8O
Date: November 19, 2024
To: Honorable Mayor and Members of the City Council
From: Shant Megerdichian, General Services Director
By: Milton Sanabria, Administrative Services Manager | [email protected] Subject: General Services – Adopt California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to Section 15301 and Approve Contract Services Agreements for On-Call Job Order Contract General Contractor Services Through Sourcewell.
Expenditure: $4,500,000 (General Fund: Not-to-Exceed $750,000 Annually Per Contract).
RECOMMENDATION
Recommendation of the General Services Director that City Council:
1. Adopt a California Environmental Quality Act (CEQA) Categorical Exemption pursuant to Section 15301 (Existing Facilities); and
2. Approve a contract services agreement with Harry H. Joh Construction, Inc of Paramount, CA in the amount of $2,250,000 for on-call services through Sourcewell for a period beginning November 19, 2024 and ending June 30, 2027; and
3. Approve a contract services agreement with MDJ Management, LLC of El Segundo, CA in the amount of $2,250,000 for on-call services through Sourcewell for a period beginning November 19, 2024 and ending June 30, 2027.
FUNDING
Funding is available in Fiscal Year (FY) 2024-25 Amended Capital Improvement Plan or General Fund operating budget, depending on scale and scope of services requested, and it is expected to be available in the subsequent fiscal years.
DISCUSSION
With approval, Departments will enter into agreements with contractors specified and the not-to- exceed annual amounts listed. The Job Order Contract services will be utilized as necessary to assist in maintaining all City Buildings, including Transit Operations and City Parks. Job Order Contract services are created to provide timely services during emergencies, times of peak work overload, when specialized work is required, or when operations of essential facilities are being interrupted. Establishing on-call Job Order Contract services is the best management practices for maintenance and repair projects.
The City of Torrance (City) is a member of Sourcewell (formerly the National Joint Powers Alliance), which competitively bids construction tasks with pre-set unit prices and specifications City Council
November 19, 2024
for general construction services, including materials, equipment, and labor costs. Many government agencies share contracting efforts through cooperative purchasing agreements to maximize cost savings, staff resources, and expedite the public bidding process. The Torrance Municipal Code (TMC) authorizes the City to participate in cooperative purchasing agreements like those established by Sourcewell while also adhering to the City’s procurement policies. A cooperative purchase is allowable under TMC Section 22.3.15, which states:
“Cooperative purchases may be made by the City Manager where:
a) The provisions of this Article will not apply to purchases made pursuant to any cooperative governmental purchase program, which purchases will be made in accordance with such procedures and regulations as will be established by the City Manager. b) For the purposes of this Section, the term cooperative governmental purchase program means any combination between the City of Torrance and any other public agency or public agencies for the joint purchase of property or services.” The proposed Job Order Contract services agreements would establish not-to-exceed totals of $750,000 per year during the contract term. Under these agreements, funding for each project is secured in the approved capital budget. Contractors may have multiple assignments each year; however, the aggregate amount shall not exceed the contract amount.
Sufficient funding is available to make purchases through June 30, 2027. Purchases in future fiscal years are dependent upon availability of funding in the adopted budgets of the applicable fiscal years.
The method for pricing terms falls under a Job Order Contract – IDIQ (Indefinite Delivery Indefinite Quantity). The consistency is based on the trade and pricing terms against the gordian construction task catalog. This method is used by government agencies to procure goods or services when the specific quantities and timing are uncertain at the time of the contract’s formation such as for on-call services. The general contractor agrees to provide general construction services under the Sourcewell Contract, and IDIQ job order contract. Each on-call job order request will specify scope, schedule, and details for the work for the readily available construction services.
With Council approval the agreements will be executed for various services to repair and improve city owned buildings.
ENVIRONMENTAL FINDINGS
The proposed action qualifies for exemption from review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301. This exemption applies to activities that involve the operation, repair, maintenance, permitting, leasing, licensing, or minor alterations of existing public or private structures, facilities, mechanical equipment, or topographical features, provided there is negligible or no expansion of use beyond what was in place at the time of the lead agency's determination. It includes interior or exterior modifications, such as installing interior partitions, plumbing, and electrical conveyances; maintenance of City Council
November 19, 2024
existing infrastructure like highways, streets, sidewalks, gutters, and trails; and the restoration or rehabilitation of deteriorated or damaged structures or equipment to meet current public health and safety standards, unless substantial damage from environmental hazards, like earthquakes or landslides, is identified.
ATTACHMENTS
1. Contract Services Agreement – Harry H. Joh Construction, Inc.
2. Sourcewell – Contract Number CA-R8-GB-101723-HJC
3. Contract Services Agreement – MDJ Management, LLC
4. Sourcewell – Contract Number – CA-R8-GB-101723-MDJ