JONATI-TAN PAR BARBARA E.

ANTONIO R. VTLLARAIGOSA Commiss ion AUSTTN BEUTNER Mayor

July 28, 2010

The Honorable City Council City of Los Angeles Room 395, City Hall Los Angeles, California 900 12

Honorable Members:

LEE KANON ALPERT, President

THOMAS S. SAYLES, Vice-Presideut

E RIC HOLOMAN JONATI-TAN PAR FREY BARBARA E. MOSCHOS, Secretmy

Subject: Specification No. 7216 with Eberhard Roofing, Inc.

Gem~ral Manap,er

RAMAN RAJ ChiefOperatillg Officer

Pursuant to Charter Section 245, enclosed for approval by your Honorable Body is Resolution No. 19296, adopted by the Board of Water and Power Commissioners (Board) on July 22, 2010, approved as to form and legality by the City Attorney, which recommends Specification No. 7216 for the John Ferarro Building Maintenance and Repairs awarded to Eberhard Roofing, Inc. , for an amount not to exceed $8,026,229. As directed by the Board, transmitted to you are supporting documents.

Ifthere are any questions regarding this item, please contact Ms. Winifred Yancy, ManagerGovernment and Neighborhood Relations, at (213) 367-0025, or Mr. Aram Benyamin, at (213) 367-4435.

Sincerely,

Barbara E. Moschos Board Secretary

BEM:oja Enclosures: LADWP Resolution

Board Letter

Water and Power Conservation ... a way of life 11 I Norlh Hope St.reel, Los Angeles, California 90012-2607 Ma iling address: Box 51111 , Los Angeles 90051-5700

Telephone: (2 13) 367-42 11 Cable address: DEWAPOLA n~ R~andrno<.lolmm~wasfe. DQ'

c/enc: Mayor Antonio Villaraigosa Councilmember Jan C. Perry, Chair, Energy and the Environment Committee Gerry F. Miller, Chief Legislative Analyst Miguel A. Santana, City Administrative Officer Rafael Prieto, Legislative Analyst William R. Koenig, Chief Administrative Analyst Winifred Y arrey Aram Benyamin

Resolution No. 19 2 9 6 ---=-..::::.....:::::....:....=-----

WHEREAS, this contract is for John Ferraro Building maintenance and repairs, and Los Angeles Department of Water and Power's (LADWP) Joint System recommends award of this contract; and

WHEREAS, Eberhard Roofing, Inc., is the lowest bidder under Specification No. 7216.

WHEREAS, LADWP's Joint System is requesting a 10 percent contingency, due to any differing site cond itions during construction, to resolve minor scope changes, and to resolve any errors and omissions in the drawings and specificat ions due to unforeseen circumstances.

NOW, THEREFORE, BE IT RESOLVED that pursuant to City Charter Section 1 022, the Board finds that it is more feasible to have the work performed by outside services, because LADWP and City Department roofing and waterproofing crews are fully occupied.

NOW, THEREFORE, "BE IT RESOLVED that Eberhard Roofing, Inc. is awarded the contract for a tota l amount not to exceed $8 ,026,229.00, which includes a 10 percent contingency, under Specification No. 7216, approved as to form and lega lity by the City Attorney and on fi le with the Secretary of the Board.

BE IT FURTHER RESOLVED that the Ch ief Accounting Employee is hereby authorized and directed to draw demands upon the Water and Power Revenue Funds in accordance with the terms of th is contract awarded pursuant to Specification No. 7216 and th is resolution.

BE IT FURTHER RESOLVED that the President or Vice President, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary of the Board are hereby authorized and directed to execute said contract for and on behalf of LADWP.

I HEREBY CERTIFY that the foregoing is a fu ll , true and correct copy of the resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held JUL 2 2 2010

~~!A~·~ Secretary

LADWP BOARD APPROVAL LETTER

TO: BOARD OF WATER AND POWER COMMISSIONERS

d(J,._\a.K.-(0~ CECILIA K.T. WELDON Chief Administrative

Officer

4 ~~ ARAM BE AMIN Senior Assistant

. ~~lt\W[E D . . "·· .. . . . . -

JUL '1 6 '2010

DATE: Jul 15, 2010

SUBJECT:

Specification No. 7216

John Ferraro Building Maintenance and Repairs

Recommended Award To:

Eberhard Roofing, Inc. · Van Nuys, California

FOR COMMISSION OFFICE USE=·

Board of Water & Power Com'rs.

CITY COUNCIL APPROVAL IF YES, BY WHICH CITY J ~R~E~Q~UI~R~E~D~:~Y~es~D~~No~~~~~C~HA~RT~E~R~S~E~C~T~IO~N~:-=======~=========-======-===~====

The Contracts Committee reviewed Specification 7216 on September 15, 2009.

