Agenda

Finance Committee

Tuesday, September 13, 2022

8:30 a.m.
Executive Conference Room and via Zoom
Brea Civic & Cultural Center

MEMBERS:
ALTERNATE:

Council Member Christine Marick and Council Member Marty Simonoff
Mayor Cecilia Hupp

The Finance Committee meeting will be held on September 13, 2022 at 8:30 a.m. and the public is welcome to participate. To provide comments in person, the Executive Conference Room will be open to a limited number of members from the public. To provide comments by teleconference (Zoom), members of the public must contact City Staff at (714) 990-7676 or arlenem@cityofbrea.net no later than 12:00 p.m. Monday, September 12, 2022 to obtain the Zoom information. Participants will be muted until recognized at the appropriate time by the Committee. Written comments may be sent to the Administrative Services Department at arlenem@cityofbrea.net no later than 12:00 p.m. on Monday, September 12, 2022. Any comments received via email will be summarized aloud into record at the meeting.

The Finance Committee agenda packet can be viewed on the City of Brea website at: https://www.ci.brea.ca.us/509/Meeting-Agendas-Minutes. Hard copies of the agenda packet are available via USPS with proper notice by calling (714) 990-7676. Materials related to an item on the agenda submitted to the Finance Committee after distribution of the agenda packet are available for public inspection during normal business hours in the Administrative Services Department located on the third floor of the Civic & Cultural Center at 1 Civic Center Circle, Brea, CA 92821. Such documents may also be available on the City's website subject to staff's ability to post documents before the meeting.


CALL TO ORDER / ROLL CALL

	1.	Matters from the Audience

CONSENT

	2.	August 9, 2022 Finance Committee Regular Meeting Minutes - Approve.

		Attachments
		Draft Minutes 08-09-2022

DISCUSSION

	3.	Approve Purchase of Utility Poles for Safety Netting at Brea Creek Golf Course, CIP 7978 - Approve purchase of nine utility poles from Stella Jones in the amount of $40,901.73.

		Attachments
		Stella Jones Quote
		Bell Lumber Quote
		Walters Quote

	4.	Appropriate Funds and Award Contract for Janitorial Services at City Park Restrooms - Appropriate $107,700 to amend the City’s General Fund (110) Operating Budget for Fiscal Year 2022-23 for Janitorial Services at park restrooms; Award Contract to K-Pro Stone Care in the amount of $148,500 for Janitorial Services at City park restrooms and as-needed trash removal; and Authorize the City Manager to approve Agreement and future extensions

		Attachments
		Agreement for Park Restroom Janitorial
		Approved Insurance
		Proposal
		Fee Schedule
		Janitorial RFP

	5.	Award the Berry Street Sidewalk Project, CIP Project No. 7324 - Approve the Plans and Specifications; Receive bids; Award Contract to the lowest responsive and responsible bidder, Towo Enterprise, Inc. in the amount of $370,846.25; and Authorize the City Engineer to issue Change Orders up to a "not-to-exceed" amount of 15% of the Contract Price.

		Attachments
		Exhibit A - Location Map - Phase 1 Boundary
		Exhibit B - Bid Documents
		Exhibit C - Towo Enterprise, Inc. Bid Proposal

	6.	Award the Country Hills Subdivision Pavement and Water Improvements, Phase 2, CIP Project No. 7322 - Approve the Plans and Specifications; Receive bids; Award Contract to the lowest responsive and responsible bidder, Gentry Brothers, Inc. in the amount of $2,125,523.60; and Authorize the City Engineer to issue Change Orders up to a "not to exceed" amount of 10% of the Contract Price.

		Attachments
		Attachment A - Location Map
		Attachment B - Bid Documents
		Attachment C - Bid Proposal

	7.	Consideration of Parking Agreement at 220 S. Orange Avenue with Brea Olinda Unified School District (BOUSD) - Staff recommends that the Finance Committee recommend the City Council take the following actions: Provide direction on the terms and conditions for the proposed parking agreement between the City of Brea and the Brea Olinda Unified School District (BOUSD) located at 220 S. Orange Avenue. Authorize the Community Development Director, or his designee, to execute, administer, and take the necessary actions to implement an agreement with BOUSD for the use of the parking lot located at 220 S. Orange Avenue.

		Attachments
		Exhibit - Map of Parking Lot

	8.	Amendment No. 2 with PeopleSpace for Civic & Cultural Center 3rd Floor Redesign and Furniture Purchase - Approve Amendment No. 2 with PeopleSpace in an amount not-to-exceed $250,000 - 265,000 (estimate) resulting in a total contract not-to-exceed $754,000 - 769,000 (estimate); and Authorize Public Works Director to approve change orders up to 5% of the not-to-exceed amount; and Appropriate up to $15,000 from the Fixed Asset Replacement Fund (182) to the Capital Improvement Program CIP Budget to complete the project.

		Attachments
		Amendment No. 2 - Draft
		Amendment No. 1
		Original Professional Services Agreement

	9.	Approve an Extension to the Professional Services Agreement for Investment Advisory Services with Chandler Asset Management - City staff recommends the Finance Committee to approve an extension with Chandler Asset Management to perform investment advisory services through December 31, 2023. In addition, authorize the City Manager to execute the contract amendment.

		Attachments
		Agreement with Chandler Asset Management - Investment Advisory Services
		Amendment No. 1 - Investment Advisory Services

	10.	Schedule Next Meeting: Tuesday, September 27, 2022

cc:

Mayor Pro Tem Glenn Parker and Council Member Steven Vargas

Special Accommodations
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (714) 990-7757. Notification 48 hours prior to the meeting will enable City staff to make reasonable arrangements to ensure accessibility. (28 CFR 35.102.35.104 ADA Title II)


Finance Committee		3.
Meeting Date:	09/13/2022
FROM:	Bill Gallardo

Subject:

Approve Purchase of Utility Poles for Safety Netting at Brea Creek Golf Course, CIP 7978

RECOMMENDATION

Approve purchase of nine utility poles from Stella Jones in the amount of $40,901.73.

