October 18, 2005

SUBJECT: Award of Bid No. F0509-16 for Roof and Exterior Siding Replacement at the Fair Oaks Industrial Complex and Approval of Budget Modification No. 7

REPORT IN BRIEF

Approval is requested for the award of a contract to Louis and Riparetti, Inc., of Scotts Valley for the replacement of four roofs and exterior siding on three buildings at the Fair Oaks Industrial Complex for the Department of Public Works Engineering Division (Project No. PR-05/01-06).  Approval is also requested for Budget Modification No. 7 to reallocate funding for this project. The budget modification will reallocate $111,496 of funds budgeted in FY 2006/2007 to FY 2005/2006.   The remaining $400,544 budgeted in FY 2006/07 and FY 2007/08 will be returned to the General Fund 20-Year Resource Allocation Plan Reserve. 

BACKGROUND

The Fair Oaks Industrial Complex, located at 1010-1024 Morse Avenue, was purchased for future development into a neighborhood park at Council direction in 1990 (RTC No. 90-567).  The five-acre complex contains five wood frame one-story buildings constructed in the mid-1970s and over 82,000 square feet of industrial space.  The roofing systems in the complex have reached the end of their useful lives, and the resulting roof leaks have threatened to cause major damage to the underlying wooden framework and side paneling of the buildings. Until recently, roof leaks have been patched, but patching is no longer a viable repair option.  A recent roof survey by a City-selected consultant indicates that four of the five roofs in the complex are either in poor or very poor condition.

DISCUSSION

Bid specifications were prepared by Public Works and Purchasing staff.  The scope of work for this project includes removing and replacing the roofs at 1010, 1012, 1014 and 1016 Morse Avenue as well as replacing the exterior siding on 1012, 1014 and 1016 Morse Avenue.  The bid package was distributed to Bay Area Builders Exchanges and broadcast to potential contractors through the DemandStar by Onvia public procurement network. Eighteen contractors requested bid documents.

Sealed bids were publicly opened on September 28, 2005; and seven responsive bids were received.

Bidders	Total Bid
Engineer’s Estimate	$395,000
Louis and Riparetti, Inc., of Scotts Valley	$409,197
Kuehne Construction of Sunnyvale	$441,719
Color Chart, Inc., of San Bruno	$463,814
Western Roofing Service of San Francisco	$464,000
IMR Contractor Corp. of Daly City	$559,000
Southwest Construction and Property Management of San Francisco	$625,958
Best Contracting Services, Inc., of Hayward	$668,500

Staff recommends acceptance of the bid from Louis and Riparetti, Inc., the lowest responsive and responsible bidder

A determination was made that this project will have no significant effect on the environment in accordance with CEQA guidelines for categorically exempt projects                                                                                          

FISCAL IMPACT

Project costs include: 

Construction	$409,197
Contingency (25% of construction)	$102,299
Total Cost	$511,496

Funds to complete the roofing and siding work are budgeted in Project No. 808100 - Fair Oaks Industrial Complex Maintenance.  The funds for the roofing and siding work are currently spread out over a three-year time frame. 

	FY 2005/2006	FY 2006/2007	FY 2007/08
Facilities Maintenance	105,000	107,100	109,242
Management Contract	40,000	40,800	41,616
Utilities	65,000	66,300	67,626
Taxes & Licenses	20,000	20,400	20,808
Misc. Services	50,000	51,000	52,020
Resurfacing 100,000 s.f  of pavement			208,080
Roofing/Siding Repairs	400,000	408,000	104,040
Total Budget	680,000	693,600	603,432

It should be noted that this project is 100% supported by rental income.  The Fair Oaks Industrial Complex generates more than $800,000 in annual rental income.

To maximize contractor participation and minimize the overall cost to the City, Engineering staff was able to amend the technical specifications for the roof work and combine this with the wood paneling component to form a single bid package.  The total cost of the bid package, including a 25% contingency, is $511,496.  The contingency is higher than the typical 15% because of unknown conditions of the underlying wood framework of the buildings which may have been damaged by water seepage over time.

As discussed earlier, the FY 2005/2006 Projects Budget includes a total of $912,040 for the roofing and siding repairs, budgeted over a three-year time frame.  The FY 2005/2006 budget includes $400,000 for this work.  To fully fund the proposed contract amount of $511,496, including a 25% contingency, a budget modification is required.  The budget modification would reallocate $111,496 of the roofing and siding repair funds budgeted in FY 2006/2007 to FY 2005/2006.   The remaining $400,544 budgeted in FY 2006/07 and FY 2007/08 for the roofing and siding work will be returned to the General Fund 20-Year Resource Allocation Plan Reserve. 

BUDGET MODIFICATION NO. 7 FISCAL YEAR 2005/2006
	Current		Increase (Decrease)		Revised
General Fund
Expenditures:
808100 Fair Oaks Industrial Complex Maintenance project	$ 680,000		$111,496		$791,496
Reserves:
20 Year RAP	$34,902,467		($111,496)		$34,790,971

RECOMMENDATION

It is recommended that Council:

1. Award a contract, in substantially the same form as the attached draft and in the amount of $409,197, to Louis and Riparetti, Inc., for the replacement of four roofs and the exterior siding on three buildings at the Fair Oaks Industrial Complex for the Department of Public Works Engineering Division; and

2. Approve a project contingency of $102,299; and

3. Approve Budget Modification No. 7 as described in this report.

Prepared by:

Elaine Wesely

Purchasing Officer

Reviewed by:

Mary J. Bradley

Director, Finance

Reviewed by:

Marvin Rose

Director, Public Works

Approved by:

Amy Chan

City Manager

Attachments :    

Draft Contract(PDF)