DATE:
May 16, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Mohamed Alaoui, Public Works Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To (1) Execute A First Amendment To The Contract With George S. Hall, Inc. To Extend That Contract Until June 30, 2024 And Increase The Total Not To Exceed Contract Amount To $1,470,914 And (2) Execute A One-Year Contract Extension And Increase The Not To Exceed Contract Amount By $750,000 For Citywide Maintenance / Construction Services At Various City Owned Buildings For Fiscal Year 24/25 For A Total Contract Amount Not To Exceed $2,220,914 Contingent Upon The City Council Appropriating Funds For The Applicable Fiscal Year Recommendation
Staff recommends that the City Council adopt the above-entitled Resolution.
Background
The City contracts for the facility maintenance and management of all City-owned building facilities. In June 2020, the City released a Request for Proposals (RFP) for multi-year Citywide Maintenance / Construction Services. The City received two proposals, of which George S. Hall, Inc. was deemed to be the most qualified responsible bidder. Each proposal was reviewed and scored based on a Statement of Qualifications, samples of work, resumes for key staff that would support the Emeryville contract and a completed bid schedule for services. Staff performed reference checks and received positive responses regarding the contractor performance.
The City Council approved Resolution No. 20-100 on September 15, 2020, authorizing the City Manager to enter into a three year maintenance contract for fiscal years 20/21, 21/22, and 22/23 which included two additional one year extensions for fiscal years 21/22 and 22/23, not to exceed a total of $547,036, for a total not to exceed contract amount of $720,914.00 (Attachment A). In order to encumber only the funds associated with the 20/21 fiscal year from the 20/21 operating budget, a Maintenance Service Agreement was executed by the City Manager between the City and the contractor on September 29, 2020, in the amount of $208,438 for a contract term that expired on June 30, 2021 (Attachment B). However, due to staff oversight, subsequent contract amendments for fiscal years 21/22 and 22/23 were not executed. Instead, after the original contract expired, the City Manager approved purchase orders in the amounts of $252,752 and $259,724 for these two fiscal years within the original contract amount of $720,914 approved by the City Council. To correct this oversight, the proposed First Amendment, for which approval is sought as part of this action, increases the total not to exceed amount by $547,036 as authorized under Resolution No. 20-100. In addition, the proposed First Amendment extends the contract term until June 30, 2024, and adds an additional $750,000 for fiscal year 23/24 for a total not to exceed contract amount of $1,470,914. Finally, the City Council is requested to authorize the City Manager to execute a one-year contract extension until June 30, 2025, and increase the not to exceed contract amount by $750,000 for a total not to exceed contract amount of $2,220,914.
Discussion
This contract is intended to function as an umbrella contract that can provide services that would have otherwise required 12-17 individual contracts. For this specialized work, George Hall serves as a general contractor and charges a 10% administrative fee allowance. The ability for George Hall to subcontract specialized services significantly reduces the response time to addressing various facility needs. This approach removes the need for a full city contracting process for each specialty contractor, which can take between 4-8 weeks each and can use between 2-3 weeks of staff time depending on the contract.
Furthermore, contracting with a large one-stop shop service provider that brings on board additional services as needed is a common approach to contracting. This will also position the City to take on small projects within the envelope of a larger contract that would have otherwise required long lead times. Examples of this include replacing a boiler, replacing failed solar panels, enhancing security features on a city facility, or replacing a diesel generator with battery storage.
The contract is divided into four operating areas:
Cost for a full-time onsite Facilities Supervisor responsible for a variety of facilities operation and maintenance activities. This includes contract management, performing skilled labor of various trades, asset management, report preparation, and records management. The services of the Facilities Supervisor are to be of a scope and quality generally performed by professional property managers and performed in a reasonable, diligent, and careful manner to manage and supervise the operation, maintenance and servicing of the property in a manner that is comparable to, or better than, that generally found in similar properties located in the Bay Area market.
An allowance amount is also included for “non-routine work” to be completed in accordance with the terms of the Contract. The “non-routine work” will be scoped, bid, and approved by the City in writing on a Task Order basis. Examples of non-routine work include equipment rebuilding, replacement, and/or installation. This type of work is beyond the scope of regular preventive maintenance and is typically the result of unforeseen circumstances, equipment failures, or malfunctions that require additional repairs or adjustments. This estimate is based on a review of past expenditures and an evaluation of what may be required to maintain the existing aging infrastructure.
Sub-contracting for facilities maintenance work. The following is a substantial list of expected subcontractor types to be working under this contract.
Electrical
Diesel Fuel Maintenance
Solar Panel Support
HVAC
Fences and Doors
Fire Life Safety Inspection and Maintenance
Generator Maintenance
Elevator Maintenance
Security
Keys and Locks
Plumbing
Painting
Backflow Maintenance
Roofing Maintenance
The following table illustrates the anticipated costs associated with this contract:
Contract Year
Facilities Maintenance Supervisor
Contingency Amount
Sub Contracting
Included CPI
Total Cost Per Year
2020/2021 (Pro-rated)
$158,438
$50,000
$0
No CPI
$208,438
2021/2022
$202,752
$50,000
$0
No CPI
$252,752
2022/2023
$209,724
$50,000
$0
No CPI
$ 259,724
Contract Extension Years Contingent on Approval
2023/2024
$ 215,856
$50,000
$484,144
No CPI
$750,000
Total Contract Amount Not To Exceed
$1,470,914
Pending City Manager Approval 2024/2025
$ 222,331
$50,000
$477,669
No CPI
$750,000
Fiscal Impact
There is sufficient funding budgeted in the operating budget for fiscal year 2023/24 in the Major Maintenance Fund 650-77030. The original contract approved already included the scope and amounts associated with the Facilities Maintenance Supervisor and Contingencies. The original City Council resolution also authorized the City Manager to extend the contractor for an additional two fiscal years.
Continuation of the contract for the 24/25 fiscal years will be contingent upon the City Manager approving the contract extension.
Staff Communication with the Public
No staff communication with the public.
PREPARED BY: Daniel Gonzales, Public Works Operations and Facilities Manager
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Paul Buddenhagen, City Manager
ATTACHMENTS
Attachment A Original Resolution 20-100
Attachment B Original Contract
Draft Resolution
Maintenance Services Contract – 1st Amendment
Citywide Maintenance / Construction Services Contract
| May 16, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM