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Meeting Date:
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5/6/2013 - 7:30 PM
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Category:
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Consent Items Pulled for Discussion
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Type:
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Action
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Subject:
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9.2 (Item #11) RFQ/RFP 1634 Award of Lease-Leaseback Agreement to Bell Products, Inc. for HVAC Modernization at Monte Gardens ES, El Monte ES, Shadelands, Sunrise and Westwood ES.
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LCAP (Local Control Accountability Plan) Goal:
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Enclosure
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File Attachment:
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Summary:
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On March 7, 2013 the District issued a Request for Qualifications (RFQ) soliciting submissions from qualified firms interested in entering into a lease- leaseback agreement for the HVAC Modernization at Monte Gardens ES, El Monte ES, Shadelands, Sunrise and Westwood ES. As a result of the RFQ process staff is recommending that the District enter into a lease leaseback agreement with Bell Products, Inc. for a Guaranteed Maximum Project Cost of $6,902,055.32 for the completion of all specified HVAC Modernization per approved plans and specifications.
District solicited qualifications from 10 vendors and received 1 fully qualified package. Bay Area increase in construction opportunities may account for the number of invitees who decided not to propose on the project. Also, short duration scheduling for period when school is not in session is being viewed as too aggressive for many contractors. Further, the District pre-purchases equipment for HVAC projects, which negates contractors from including equipment markup in their proposal, resulting in an “installation” only project with lower profit potential. Based on information received, many of the larger firms made business decisions to pursue work/expend their resources on projects with more profit potential. The increase in business opportunities in the Bay Area could also be a reason for the escalation in the proposed number from the engineer’s estimate.
While the original scope of work was restricted to unconditioned classroom spaces, staff is recommending replacement of equipment at some sites where existing equipment is greater than five years old.
The lease- leaseback project delivery method is authorized by California Education Code 17406, and authorizes the governing board, without advertising for bids, to enter into a lease with a builder for the purpose of construction, including remodeling and permanent improvements, upon property. Under a lease- leaseback, the District leases property under a "site lease" to a builder for $1. That builder constructs the facility/ completes the renovation and then leases the facility back to the District under a "facilities lease". The District makes "tenant improvement payments" during construction and "lease payment s" after construction. Titles to facility vests in the District as lease payments are made. The District has the option to make an early payment to the builder to buy out the facilities lease. In addition, the District determines all plans and specifications and uses its own Architect of Record to submit the project to the
Division of the State Architect (DSA) for approval.
The scope of work includes, but is not limited to: provide all tools, materials, labor and equipment necessary to complete installation of HVAC unit s including but not limited to, demolition of existing units, installation of equipment pads, site work, roof repairs and other items as it relates to the Drawings and Specifications. All spoils will be removed from the site. This contract includes, but is not limited to all work associated with the plans and specifications.
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Funding:
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2010 Measure C
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Fiscal Impact
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$6,902,055.32
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Recommendation:
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Approve Award of LLB Proposal as presented.
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Approvals:
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Recommended By:
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Signed By:
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Tim Cody - Program Manager
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Signed By:
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Rose Lock - Assistant Superintendent of Middle
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Vote Results:
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| New Motion | | Member Linda Mayo Moved, Member Lynne Dennler seconded to approve the New motion 'Approve Award of LLB Proposal as presented.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 4 Nay: 1. | | The motion Carried 4 - 1 | | | | | Linda Mayo | Yes | | Lynne Dennler | Yes | | Cheryl Hansen | Yes | | Brian Lawrence | No | | Barbara Oaks | Yes | |
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