That the City Council:
A.  Approve to waive the competitive bidding process per La Habra Municipal Code Section 4.20.070 (C) "Exceptions to bidding requirement for purchase of goods and services"; and

B.  Award a contract to MDJ Management, LLC. for the Children's Museum Roof and HVAC Improvements, City Project No. 8-B-23; and

C.  Authorize the City Manager to execute an agreement with MDJ Management, LLC., and authorize staff to issue a purchase order to MDJ Management, LLC, in the amount of $1,226,328, which includes a 20 percent (20%) contingency; and,

D. Allocate an additional $726,328 from the Facility Improvement Reserve to fully fund the Children's Museum Roof and HVAC Improvements, City Project No. 8-B-23.

The Children's Museum at La Habra (Museum) opened in December 1977 and is located at the historic Train Depot built in 1923.  Over the past 40 years, the Museum's original footprint has expanded to include additional rooms for exhibits, but no other significant building improvements have been made.  As such, the building has continually degraded throughout the years, and normal wear and tear is noticeable.  The Museum's roof, for instance, has experienced significant decay.  The entirety of the roof has not been replaced since 1977, but instead there have been numerous maintenance efforts to patch the roof in areas due to leakage from rain and install temporary drainage so water does not sit on the roof, thus causing more damage.  Staff has determined that patching the roof is no longer a viable and sustainable option, and that replacing the roof system is the proper course of action.  In addition, the HVAC system (heating, ventilation, and air conditioning) is approximately 25 years old, and staff proposes that this system be upgraded to a new energy efficient HVAC system while the roof is under construction.  A new HVAC system will also help reduce energy costs for the building.
 
In order to expedite the proposed roof and HVAC improvements to the Children's Museum, staff reached out to Sourcewell. Sourcewell, formerly the National Joint Powers Authority (NJPA), is a public agency with the legal authority to serve as a contracting agency for other public agencies through a cooperative purchasing process. Sourcewell's analysts streamline the procurement process by developing Request for Proposal (RFPs) and Invitation for Bids (IFBs) for national, competitive solicitations that meet or exceed local requirements.  They competitively bid construction tasks with pre-set unit prices and specifications for general construction services, including materials, equipment and labor costs. Many government agencies share contracting efforts though cooperative purchasing arrangements in an effort to minimize costs and staff resource impacts. This procurement method allows the City to access highly qualified specialty contractors while lowering overall capital costs through volume purchasing.  The City of La Habra is currently a member of Sourcewell, and is looking forward to making use of Sourcewell’s procurement process as other local cities have done in the past, primarily for roof and HVAC replacement projects. 

On September 18, 2023, staff interviewed MDJ Management, LLC (MDJ), a general contractor who had been qualified through the competitive procurement process with Sourcewell. Because of their experience and performance with similar projects, including historical renovations, the City was satisfied with moving forward in selecting MDJ Management, LLC to provide a bid proposal for the Children's Museum Roof and HVAC Improvements, City Project No. 8-B-23.

On October 11, 2023, staff conducted an on-site walk-through of the project and provided the plans and specifications to MDJ for their review. Staff also discussed with MDJ the scope of work and expectations for this project. Furthermore, it was decided that the project's proposed improvements would not result in any visual change to the appearance of the building, thus preserving its authenticity and historical significance. The proposed fascia replacement will match the existing one in terms of size, shape, and finish, and the color of the new roof will match the color of the existing roof.

On November 17, 2023, MDJ submitted a bid proposal for the Project for a total amount of $1,011,939.86. Staff reviewed the proposal and found the price to be fair and reasonable for this type and scope of work. The price is also consistent with the pre-set unit prices established in MDJ's contract with Sourcewell. 

California Government Code Section 6500 authorizes public agencies to participate in cooperative purchasing agreements like those established by Sourcewell.  Staff has confirmed with the City Attorney’s Office that this process meets the State’s legal requirements for the bidding of public works projects. Therefore, staff recommends that the City Council waive the competitive bidding process per La Habra Municipal Code Section 4.20.070 (C) "Exceptions to bidding requirements for purchase of goods and services" and approve a contract with MDJ Management LLC for the Children's Museum Roof and HVAC Improvements, City Project No. 8-B-23.

The total funding required for this project includes the MDJ bid price of $1,011,939.86, a 20% contingency on the bid price of $202,387.97, and an additional $12,000 for City permitting fees.  This project is included in the approved Fiscal Year 2023-24 CIP Budget in the amount of $500,000 that was received from the County of Orange for its allocation of American Rescue Plan Act (ARPA) grant funding. In order to fully fund the construction, construction management, permitting fees, and inspection services, staff requests that the City Council allocate an additional $726,328 from the Facility Improvement reserve to complete the Project.
 

Project Funding			Funding Sources
MDJ Bid Proposal	1,011,939.86		FY 23/24 CIP (County of Orange ARPA Grant)	500,000.00
20% Contingency	202,387.97		Facility Improvement Reserve	726,328.00
Permit Fees	12,000.00
Total	1,226,327.83		Total	1,226,328.00