REPORT. STAFF RECOMMENDATION That the San Diego Housing Commission (Housing Commission) take the following actions:

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1 REPORT DATE ISSUED: August 15, 2014 REPORT NO: HCR ATTENTION: SUBJECT: Chair and Members of the San Diego Housing Commission For the Agenda of September 12, 2014 Approval of the Award of Job Order Contracts COUNCIL DISTRICT: Citywide REQUESTED ACTION Award of three multiyear Job Order Contracts for maintenance, renovation, modernization and alteration at properties owned and/or managed by the San Diego Housing Commission. STAFF RECOMMENDATION That the San Diego Housing Commission (Housing Commission) take the following actions: 1) Authorize the President & Chief Executive Officer (President & CEO), or designee, to enter into cooperative purchasing agreements with the contractors referenced within the report based upon procurements previously competitively bid and awarded by the National Joint Powers Alliance (NJPA); 2) Approve the award of a multiyear Job Order Contracting (JOC) contract (Attachment1) to ABC Construction Company, Inc. up to a maximum annual capacity of $500,000; and 3) Approve the award of a multiyear JOC contract (Attachment 2) to Belfor Property Restoration up to a maximum annual capacity of $500,000; and 4) Approve the award of a multiyear JOC contract (Attachment 3) to Grondin Construction Company up to a maximum annual capacity of $500,000; and 5) Authorize the President & CEO, or designee, to execute all documents and instruments necessary and/or appropriate to implement these approvals, in a form approved by General Counsel, and take such actions as are necessary and/or appropriate to implement these approvals. SUMMARY The Housing Commission has an ongoing need to maintain and improve the portfolio of properties it currently owns and/or manages. To meet this need more effectively, Housing Commission staff identified JOC as a procurement tool that provides a way to complete small, simple and routine construction projects easily and quickly. An informational report has been submitted today that provides specific details, legal authority and background information regarding JOC. The Housing Commission Board has authority to approve contracts for the maintenance, modernization, and improvement of properties owned and/or managed by the Housing Commission (including LLCs)

2 August 14, 2014 Approval of the award of Job Order Contracts Page 2 up to a maximum contract value of $500,000 pursuant to San Diego City Council Resolution No. R of December 4, Housing Commission staff seeks authorization to enter into cooperative purchasing agreements with the National Joint Powers Alliance (NJPA) and three contractors for facility maintenance, renovation, modernization and alteration projects competitively bid and awarded by NJPA. NJPA is a State of Minnesota public agency that serves as a national municipal cooperative contracting agency for its members. The Housing Commission has been a member of NJPA since Section 15 of the Housing Commission s Procurement Policy, titled Cooperative Purchasing Agreements, authorizes and encourages the Housing Commission to utilize other federal, state and local cooperative purchasing agreements (also known as intergovernmental agreements) to expedite the procurement, contracting and project delivery process. Furthermore, under California s Joint Exercise of Powers Act (Govt. Code 6500 et seq.), two or more public agencies may jointly exercise their contracting power if authorized by their legislative bodies. This cooperative/intergovernmental agreement contracting process is also endorsed by the U.S. Department of Housing and Urban Development (HUD) in Title 24, Subpart A, Part 85, Section 85.36(b)(5) of the Code of Federal Regulations and is widely employed by hundreds of federal, state and local agencies as a routine part of their procurement and contracting methodology. These contracts shall not be utilized for new construction, however, due to federal regulations.. Housing Commission General Counsel, Christensen & Spath, LLP, has worked closely with Housing Commission staff over the past year to research, develop and implement this proposed contracting method. Housing Commission staff has also worked in collaboration with the Gordian Group, which is under contract with NJPA to provide JOC services and resources to NJPA members. Contract forms have been developed to ensure Housing Commission-required provisions are included within each of the contracts. These include prevailing wages and requirements of Section 3 of the HUD Act of 1968 (Section 3). Contracts were awarded by NJPA to the three low responsive and responsible bidders listed below after the receipt and evaluation of bid submittals for specific NJPA Invitation for Bid solicitations. The three NJPA JOC contracts for which the Housing Commission is seeking to enter into cooperative agreements are: ABC Construction Company, Inc. NJPA Contract No.CA-SD ABC Belfor Property Restoration NJPA Contract No. DRCA BEL Grondin Construction Company NJPA Contract No. CA-SD GCI All three of these companies are San Diego-based companies. Both Belfor and Grondin have previously performed similar services for the Housing Commission. These contracts would be utilized by the Housing Commission on an on-call, as-needed basis. Each contract would have a maximum annual capacity of $500,000 and will be implemented in accordance with Housing Commission Administrative Regulation No and the associated Standard Operating Procedures. Applicable federal, state and local prevailing wage labor compliance requirements shall apply to all three of the proposed contracts.

