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SR 10-24-2023 8B City Council Report City Council Meeting: October 24, 2023 Agenda Item: 8.B 1 of 5 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Introduction and First Reading of Ordinance Amending Santa Monica Municipal Code Section 2.24.110 and 2.24.220(g)(Master Services Agreements) Recommended Action Staff recommends that the City Council: 1. Adopt a finding of no possibility of significant effects pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines 2. Introduce for first reading a proposed ordinance amending Santa Monica Municipal Code Sections 2.24.110 and 2.24.220(g) related to Master Services Agreements. 8.B Packet Pg. 274 2 of 5 Summary The City of Santa Monica’s adopted Master Services Agreement (MSA) solicitation process has aided staff in expediting the work of roughly $16.1 million of small to medium sized CIP projects since inception in September of 2018. Through its use, staff has identified further improvements which can be realized through changes to sections 2.24.110 and 2.24.220(g) of the Santa Monica Municipal Code (SMMC). The first recommended change is to allow the Director of Public Works to delegate the authority to issue task orders to a designee. This change would allow Public Works to accelerate the commencement of small, relatively simple public works projects. The second recommendation would address ongoing construction cost escalation by having the task order and MSA thresholds, previously established in 2018, adjust automatically every year to the current California Construction Cost Index (CCCI). Finally, staff recommends transitioning the agreements from being referred to as Master Services Agreements to As-Needed Services Agreements (ASA). Discussion At its meeting on September 11, 2018, the City Council introduced for first reading an ordinance modifying Section 2.24.220 of the Santa Monica Municipal Code to authorize as-needed Master Services agreements for Public Works projects. The second reading followed on October 9, 2018, and City Council adopted the modified ordinance. MSAs are an alternate contracting/procurement approach developed in coordination with the Finance Department, the City Attorney’s Office, and the Public Works Department which allows the Public Works Department to expedite the procurement and completion of projects. The first step of this process is to solicit and pre-qualify contractors to provide general construction services on various public works projects for categories such as, but not limited to: interior remodels/tenant improvements, exterior building renovations, parks/playgrounds/site work, general engineering, and pier work. From this pre-qualified list, approved by the City Council, zero-dollar MSAs are entered into with the best qualified contractors for on-call services. Once agreements are executed, and as projects arise, staff solicits bids from at least three MSA contractors. Once the best bidder has been identified, the Director of Public Works may issue a task 8.B Packet Pg. 275 3 of 5 order in accordance with the terms and conditions of the MSA. Individual task orders shall not exceed $1,000,000 and the cumulative amount of task orders under each MSA shall not exceed $5,000,000. Contractors are not guaranteed work, and all funding is contingent on approval by Council within each fiscal year’s adopted budget. The process ensures competitive pricing by qualified contractors, while at the same time substantially reducing procurement time on individual projects because a MSA is already executed. Although the process has worked well to expedite the commencement of work, staff has identified areas where the process could be improved. The first area identified by staff relates to the Director of Public Work’s ability to delegate task order approvals. Currently, all task orders must be authorized by the Director prior to being executed. Authorizing the Director of Public Works to delegate this authority would allow Public Works to be more efficient in its approval of lower cost projects. Such task orders would include small, relatively simple projects, such as painting a facility, the placement of slurry, or the reconfiguring of a small interior space. If this proposed ordinance amendment is approved, the Public Works Department, with consultation from Finance, would update the current Procurement Administrative Instruction to establish the conditions for delegating authority. This change would further streamline the process and allow the Director of Public Works to focus on the review and approval of more complicated and higher dollar value projects. The second proposed process improvement would allow the thresholds of the Master Service Agreement and Task Order to increase every five years, or at time of council approval of new MSAs, according to changes in the CCCI. The CCCI is developed based upon the Building Cost Index average for San Francisco and Los Angeles and would be obtained by staff through California’s Department of General Services’ publications of the CCCI. This change would allow the MSA process to continue to be utilized for small to medium projects with thresholds that are aligned with construction price increases and eliminate the need for periodic future municipal code changes. To provide some context, the average of awarded MSA task orders in 2019 was $250,500. When accounting for inflation, through the use of the referenced CCCI, a project of this 8.B Packet Pg. 276 4 of 5 size today would cost roughly $342,985. Although the number of MSA projects awarded each year has roughly stayed the same, with the exception of FY 2020-21, over time escalation in construction will diminish the amount of projects which can utilize the MSA process. To maintain the effectiveness of the MSA process, staff recommends allowing for the current MSA and task order thresholds to adjust accordingly to the CCCI every year. The final change that staff recommends is transitioning these agreements from being referred to as Master Services Agreements to being known as As-Needed Services Agreements. The purpose of this process has always been to not only obtain talented and experienced contractors for the best price, but to do so in a manner which is equitable and inclusive. Staff believes that eliminating “Master” from the current name would eliminate any potential negative connotations and allow the process to be seen as the effective procurement method that it is. Past Council Actions Meeting Date Description 09/11/18 (Attachment B) Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements 10/09/18 (Attachment C) Second Reading Ordinance Authorizing As-Needed Services Agreements for PW Projects Environmental Review The ordinance amendments are exempt from CEQA pursuant to Section 15061(b)(3) (common sense exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The amendments will modify the administration of the MSA process (e.g., creating delegating authority and allowing increase of thresholds every five years). Therefore, it can be seen with certainty that these administrative amendments would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA. 8.B Packet Pg. 277 5 of 5 Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future. Prepared By: Amelia Feichtner, Capital Program Manager Approved Forwarded to Council Attachments: A. Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements - Staff Report B. Second Reading Ordinance Authorizing As-Needed Services Agreements for PW Projects - Staff Report C. MSA Amendment Ordinance D. PowerPoint Presentation 8.B Packet Pg. 278 City Council Report City Council Meeting: September 11, 2018 Agenda Item: 7.B 1 of 6 To: Mayor and City Council From: Susan Cline, Director, Public Works, Architecture Services Subject: Introduction and first reading of Ordinance amending Santa Monica Municipal Code Section 2.24.071 to update Public Works Contracts requirements; Award of Bid #SP2524 to eight general contractors to provide as-needed general construction services; and Authorization for the City Manager to execute a master on-call task order services agreement with each pre- qualified contractor, once the ordinance becomes effective Recommended Action Staff recommends that the City Council: 1. Introduce for first reading the attached ordinance amending Santa Monica Municipal Code Section 2.24.071 (Public Works Contracts) authorizing the use of City Council approved Master As-needed Services agreements. 2. Award Bid #SP2524 to eight California-based general contractors to provide as- needed general construction services on various Public Works projects including Airport, Facilities, Engineering, and Architecture work. 3. Authorize the City Manager to negotiate and execute an As-needed Master Services agreement with eight general contractors for a total amount not to exceed $5,000,000 over a five-year period for each agreement, subject to Council approval of the biennial operating budget and the biennial capital improvement program budget which would allow appropriation of funds for any task order issued under each as-needed master services agreement, once the ordinance becomes effective. Executive Summary Achieving top quality and best price are the long-standing goals of public construction contracting in Santa Monica. The Santa Monica Municipal Code (SMMC) Section 2.24.071 (Public Works Contracts) stipulates that every contract involving an expenditure of more than $175,000 for public works projects must be competitively bid and presented to the City Council for approval of the contract award prior to project commencement. Unfortunately due to required legal steps involved in that process, a bid award process takes 20 to 27 weeks depending on the complexity of the project. In addition to extending the project completion timeline, the lengthy process burdens 8.B.a Packet Pg. 279 Attachment: Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements - Staff Report (6087 : 1st Reading 2 of 6 staffing resources with paperwork and process without directly contributing to the goals of quality and economy. To streamline the costly and inefficient process for smaller projects, staff recommends an ordinance amending SMMC Section 2.24.071 to add an alternate contracting method to deliver public works projects up to $1,000,000 to allow the