For City Council Meeting May 14, 2024
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, Acting City Manager
FROM: Tim Sullivan, Director of Maintenance and Facilities
Title
Request City Council to 1) Award a Construction Contract to Genesis Builders, Inc. in the Amount of $1,336,498.61 for Building 400 Improvements, City Project No. CB2202; 2) Authorize a Contract Change Order Request in the amount of $150,298 with Fountainhead Corporation pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for Building 400 Improvements, City Project No. CB2202; and 3) Authorize the City Manager or their Designee to Execute all Related Documents.
(ACTION)
Body
BACKGROUND
The City of Rialto currently operates the Rialto Community Center located at 214 N Palm Avenue. The building is in significant need of renovation due to its deteriorating condition. Proposed improvements include but are not limited to the installation of new flooring, lighting, windows, ceilings, appliances, and cabinets and to improve ADA accessibility. The improvements are part of the action to continue rehabilitation work at the Center. To date, Buildings 100, 200, and 300 have been rehabilitated. After the rehabilitation of Building 400, the objective is to utilize CDBG funding to rehabilitate the remaining building in need of improvements, Building 500. An image of Building 400’s location and the proposed project site is shown in Figure 1.
Figure 1
ANALYSIS/DISCUSSION
On March 5, 2024, the City released RFB No. 24-019 for Building 400 Improvements, City Project No. CB2202, and published the Notice Inviting Bids on the PlanetBids.com website. On April 18, 2024, the City received five (5) bids as follows:
A complete bid summary is included as Attachment 1. The engineer’s estimate was $1,200,000. The lowest responsible and responsive bid was $1,336,498.61, submitted by Genesis Builders, Inc. The bid received by Abboud Diamond Construction, Inc. was found to be non-responsive to the contract documents. Abboud Diamond Construction, Inc. also confirmed the errors within their bid submittal and acknowledged their bid to be non-responsive. Staff reviewed the second lowest bid and found Genesis Builders, Inc. to be properly licensed and qualified. Genesis Builders Inc.’s Disclosure Statement, Contractor’s License, and DIR verification documents are included as Attachment 2. Staff recommends that the City Council accept the bid received from Genesis Builders, Inc. as the lowest responsible and responsive bid. A construction contract with Genesis Builders, Inc. for the project is included as Attachment 3.
Construction Management, Inspection, and Materials Testing Services
On April 12, 2022, the City Council approved an on-call agreement with Fountainhead Corporation for on-call construction management, inspection, and materials testing services for an initial 3-year term, with two 1-year optional extensions.
Staff has reviewed and recommends approval of the proposal provided by Fountainhead Corporation based on their prior constructability review of the Project plans and their experience overseeing projects of this magnitude similar in scope to the Project. A copy of their proposal is included as Attachment 4. Fountainhead has provided a fee proposal of $150,298 to provide the required construction phase services through the duration of the project. A copy of Fountainhead’s Disclosure Statement is included in Attachment 5.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires Guidelines for Implementation of the California Environmental Quality Act (CEQA). The Guidelines are required to include a list of classes of projects which have been determined not to have a significant effect on the environment and which are exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment and are declared to be categorically exempt from the requirement for the preparation of environmental documents. In accordance with Section 15301 “Existing Facilities,” Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities; therefore, Building 400 Improvements, City Project No. CB2202 is considered categorically exempt from CEQA, and a Notice of Exemptions will be prepared and filed with the San Bernardino County Clerk.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the following City of Rialto General Plan Goals and Policies:
Goal 3-11: Provide community facilities that adequately support established programs, can accommodate future needs, and are accessible to all members of the community.
Goal 3-11.1: Allocate resources for the maintenance and operations of City Facilities, explore alternative funding options for maintenance and operational costs of new facilities.
LEGAL REVIEW
The City Attorney’s Office has reviewed the resolution and agreement and approved them as to form.
FINANCIAL IMPACT
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The Community Center Building 400 Improvements Project has an adopted project budget of $1,092,742 in the CDBG Funds, Account No. 22341856-53001-CB2202, and currently has a remaining budget of $1,024,117.
On February 16, 2024, the City of Rialto Maintenance and Facilities and Engineering Departments submitted an application to the Fy2024-2025 Community Development Block Grant Program Action Plan requesting $500,000 to fund the Community Center Building 400 Improvements Project. The City Council approved the Fiscal Year 2024-2025 Annual Action Plan on April 23, 2024, which included a $500,000 allocation for the Project. The additional funds of $500,000 will become available on July 1, 2024.
As a result, the project's budget will be increased to $1,592,742 and is sufficient to fund the construction capital costs.
The funds for the award of the construction contract with Genesis Builders, Inc. are available from prior allocations in the Community Development Grant Account No. 22341856-53001-cb2202-05 in the amount of $860,399.
On July 1, 2024, the additional funds in the amount of $500,000 from the adopted action plan will become available in the Community Development Grant Account No. 22341856-53001-cb2202-05 to fund the remainder of the contract amount. These funds were programmed in the proposed Fiscal Year 2024/2025 budget.
Additionally, funds for the Contract with Fountainhead Corporation are available in the Community Development Block Grant Account Number 22341856-53001-cb2202-16 in the amount of $150,298.
Licensing
A Business License Tax at the Professional Services rate in the amount of $1,404 based on the construction amount of $1,336,498.61 will be assessed to Genesis Builders, Inc., and $229 based on the $150,298 Construction Management & Inspection contract will be assessed to Fountainhead Corporation.
RECOMMENDATION
Staff requests that the City Council:
1. Award a Construction Contract to Genesis Builders, Inc. in the amount of $1,336,498.61 for Building 400 Improvements, City Project No. CB2202;
2. Authorize a Contract Change Order Request in the amount of $150,298 with Fountainhead Corporation pursuant to the City’s “On-Call” Agreement for Construction Management, Inspection, and Materials Testing Services for Building 400 Improvements, City Project No. CB2202; and
3. Authorize the City Manager to Execute all Related Documents.