TITLE
Recommendation to adopt resolution authorizing City Manager to execute an agreement with Howard CDM, a Long Beach-based business for providing building rehabilitation services for a total amount not to exceed $300,000 for a one-year period at the discretion of the City Manager; and
Increase appropriations in the General Fund (GP), in the Department of Development Services (DV), by $300,000 from fund reserves. (District 8)
DISCUSSION
City Council approval is requested to enter into an agreement with Howard COM for providing building rehabilitation services. The EXPO Building, owned by the Successor Agency and located at 4321 Atlantic Avenue, serves as a valuable cultural resource to the Long Beach community. The Bixby Knolls Business Improvement Association occupies the building and provides onsite management services. This once vacant furniture warehouse has been transformed into a neighborhood community arts center providing various programs and services, such as youth theater productions, children's art and theater camps, art exhibits and space for community meetings. The activities held at the building bring many attendees to the area, supporting local shops and restaurants.
In January 2013, while the roof of the building was under repair, a heavy rain caused severe flood damage to the building. A water damage remediation firm was immediately retained to minimize the damage and remove the water-soaked materials.
In order to re-occupy the building, the tenant improvements needed to be rebuilt. One of the City of Long Beach's (City's) on-call architectural firms was retained to prepare construction drawings to restore the facility to its previous use. Howard COM, a local construction company, was hired as the general contractor to obtain competitive bids for the project and supervise the construction of the tenant improvements. Howard COM has a contract with the Successor Agency for as-needed construction services.
The City's insurance company is involved in the remediation and restoration of the building. However, only the construction directly attributable to the flood damage is covered by insurance.
Due to the age and deteriorated condition of the building, a number of code upgrades have been required by the Building & Safety Bureau in order to regain occupancy of the building. In addition, during the course of construction, a number of upgrades have been recommended by the architect, contractor, and/or the City's Planning and Building staff, in order to maximize the utility of the property and improve the long-term viability of the space as a cultural resource to the community.
A new agreement with Howard CDM is necessary, as the amount available under the existing contract with the Successor Agency is not sufficient to complete the project. In order to expedite completion of construction already under way, and to avoid delays due to State Department of Finance review, City Council authorization for a new agreement is being sought.
City Charter Section. 1802 provides an alternative procurement method by permitting the City to purchase, or otherwise, obtain services, supplies, materials, equipment, and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis, when authorized by a Resolution of the City Council.
The building remained vacant for nearly a year while the City worked with its and the roofing vendor's insurance companies, to recover funds in order to begin the construction work. Howard CDM began construction in late December 2013, and expects to complete the project by the end of April 2014. To stop construction at this time in order to open the process to other vendors, would not be cost efficient and would have a negative impact on the tenant. Given the need for continuity of services and a timely completion of construction activities, approval of the attached Resolution for an alternative procurement is requested.
This matter was reviewed by Deputy City Attorney Richard Anthony on March 26, 2014, and by Budget Management Officer Victoria Bell on March 27, 2014.
TIMING CONSIDERATIONS
City Council action on this matter is requested on April 15, 2014, in order to allow the timely completion of the construction and put this cultural resource back into use.
FISCAL IMPACT
The proposed contract amount is $300,000. Funds are available for this contract in a General Fund reserve for Successor Agency expenses that are not on a Recognized Obligation Payment Schedule approved by the California State Department of Finance. In order to expend these funds, an appropriation increase is requested in the General Fund (GP) in the Development Services Department (DV) by $300,000.
There is no long-term local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH HOWARD COM, WITHOUT ADVERTISING FOR BIDS, FOR BUILDING REHABILITATION SERVICES IN AN AMOUNT NOT TO EXCEED $300,000 FOR A ONE-YEAR PERIOD
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER