ITEM 6-K

TO:           Mayor and City Council
FROM:         City Staff
SUBJECT:      Recommendation to Award  Contract for Alteration  and Renovation
              of  the Marine  Park Recreation  Center to  Facilitate Use  as a
              Child Care Center.

Introduction

This report requests the City  Council award a contract, contingent  upon City
Council approval of Item  11C, for  alteration and  renovation of  Marine Park
Recreation Center for use as a  child care center to Kevin Kraus  Construction
Co., the lowest responsible bidder, in the amount of $298,100.00.

Background

In October  of 1988,  the City  Council approved  the use  of a portion of the
Marine Park  Recreation Center  for a  3,000 square  foot children's  day care
center for children of City employees as well as residents of the City.
Plans  for  alteration  and  renovation  of  the facility were prepared by the
General  Services Department, Civil Engineering  Division in consultation with
an architectural  firm specializing  in child  care center  design and  with a
local child care center director with  expertise  in  infant  care  and  State
licensing requirements.
A Notice Inviting Bids  was published on October  31 and November 1, 1989,  in
the  Evening Outlook and in four construction journals.  Bidding packages were
requested   by   eleven   contractors   and   were  also  forwarded  to  eight
minority/small business  contracting  associations  and  one  organized  labor
council.  While numerous bidding packages were requested, there was difficulty
in  obtaining bids due to the nature and relatively small size of the project.
To obtain additional bids an Addendum was issued extending the bid opening one
week.

Bids were received, opened  and publicly read on  December 8, 1989.  Six  bids
were received as follows:
                                                        BASE BID
     Kevin Kraus Construction Co.                     $248,750.00
     M.S. Construction & Electrical Contractor        $249,950.00
     California IBA Inc.                              $329,785.00
     J. Grothe Enterprises, Inc.                      $334,919.00
     Cavecche Engineering & Construction Co., Inc.    $390,168.00
     Hugh F. Peters & Associates                      $399,999.00
              City Engineer's Estimate      $ 300,000.00
The bid documents required that  contractors submit prices for seven  Additive
Alternate items.  Listed in Table 1 is a summary of the Additive Alternate Bid
items and prices by Contractor.

Staff recommends  acceptance of  the following  Alternate items  in the  order
shown:

5A.  Outdoor  Storage  Areas:   These  areas  though  outside the building are
     incorporated  into the basic building structure and of the same materials
     as other work on the project.  They are integral to outdoor functions and
     equipment security.
1A   Outdoor  Play  Equipment:   Play  equipment  selected  by  the  day  care
     consultant for the three specific age groups and developmental levels.
7A   Outdoor Paving Area:  All weather surface for games, tricycle riding  and
     various organizational and developmental functions.  Provides containment
     border for sand filled play areas.
Financial Impact
Funds required for the contract are as follows:
              Base Bid                        $ 248,750.00
              Additive Alternates 1A, 5A, 7A     49,350.00
              Construction Contract Total     $ 298,100.00
              Contingencies                      30,000.00
              Total Funds Required            $ 328,100.00

Appropriation authority in the amount  of $279,015 is currently available  for
this project in CIP  Account  Numbers  01-710-262-26590-8910-99177  ($85,100),
01-710-262-26589-8910-99177    ($143,915)    and   53-740-511-26490-8923-99193
($50,000).  Funds in the  amount  of  $49,085.00  must  be  appropriated  from
General Fund  reserves to  CIP Account  Number 01-710-262-26590-8910-99177  to
complete funding for this project.

Recommendation

It is recommended that the City Council:
1.   Award a contract, contingent upon City Council approval of Item 11C,  for
     alteration  and renovation of the Marine  Park Recreation Center to Kevin
     Kraus Construction Co., the lowest  responsible bidder, in the amount  of
     $298,100.00;
2.   Appropriate funds in the amount of $49,085.00 from General Fund  reserves
     to CIP Account Number 01-710-262-26590-8910-99177 to complete funding for
     the project; and
3.   Authorize  the  City  Engineer  to  issue  any change orders necessary to
     complete  additional work to the extent  of funds available in accordance
     with Administrative Instruction on Change Orders,

Prepared by:  Stan Scholl, Director of General Services
              Desi Alvarez, City Engineer