REPORT TO THE PRESIDENT AND CEO March 28, 2019

RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO EXECUTE A ONE­YEAR CONTRACT WITH VICTOR OROZCO CONSTRUCTION FOR A TOTAL

CONTRACT AMOUNT NOT-TO-EXCEED $317,220 FOR THE RECONFIGURATION OF OFFICE SPACE AT THE 2600 OFFICE BUILDING PURSUANT TO AWARD

UNDER IFB NO. HA-2019-12-NF /)

,0 ~ _...._..._f~~--Dougla°S]tthrie Tina Smith-Booth President and CEO Director of Asset Management

REQUEST: Authorize the President and CEO to execute a one-year contract with Victor Orozco Construction for a total contract amount not-to-exceed $317,220 for the reconfiguration of office space within the 2600 Wilshire offices.

FUNDING: The Chief Administrative Officer confirms the necessary funds are available to cover this expenditure through the buildings Reserve for Replacement account.

PURPOSE: To reconfigure existing office space on portions of the 3rd, 4th, C level and retail space of the Authority's corporate office building located at 2600 Wilshire Blvd, totaling about 4,500 usable square feet.

ISSUES: The Housing Authority's corporate office building located at 2600 Wilshire Blvd has five (5) stories of office space and three (3) levels of underground parking. With the recent restructure of the organization, it has become necessary to reconfigure office space to make the premises more functional and support the goals set forth in HACLA's 25-year Vision Plan (VP).

The reconfiguration supports Pathways Strategy 1, which calls for building and scaling HACLA's internal real estate development team into a capable, adequately staffed "community revitalizer and public developer." Development Services has already hired some staff toward accomplishing that goal and will work more effectively housed in the same suite. Pathways Strategy 7 calls for identifying "opportunities to reduce operating and administrative costs so that scarce resources are maximized." The modest increase to the commercial retail space is an opportunity to improve the HACLA-owned office and is expected to add a commercial revenue stream that will help offset operating costs for the building. Pathways Strategy 8 is to "evaluate and facilitate modification to the organizational chart and

structure regularly to improve lines of communication, program alignments, and succession planning." The Executive team was restructured, better aligning to the Authority's departments and needs. Other departments were also restructured to better support the VP. Overall, the reconfiguration is conducive to creating a more effective and efficient workspace for HACLA staff.

Phase I (3rd Floor): • Right size the Human Resources suite to better accommodate the

staff and allow for the addition of the Development Services team. • Reconfigure the Legal suite. The Legal department now has a

General Counsel and several additional legal staff members, as positions that were contracted out have been brought in-house. An under-utilized conference room will be converted to cubicles for support staff.

• Reconfigure the Intergovernmental suite to accommodate the sharing the suite with Strategic Initiatives staff.

Phase II (4th Floor): • Create a suite for the Payroll department. This team deals with

sensitive information and requires additional security. • Add four (4) offices. Several positions that warrant offices have been

added, but the current configuration does not have enough offices to accommodate the staff members.

Phase Ill C Level): • Enlarge the Commercial Retail Space on the C level. Due to the very

small area, this space has never been leased. Potential lessees have cited the modest square footage and absence of a restroom as impediments to leasing. This phase will include the addition of a restroom, which will enable purveyors of food to consider the space.

• Install windows and create an office in the IT department. The windows will open up the space, and the office is necessary, because there are not enough offices in the current configuration.

The duration of the project is 90 calendar days from the date of the Notice to Proceed. All work will be performed after hours and on weekends to cause the least amount of disruption to the employees.

PROCUREMENT: On February 4, 2019, the Housing Authority issued an Invitation for Bid (IFB) for the 2600 Wilshire Blvd. Office Renovation. The IFB was posted on the City of Los Angeles' Business Assistance Virtual Network (BAVN) website, sent to 29 MBE/WBE organizations and the Asset Management/Facilities vendors list [please see Summary of Outreach (Attachment 1) for additional details].

The bidders were asked to substantiate having a minimum of three (3) years' experience performing on projects of similar character and scope. The IFB also indicated that in order to perform the renovation work, bidders must possess a Class-B License (General Building Contractor) and attend a mandatory pre-bid conference and job walk which was held on February 11, 2019. Eight (8) prospective bidders attended the pre-bid conference.

On February 20, 2019, a total of two (2) bids were received and publicly opened one from Axiom Group Construction Management, Inc. (AGC) and the other from Victor Orozco Construction (VOC). The bid received from AGC was determined unreasonably high when compared to the Independent Cost Estimate (ICE) while the bid from VOC was consistent with the ICE. It was determined that VOC satisfied all solicitation requirements having submitted the lowest responsive and responsible bid and is being recommended for contract award. [Please see IFB Bid Abstract (Attachment 2) for additional details].

SECTION 3: Section 3 covers contracts for work done in connection with expenditure of covered federal funds, which does not apply to this contract (24 CFR Part 135.5; HUD Handbook No 7460.8 Rev2). However, Section 3 was imposed on this contract based on HACLA's Section 3 Guide and Compliance Plan. Victor Orozco Construction is currently fully staffed and has no need to hire additional employees. Nevertheless, they committed to participating in HACLA's Section 3 Scholarship Fund and will award three (3) scholarships this year to youth from public housing sites.