PURPOSE

Transmitted for approval by your Honorable Board is a Resolution, approved as to form and legality by the City Attorney, recommending award to Eberhard Roofing, Inc. (Eberhard), the lowest bidder, for a total amount not to exceed $8,026,229.00, which includes a 10 percent contingency, for the John Ferraro Building (JFB) maintenance and repairs.

The purpose of this contract is to restore the architectural features of the JFB which have deteriorated. With this contract, these features will be removed and replaced to restore the exterior features of the building to the historical elegance that the building merits, and to eliminate known safety hazards.

Board of Water and Power Commissioners Page 2 July 15, 2010

BACKGROUND

The total quotation of $7,296,572.00 is approximately 13 percent lower than LADWP's estimated cost of $8,347,600.00. The variance is attributed to increased competition.

Under the capital improvements efforts at the JFB, the following construction activities will be included in this contract:

Roof Replacement: The deteriorated existing built-up roofing system will be removed and replaced with a single ply Thermoplastic Alloy (TPA) roofing system. The roof area under the cooling towers will be built up to allow for proper drainage, additional roof drains will be added, and all roof flashings will be removed and replaced with low maintenance flashing systems. The elastomeric coating at the helipad will also be removed and replaced under this contract. The existing roof was installed approximately 15 years ago.

Granite Podium Repairs: The granite podium at the lobby level between the building and moat is slipping due to expansion and contraction, such that the grout joints are opening, creating a tripping hazard for the pedestrians working and visiting the JFB. Additionally, granite slabs are being pushed into the moat and the existing tar waterproofing membrane under the granite is continuously oozing from the joints creating an unsightly and unsafe walking surface. With this contract, the existing granite slabs will be lifted, cleaned and placed on a newly installed single-ply waterproofing membrane which will include an anchoring system to prevent future slippage of the stone. This new system wlll provide for an almost maintenance-free surface, which will only require routine cleaning and maintenance on the sealed joints.

Bridge Stone Replacement: The existing slate stone surface on the bridge between the building and Hope Street is uneven, and the grouted joints are deteriorating, creating a tripping and safety hazard. Attempts to repair the joints have been unsuccessful. With this contract, the existing slate will be removed, a new single-ply waterproofing membrane will be installed, and new flamed black granite slabs will be installed to provide a smooth slip-resistant surface. The existing stainless steel handrails on the bridge will also be removed and replaced with a new code compliant handrail system which will incorporate glass panels lit with Light Emitting Diodes (LED) lighting.

Moat Resurfacing: The deteriorating moat waterproofing system will be removed and replaced with a new single-ply membrane (Hypalon). The original installation of the waterproofing system is over 40 years old. The blistering of the existing waterproofing system is indicative that water is migrating under the waterproofing system and may be damaging and deteriorating the integrity of the structural concrete slab supporting the moat.

·· ... _··


Future maintenance costs for the moat will be significantly reduced, by an estimated $78,000 annually. The moat has had to be emptied, repaired and cleaned annually, but with the new single-ply membrane providing a smooth surface, routine cleaning will be sufficient.

COST

Contract Total Contingency (1 0 Percent) Contract Total

$7,296,572.00 729,657.00

$8,026,229.00

The contingency is requested to resolve any differing site conditions during construction, to resolve minor scope changes, and to resolve any errors and omissions in the drawings and specifications due to unforeseen circumstances.

FUNDING SOURCE

The expenditures are budgeted and funded under the Water and Power Revenue funds.

Fiscal Year: 2009-2010 Functional Item No.: 281-84 (JFB Capital Projects) Location in Budget: Joint System Budget Book, Cost Element 30 Details, of 10.

The Financial Service Organization reviewed and validated funds on July 13, 2010.

FISCAL IMPACT STATEMENT

None.

TYPE OF INSURANCE COVERAGE{S)

cg] Workers' $3,000,000.00 D Property Damage Compensation

cg] Automobile Liability $2,000,000.00 D Water Craft ~ General Liability $3,000,000.00 D Pollution D Professional D Crime

Liability D Aircraft Liability D Asbestos


PRE-AWARD CHECKLIST

Yes [8] No D N/A D Contract Compliance Yes [8] No D N/A D Subcontracting Opportunities Yes D No D N/A [8] Service Contractor Worker Retention Ordinance Yes k8J No D N/A D Child Support Policy Yes D No D N/A [8] Living Wage Ordinance Yes k8J No 0 N/A D Labor Relations Notification Yes [8] No D N/A D Charter Section 1022 Findings

CONTRACT ADMINISTRATION

The Contract Administrator, a Civil Engineer in the Integrated Support Services Division, will follow the Construction Management procedures in the following areas:

• Review and process for conformance, the contractor's insurance, bonds and safety plans.

