Title:
Title
Budgetary Adjustment and Contract: Broadway/Alhambra Navigation Center (C15001100) (Two-Thirds Vote Required)
End
FileID
File ID: 2019-06394
Location
Location: District 5, 2970 X Street
Recommendation:
Recommendation
Adopt a Resolution by two-thirds vote: 1) authorizing the City Manager or the City Manager’s designee to transfer $3,363,335 (Measure U Fund, Fund 2401) from the expenditure budget in the Homeless Housing Initiative (I02000200) to the expenditure budget in the Broadway/Alhambra Navigation Center Project (C15001100); 2) authorizing the City Manager or the City Manager’s designee to transfer $1,489,665 (Externally Funded Programs, Fund 2703) from the revenue and expenditure budgets in the Homeless Housing Initiative (I02000200) to the revenue and expenditure budgets in the Broadway/Alhambra Navigation Center Project (C15001100); 3) determining that suspending competitive bidding is in the best interests of the City for procurement of design and construction of the Broadway/Alhambra Navigation Center Project (C15001100); 4) suspending competitive bidding; 5) authorizing use of a design-build project delivery method involving a qualifications-based solicitation for the design work; 6) awarding a design-build contract to John F. Otto, Inc. dba Otto Construction in an amount not to exceed $298,851 for the design of the Broadway/Alhambra Navigation Center; and 7) authorizing the City Manager or the City Manager’s designee to execute the contract specified above.
Contact: Amy Smith, Senior Architect (916) 808-2262; James Christensen, Facilities Manager (916) 808-5863, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Design-Build Contract with John F. Otto, Inc.
Description/Analysis
Issue Detail: On August 27, 2019, City Council passed a motion approving Addendum No. 1 to the Homeless Services Funding plan, which established priorities for funding of navigation centers and other services for people experiencing homelessness. This plan included the design and construction of the Broadway/Alhambra Navigation Center located at 2970 X Street (“Broadway/Alhambra Center”). This site has access to utilities and can accommodate a 100-bed re-housing shelter and accompanying storage, offices, and an outdoor pet area. It is estimated that the site would be developed with a 100x60 Sprung Structure and container restrooms/showers.
The Broadway/Alhambra Navigation Center is envisioned to serve people living unsheltered in the immediate surrounding community and allow access through referral only. The shelter operator(s) will be expected to operate from a low barrier approach-meaning requirements such as sobriety, compliance with mental health or addiction treatment, or agreeance to participate in programs are not conditions to receive services and housing support. Instead, operators must implement practices which foster an affirmative environment which seeks to meet individuals from a “where they are” approach and orient case management to focus on individualized needs and challenges toward obtaining permanent housing. The City’s Homeless Services Division will solicit operating partner(s) through a public competitive selection process in early 2020.
To streamline the design and construction process for the Broadway/Alhambra Center, staff is seeking City Council authorization to suspend competitive bidding in the best interests of the City and allow use of the design-build project delivery method, with qualifications-based selection for the design work. Accordingly, staff is seeking City Council authorization to execute a design-build contract with John F. Otto, Inc. dba Otto Construction (“Otto”) for a not to exceed amount of $298,851 in funding for initial design of the Broadway/Alhambra Center, including preliminary engineering, surveying, design drawings, and layout of utilities. City staff will return to City Council for approval of a Guaranteed Maximum Price (GMP) contract supplement with Otto for performance of the construction work at the Broadway/Alhambra Center. It is in the best interests of the City to execute a design-build contract with Otto given Otto’s extensive experience managing complex construction projects and because the design-build method provides an expedited project with a single entity responsible for the end product and streamlined transition from design to construction work.
Additionally, Caltrans owns the property proposed for the Broadway/Alhambra Center. The City and Caltrans have engaged in numerous discussions, but the City will need to enter into a lease agreement with Caltrans before construction of improvements and operation of a facility on the site can occur.
Policy Considerations: The recommendations in this report conform with City Council Resolution No. 2018-0402 embracing Housing First principles for City-funded navigation centers and are in accordance with City Code section 3.60.170(D), which authorizes the City Council to suspend competitive bidding, upon a two-thirds vote, when the City Council determines it is in the best interests of the City to do so.
Economic Impacts: Not Applicable
Environmental Considerations:
California Environmental Quality Act (CEQA): The Broadway/Alhambra Navigation Center Project is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) and 15269(c), and Government Code section 65562. The City filed a Notice of Exemption for the project pursuant to Public Resources Code section 21152 and CEQA Guidelines section 15062 on September 5, 2019.
The project is exempt pursuant to CEQA Guidelines section 15061(b)(3) because the project is located on a disturbed site. Occupants will not access the site in personal vehicles and employees will be only approximately 50 people per site. The Navigation Center will have limited daytime hours during which occupants may enter and exit the premises. As a result, the project will not have significant impacts in the areas of transportation, emissions, energy, or noise. The site does not provide habitat for rare, endangered, or threatened species and therefore the project will have no biological impacts. The project will not have any effect on water quality or known cultural or historic resources. The project will not result in exposure of persons to geologic or seismic hazards or have a significant effect on recreational resources. The site will be adequately served by existing City utilities, police, fire, and emergency services. Therefore, based on staff analysis, the project has no potential to have a significant effect on the environment.
The project is exempt pursuant to CEQA Guidelines section 15269(c) because it is necessary to address the urgent homeless situation. The project is further exempt pursuant to Government Code section 65662 because it constitutes a Low Barrier Navigation Center within the meaning of Government Code 65560 and will satisfy requirements (a) through (d) of section 65562.
Sustainability: Not applicable
Commission/Committee Action: None
Rationale for Recommendation: Creation of the Broadway/Alhambra Center is consistent with the priorities set forth by the City Council on August 27, 2019. Providing the City Manager or designee with the authority to enter into a design-build contract with Otto in an amount not to exceed $298,851 for the Broadway/Alhambra Center assists staff with expediting the Broadway/Alhambra project. As noted above, use of the design-build project delivery method streamlines the project and helps ward off potential problems by having the same entity manage both design and construction work and will facilitate the earliest possible opening date of the Broadway/Alhambra Center.
Financial Considerations: Funding of the Broadway/Alhambra Center is consistent with the priorities set forth by the City Council on August 27, 2019. The preliminary budget of $4,953,000 presented to City Council on August 27, 2019 for design and construction of the Broadway/Alhambra Center remains unchanged.
The $4,953,000 in funding for the Broadway/Alhambra Center will fund design, permitting, construction, inspections, and project management, allowing for the earliest possible opening dates. $3,363,335 will come from Measure U funds and $1,489,665 will come from HEAP funds.
Upon approval of the transfers of $3,363,335 (Measure U Fund, Fund 2401) and $1,489,665 (Externally Funded Programs, Fund 2703) from the Homeless Housing Initiative (I02000200) to the Broadway/Alhambra Navigation Center Project (C15001100), there will be sufficient funding to execute a design-build contract with Otto in the amount not to exceed $298,851 and to complete remaining project costs.
Sufficient funding exists within the Homeless Housing Initiative (I02000200) to complete the transfers of $3,363,335 (Measure U Fund, Fund 2401) and $1,489,665 (Externally Funded Programs, Fund 2703) to the Broadway/Alhambra Center Navigation Center Project (C15001100).
The above-described funding amounts do not include funding for the ongoing operation, maintenance and repairs, or administration costs of the Broadway/Alhambra Center.
Local Business Enterprise (LBE): John F. Otto, Inc. dba Otto Construction is an LBE.