That the City Council:
A. Approve Notices of Completion for the Emergency Roof Repairs at the City of La Habra Child Development Center Main Office located at 215 North Euclid Street, La Habra, CA 90631; and authorize staff to file two notices for recordation and release retention payments to the project contractors; and,

B. Approve an appropriation of $31,286 from unencumbered American Rescue Plan Act (ARPA) Stabilization Funding: ARPA COVID-19 Licensed Child Care Facility Stabilization Stipend, to fully fund construction costs incurred after June 30, 2024.

Over the past two years, heavy rainfall has caused substantial damage to the roof at the La Habra Child Development Main Office building, causing extensive water leaks, partial ceiling collapses, and wood damage. As a result, immediate emergency repairs were required to ensure a safe and healthy classroom environment for all children and teachers. On May 6, 2024, the City Council approved two construction contracts to MDJ Management, LLC (MDJ) and FC & Sons Roofing, Inc. (FC & Sons) as the general contractors for this project.

To accelerate repairs and re-roof the building, staff recommended utilizing two contractors to construct separate phases of the project.  MDJ of El Segundo, CA was awarded a contract in the amount of $145,000 for structural repairs, which included a 20 percent contingency, for Phase 1. Phase 1 of the project included installing structural supports, repairing water damage, and parapet improvements. The parapet improvements included removal of the deteriorated existing wooden parapet support system and the complete installation of a custom steel parapet bracing system, which included: new steel bracing members, structural attachment of the bracing to the building's structural system, stucco work, painting, and other associated work.

Phase 2 of the project was awarded to FC & Sons of Bell Gardens, CA in the amount of $254,326, which included a 20 percent contingency for the replacement of the existing flat roof system, including new roof jacks, a new flat roofing system, underlayment, additional roof drains, replacement of roof crickets, re-coating of pedestrian roof deck, and other associated work. Furthermore, $70,000 was allotted during Phase 2 for additional decking repairs or replacement, as needed.

All improvements are now complete. Staff conducted a final inspection and found the work to be completed in a satisfactory manner, in accordance with the project specifications, and to City Standards. Upon acceptance of the Project by the City Council, staff will file a Notice of Completion for each contractor (Attachments 1 & 2) for recordation by the Orange County Clerk-Recorder's Office. 

On May 6, 2024, the City Council approved an appropriation from the California State Preschool Contract Grant Fund and the General Child Care Contract Grant Fund in the amount of $399,326 to fund the construction of the project. A requirement by the State for the use of these grant funds was that they were only eligible for work completed by or before June 30, 2024. Any funds not used by the June 30, 2024, deadline were required to be returned to the State. As a result of this grant provision, construction began shortly after the council award date of May 6, 2024, and the contractors were authorized to work on an accelerated schedule, including extended hours during the week as well as working on weekends to meet the deadline requirements of the grants. While this extra effort was successful in completing the majority of the work that was necessary, unforeseen circumstances that occurred during construction caused the project completion to extend past the June 30, 2024, deadline. Issues that were encountered included previously unknown structural damage to the roof support system, more extensive than anticipated roof decking repairs, the need for additional plumbing drains to ensure proper drainage on the roof, and the complete reconstruction of several drainage crickets. Further delaying the project was longer than anticipated material procurement lead times. Despite these unanticipated issues, staff and the contractors were successfully able to complete and claim 90% of the construction costs from the California State Preschool Contract Grant Fund and General Child Care Contract Grant Fund.

The total construction costs from the two project phases totaled $323,312.15; however, only $292,026.15 is eligible for reimbursement by the California Department of Social Services (CDSS) and California Department of Education (CDE) due to the June 30, 2024, funding deadline. Therefore, staff is recommending that the City Council approve an appropriation in the amount of $31,286 from available unencumbered ARPA Stabilization Funding: ARPA COVID-19 Licensed Child Care Facility Stabilization Stipend, that is eligible to fund the remaining costs of the construction work that was completed after the June 30, 2024, State grant deadline. If approved by City Council, staff will file the Notice of Completion for both contractors and release the retention payments.