Title
Recommendation to Authorize the City Manager to Execute a Three-Year Service Provider Agreement with M5 Services LLC, for Building Engineer and Maintenance Services, with the Option to Extend the Agreement for up to Two Additional Years, for a Five-Year Compensation Amount Not-to-Exceed $2,793,808.
This action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities). (Base Reuse and Economic Development 29061822, 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City), Base Reuse and Economic Development Department (BRED), along with the City’s Commercial Property Manager, LPC West LP (LPC), is responsible for the City’s diverse commercial property portfolio. Historically, BRED has contracted for basic daily maintenance work and has addressed more complex issues and repairs reactively as they arise. BRED would like to implement a proactive approach by contracting with a third-party vendor to provide an on-site professional building engineer. The proposed contract also includes daily general maintenance services.
Staff conducted a competitive solicitation process and recommends that City Council authorize the City Manager to execute a three-year agreement, with the option to extend for up to two additional years, with M5 Services LLC (M5 Services) for Building Engineer and Maintenance Services for a total five-year amount not to exceed $2,793,808.
BACKGROUND
The City owns and manages a portfolio of over 1.6 million square feet of non-municipal commercial real estate assets located at Alameda Point, as well as non-Alameda Point assets including the Historic Alameda Theatre Complex, the Carnegie Library and Children’s Annex, the Grandview Pavilion, and other smaller sites around the City.
BRED contracts with outside service providers to provide daily maintenance, janitorial, repairs, and landscaping services. BRED does not have its own internal staff or expert consultants to provide support for issues involving more complex building systems and envelopes, or for facility capital project planning. The proposed new agreement with M5 Services would fill that gap by providing this expertise. In addition, the agreement will consolidate building engineering and building maintenance services under a single contract, enabling a more efficient response and issue resolution.
On March 13, 2026, staff published a Request for Proposal (RFP) for Building Engineer and Maintenance Services. Three firms submitted timely proposals: BSM Facilities Services Group (BSM), M5 Services, and George S. Hall, Inc (GSH).
The RFP requested that proposers address two scenarios in their responses, as described below, for the provision of services:
• a full-time building engineer and a full-time maintenance position, and
• a part-time building engineer and a full-time maintenance position
Proposers were required to provide compensation based on prevailing wages and include in the proposal the total cost of all tools, vehicles, uniforms, and other materials. The RFP included instructions on which proposals must conform, required information, and the scoring criteria to be used in rating the firm’s qualifications and capability to perform the scope of work. Proposers were provided a copy of the City’s standard Service Provider Agreement (SPA), including liability, indemnity, and insurance requirements they must meet.
In alignment with the City’s Purchasing Policy and published RFP selection process, the proposals were carefully reviewed and scored. The components scored included the firm’s background, experience with other similar portfolios in the local area, staffing plan, and resumes of key personnel, a full description of proposed fees and expenses, written acceptance of the City’s standard SPA and all insurance requirements therein, and the firm’s repair, maintenance, and operations program and protocols.
DISCUSSION
BRED staff and LPC, with support from the City’s Public Works’ Facilities Division, held interviews with the firms that submitted complete and responsive proposals. Each proposal provided hourly rates and accounted for vehicle and materials costs.
|
Firm |
First Year Labor |
First Year Materials |
Escalator |
|
M5 Services |
$448,972 |
$47,200, including $10,000 in 1-time costs |
For Building Engineer, rate increase governed by Collective Bargaining Agreement, for Maintenance Services, the greater of 4% or the DIR Minimum |
|
BSM |
$725,390 |
Included in Labor Rates |
Labor - 5% or DIR Minimum per year |
|
GSH |
$432,127 |
$19,200 for Vehicles; Fuel as incurred with 15% markup |
6% |
• BSM submitted the most expensive proposal and did not propose a Building Engineer represented by Stationary Engineers Local 39 (Local 39). While the RFP did not require union labor for this position, the benefits of staffing this position with a Local 39 member became apparent during the interview process.
• GSH submitted the least expensive proposal but did not satisfy the City’s scope of work and did not agree to certain non-negotiable terms in the City’s standard agreement. GSH proposed a Local 39 Engineer.
• M5 Services submitted a proposal that was slightly more expensive than GSH’s, but M5 Services’ proposal satisfied the City’s scope of work. M5 also agreed to all terms in the City’s standard agreement. Altogether, M5 demonstrated the best overall ability to deliver the required scope of work within BRED’s budget for these services.
M5 Services has proposed a three-day-a-week Building Engineer position filled by a Traveling Union Engineer in Local 39. The Building Engineer would inspect assigned buildings, including visual assessments of roof conditions, and provide recommendations regarding maintenance, repairs, and capital projects, exercise fire life safety equipment, monitor utilities, develop equipment lists and repair and replacement schedules, and provide oversight and support when BRED staff contracts with outside vendors for maintenance, repair, and improvement projects.
M5 Services has proposed a five-day-a-week Maintenance position classified as a General Laborer under the Department of Labor's prevailing wage rates.
After careful consideration, staff recommends that the City Council authorize the City Manager to execute a three-year agreement, with two one-year options to extend, with M5 Services for Building Engineer and Maintenance Services for a total five-year amount not to exceed $2,793,808, including contingency. Contingency would be expended only with City approval, such as for overtime.
Under the terms of the agreement, the adjustment in compensation during the extension terms would be set (1) for maintenance services by the percentage increase for Department of Industrial Relations prevailing wages for the trade(s) associated with the services or tasks or 4%, whichever is greater; and (2) for Building Engineer, by the percentage increase set by the Local 39 Traveling Union Engineer Collective Bargaining Agreement.
Should the term of the agreement need to be extended, without changing any other provision of the agreement as approved by the City Council, staff requests that the City Council grant the City Manager discretion to do so by amendment, without returning to the City Council for further approval.
ALTERNATIVES
• Direct staff to negotiate different terms with M5, or another firm providing engineering and maintenance services. Changes will depend upon M5's or another firm’s willingness to accept new terms.
• Do not authorize the City Manager to execute an agreement for building engineering and building maintenance services. Under this alternative, staff would need to enter into a contract with a new building maintenance provider to continue providing building maintenance services.
FINANCIAL IMPACT
BRED funds repairs and maintenance of assets at Alameda Point through the Alameda Point funds (29061822). Repairs and maintenance of non-tidelands assets outside of Alameda Point are funded through BRED’s general fund budget (10061810).
The current biennial budget approved by City Council includes funding for the proposed agreement in BRED’s operating budgets, with the majority of contract costs funded by the Alameda Point Fund (Fund 290). Up to 1% of the contract encumbrance will be paid from BRED’s General Fund budget. Funding for the subsequent years of the agreement is subject to City Council approval.
The initial three-year period has a total not-to-exceed amount of $1,580,982. If both renewal options are exercised, the five-year total not-to-exceed amount is $2,793,808.
|
|
Fiscal Year (FY) 26-27 |
FY27-28 |
FY28-29 |
FY29-30 |
FY30-31 |
|
Anticipated Cost |
$496,172 |
$517,080 |
$540,224 |
$570,131 |
$551,832 |
|
Contingency |
$8,025 |
$7,364 |
$12,117 |
$20,431 |
$20,431 |
|
Total NTE |
$504,197 |
$524,444 |
$552,341 |
$590,563 |
$622,263 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This relates to the Strategic Plan Priorities:
Invest in Transportation, Infrastructure, Economic Opportunities (TIE):
- TIE25: Implement the City’s Alameda Point Disposition Strategy
- TIE35: Reuse and Renovate Buildings in the NAS Alameda Historic District
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a three-year service provider agreement with M5 Services LLC for building engineering and maintenance services, with the option to extend the agreement for up to two additional years, for a total compensation amount not to exceed $2,793,808.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Alexis Krieg, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Agreement