execution of eight As-Needed Master Services agreements (MSAs). Background On June 12, 2018, Council adopted the first year and approved the second year of the Capital Improvement Program (CIP) FY 2018-20 Biennial Budget. The adopted CIP Budget incorporated Santa Monica’s Framework for a Sustainable City of Wellbeing. These projects will advance goals in five of the seven outcome areas, and address Council’s strategic goals, particularly the Mobility strategic goal. In order to expeditiously complete these projects while still maintaining a balance between quality and cost, the Public Works Department performed an efficiency assessment to develop recommendations on improving project delivery and ensuring that the expectations of Council and the public are being met. This assessment built upon the Finance Department’s overview of current procurement processes presented to Council in 2016. Currently, all construction contracts over $175,000 are required to be competitively bid and approved by the City Council. For projects estimated under $1,000,000, commencing construction can take approximately 20-27 weeks from procurement to contract execution for projects with little or no design work (Attachment A). The efficiency assessment identified the use of MSAs as a way to improve efficiency and expedite project delivery. Discussion The proposed ordinance would amend SMMC Section 2.24.071 to add an alternate construction contracting/procurement approach which would allow the Public Works Department to utilize MSAs to expedite the commencement of work. The ordinance would authorize the City Manager, subject to certain conditions specified in the ordinance, to enter into an MSA, and would authorize the Public Works Director, or her designees, to issue task orders in amounts up to $1,000,000 for construction under 8.B.a Packet Pg. 280 Attachment: Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements - Staff Report (6087 : 1st Reading 3 of 6 each MSA. Goals for this new approach include: 1) accelerating the commencement of small, relatively simple public works projects, 2) increasing overall efficiency for the procurement, contracting and project delivery methods used for small projects including emergency work, and 3) accomplishing general construction services in a timelier manner. If the ordinance is approved, the Finance and Public Works departments, and the City Attorney’s Office will draft administrative guidelines to ensure competitive bidding, appropriate environmental review and orderly implementation. The MSA approach would work as follows: 1) City solicits general contractors through a request for qualifications including a formal competitive bidding and advertisement process. 2) City establishes a list of pre-qualified contractors from which to select its MSA contractors. 3) City presents the recommended MSA contractors to Council for approval to negotiate and execute MSA contracts. 4) Once MSAs are executed, bids from at least three contractors would be solicited for each task order. 5) All task orders would be awarded to the best bidder. 6) All projects under an MSA would have their own task order number for tracking and reporting. 7) The Director of Public Works or his/her designees may issue task orders in accordance with the terms and conditions of the MSA. Individual task orders shall not exceed $1,000,000 and the cumulative amount of task orders under each MSA shall not exceed $5,000,000. 8) All projects utilizing MSAs would be reviewed to ensure (i) appropriate environmental review, (ii) that projects are funded by Council-adopted biennial budgets, and (iii) that contractors adhere to all prevailing wage requirements. 9) Once a task order is completed, the task order amount would be tracked and counted against each contractor’s maximum cumulative MSA amount. 10) Public Works would report back to Council annually by submitting an Information Item every June. The Information Item would include a summary of all projects completed per MSA including vendor names, amounts and task order numbers 8.B.a Packet Pg. 281 Attachment: Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements - Staff Report (6087 : 1st Reading 4 of 6 as well as an evaluation of whether the revised process yielded the efficiencies expected. Staff believes using MSAs would improve project delivery and benefit the City by shortening project timelines by an estimated 20-27 weeks, decreasing the risk of potential escalation costs, reducing the amount of time staff spends on a project, and facilitating a more accurate overall project schedule. Other municipalities such as the cities of San Francisco, Los Angeles, and Anaheim have already adopted similar forms of as-needed contracting ordinances to improve project delivery. To expedite vendor selection, in the event that Council approves the recommended ordinance, staff conducted a process to pre-qualify contractors to provide general construction services on various public works projects for five categories of work: interior remodels/tenant improvements, exterior building renovations, parks/playgrounds/site work, general engineering, and pier work. Should Council approve awarding