Title
Recommendation to Authorize the City Manager to Execute a First Amendment to the Agreement with Courtney Waterproofing, Roofing, and Concrete Restoration for the Alameda Point Building 24 Roof Replacement Project to Add a Ten Percent Contingency of $254,947 for a Total Amount Not-to-Exceed $2,804,416.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities), 15302 (Replacement or Reconstruction) and 15061(b)(3) (Common Sense). (Base Reuse and Economic Development C75400)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Building 24 is a non-historic hangar at Alameda Point, located at 2301 Monarch Street, Alameda. The roof has exceeded its life expectancy and requires replacement. On September 3, 2024 City Council authorized the City Manager to execute a Construction Agreement with Courtney Waterproofing, Roofing, and Concrete Restoration (Courtney), the lowest responsive bidder, in an amount not-to-exceed $2,549,469 for a total roof replacement. The roof replacement is a scheduled project included in the City of Alameda’s (City) Capital Improvement Plan and funded through the Capital Facilities Internal Service Fund.
Staff is seeking City Council approval for an amendment to the Construction Agreement for a standard ten (10) percent contingency fund, in the amount of $254,947 to be used only to cover change orders resulting from any unforeseen circumstances during the project, for a total amount not-to-eceed $2,804,416.
BACKGROUND
Building 24 located at 2301 Monarch Street at Alameda Point consists of three hangar bays with a shared office space and restrooms. Constructed in 1990 and conveyed to the City in 2013, Building 24 is a valuable asset. Staff conducted a competitive Request for Proposal (RFP) process for a full roof replacement to protect and sustain the City’s building asset, bring the insulation requirements to code, make the building an attractive space for prospective new commercial tenants and provide a 30-year warranty for the roofing materials and a 5-year warranty for workmanship.
Through the RFP process, staff determined Courtney was the lowest responsive monetary bidder with a price of $2,549,469. City Council authorized the execution of the Agreement on September 3, 2024. Demolition and roof replacement began on September 23, 2024. Courtney is currently on track to complete the project on or before December 31, 2024.
DISCUSSION
During demolition, Courtney discovered two items requiring change orders, which have been independently verified by Garland Roofing Materials and construction management consultant Kitchell CEM. The original agreement authorized by City Council did not include a contingency allowance in the budget for change orders. Staff is requesting an amendment to the existing Construction Agreement for an additional ten (10) percent of the contract cost, to cover existing change orders and any additional unforeseen change orders, as is standard practice with Construction Agreements. Having this contingency fund in place allows the work to stay on track and finish before the rainy season commences.
ALTERNATIVES
• Direct City Manager to execute the Amendment as proposed for the exclusive use of paying for change orders resulting from unforeseen circumstances and keep the reroofing project on projected timeline.
• Direct City Manager to execute an Amendment for an alternate Amendment amount.
• Do not direct City Manager to execute an Amendment and give another direction to staff. This action will likely result in funds being expended before project completion.
FINANCIAL IMPACT
The funds for this project are budgeted in the Base Reuse and Economic Development budget for the Capital Improvement Program (Project No. C75400, AP Facility Improvements). There are unencumbered funds remaining in this project, therefore no additional funding is requested.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
This project supports the City Strategic Plan priority to Invest in Transportation, Infrastructure, Economic Opportunities & Historic Resources.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). This action, which only involves addition of a contingency fee to a contract for a project that has already commenced, is also exempt from further environmental review under the common sense exemption: “Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” (CEQA Guidelines Section 15061(b)(3)).
CLIMATE IMPACT
Installation of the new membrane roofing system includes the addition of modern insulation materials. This will improve the climate conditions inside the building, improve the efficiency of HVAC/climate control systems and reduce energy usage. In addition, the installation method specified for the project utilizes a torch-applied base sheet which reduces the amount of material needed.
RECOMMENDATION
Authorize the City Manager to execute a First Amendment to the Agreement with Courtney Waterproofing, Roofing, and Concrete Restoration for the Alameda Point Building 24 Roof Replacement Project for a ten percent contingency of $254,947 for a contract total amount not-to-exceed $2,804,416.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Annie Cox, Management Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. First Amendment
2. Original Agreement