DATE: August 9, 2022
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT
Title
Adopt a Resolution Awarding a Contract to The Garland Company for the Hayward Police Department Roof Replacement - 300 W. Winton Ave CIP Project No. 07203, in an Amount Not-to-Exceed $1,160,865
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RECOMMENDATION
Recommendation
That the Council adopts resolutions (Attachments II and III): 1) Authorizing the City Manager to negotiate and execute a contract, in a form approved by the City Attorney, with The Garland Company, in an amount not-to-exceed $1,160,865 for a complete roof replacement to Hayward Police Department Headquarters at 300 W. Winton Ave; 2) Authorizing the transfer and appropriation of $1,160,865 from the Workers’ Compensation Fund to the General Fund Capital Fund; and 3) Authorizing the transfer of $5,902,372 from the Workers’ Compensation Fund to the General Fund to reimburse for over-allocations from prior fiscal years.
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SUMMARY
The Hayward Police Department Headquarters (HPD) building at 300 W. Winton Ave. was built in 1975. The Maintenance Services Facilities Division is tasked with all preventative maintenance and component replacement within this facility. Timely preventative maintenance and capital replacement schedules are vital to maximizing the useful life of a facility’s overall infrastructure, building systems, and components. Since the facility originally opened, a combination of periodic repairs and a timely preventative maintenance schedule have allowed the original roof from 1975 to remain serviceable well beyond its expected 30-40-year life cycle. However, based on the current condition, the roof is now in need of replacement. Over the past 5 years, occurrences of rainwater leaking into staff work areas has become all too frequent. This roofing replacement project is part of Facilities’ commitment to provide facilities for employees and the public that are serviceable and in a good state of repair.
To expedite the bidding process and obtain the best pricing on the required work, staff was able to utilize a publicly bid, pre-negotiated agreement through its membership with OMNIA Partners, which specializes in public sector cooperative purchasing opportunities. To take advantage of the City’s partnership with OMNIA Partners, staff is requesting that Council grant approval to authorize the City Manager to execute a contract with The Garland Company in an amount not-to-exceed $1,160,865.
There is insufficient budget appropriation in the CIP to cover the cost of the $1,160,865 contract with Garland Company for the replacement of the roof at the Hayward Police Department Headquarters. Several years ago, the Workers’ Compensation Fund was severely underfunded. In an effort to improve funding levels, an additional percentage was applied on top of the standard rate. This additional percent should have been adjusted in a previous fiscal year, but had not been adjusted. This resulted in the City achieving a funding level above the recommended 80 percent in the Workers Compensation Fun. The City’s Workers’ Compensation Fund has a fund balance greater than necessary, and staff recommends transferring fund balance from the Workers’ Compensation Fund to the General Fund Capital Fund to cover the costs of the contract with Garland Company and then transferring the remaining excess balance to the General Fund. Attachment III recommends the transfer of $5,902,372 to the General Fund as reimbursement from prior year over-funding to the City’s Workers’ Compensation Fund.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Workers Compensation Resolution