NVF:DEY:AHT
10/17/2022
T-41277.001/1968125 1
Council Agenda: 11/1/2022
Item No.: 8.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN JOSE: (1) MAKING FINDINGS AND DETERMINING
THAT THE CITY CAN AWARD A CONSTRUCTION
CONTRACT FOR PHASE II OF THE EMERGENCY
INTERIM HOUSING AT THE POLICE ADMINISTRATION
BUILDING PARKING E-LOT (“PHASE II”) TO DEVCON
CONSTRUCTION, INC. UNDER THE “IDLE ACT”
EXCEPTION IN SECTION 1217(i)(6) OF THE CITY
CHARTER; (2) AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AND EXECUTE THE FIRST AMENDMENT TO
THE CONSTRUCTION AGREEMENT WITH DEVCON
CONSTRUCTION, INC. IN AN AMOUNT NOT TO EXCEED
$8,300,000 TO CONSTRUCT THE PROJECT; AND (3)
AUTHORIZING THE INCREASE OF THE CONSTRUCTION
CONTINGENCY FOR THE PROJECT TO SEVEN (7%) OF
THE CONSTRUCTION CONTRACT AMOUNT NOT TO
EXCEED $600,000
WHEREAS, on October 5, 2021, the City of San José (“City”) City Council authorized the City Manager to negotiate and execute a construction agreement with Devcon Construction, Inc. to construct the original scope of the project which construction began on February 1, 2022; and
WHEREAS, the City Council desires to adopt this resolution for the reasons set forth in the memorandum, dated October 18, 2022, from Director of Public Works Matt Cano, Director of the Housing Department Jacky Morales-Ferrand, and Budget Director Jim Shannon for the November 1, 2022 City Council meeting (“Memorandum”);
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
Section 1. The City Council hereby makes the following findings of fact based on the Memorandum:
NVF:DEY:AHT
10/17/2022
T-41277.001/1968125 2
Council Agenda: 11/1/2022
Item No.: 8.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1. The engineer’s estimate to construct Phase II is $2,250,000.
2. Devcon Construction, Inc is already mobilized on-site and will continue to provide some of the construction services either pro-bono or at a discounted rate.
3. Devcon Construction, Inc has committed to working with the City and private donors to secure unit donations, which will offset the construction cost.
Based on the above facts, the City Council determines that publicly soliciting bids for construction of Phase II would likely not lead to the City obtaining a lower price for constructing Phase II and is unlikely to provide any significant value or benefit to the City. Accordingly, the City Council concludes the City can amend and expand the construction contract with Devcon Construction, Inc. in accordance with the “idle act” exception (Section 1217(i)(6) of the City Charter) to the competitive procurement of construction contracts.
Section 2. The City Manager is authorized to negotiate and execute a first amendment to the construction agreement to increase compensation by $2,300,000 for a total contract amount not to exceed $8,300,000 with Devcon Construction, Inc. to construct Phase II consistent with the Memorandum and Chapter 5.09 of the San José Municipal Code.
Section 3. An additional $300,000 is authorized for the construction contingency for a total construction contingency not to exceed $600,000 equal to seven percent (7%) of the total construction contract amount.
NVF:DEY:AHT
10/17/2022
T-41277.001/1968125 3
Council Agenda: 11/1/2022
Item No.: 8.2(b)
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk