City Council Agenda Report
Meeting Date: February 21, 2023
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Yesenia Barajas, Senior Administrative Assistant Subject
Payments to Mega Renovation Inc. (Mega)
Recommendation
A. Approve payment to Mega for the remodel work completed at 3361 Fruitland Avenue for an amount not-to-exceed $18,034.85;
B. Approve payment to Mega for the remodel work completed at 4324 Furlong Place for an amount not-to-exceed $69,208.10; and
C. Approve payment to Mega for the remodel work completed at 3357 Fruitland Avenue for an amount not-to-exceed $17,400.
Background
The Public Works Department performs and oversees renovations on City-owned housing as needed when units become vacant. Typical renovations may include re-carpeting, re-tiling, installation of new cabinetry, new plumbing fixtures, new lighting fixtures, and countertop installations. Depending on the condition of a given unit, material costs, complexity of the scope of work, and any unforeseen repairs, overall funds required for refurbishment may vary significantly.
After enduring visible wear and tear over time, the City-owned properties located at 3361 Fruitland Avenue, 4324 Furlong Place, and 3357 Fruitland Avenue required renovation, as each unit was being prepared to be occupied by new tenants. Previously, remodel of City-owned homes consisted of complete overhauls contracted out and awarded based on a bid process.
However, in soliciting bids for the complete remodel of a City-owned home in 2019 the bids received ranged from $298,200 to $411,753. Based on such results, it was a more feasible approach for the City to assess vacant units and parse out necessary remodel work to be completed by a combination of in-house staff and contracted on an as-needed-basis for specific tasks.
Accordingly, with the City-owned properties noted above, many of the repairs were completed by City staff when feasible depending on the expertise required and staff availability. For any necessary work that could not be completed in-house, staff followed an informal selection process and solicited quotes from various contractors as the need arose. For the work at the houses on Fruitland and Furlong, Mega was the sole respondent and was able to perform the necessary work timely.
Although the renovation work at the Fruitland and Furlong homes noted above was performed by Mega between December 3, 2020 and July 25, 2022, outstanding invoices remain due to staff turnover in the Public Works Department and delays in billing by the contractor. The total amount of outstanding invoices (Attachments 1-3) due for the various jobs completed by Mega at these three City-owned properties amounts to $104,642.95. City Council approval is required for payment pursuant to VMC Section 3.32.040(B) as the amount exceeds $100,000.
Fiscal Impact
The fiscal impact is $104,642.95. Sufficient funds are available in General Fund, Public Works City Housing Department Account No. 011-040-410-660000 for the current fiscal year.
Attachments
1. 3361 Fruitland Ave – Invoice Nos. 2027-2029
2. 4324 Furlong Place – Invoice Nos. 2632-2634 and 2672
3. 3357 Fruitland Ave – Invoice No. 2673