bids to these MSA contractors, task orders issued pursuant to the agreements entered would not exceed the current $175,000 threshold unless and until the proposed ordinance became effective. Vendor Selection RFQ Data RFQ Posting Date RFQ Posted On RFQ Advertised In (City Charter & Municipal Code) # of Firms Downloaded # of Submittals Received Date Publicly Opened 06/07/2018 City's Online Bidding Site Santa Monica Daily Press 52 10 06/21/2018 Pre-qualified List Vendor Selection Recommendation John S. Meek Company, Inc. Kasa Construction, Inc. Municipal Code SMMC 2.24.072 Judge Netting, Inc. Ramco Evaluation Criteria Previous experience/technical competence, answers to a questionnaire, references, resumes of relevant staff, and DIR project experience (labor compliance). Cushman Contracting Corporation Blois Construction, Inc. 8.B.a Packet Pg. 282 Attachment: Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements - Staff Report (6087 : 1st Reading 5 of 6 Kemcorp Construction, Inc. GSE Construction Company, Inc. Justification to Short-List Eight of the 10 statements of qualifications received for general construction services were rated and deemed acceptable and were placed on a pre-qualified list. Attachment B shows the breakdown by vendor on which of the five categories (interior remodels/tenant improvements, exterior building renovations, parks/playgrounds/site work, general engineering, and pier work) each vendor is pre-qualified to perform as-needed work. These eight pre-qualified vendors were ranked highly and are recommended to enter into a master services agreement. Bids will be solicited from all pre-qualified contractors prior to performing work valued at more than $10,000. Concept Consultants and Graph Company, the ninth and tenth vendors, did not meet the criteria to be placed on the pre- qualified list due to inaccurate submissions; hence, these vendors are not recommended. Financial Impacts and Budget Actions Staff requests authority to award a Master As-needed Services agreement with each of the eight pre-qualified general contractors. All amounts are not to exceed $5,000,000 over a five-year period. Funding for existing projects to be completed under these MSAs was approved by Council in the FY 2018-19 Adopted Budget. Future year funding is contingent on Council budget approval. Expenditures would occur only upon issuance of a task order by the Public Works Director to an MSA vendor, listed below. Master Services Agreement Request Vendor FY 2018-19 through FY 2022-23 Budget Various Departments/CIP Account # Total Contract Amount John S. Meek Company, Inc. Various $5,000,000 Judge Netting, Inc. Various $5,000,000 Cushman Contracting Corp. Various $5,000,000 Kemcorp Construction, Inc. Various $5,000,000 Kasa Construction, Inc. Various $5,000,000 Ramco Various $5,000,000 Blois Construction, Inc. Various $5,000,000 GSE Construction Company, Inc. Various $5,000,000 Total $40,000,000 8.B.a Packet Pg. 283 Attachment: Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements - Staff Report (6087 : 1st Reading 6 of 6 Prepared By: Phillip Ticun, CIP Project Manager Approved Forwarded to Council Attachments: A. Procurement Timeline B. SP2524 - General Contractor Services Pre-Qualification List C. John S Meek Oaks Form D. Judge Netting Oaks Form E. Cushman's Contracting Oaks Form F. Kemcorp Oaks Form G. KASA Oaks Form H. RAMCO Oaks Form I. GSE Construction Oaks Form J. Blois Construction Oaks Form K. Ordinance - Public Works - Contracting - 09112018 8.B.a Packet Pg. 284 Attachment: Ordinance Amending SMMC 2.24.071 (PW Contracts) Authorizing Master Services Agreements - Staff Report (6087 : 1st Reading City Council Report City Council Meeting: October 9, 2018 Agenda Item: 7.A 1 of 1 To: Mayor and City Council From: Lane Dilg, City Attorney, City Attorney’s Office Subject: Second Reading and Adoption of Ordinance Modifying Section 2.24.071 of the Santa Monica Municipal Code to Authorize As-Needed Services Agreements for Public Works Projects Recommended Action Staff recommends that City Council adopt the attached Ordinance. Executive Summary At its meeting on September 11, 2018, the City Council introduced for first reading an ordinance modifying Section 2.24.071 of the Santa Monica Municipal Code to authorize as-needed services agreements for Public Works projects. The ordinance is now presented to City Council for adoption. Prepared By: Elsa Kapsinow, Executive Assistant to the City Attorney Approved Forwarded to Council Attachments: A. Ordinance - Public Works - Contracting - Second Reading - 10092018 8.B.b Packet Pg. 285 Attachment: Second Reading Ordinance Authorizing As-Needed Services Agreements for PW Projects - Staff Report (6087 : 1st Reading 1 City Council Meeting: October 24, 2023 Santa Monica, California ORDINANCE NUMBER_______ (CCS) (City Council Series) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS 2.24.110 AND 2.24.220(G) TO DELEGATE AUTHORITY AND ADJUST AS-NEEDED SERVICES AGREEMENT THRESHOLDS BASED ON CHANGES TO THE CALIFORNIA CONSTRUCTION INDEX WHEREAS, In September 2018, Council adopted the Master Services Agreement (“MSA”) solicitation process, has aided staff in expediting the work of roughly $16.1 million of small to medium sized CIP projects; and WHEREAS, through use of the MSAs, City staff has identified proposed procedural changes to the MSA ordinance that would provide the Director of Public Works delegation authority, which would accelerate the commencement of small, relatively simple public works projects; and WHEREAS, the proposed procedural changes also seek to address construction cost escalation by adjusting MSA thresholds automatically every five years to the current California Construction Cost Index; and WHEREAS, City also seeks to adjust the title to reflect updated terminology and references. