TITLE
Recommendation to authorize City Manager to execute contract amendments to increase the aggregate total of the contract authority for existing Job Order Contracting (JOC) contractors: New Creation Builders, Exbon Development, Bitech Construction, Allstate Engineering, and Thomasville Construction by $3,764,726 from $24,860,227 to $28,624,953 for Tenant and Security Improvements at the Interim Port Headquarters Building; and
Authorize City Manager to execute an amendment to the contract with the Gordian Group for access rights to their proprietary Pro-Gen software and to provide professional services to manage the JOC program, and increase the amount by $75,000, from $492,500 to $567,500, for Tenant and Security Improvements at the Interim Port Headquarters Building. (District 5)
DISCUSSION
On December 11, 2012, the City Council authorized an acquisition and renovation budget for the Interim Port Headquarters Building (IHQ) of $24,310,227, which included $14,250,000 for building acquisition, $9,860,227 for JOC work and $200,000 for Gordian Group.
On May 14, 2013, the City Council authorized the City Manager to execute contract amendments to increase the aggregate total of the contract authority for existing JOC contractors by $9,860,227 from $15,000,000 to $24,860,227 and the contract with Gordian Group by $200,000 from $292,500 to $492,500 for tenant and security improvements at the IHQ (attached).
On September 3, 2013, the Harbor Department presented, and the City Council subsequently adopted, the Harbor Department's FY 14 budget, which included $6,690,000 in additional funding for the IHQ, increasing the budget from $24,310,227 to $31,000,227, including acquisition.
At this time, tenant improvements at the IHQ are proceeding within budget and on schedule to achieve substantial completion by the end of this year. Additionally, grant-funded Homeland Security improvements totaling $1,376,444 were included in the JOC work and have been completed. To continue to maintain this aggressive pace, additional JOC work and contract authority is required, the cost of which is estimated at $3,764,726. This amount is within the existing budget and no budget increase is being requested.
This matter was reviewed by Assistant City Attorney Michael J. Mais and by Budget Management Officer Victoria Bell on November 19, 2013.
TIMING CONSIDERATIONS
City Council action on this matter is requested on December 3, 2013 in order to maintain the aggressive renovation schedule.
FISCAL IMPACT
As authorized by the Board of Harbor Commissioners, the Harbor Department will incur the costs for the requested contract increases for Fiscal Year 13 and Fiscal Year 14 totaling $13,899,953 for tenant and security improvements to the Interim Port Headquarters Building. All other costs under the original three-year contract capacity of $15,292,500 for JOC and the Gordian Group will continue to be paid by various City departments and funds utilizing these contracts. Approval of this action would potentially have a positive impact on the local job market
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ARA MALOYAN, PE
ACTING DIRECTOR OF PUBLIC WORKS
MICHAEL P.CONWAY
DIRECTOR OF BUSINESS AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER