That the City Council:
A. Authorize the City Manager to execute an agreement for the City of La Habra Child Development Main Office Wall Repairs with MDJ Management, LLC., and authorize staff to issue a purchase order to MDJ Management, LLC, in the amount of $294,500; with a 20% contingency of $58,900; for a total project cost of $353,400;

B. Authorize staff to retain Willdan Engineering for construction management and inspection services from the City of La Habra Engineering Division's On Call Consultant Agreement to oversee the construction of this project, in an amount not to exceed $72,772;

C. Approve the waiver of the competitive bidding process per La Habra Municipal Code Section 4.20.070 (A) in case of an emergency as determined by the City Manager;

D. Approve an appropriation of $216,690.48 from the California State Preschool Contract Grant Fund and $150,581.52 from the General Child Care Contract Grant Fund to fully fund the costs of this project; and,

E. Approve an appropriation of $58,900 of General Capital Project Funds to fund the cost of Construction Contingency for this project. 

Due to heavy rainfall in Southern California in 2023 and 2024, there was substantial damage to the roof and interior walls at the La Habra Child Development Main Office building on Euclid Street, which required extensive repairs. The 40-year-old building underwent significant renovations when it was acquired by the City in the mid-2000's to become the Child Development Main Office. In order to accommodate the use of this older structure as classrooms to serve children, the City converted the two-story building into classroom spaces and several separate areas to accommodate up to 18 work spaces for La Habra Child Development Division staff. Over the past 14 years, this site has serviced various state-funded child care program's office spaces and onsite classrooms. Considering its constant use and underlying age, the building has experienced both normal wear and tear, as well as significant structural issues due to leaks from the old roofing system. During the recent roof replacement project, contractors discovered that water intrusion from the old roofing system compromised the south-facing wall's structural integrity. While the building's roof was repaired and replaced earlier this year, the south-facing wall remains structurally deficient and must be repaired. In addition to repairing and/or replacing the deficient wall, interior damage remediation and restoration must be addressed to ensure that all work spaces within the building are structurally sound and safe for all patrons, including children, parents and staff.

In accordance with guidance from the Orange County Community Care Licensing division, all children and teachers have been relocated from this building to other classroom facilities within the City. All office personnel have been relocated to the office spaces upstairs in the building until repairs can be completed and normal day-to-day operations can be safely resumed at the location. The relocation of students, teachers and office personnel is a temporary solution that the Child Development Division cannot sustain past the current school year. The division's funding is contingent on a certain number of children enrolled in programs, and program reimbursement is provided based on the actual number of children in attendance. Continued closure of the Main Office location has restricted the amount of classroom space available at City facilities to provide full-day childcare and educational services to its maximum capacity. If the Childcare Main Office location isn't brought back into service, the program will not have the classroom capacity to be able to earn its full contract reimbursement. 

Due to the emergency nature of this repair, along with restrictive grant funding deadlines, and in compliance with La Habra Municipal Code Section 4.20.070 (A), the City has been able to expedite the bidding process and the City of La Habra Engineering Division has obtained an emergency proposal to make such repairs. Based on the pricing that was received, staff recommends awarding a contract to MDJ Management, LLC (MDJ) for the wall repair project. Furthermore, staff recommends that the construction management and inspection for this project be performed by Willdan Engineering, the City's On-Call Consultant.
 

If approved by Council, wall repairs will be undertaken by MDJ Management, LLC. Based on staff's review of the contractor's past experience, both working on projects in the City and in other jurisdictions, MDJ Management is fully qualified to undertake this project. This project will be completed in several phases, which will include the demolition of the existing south-facing wall, replacement of shear walls, windows, stucco, drywall, electrical and structural restoration during the course of the reconstruction. The lump sum proposal from MDJ to complete this project is $294,500. In addition, if approved by Council, Willdan Engineering will be issued a purchase order in an amount not-to-exceed $72,772 for construction management and inspection for the project. 
 

	Project Costs	General Childcare CCTR	California State Preschool CSPP
MDJ Management LLC	$294,500.00	$120,745.00	$173,755.00
Willdan Construction Management/Inspection	$72,772.00	$29,836.52	$42,935.48
Sub-Total	$367,272.00	$150,581.52	$216,690.48
20% Construction Contingency	$58,900.00	General Capital Project Fund (Applied on an As-Needed Basis and potentially reimbursable)	General Capital Project Fund (Applied on an As-Needed Basis and potentially reimbursable)
Total	$426,172.00

The total project cost is estimated at $367,272 with an additional $58,900 project contingency available if necessary, bringing the total potential project cost to $426,172.