City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: APRIL 23, 2024 FROM: GENERAL SERVICES DEPARTMENT WARD: 6
SUBJECT: AWARD BID NO. 8054 TO RITE-WAY ROOF CORPORATION FOR REMOVAL AND REPLACEMENT OF THE ROOFS AT THE MAGNOLIA PLACE SHOPPING CENTER IN THE AMOUNT OF $723,546.00 AND AUTHORIZE 15% CHANGE ORDER AUTHORITY UP TO $108,531.90 FOR A TOTAL AMOUNT OF $832,077.90 – SUPPLEMENTAL APPROPRIATION AND INTERFUND TRANSFER ISSUE:
Award Bid No. 8054 to Rite-Way Roof Corporation, of Fontana, California for the removal and replacement of the roofs at the City-owned Magnolia Place Shopping Center, located at 10530 Magnolia Avenue and 10560 Magnolia Avenue in the amount of $723,546.00; and authorize15% change order authority up to $108,531.90 for a total amount of $832,077.90.
RECOMMENDATIONS:
That the City Council:
Award Bid No. 8054 to Rite-Way Roof Corporation, of Fontana, California in the amount of $723,546.00 for the removal and replacement of the roofs at the Magnolia Place Shopping Center located at 10530 Magnolia Avenue and 10560 Magnolia Avenue; and Authorize 15% change order authority in an amount up to $108,531.90 for project changes including, but not limited to, unforeseen conditions, or necessary design changes for a total amount of $832,077.90; and With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation for an interfund transfer in the amount of $832,077.90 from the General Fund Infrastructure Reserves to the Capital Outlay Fund, Magnolia Roof Replacement project account; and Authorize the City Manager, or designee, to execute a Construction Agreement with Rite-Way Roof Corporation including making minor and non-substantive changes.
BACKGROUND:
On September 8, 2003, the City acquired the Magnolia Place Shopping Center property located at 10530, 10540 and 10560 Magnolia Avenue to establish a Police Station on a portion of the property. The shopping center now includes the Magnolia Police Station that houses field operations for the Riverside Police Department and additional space for their Judo training facility. The anchor tenant, the Los Angeles King’s Ice Town ice sports facility, occupies 52,145 square feet of space adjacent to the Magnolia Police Station. Other notable tenants are the Events Sport Grill, a local area sports bar, and OK Tofu House, a Korean cuisine restaurant. The entire City-owned property includes 142,699 square feet of leasable space. Currently, there are seven tenants and one vacancy. To maintain this City-owned asset and facilitate infrastructure improvements within Ward 6, the proposed Magnolia Place Roof project is necessary to extend the useful life of the assets, improve the assets’ overall value, and support the local business community’s investment in Riverside.
DISCUSSION:
Magnolia Place Roofing Project
The Magnolia Place Shopping Center buildings, purchased by the City in 2003, are located at 10530 Magnolia Avenue and 10560 Magnolia Avenue. The buildings were constructed in 1986 and have a Sarnafil, single-ply membrane roofing system. The roofing system has been in service for the past 38 years. However, for the past eight years the roofs have experienced significant water infiltration issues. Due to the deterioration of the existing roofing system, it has reached a point where it is no longer feasible to continue repair efforts. This project will remove and dispose of the existing roofing system and replace it with a new Title 24 compliant 30-year roofing system, complete with new flashings and edge metal, facia, and rubber pipe/conduit supports.
Request for Bids (RFB) No. 8054 was posted on the City’s online bidding system, Planet Bids, on December 6th, 2023, seeking prospective bidders to labor and materials for the existing roof removal and installation of a new roof at the Magnolia Place Shopping Center. The notification was sent to 75 City of Riverside vendors and 500 external vendors. A mandatory pre-bid meeting was held on December 15th, 2023, with 20 vendors in attendance. RFB 8054 closed on January 12th, 2024, with a total of 9 responses. All responses were found to be responsive and responsible.
Magnolia Place Roofing Project Bid Results
Results of the bid process are as follows:
VENDOR
LOCATION
BID AMOUNT
1 Rite-Way Roof Corporation
Fontana, CA
$ 723,546
2 R & R Roofing & Waterproofing, Inc.
Lake Elsinore, CA
$ 818,380
3 Danny Letner
Orange, CA
$ 839,700
4 Best Contracting Services
Gardena, CA
$ 855,424
5 Chapman Coast Roof Company
Fullerton, CA
$ 921,161
6 AME Builders
Pomona, CA
$ 934,800
7 Commercial Roofing Systems
Arcadia, CA
$ 935,782
8 Roy O. Huffman Roof Company
Riverside, CA
$ 969,868
9 A Good Roofer
Lakeside, CA
$1,064,839
Staff recommends awarding to the low bidder, Rite-Way Roof Corporation, for the Magnolia Place Roofing Project in the bid amount of $723,546.00 and a 15% change order authority up to $108,531.90 for a total amount of $832,077.90 for unanticipated changes due to the age and condition of the roof decks, and/or design changes if additional minor repair needs are discovered.
This roof replacement project will help eliminate the City’s escalating cost of repairing and patching the existing roofs in addition to time lost and inconvenience to the tenants when roof leaks occur. This improvement project will also help support the City’s “Shop Riverside” initiative by providing a safer and higher-quality facility for businesses to thrive in and the local community to support. The benefits of shopping within city limits will not only build a closer community, but also a cleaner environment and a stronger economy. When businesses thrive, they are generating taxes and funds which circulate back into our local economy.
Per Purchasing Resolution 24101, Section 508 Award states that, “Contracts procured through the Formal Procurement shall be awarded by the Awarding Entity to the Lowest Responsive and Responsible Bidder.” The Purchasing Manager concurs that the recommended actions comply with the City of Riverside’s Purchasing Resolution No. 24101, Section 508.
STRATEGIC PLAN ALIGNMENT:
This project supports the City’s Strategic Priority No. 6 Infrastructure, Mobility and Connectivity, and Goal No. 6.2 to maintain, protect and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This project aligns with the Cross-Cutting Threads of the City’s Strategic Plan as follows:
Community Trust – This project is agendized for City Council consideration, ensuring public transparency.
Equity – The Magnolia Place Shopping Center serves all Riverside residents equitably.
Fiscal Responsibility – This project was competitively bid in accordance with Purchasing Resolution 24101, ensuring the best pricing was obtained.
Innovation – This item is neutral towards this cost-cutting thread.
Sustainability & Resiliency – New roofing will improve energy efficiency and prolong the useful life of these city-owned assets.
FISCAL IMPACT:
The total fiscal impact of this action is $832,077.90. Upon Council approval, a supplemental appropriation and interfund transfer in the General Fund to the Capital Outlay Fund, Magnolia Roof Replacement Project will be recorded. The table below lists the supplemental appropriations and interfund transfers included in the recommendations in this report.
Fund
Project
Account
Amount
Transfers
General Fund
Infrastructure Reserve
0000101-299206
($832,077.90)
Infrastructure Reserve Transfer Out
7223600-990401
$832,077.90
Revenue
Capital Outlay
GF Transfer In
9926900-985101
$832,077.90
Expenditures
Capital Outlay
Magnolia Roof Replacement
9926900-462050
$832,077.90
Prepared by: David Geiger, Real Property Agent
Approved by: Carl Carey, General Services Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attached: Bid Recommendation
Magnolia Place Roofing Project ● Page 2