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 2.24.110 is hereby amended as follows: 2.24.110 Director of Public Works authority. 8.B.c Packet Pg. 286 Attachment: MSA Amendment Ordinance (6087 : 1st Reading Ordinance to update MSA Agreements (07 mins)) 2 The Director of Public Works, or designee, is authorized to issue task orders for Master Services Agreements in accordance with Section 2.24.220(g). SECTION 2. Santa Monica Municipal Code Section 2.24.220(g) is hereby amended as follows: 2.24.220 Formal procedures. Formal solicitations shall be subject to the following procedures: (a) The Purchasing Agent shall issue a formal notice inviting bids or request for proposals and shall solicit bids and proposals by: (1) Advertising in a newspaper of general circulation in the City of Santa Monica on at least two occasions, the first of which shall be at least ten days before the time for opening received bids; and (2) Posting on the City’s online vendor portal website. The Purchasing Agent may require additional notice as the Purchasing Agent determines to be in the best interest of the City. (b) At the time specified in the notice inviting bids or request for proposals, all bids or proposals timely received shall be opened and declared publicly, either in person or through the City’s online vendor portal website. (c) The Purchasing Agent shall compile and tabulate all bids or proposals timely received and refer them to the appropriate City Department for evaluation. For public works contracts or purchases of goods or contractual services, the City Department shall make a recommendation of best bidder by applying the criteria set forth in Section 2.24.180. For purchases of professional services, the City Department shall make a 8.B.c Packet Pg. 287 Attachment: MSA Amendment Ordinance (6087 : 1st Reading Ordinance to update MSA Agreements (07 mins)) 3 recommendation of best qualified person or firm by applying the criteria set forth in Section 2.24.190. (d) The Purchasing Agent shall provide notice of the recommended award to all bidders or proposers through the City’s online vendor portal website or by other means as determined by the Purchasing Agent. (e) The City Manager shall present the recommendation to City Council for award after the time to file a protest has expired or after a final determination on a protest has been made in accordance with Section 2.24.260. (f) The City Council may reject any and all bids or proposals received whenever, in the opinion of the City Council: (1) The bid(s) or proposal(s) received do not comply with the specifications of the notice inviting bids or request for proposals; (2) The proposed project or purchase should be abandoned or delayed; (3) The materials or services may be purchased more reasonably on the open market or the work done less expensively by City personnel; (4) The bids or proposals are higher than anticipated and a new solicitation would result in savings to the City; or (5) The best interests of the City would be served by a rejection of any or all bids or proposals. (g) Master Services As-Needed Services Agreements for Public Works Projects. Notwithstanding any other provision in this Chapter, the City may, in its discretion and when deemed to be in the best interest of the City, obtain construction, maintenance, 8.B.c Packet Pg. 288 Attachment: MSA Amendment Ordinance (6087 : 1st Reading Ordinance to update MSA Agreements (07 mins)) 4 or repair services pursuant to as-needed services agreements in accordance with the following terms and procedures: (1) The City shall solicit, review and evaluate the qualifications of prospective contractors for as-needed services agreements in accordance with rules and regulations established by the Director of Public Works; (2) The Director of Public Works shall pre-qualify contractors for as-needed service agreements; (3) The City Council may award as-needed services agreements to prequalified contractors, in amounts not to exceed five million dollars and with terms of no more than five years; (4) When the need arises for the performance of specific tasks within the scope of as-needed service agreements, the Director of Public Works shall seek bids from at least three prequalified contractors and, using the evaluation criteria set forth under Section 2.24.180, issue a task order to the best bidder in an amount not to exceed one million dollars for a specifically defined scope of work; (5) The thresholds for as-needed services agreements and task orders listed in subsections (3) and (4) shall be subject to increase annually based on changes to the construction cost index. “Construction cost index” means the construction cost index published by the California Department of General Services. When calculating the increases, City shall use the current construction cost index, as well as a construction cost base index. The construction cost base index shall be the construction cost index in effect for July 2018. The increased thresholds shall be approved by Council at award of the as-needed services agreement. 