REPORT TO THE CITY COUNCIL
September 28, 2017
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: ROBERT N. ANDERSEN, PE, Assistant Director
Public Works Department, Facilities Management Division
SUBJECT
Title
Actions pertaining to the Job Order Contracting (JOC) for General Building Construction and HVAC Construction (Bid File 9399) (Citywide)
1. Adopt finding of a Categorical Exemption pursuant to Section 15301(d) of the California Environmental Quality Act (CEQA) Guidelines, and
2. Award a Job Order Contracting contract with Strategic Mechanical, Inc., Mesa Energy Systems, Inc., Haus Construction, Inc., Durham Construction Company, Inc. and Puma Construction for the first year of the JOC program
Body
RECOMMENDATION
Staff recommends that Council adopt a finding of a Categorical Exemption and award a JOC construction contract with Strategic Mechanical, Inc., Mesa Energy Systems, Inc., Haus Construction, Inc., Durham Construction Company, Inc and Puma Construction for the first year of the JOC program and authorize the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The JOC Program offered by the Gordian Group enables the Facilities Management Division (FMD) to provide prompt, responsive building maintenance or construction service to City Departments at competitive “local market” pricing. The JOC Program provides competitively bid fixed-unit pricing for construction tasks from local contractors which can be quickly accessed by the FMD to perform needed building repairs, maintenance or alterations; or other installation and construction services. Provided to the bidders is an extensive unit price catalog of construction tasks, pricing, and associated technical specifications that contain approximately 120,000 individual items of typical construction and maintenance.
BACKGROUND
On December 17, 2009, and again on August 20, 2015, Council approved a 5 year contract with The Gordian Group, Inc. that allowed the FMD to utilize the JOC Program for smaller building maintenance projects. The FMD work diligently each year to complete budgeted building maintenance and renovation projects as well as be responsive to the various approved unbudgeted facility service requests received from City Departments throughout the year. The proposed JOC Program will assist the FMD to provide quality work, competitive costs, and improved responsiveness in completing small to medium-sized construction projects involving building maintenance and renovations.
The JOC program will allow for the FMD to utilize the contractors who bid for various facilities work such as remodels, replacement of HVAC units and other maintenance projects. Under the JOC program, each Contractor is guaranteed at least $25,000 worth of projects per year and up to $500,000 per year; however, they are not guaranteed the upper limit. This agreement, if approved by Council, will be for the first year’s work and can be extended for an additional two years.
On July 7, 2017, staff released the JOC specification to 10 builder exchanges and to nine bidders. When submitting a bid on the JOC program, the Contractors are agreeing to the unit cost per item in the catalog of construction tasks. The contractors also submitted an adjustment factor for both normal working hours and overtime hours. These adjustment factors are where the contractors’ mobilization, permitting costs, and overhead/profit would reside.
On August 18, 2017, staff received bids from 5 bidders. Three of the bidders are General Contractors and two are HVAC Contractors.
Staff recommends that Council adopt a finding of a Categorical Exemption and award a JOC construction contract with Strategic Mechanical, Inc., Mesa Energy Systems, Inc., Haus Construction, Inc., Durham Construction Company, Inc. and Puma Construction for the first year of the JOC program and authorize the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno.
The Agreement has been reviewed and approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
Staff has determined that a Categorical Exemption is appropriate, based on Class 1 Section 15301(d) of the CEQA Guidelines, which exempts restoration or rehabilitation of deteriorated or damaged structures, facilities or mechanical equipment to meet current standards of public health and safety. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. Staff recommends that the Council, based upon its own independent judgment, adopt a finding of a Categorical Exemption per Staff determination, pursuant to Section 15301(d), Class 1 of the CEQA Guidelines for the work intended under the JOC program. No new facilities will; be bid under this program. Only facility rehabilitation projects will be using the JOC program.
LOCAL PREFERENCE
Local preference was not implemented but all of the contractors are from the Fresno/Clovis area.
FISCAL IMPACT
The Agreement will be funded through appropriations for specific projects and budgeted maintenance activities which were included in the adopted FY2018 budget.
Attachments:
Bid Evaluation
Sample Agreement