risk of schedule disruption that may occur when two separate vendors
need to work in the same physical space. Furthermore, adding the audio-visual
equipment work into AMG’s contract assigns the responsibility of work coordination to
AMG entirely, and the City would not be subject to potential conflicts that may arise from
the coordination of two different contractors. Furthermore, having all work done under
one contract allows for the overlapping of some of the work, which could save time.
The cost for AMG to procure and install the audio-visual equipment is $179,119.98. The
project consultant construction manager (Griffin) performed an independent cost estimate
and found the proposed cost of $179,119.98 to be fair and reasonable. The cost of audio-
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visual equipment is already included in the original project budget, and no additional
appropriation is necessary.
Although $140,000 was originally estimated to procure and install the equipment, the
actual cost will be $179,119.98. The cost is greater than originally estimated because the
original estimate undervalued the work and because inflation has been greater than
expected. The difference between the original estimate and the actual cost will be covered
by savings in the existing budget line items for furniture, fixtures, and equipment because
the cost for that work is lower than originally estimated. The savings are more than
sufficient to cover the $39,119.98 difference between the original audio-visual equipment
budget and the current cost.
Although the funds for this work are available within the project budget, the construction
contingency was not anticipated to include this work and would therefore be depleted to
the detriment of resolving issues that come up during construction, such as changed field
conditions. Therefore, Staff recommends that the City Council use the existing
appropriated budget to increase the contract contingency with AMG to include audio -
visual equipment procurement, installation, and associated work in the amount of
$179,119.98 above the existing 7.5% contingency.
CONCLUSION:
Staff recommends the City Council use the existing appropriated budget to increase the
contract contingency with AMG to include audio -visual equipment procurement,
installation, and associated work in the amount of $179,119.98 above the 7.5%
contingency to complete the work using the primary construction contractor rather than a
separate vendor, reducing coordination and scheduling risk.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
1. Do not increase the construction contract contingency and direct Staff to return for
a contingency increase only after all contingency has been used, risking delays to
the construction schedule and associated costs to be borne by the City.
2. Take other action, as deemed appropriate.
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