Attachments: 1 . Summary of Outreach 2. IFB Bid Abstract 3. Resolution

Summary of Outreach Activities IFB No. HA-2019-12-NF 2600 Wilshire Office Renovation

On February 4, 2019, the Housing Authority released Invitation For Bid ("IFS") HA-2019-12-NF to invite contractors to submit firm fixed-price sealed bids for the 2600 Wilshire Office Renovation:

A. Distribution of IFB

The IFS was posted on the City of Los Angeles' Business Assistance Virtual Network (BAVN) website. The I FB notice was sent to BAVN 163 users, 29 MBE/WBE organizations, and the public housing and development department vendors list.

.B. Pre-Bid Mandatory Conference

On February 11, 2019, eight (8) firms attended the pre-bid conference.

C. Bids Received

Bids were due on February 20, 2019. The following two (2) bids were received:

1. Victor Orozco Construction 2. Axiom Group Construction Management, Inc.

D. Minority/Women Participation

The Housing Authority conducts ongoing outreach to include minorities and women in the contract award process. This outreach includes providing information to the U.S. Small Business Administration (SBA), and mailing information to organizations that represent minorities and women.

The recommended award of contracts is being made in accordance with the Housing Authority's policies and Federal regulations and without regard to race, creed, color, gender or national origin.

Comoanv Emolovees

Victor Orozco Construction Total: 12 12 minorities = 100% 4 women = 33%

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HOUSING AUTHORITY OF THE CITY OF LOS ANGELES MBE/WBE ORGANIZATIONS MAILING LIST

ASIAN

Asian Business Association of Los Angeles

Asian Business League of Southern California

Asian American Architects and Engineers Association

Korean American Chamber of Commerce

BLACK

Black Business Association

Greater L.A. African American Chamber of Commerce (GLAAACC}

Regional Black Chamber of Commerce of San Fernando Valley

US Black Chambers

Southern California Black Chamber of Commerce

HISPANIC

National Black Contractors Association

Young Black Contractors Association

Latin Business Association (LBA)

California Hispanic Chamber of Commerce

Regional Hispanic Chamber of Commerce

National Latina Business Women Association (NLBWA-LA)

LA Metropolitan Hispanic Chamber of Commerce

Los Angeles Latino Chamber of Commerce

OTHER SMALL, MINORITY AND WOMEN

Pacific Coast Regional Small Business Development Corp (SBDC}

US Small Business Administration

National Association of Minority Contractors

Los Angeles Area Chamber of Commerce

Los Angeles Minority Business Enterprise Center USC (MBDA)

National Association of Women Business Owners Los Angeles

Southern California Minority Supplier Development Council

Valley Economic Development Center/Women's Business Center

Vermont Slauson Economic Development Corporation

The New Ninth Business Resource Center

American Indian Chamber of Commerce

Build Plus Community Marketplace

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HOUSING AUTHORITY CITY OF LOS ANGELES IFB NO. HA-2019-12-NF 2600 WILSHIRE OFFICE RENOVATION

BID ABSTRACT

February 20, 2019

BIDDER TOTAL BID PRICE

VICTOR OROSCO CONSTRUCTION $317,220.00

AXIOM GROUP CONSTRUCTION MANAGEMENT $745,500.00

RESOLUTION NO. _____ _

RESOLUTION AUTHORIZING THE PRESIDENT AND CEO TO EXECUTE A ONE­YEAR CONTRACT WITH VICTOR OROZCO CONSTRUCTION FOR A TOTAL

CONTRACT AMOUNT NOT-TO-EXCEED $317,220 FOR THE RECONFIGURATION OF OFFICE SPACE AT THE 2600 OFFICE BUILDING PURSUANT TO AWARD

UNDER IFB NO. HA-2019-12-NF

WHEREAS, the Housing Authority requires the reconfiguration of existing office space on portions of the 3rd, 4th, Cleveland retail space of the Authority's corporate office building located at 2600 Wilshire Blvd, totaling about 4,500 usable square feet; and

WHEREAS, the Housing Authority has determined the most effective and feasible manner of obtaining qualified construction services is by contracting for such services; and

WHEREAS, On February 4, 2019, the Housing Authority issued Invitation for Bid (IFB) No. HA-2019-12-NF forthe 2600 Office Renovation; and

WHEREAS, on February 20, 2019, a total of two (2) proposals were received and independently evaluated by the Housing Authority; and

WHEREAS, it was determined that the proposal of Victor Orozco Construction was the lowest, responsive and responsible bid and should be recommended for contract award.

NOW, THEREFORE, BE IT RESOLVED, the Board of Commissioners hereby authorizes the President and CEO to execute a contract for one (1) year with Victor Orozco Construction for a not-to-exceed total contract amount of $317,220, for the reconfiguration of office space within the 2600 Wilshire offices pursuant to contract award under Invitation for Bid (IFB) No. HA-2019-12-NF.

BE IT FURTHER RESOLVED that this resolution shall take effect immediately.

APPROVED AS TO FORM: JAMES JOHNSON

BY: -----------GENERAL COUNSEL

DATE ADOPTED: _______ ~-

HOUSING AUTHORITY OF THE CITY OF LOS ANGELES

BY: ---------CHAIRPERSON