• Review and comment on the contractor's safety plan. • Chair and organize the preconstruction and bi-weekly construction status

meetings between LADWP and the contractor. • Establish the schedule of required submittals with the associated due dates. • Review and process the contractor's submittals. • Review and comment on the contractor's project schedule and schedule of

values. • Approve and process the contractor's progress payments based on schedule

progress. • Process and monitor the contractor's conformance to the outreach program. • Inspect and monitor work. • Resolve field issues, process Requests For Information and issue field orders. • Project closeout, include the preparation of the punch list, closeout documents,

and warranties.


Time and Material DYes !Z]No

Markup:

This is a fixed price construction contract. Markups for change orders are consistent with general contract procedures and specifically with public agencies including Los Angeles Department of Public Works, Metropolitan Water District, Metropolitan Transportation Authority, and Los Angeles Community College District. The following percentages are added to the net amount of the contractor's costs and constitute the markup for all other expe,nses, overhead, and profit associated with a change order:

Labor Materials Equipment Rental Other Items and Expenditures

20 percent 15 percent 15 percent 15 percent

When all or any part of the extra work is performed by a subcontractor, the markup established is applied to the net amount of the subcontractor's actual cost, to which a markup of 10 percent on the first $5,000.00 of the subcontracted portion of the extra work and a markup of 5 percent over $5,000.00. Regardless of the number of hierarchical tiers of subcontractor's cost may only be applied once for each change order.

FORMAL OBJECTIONS TO AWARD OF CONTRACT

LADWP received a protest letter from a prospective subcontractor Carrara Marble Company of America, Inc. (Carrara) on January 29, 2010. Carrara argued that Eberhard did not list them as a subcontractor for performing approximately two million dollars of the granite work. Carrara's protest was considered invalid for the following reasons:

1. Carrera's subcontract bid was higher than Eberhard's listed subcontractor. 2. Carrara's bid was sent to Eberhard via facsimile after Eberhard had submitted its

bid to the LADWP. 3. Carrara's Protest Letter was submitted 4 days after the specified 14 calendar day

protest period (Bids opened on January 11, 201 0).

JOB OPPORTUNITIES AND TRAINING POLICY 0Applicable !Z]Not Applicable

Board of Water and Power Commissioners Page6 July 15, 2010

INTERNAL AUDIT

EXTERNAL AUDIT

DYes [S]No

DYes cg)No

METHOD OF SELECTION

~ Competitively Bid D Cooperative Purchase D Sole Source

OUTREACH EFFORT TAKEN

Notices Issued Total MBE* WBE**

71 4

• Minority Business Enterprise (MBE) *Women Business Enterprise (WBE)

0

Responses Received Total MBE WBE

9 1 0

In addition to the provided initial list of anticipated bidders, the following additional outreach efforts were taken:

• Bid was posted on the City of Los Angeles Business Assistance Virtual Network and LADWP Websites.

• Bid was available at LADWP Vendor Liaison Center Public Counter. • Additional names were solicited from the Mayor's Minority Business Opportunity

Center, MBOC.

As a result, in addition to the 30 sources provided, an additional 41 potential bidders were identified and issued bids.

Staff contacted the following firms and their reasons for not bidding are as follows:

American Marble & Onyx stated they lacked available resources to perform the work. ·

Specceramics, Stone works, and CAL Tile were all potential subcontractors to potential prime bidders.

The second lowest bidder, Harbor Construction, Inc. was five percent higher than the lowest bidder.


MBE/WBE SUBCONTRACTING PARTICIPATION:

Eberhard enumerated the steps taken regarding its Good Faith Effort to reach out to MBE, WBE, and OBE firms. Based on the information provided, Eberhard has met LADWP's Good Faith Effort (GFE) requirement which resulted in estimated OBE participation of approximately 69.41 percent. No MBE and WBE participation resulted from GFE outreach.

OBE SUBCONTRACTING:

Description of Dollar Name Subcontracting Work Amount Percentage

CA Concrete Cleaning Bead Blast $26,000.00 Empire Contracting Demo Roof $305,000.00 Leggett Plumbing Plumbing $152,000.00 R. J. Gaucho Precast Demo $25,000.00 R. J. Gaucho Granite Demo $182,000.00 R. J. Gaucho Precast Install 340,000.00 R. J. Gaucho Granite Install $1,735,000.00 R. J. Gaucho Hand Rail $200,000.00 Tremco Roofing and Waterproofing $2,100,000.00

Materials Total: $5,065,000.00

VENDOR HISTORY

Eberhard has not had a contract with LADWP in the last three years.