8.B.c Packet Pg. 289 Attachment: MSA Amendment Ordinance (6087 : 1st Reading Ordinance to update MSA Agreements (07 mins)) 5 (6) If the Director of Public Works seeks but is unable to obtain three bids, the Director may issue a task order to the best bidder of the bids submitted; (67) The Director of Public Works may reject any and all bids received in accordance with the standards set forth in subsection (f), above; (78) Prequalified contractors performing task orders under as-needed services agreements shall file payment and performance bonds in conjunction with each task order awarded as required by the Director or applicable law; and (89) The Director of Public Works shall submit a report to the City Council on an annual basis containing information about the implementation of this subsection, including a listing of task orders issued pursuant to this subsection. SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 4. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official 8.B.c Packet Pg. 290 Attachment: MSA Amendment Ordinance (6087 : 1st Reading Ordinance to update MSA Agreements (07 mins)) 6 newspaper within 15 days after its adoption. This Ordinance shall become effective thirty days after adoption. APPROVED AS TO FORM: ________________________ Doug Sloan, City Attorney 8.B.c Packet Pg. 291 Attachment: MSA Amendment Ordinance (6087 : 1st Reading Ordinance to update MSA Agreements (07 mins)) Master Services Agreements 8.B - Introduction and First reading of Ordinance Amending Santa Monica Municipal Code Section 2.24.110 and 2.24.220(g) 8.B.d Packet Pg. 292 Attachment: PowerPoint Presentation (6087 : 1st Reading Ordinance to update MSA 2 Master Services Agreements – Background •Master Services Agreement (MSA) solicitation process was introduced in September 2018 and adopted by Council in October 2018 (Section 2.24.220) •MSAs maintain the competitive procurement process for contractual services while expediting the process •MSAs shall not exceed $5 million with individual projects awarded by Task Order shall not exceed $1 million •Goals for this approach are to: •Accelerate the commencement of small, relatively simple Public Works projects; •Increase overall efficiency for the procurement, contracting, and project delivery; and •Complete overall construction services in a timely manner. •Process has aided staff in expediting the work of roughly $16.1 million since 2018 8.B.d Packet Pg. 293 Attachment: PowerPoint Presentation (6087 : 1st Reading Ordinance to update MSA 3 Timeline for Public Works Contracts - Requiring City Council Approval SMALL PROJECTS 4 WEEKS 2 WEEKS 1 WEEK 7 WEEKS 6 WEEKS 20 WEEKS BID PREP ONLINE BIDDING BID EVALUATION STAFF REPORT EXECUTE CONTRACT START Simple projects take approximately 20 weeks to commence work. COMPLEX PROJECTS 8 WEEKS 4 WEEKS 2 WEEKS 7 WEEKS 6 WEEKS 27 WEEKS BID PREP ONLINE BIDDING BID EVALUATION STAFF REPORT EXECUTE CONTRACT START Complex projects take approximately 27 weeks to commence work. 8.B.d Packet Pg. 294 Attachment: PowerPoint Presentation (6087 : 1st Reading Ordinance to update MSA 4 Master Services Agreements – Process •Solicit and pre-qualify contractors to provide general construction services for five categories of work: •Interior remodels / tenant improvements •Exterior building renovations •Parks / playgrounds / site work •General engineering •Pier work •Execute a Master Services Agreements with the best qualified contractor for as- needed services •Solicit bids from pre-qualified contractors for each project and identify best bidder •Director of Public Works approves a Task Order for a project to start construction 8.B.d Packet Pg. 295 Attachment: PowerPoint Presentation (6087 : 1st Reading Ordinance to update MSA 5 Master (As-Needed) Services Agreements – Proposed Amendments •To allow the Director of Public Works to delegate the authority to issue task orders to a designee •Address ongoing construction cost escalation by having the task order and MSA thresholds, previously established in 2018, adjust automatically ever year to the current California Construction Cost Index •Transition the agreements from being referred to as Master Services Agreement to As-Needed Services Agreements 8.B.d Packet Pg. 296 Attachment: PowerPoint Presentation (6087 : 1st Reading Ordinance to update MSA 6 Master (As-Needed) Services Agreements – Proposed Amendments 8.B.d Packet Pg. 297 Attachment: PowerPoint Presentation (6087 : 1st Reading Ordinance to update MSA As-Needed Services Agreements Thank you and questions 8.B.d Packet Pg. 298 Attachment: PowerPoint Presentation (6087 : 1st Reading Ordinance to update MSA