Title:
Title
Budgetary Adjustment and Contract Supplement: Meadowview Navigation Center (C15001000) (Two-Thirds Vote Required)
End
FileID
File ID: 2019-01693
Location
Location: District 8, 2700 Meadowview Road
Recommendation:
Recommendation
Adopt a Resolution by two-thirds vote: 1) waiving the Sacramento City Code and Council Rules of Procedure requirements that all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action for the construction of the Meadowview Navigation Center Project (C15001000); 2) authorizing the City Manager or the City Manager’s designee to transfer $3,962,609 (Operating Grants, Fund 2702) from the revenue and expenditure budgets in the Homeless Emergency Aid Program (HEAP) (G02000820) to the revenue and expenditure budgets in the Meadowview Navigation Center Project (C15001000); 3) authorizing the City Manager or the City Manager’s designee to transfer $33,591 (Measure U Fund, Fund 2401) from the expenditure budget in the Homeless Housing Initiative (I02000200) to the expenditure budget in the Meadowview Navigation Center Project (C15001000); 4) authorizing the City Manager or the City Manager’s designee to negotiate and execute a Contract Supplement No. 1 to City Agreement No. 2019-1673 with John F. Otto, Inc. dba Otto Construction with a not-to-exceed amount of $3,500,000 for a new total not to exceed amount of $3,782,297 for the construction of the Meadowview Navigation Center; 5) ratifying City Agreement No. 2019-1673 with John F. Otto, Inc. dba Otto Construction in an amount not to exceed $282,297; 6) increasing the City Manager’s authority to issue change orders for City Agreement No. 2019-1673 to ten percent ($378,229) of the new not to exceed amount of $3,782,297 for continued design and construction phases of the Meadowview Navigation Center, pursuant to City Code section 3.60.240; 7) rescinding that portion of Motion No. 2019-01244 requiring that the Meadowview Navigation Center be for women and women with children; and 8) that the Meadowview Navigation Center be for adult women.
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
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 Meadowview Navigation Center located at 2700 Meadowview Road as the first priority for new projects. On September 24, 2019, City Council passed a resolution suspending competitive bidding and authorizing the City Manager or the City Manager’s designee to enter into a design-build contract with John F. Otto, Inc. dba Otto Construction (“Otto”) for design services for the Meadowview Navigation Center, with an option to return to City Council for approval of a Guaranteed Maximum Price (“GMP”) for construction. Otto is preparing the GMP for construction of the Meadowview Navigation Center and will complete preparation of the GMP no later December 31, 2019 in an amount not to exceed $3,500,000. This report authorizes the City Manager or the City Manager’s designee to negotiate and execute a Contract Supplement No. 1 to City Agreement No. 2019-1673 with John F. Otto, Inc. dba Otto Construction with a not-to-exceed amount of $3,500,000 for a new total not to exceed amount of $3,782,297 for the construction of the Meadowview Navigation Center.
Due to past remediation activities on nearby City-owned parcels, and as part of the ongoing site analysis, staff is working with an environmental consultant to evaluate any possible environmental conditions or concerns. Appropriate mitigation measures will be incorporated into the design and construction of the Meadowview Navigation Center.
Policy Considerations:
The recommendations in this report conform with City Council Resolution No. 2019-0402 embracing Housing First principles for City-funded navigation centers and Council Resolution No. 2018-0476 establishing priorities for projects funded through the State of California Homeless Emergency Aid Program (HEAP). The recommendations in this report are also consistent with City Code Chapter 3.60.
The Sacramento City Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to council action. The recommendation is to waive this requirement.
Economic Impacts: The new infrastructure is expected to create 14 total jobs (8 direct jobs and 6 jobs through indirect and induced activities) and create $2,161,023 in total economic output ($1,362,109 of direct output and another $798,914 of output through indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
Environmental Considerations:
California Environmental Quality Act (CEQA): The Meadowview Navigation Center Project (C15001000) 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.
Sustainability: Not applicable
Commission/Committee Action: None
Rationale for Recommendation: Creation of the Meadowview Navigation Center is consistent with the priorities set forth by the City Council on August 27, 2019. On September 24, 2019, City Council passed a resolution suspending competitive bidding, and authorizing the City Manager or designee to enter into a design-build contract with John F. Otto, Inc. dba Otto Construction (“Otto”) for design services for the Meadowview Navigation Center for a not to exceed amount of $300,000, with an option to return to City Council for approval of a Guaranteed Maximum Price (“GMP”) for construction. Otto is preparing the GMP for construction of the Meadowview Navigation Center and will have it completed no later than December 31, 2019. It is in the best interests of the City to authorize the City Manager or the City Manager’s designee to negotiate and execute a Contract Supplement No. 1 to City Agreement No. 2019-1673 with John F. Otto, Inc. dba Otto Construction with a not-to-exceed amount of $3,500,000 for a new total not to exceed amount of $3,782,297 for the construction of the Meadowview Navigation Center. 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, this delivery method will allow for the earliest possible opening date.
Financial Considerations: Staff recommends transferring $3,962,609 (Operating Grants, Fund 2702) from the Homeless Emergency Aid Program (HEAP) (G02000820) and $33,591 (Measure U Fund, Fund 2401) from the Homeless Housing Initiative (I02000200) into the Meadowview Navigation Center Project (C15001000). Upon approval of the transfer, there will be sufficient funding to execute Contract Supplement No. 1 with John F. Otto, Inc. dba Otto Construction for the design and construction phases of the Meadowview Navigation Center (C15001000) in an amount not to exceed $3,500,000.
Sufficient funds are available in the Homeless Emergency Aid Program (HEAP) (G02000820) and in the Homeless Housing Initiative (I02000200) to complete the recommended transfers.
The above-described funding amounts do not include funding for the ongoing operation or administrative costs of the Meadowview Navigation Center.
Local Business Enterprise (LBE): John F. Otto, Inc. dba Otto Construction is an LBE.