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HomeMy WebLinkAboutStaff Report 2306-17074.Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern Community Center Roof Underlayment Replacement Project; CEQA status - exempt under CEQA Guideline Sections 15301 and 15302 Q&A City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: August 14, 2023 Report #:2306-1707 TITLE Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern Community Center Roof Underlayment Replacement Project; CEQA status - exempt under CEQA Guideline Sections 15301 and 15302 RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute construction contract C24187808 with Enterprise Roofing Service, Inc. in the amount of $386,986 for the Lucie Stern Community Center Roof Underlayment Replacement Project, Capital Improvement Program Roofing Replacement Project PF-00006; and 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Enterprise Roofing Service, Inc. for related, additional but unforeseen work which may develop during the contract period, the total value of which shall not exceed $38,698. BACKGROUND The existing Lucie Stern Community Center roof has been in service since the construction of the building in 1934. The Spanish clay tile is still in good condition, but the underlayment has reached the end of its life and has been patched several times in various locations. To avoid the potential for larger leaks and structural damage to the building, staff has determined that the roof needs a complete underlayment replacement. Under the recommended contract1, 1Enterprise Roofing Service Inc., C24187808, Lucie Stern Community Center Roof Underlayment Contract; https://www.cityofpaloalto.org/files/assets/public/public-works/public-services/contracts/c24187808-lscc-roof- underlayment-contract.pdf Enterprise Roofing Service Inc., will be responsible for replacing the roof underlayment at Lucie Stern Community Center. ANALYSIS Scope Overview Staff recommends approval of Contract No. C24187808 to replace the roof underlayment at Lucie Stern Community Center. This project will remove the existing Spanish clay tile roofing, which will be reinstalled. The old gutters will be removed. The copper gutters will be saved for reuse. The old underlayment will be removed and disposed of. Dry rot repairs will be made to the roof surface and fascia boards. New underlayment system will be installed. Rain gutter system will be reinstalled. The old Spanish clay tiles will be reinstalled along with some new tiles due to existing broken tiles and some expected breakage during removal. All fascia boards and any new exposed eave boards will be repainted. Bid Process On May 24, 2023, a notice inviting formal bids for the Lucie Stern Community Center Roof Underlayment Replacement Project was posted on the OPENGOV Procurement website. The bidding period was 30 days. Bids were received from four qualified contractors on June 22, 2023, as listed on the attached Bid Summary (Attachment A). Summary of Bid Process Bid Name/Number Lucie Stern Community Center Roof Underlayment Replacement Project IFB #187808 Proposed Length of Contract 45 days Total Days to Respond to Bid 30 Number of Bids Received 4 Bid Price Range $386,986 to $656,850 Staff has reviewed the submitted bids and recommends that the bid of $386,986 submitted by Enterprise Roofing Service, Inc. be accepted and that Enterprise Roofing Service, Inc. be declared the lowest responsible bidder. The award of contract includes the base bid. The change order amount of $38,698 (which equals 10 percent of the total contract) is requested for related, additional but unforeseen work which may develop during the contract term. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also confirmed with the California Department of Industrial Relations (DIR) that the contractor has an active DIR registration. FISCAL/RESOURCE IMPACT Funding for the Lucie Stern Community Center Roof Underlayment Replacement Project contract has been appropriated in the Fiscal Year 2024 Capital Improvement Fund Roofing Replacement Project (PF-00006). STAKEHOLDER ENGAGEMENT The Lucie Stern Community Center Roof Underlayment Replacement Project was coordinated with the Community Services staff working at the Community Center. Notices will be placed at the Community Center announcing this upcoming project. ENVIRONMENTAL REVIEW This contract is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no further environmental review is necessary. ATTACHMENTS Attachment A: Bid Summary for Lucie Stern Community Center Roof Underlayment Replacement Project APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Bid Summary Lucie Stern Community Center Roof Underlayment Replacement Project IFB187808 Vendor Name Bid Amount Enterprise Roofing Service $386,986.00 Roofing Constructors, Inc. dba Western Roofing Service $525,836.00 Waterproofing Associates $638,768.00 Alcal Specialty Contracting, Inc.$656,850.00 Dear Mayor and Council Members: On behalf of City Manager Ed Shikada, please find below the staff responses to questions from Councilmember Tanaka regarding the Monday, August 14 Council Meeting consent agenda items. Item 2: Adoption of Memorandum of Agreement with Service Employees International Union Hourly Unit and Compensation Plan for Unrepresented Limited Hourly Employees, effective upon adoption through June 30, 2025; and Adoption of revised Management and Professional Salary Schedule to add one new classification effective July 1, 2023; CEQA Status - Not a project 1. How do our proposed salary structures and benefits compare to other cities of similar size and demographics? Staff response: The proposed salary structure for our part-time hourly employees includes a 4% cost of living adjustment; this is in alignment with surrounding Bay Area agencies for this fiscal year. FY 2023-2024: For example, for cost-of-living adjustments: Santa Clara: 5%, Sunnyvale 6.5%, Redwood City 3%, Hayward 5%, Fremont 5%, Berkeley 1%. The City’s target market placement for City classifications has been at or around the 75th percentile of the market. Though a market study specifically for hourly classifications was not conducted, the hourly unit classifications were provided the same cost of living adjustment and similar target market adjustments as comparable classifications in other units. As for benefits, the City does provide a medical stipend negotiated with the Service Employee International Union (SEIU) for their represented hourly employees that is unique to the area. Holidays and sick leave benefits are in alignment with surrounding agencies and state legal requirements. Overall, pension benefits are not paid to part-time hourly employees unless mandated by the California Public Employee Retirement System rules. 2. How might the proposed changes impact the budgets of other departments, especially those with a significant number of hourly employees? And, Does the city have contingency plans in place if the anticipated balances in appropriated funds are not sufficient to cover the costs of the proposed changes? Staff response: Staff does not anticipate a material impact to the department’s budgets due to the proposed hourly rates and limited number of hours (approx. 20 hours per week) that are performed by hourly workers, our lowest paid employees. Additionally, many hourly workers are seasonal and thus primarily high in the summer and fewer hours during the remainder of the year. Consistent with past practice, the FY 2024 Adopted Budget assumes a 2% wage increase for labor groups that do not have agreements in place. The additional cost to fund the final agreement terms are expected to be absorbed through department vacancy savings, or use of reserves such as fund balance, in the first year. Beginning in FY 2025, staff will include these compensation adjustments in the budget planning process. Staff will continue to monitor expenses throughout FY 2024 and recommend adjustments, if necessary, to align appropriated expenses with projected costs. Item 4: Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern Community Center Roof Underlayment Replacement Project; CEQA status - exempt under CEQA Guideline Sections 15301 and 15302 1. Given that Enterprise Roofing Service has the lowest bid, has the city conducted a thorough background check on the company to ensure they have a history of completing projects on time, within budget, and to the required quality standards? Staff response: Enterprise Roofing Service has been in business since 1962 and they are well known in the roofing industry. Just last year, they completed replacement of the Cubberley H Wing roof for the City. The project was completed on time and on budget. 2. What is the suspected reason for the drastic price differences in the bids? Staff response: It is not uncommon to see these pricing differences for roofing projects. Roofing contractors typically consider weather, manpower, and project scheduling when determining their bids. Enterprise Roofing Service may have had few jobs lined up at the time they provided their bid, and therefore provided more aggressive pricing.