FROM: Joe Michael, Chief Information Officer
SUBJECT: SBCERA Tenant Improvements
RECOMMENDATION:
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Approve the remodel of SBCERA Suite 106 and additional tenant improvements and authorize the Chief Executive Officer to execute agreements with Pacific Tusk Builders and associated subcontractors in an amount not to exceed $682,190.
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BACKGROUND:
SBCERA is requesting Board approval to enter into contracts with Pacific Tusk Partners (PTB) and associated subcontractors to provide general construction services and tenant improvements at the SBCERA-owned and occupied property located at 348 W. Hospitality Lane. The total cost of the engagement will not exceed $682,190.
The engagement with PTB and its subcontractors will encompass multiple projects designed to enhance SBCERA’s workplace, increase operational effectiveness, support our commitment to members, and fulfill our obligations as the property owner. The primary project involves reconfiguring Suite 106 and the adjoining conference room to accommodate the relocation of Member Services staff. Currently, Member Services staff are dispersed across different areas, creating a “satellite” effect for those working in the reception area. Relocating the whole Member Services team to the first floor will provide several improvements:
• Consultation staff will be closer to the member consultation area,
• Supervisors and managers will be able to respond more quickly to member needs and operational issues, and
• Staff will benefit from a more unified, collaborative, and efficient workspace.
In addition to the primary construction project, several supplementary tenant improvement projects have been bundled to leverage economies of scale, resulting in a reduced overall cost compared to completing each project independently.
SBCERA will convert an unused third-floor storage area into a media room for the Communications Department. As SBCERA continues transitioning toward a more electronic operating environment, demand for physical storage space has decreased. To reduce external media production costs, this storage area will be repurposed by installing new flooring and adding sound-dampening enhancements to the walls. The renovated space will support audio and video production needs, enabling staff to record content onsite without interference from typical office ambient noise.
To further reduce external media, printing, and mailing costs, SBCERA will modify the existing Administration copy and storage room. The remodel will include the addition of cabinetry, countertops, and storage systems necessary to support the internal production, assembly, and distribution of various member communications. This work is aligned with both the expiration of the current copy/printer lease and its scheduled replacement.
SBCERA will also fulfill its tenant improvement obligations associated with the Children’s Fund’s recent lease renewal. These tenant improvements include painting and patching of identified areas, installation of a new entry-door security feature, and replacement of flooring due to wear, tear, and prior water damage.
SBCERA and its project manager conducted a Tenant Improvement Request for Proposal (RFP) process in accordance with the same standards and guidelines used when the property management firm Avison Young previously managed the building. SBCERA received three qualifying bids; however, more than six general contractors declined to participate due to the prevailing wage requirements applicable to SBCERA as a public entity. A comparison of the three qualifying bids is provided in the table below. The challenge of securing sufficient bids under prevailing wage requirements contributed to delays in bringing this item before the Board.
|
General Contractor |
J-Squared |
|
PTB |
|
HBC |
|
DESCRIPTION |
TOTAL $ |
|
TOTAL $ |
|
TOTAL $ |
|
1st fl. Suite 106 & CF TI’s, 3rd fl. |
|
|
|
|
|
|
Mail & Media Rooms |
702,906.00 |
|
540,575.00 |
|
$646,066.00 |
|
Savings to Combine Projects |
|
|
-2,750.00 |
|
|
|
Contractor's Total: |
$702,906.00 |
|
$537,825.00 |
|
$646,066.00 |
|
Permits-Allowance |
3,500.00 |
|
3,500.00 |
|
$3,500.00 |
|
CONTINGENCY (15%) |
105,960.90 |
|
81,198.75 |
|
97,434.90 |
|
Title 24 Commissioning |
Included |
|
Included |
|
Included |
|
General Conditions & Oversight |
35,320.30 |
|
27,066.25 |
|
32,478.30 |
|
Architect-Allowance (Sisson) |
21,500.00 |
|
21,500.00 |
|
21,500.00 |
|
Architects Reimbursables |
8,100.00 |
|
8,100.00 |
|
8,100.00 |
|
Plan Check Fee |
3,000.00 |
|
3,000.00 |
|
3,000.00 |
|
TOTAL COST: |
$880,287.20 |
|
$682,190.00 |
|
$812,079.20 |
As additional context, while prevailing wage requirements have been applied to construction projects in the past, contractors are increasingly reluctant to bid on such projects unless the contract amount exceeds a certain monetary threshold. Prevailing wage generally adds approximately 20 percent to a construction proposal; however, this percentage does not account for back-office administrative time associated with compliance. SBCERA will continue efforts to obtain at least three qualifying bids for all construction projects, though circumstances may occasionally result in fewer than three responses.
Additional Upcoming Proposal - Furniture Procurement
SBCERA will present one additional proposal to the Board next month regarding the procurement of furniture through our long-standing distribution partner, GM Business Interiors (GM). While SBCERA will repurpose a significant portion of existing furniture as part of the Member Services relocation, several new modular, open-style office components and cubicle parts will be required to support the reconfiguration. The complexity of integrating existing and new components across more than twenty cubicles has exceeded GM’s original time estimate. Due to the construction schedule and its alignment with the ongoing HVAC project, delaying both elements by an additional month would have been cost-prohibitive. As such, the furniture procurement item will be presented separately at the next Administrative Committee and Board meeting.
BUDGET IMPACT:
Costs for this item are included in the current year administrative budget.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Quality Employer and Workplace
STAFF CONTACT:
Joe Michael
ATTACHMENTS:
Exhibit A: PTB Proposal