3 August 14, 2014 Approval of the award of Job Order Contracts Page 3 FISCAL CONSIDERATIONS The proposed funding sources and uses approved by this action were approved in the Fiscal Year (FY) 2015 Housing Authority-approved budget. Approving this action will not change the FY 2015 Housing Commission total budget. FY 2015 funding sources approved to be used by this action will be as follows: Rental Revenue and Property Reserves - $1,500,000 FY 2015 funding uses approved to be used by this action will be as follows: Ordinary Maintenance and Capital Improvements - $1,500,000 Funding sources for the proposed contracts for the remainder of the contract period will be budgeted in future fiscal years. EQUAL OPPORTUNITY/CONTRACTING ABC Construction Company, Inc. and Belfor Property Restoration are not certified as a Small/ Disadvantaged/Minority/Women-Owned or Disabled Veteran business enterprise. Grondin Construction Company is a Housing Commission-certified Section 3 Business Concern and a State of California Department of General Services Small Business (Micro). Certificates of Compliance and Workforce Reports have been provided and show that the contractors are in compliance with the Housing Commission Equal Opportunity Program and demonstrate no issues with diversity. COMMUNITY PARTICIPATION and PUBLIC OUTREACH EFFORTS On January 22, 2014, NJPA and the Gordian group conducted a contractor outreach meeting, at the Housing Commission, to provide an overview of the eziqc program and its JOC contracts. On February 6 and 13, 2014, advertisements were placed in the U-T San Diego, San Diego Daily Transcript and Voice & Viewpoint newspapers. A pre-bid qualification meeting was held for interested General Contractors at the Housing Commission on February 20, On March 11, 2014, bids were received by NJPA. KEY STAKEHOLDERS and PROJECTED IMPACTS Stakeholders include the Housing Commission Real Estate Division, Property Management and Construction Services Departments and JOC contractors. ENVIRONMENTAL REVIEW This activity is not a project as defined by the California Environmental Quality Act Section and State CEQA Guidelines Section 15378(b)(5), as it is an administrative activity of government that will not result in direct or indirect physical changes in the environment. The determination that this activity is not subject to CEQA, pursuant to Section 15060(c)(3), is not appealable and a Notice of Right to Appeal the Environmental Determination (NORA) is not required. Furthermore, this activity is exempt from the National Environmental Policy Act pursuant to Part 58.34(a)(3) of the Title 24 Code of Federal Regulations as an administrative and management-related activity.

4 August 14, 2014 Approval of the award of Job Order Contracts Page 4 Respectfully submitted, Maurcell L. Gresham Maurcell L. Gresham Director of Procurement Administrative Services Division Approved by, Jeff Davis Jeff Davis Executive Vice President & Chief Operating Officer San Diego Housing Commission Attachments: 1) ABC Construction Co. Inc. Contract 2) Belfor Property Restoration Contract 3) Grondin Construction Company Contract Hard copies are available for review during business hours in the main lobby of the San Diego Housing Commission offices at 1122 Broadway, San Diego, CA and at the Office of the San Diego City Clerk, 202 C Street, San Diego, CA You may also review complete docket materials on the San Diego Housing Commission website at

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