Title
Staff Report for Resolution Authorizing the City Manager to Execute a Non-Professional Services Agreement with Newton Construction & Management, Inc. for Marina Community Center Renovations in the Amount of $188,870.52 and Authorizing the City Manager to Negotiate and Approve Cumulative Change Orders up to 25% ($47,217.63) of the Original Contract Amount
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff Recommends that Council approve a Non-Professional Services Agreement with Newton Construction & Management to renovate the commercial kitchen and activity rooms at the Marina Community Center in the amount of $188,870.52.
BACKGROUND
Due to years of deferred facility maintenance, the Public Works Department has a number of renovation, repair, and equipment replacement projects scheduled over the current budget cycle. The Marina Community Center is one of the City’s older and more heavily used public facilities and in need of refurbishment. The kitchen equipment is past its useful life and is not fully functional.
The project is a simple refurbishment of cabinets in activity rooms B & C; installation of flooring; retrofit of existing lighting; and installation of commercial kitchen equipment. Therefore, staff has chosen to streamline procurement using a cooperative purchasing contract through the National Joint Powers Alliance (NJPA) using a project delivery method called Job Order Contracting (JOC). It is a method that enables organizations to get commonly encountered construction projects completed quickly and easily through multi-year umbrella contracts. JOC is a competitively bid, fixed price, multi-year construction contract based on published unit prices. The unit prices are used to price construction tasks associated with the scope of work.
Staff met with representatives of Gordian, an organization that offers support services through the NJPA, and assisted the City in providing a qualified contractor that was selected by the NJPA through a public competitive bidding process. The process conforms to the California Government Code and Joint Exercise of Powers Act (Government Code 6500) and satisfies the City’s purchasing requirements.
Newton Construction & Management, Inc. (“Newton”) was selected from the NJPA’s pool of qualified contractors and provided a detailed cost proposal for the project that includes a detailed list of tasks, unit prices and quantities, which is attached to the agreement as Exhibit B.
Analysis
Newton walked the Marina Community Center site with Public Works Staff and developed the statement of work which is attached to the agreement as Exhibit A. Newton submitted a cost proposal in the amount of $188,870.52. Cost reasonableness for the project is achieved through the fair market value of the construction goods and services established in the Construction Task Catalog, which prices over 275,000 construction work tasks, based on local material, equipment and labor prices. Newton has competitively bid an adjustment factor to the pre-established unit prices, so the City is assured a competitive price for each element of the project Scope of Work. The procurement method will facilitate timely renovations of the Marina Community Center, which is dependent on funds generated from pre-scheduled classes and facility rentals throughout the year.
Fiscal Impacts
This Facilities Maintenance Fund project will cost $188,870.52 and will be charged to account 687-18-007-5242.
ATTACHMENT(S)
Attachment(s) to Related Legislative File
• Non-Professional Services Agreement between the City of San Leandro and Newton Construction & Management, Inc. for Marina Community Center Renovations
PREPARED BY: Jennifer Auletta, Deputy Public Works Director