VENDOR PERFORMANCE

Eberhard installed three roofs at LADWP Distributing Station in 1989. All three installations have performed satisfactorily. Please note that since the early 1990's LADWP has performed the majority of its roofing utilizing its own forces.

CHARTER SECTION 1022 FINDINGS AND BASIS THEREOF

0.36% 4.18% 2.08% 0.34% 2.49% 4.66%

23.78% 2.74%

28.78%

69.41%

In accordance with City Charter Section 1 022, it has been determined that the scope of work outlined in Specification No. 7216 can more feasibly be performed by contracting out the work. This determination has been made considering that LADWP and other City Department roofing and waterproofing crews are fully occupied performing maintenance and roof replacements on LADWP and City facilities.


MEMORANDUM OF UNDERSTANDING PROPOSED CONTRACT REVIEW PROCESS

A Notice of Compliance was received May 13, 2010.

ENVIRONMENTAL DETERMINATION

In accordance with the California Environmental Quality Act (CEQA), it has been determined that maintenance and repairs for the JFB are exempt pursuant to the Categorical Exemptions described in CEQA Guidelines Section 15301 "Existing Facilities." Class 1 of Existing Facilities specifically covers the operation, repair and maintenance of existing public or private structures, facilities or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.

CONFLICT OF INTEREST

All conflict of interest procedures were followed. No conflict of interest issues were identified.

RECOMMENDATION

It is recommended that your Honorable Board adopt the resolution and the contract be executed as authorized in the resolution.

DMT:vb Attachments e-c/att: Austin Beutner

Raman Raj Richard M. Brown Aram Benyamin James B. McDaniel Cecilia K.T. Weldon

Lorraine A. Paskett Mario C. Ignacio Anselmo G. Collins lllf"VT"" Maria Sison-Roces r -Michael A. Coia Sanjar Ardalan

.1..l..l=r!!

1 2 3

I

SPECIFICATIONS NO. 7216

,, :'.·

•'

SVcs for the Pool Resurfacing, Mesal Pad Replacement, Bridge Stone Replacmenl, & Granite Podium Repairs @ the JFB COMPARISON OF BIDS BASED ON DEPARTMENT'S ESTIMATED REQUIREMENTS

Harbor Construction Co., Inc.

'-''-'-''-''""'' .......... ~ "-''" ' I I ~1"-''- ..._..~I..._, •!:,!.Jo.._..l.

waterproofing 1 n 7,612,000.00 7,612,000.00 replace granite slabs 10.000 sqfl 44.30 443,000.00 reuse of granite slab 10,000 sqf! (40.30) (403 goo.oo}

··roTA~·· 7,652,000.00

dmt 1111110

AWl Builders, Inc.

UF'ill ll"U'i...ol;: t:AII;:.~'t..:IIUI"'

7,814,14fl.OO 7,814,140.@ 15.00 150,000.00

(10.00) (100,000.00} 7,8&4,140.00

......

Jeffrey C. Slone Inc. dba Summit Builders

....., ., ~ ' . ~· .......... ............. ._.~ ...... .....-.. 9,304,000.00 9,304,000.00 '

34.!)4 345,400.00 ' (34.54] (315,400.00]

9,304,000.00

Best Contradlng Services, Inc.

~~jt I lf'iitl..ol:: l::AI;J::I'olo,;:U\..11"1

7,865,000.00 7,865,000.00 35.00 350,000.00

(35.00) [350 000.00) 7,865,000.00

..... .....

• • ~ • ~ >"

Morillo Construcl!on, Inc.

..uu . . ·~·'"-''- .... ~~I ...._ •• ._. VI ..

7,934,000.00 7,934,000.00 41.54 415,400.00 32.90 329,0QQ.OO

B,67B,400.00

Arm~nd Gonzales Inc., dba Gonzales Construction

L,.IPIII rQL\ . ..,c; CAICI'f.:;)IUI:i

7,938,408.00 '7,938,408.00 46.64 456,400.00

(46.64) (466 400.00) 7,538,408.00

. ... . ...

Eberhard, Inc. Ma!lcraft Inc.

Ul"' I I 1~1._.'- !;;:.noiL..I'IUI.._..I"' ._.,.,,I,._,._...__ ._.., ....................

7,296,572.00 7,296,572.00 9,797,000.00 9,797,000,00 18.38 183,800.00 50.00 500,000.00

(18.38) (183,800.00] (50.00) (500 OOO.iiO] 7,296,572.00 9,797,000.00

AMG & Associates, Inc.

U'"'' ri"'I.J....,,;;;. .1;;.!'\II,.;;I'ILJJUI't

7,991,000.00 7,991,000.00 43.84 438,400.00

(43.84} (438 400.00} 7,9S1,000.0D

··:: .. :·

JONATI-TAN PAR BARBARA E.

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