BACKGROUND/DISCUSSION

As part of the Arovista Modernization Project, CIP 7978, safety netting at the Brea Creek Golf Course was included in the base project. The safety netting portion is preceding the entirety of the modernization project and running concurrently to the completion and opening of the Skate Park. The new netting would be installed along the property line adjacent to the #9 tee and behind the #8 green between the golf course and park.

Staff received quotations for the poles treated with Copper Naphthenate, an environmentally friendly preservative, to include delivery and yard inspection from Walters Wholesale Electric, Stella Jones and Bell Lumber and Pole Co. Stella Jones provided the best pricing for a total of $40,901.73 as shown below:

Stella Jones	$40,901.73
Bell Lumber and Pole Co.	$43,477.67
Walters Wholesale Electric	$48,678.55

Staff included California sales tax and the1 percent California lumber assessment tax in the total cost for all the quotes. Delivery is estimated to be 8-9 weeks from the order date.

SUMMARY/FISCAL IMPACT

Staff recommends purchasing the nine utility poles from Stella Jones for the safety netting at Brea Creek Golf Course. The full cost of the seventy-five foot poles is $40,901.73. Funding is available in the CIP budget.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Bill Bowlus, Public Works Superintendent
Concurrence: Michael Ho, P.E., Director of Public Works/City Engineer

Attachments
Stella Jones Quote
Bell Lumber Quote
Walters Quote


Finance Committee		4.
Meeting Date:	09/13/2022
FROM:	Bill Gallardo

Subject:

Appropriate Funds and Award Contract for Janitorial Services at City Park Restrooms

RECOMMENDATION

Appropriate $107,700 to amend the City’s General Fund (110) Operating Budget for Fiscal Year 2022-23 for Janitorial Services at park restrooms;
Award Contract to K-Pro Stone Care in the amount of $148,500 for Janitorial Services at City park restrooms and as-needed trash removal; and
Authorize the City Manager to approve Agreement and future extensions

BACKGROUND/DISCUSSION

Nightly park closing and restroom maintenance has been performed by Park Division part-time staff since the early '80s. Two part-time employees work an alternating shift of 18 hours during the week to cover the seven-day-a-week operation. Staff reports nightly for their shift that works independently to clean the parks/restrooms, remove the trash, respond to Dispatch as needed, and interface with user groups at active parks. As the number of parks and restrooms increased over time, the available cleaning time between their 7pm to 11pm shift grew shorter and became less thorough. With the addition of the restroom on segment 3 and the Lagos de Moreno restroom as a part of the 2017-2018 Fiscal Year Budget, two additional part-time staff were added to split the City in half, placing an employee on each side of town to cover the 14 restroom buildings and provide a higher level of service to the park restrooms.

In late June of this year, staff lost half of the part-time night cleaning staff. Since the remaining staff could not provide complete and consistent restroom cleaning at the highest level of service, an emergency pilot program using contract services with K-Pro Stone Care was initiated at the start of July for a three-month trial. This contract-based pilot program guarantees nightly restroom cleaning, where with vacations and absences, restroom cleaning is inconsistent and falls on the daytime staff to complete deferred park maintenance. Existing evening staff continue their responsibilities by removing trash and locking park restrooms, responding to Dispatch, and interacting with user groups during the pilot program. To further research the pilot program cost, staff posted an Request for Proposals (RFP) in July on CIPLIST.com for janitorial services at park restrooms. Four proposals were received from 11 companies. Public Works staff read and evaluated the proposals. Evaluating criteria included references, project team/work approach, related experience, and proposed fees. Companies were rated as follows:

K-Pro Stone Care
Valley Maintenance Corp
Guaranteed Janitorial Services, Inc.
Omni Enterprise, Inc.

Monthly fees for the respective Companies are shown in the table below:

Company	Monthly Cost	9-Month Contract
Valley Maintenance Corp	$7,670	$69,030
Guaranteed Janitorial Services, Inc.	$14,770	$132,930
Omni Enterprise, Inc.	$15,000	$135,000
K-Pro Stone Care	$16,500	$148,500

Due to ongoing General Fund impacts in future years, staff is recommending awarding a nine-month contract through the end of the current fiscal year until new or additional staff can be hired to resume the in-house cleaning. Staff recommends awarding the contract to K-Pro Stone Care and a one-year extension option.

K-Pro Stone Care has done janitorial work since 2007; successfully completed work for UCLA; and maintained the granite at the Civic & Cultural Center War Memorial and Plaza. They are currently successfully performing the janitorial work at the park restrooms.

Future operational options being considered for the nightly restroom cleaning include exploring a shift differential to increase part-time retention and adding additional part-time evening staff. Any additional staff would be requested through the FY 2023-24 budget cycle.

SUMMARY/FISCAL IMPACT

The award of the contract to K-Pro Stone Care will cost $148,500 with an additional $5,000 for possible as-needed trash removal services. Offset costs have been identified in the amount of $45,800 which includes salary savings from the two vacant part-time positions ($39,600), as well as the associated vehicle cost ($6,200). The net fiscal impact to the City’s General Fund (110) Operating Budget for FY 2022-23 is $107,700. There is sufficient fund balance in the General Fund as the result of American Rescue Plan Act (ARPA) funds.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Bill Bowlus, Public Works Superintendent
Concurrence: Michael Ho, P.E., Director of Public Works/City Engineer

Attachments
Agreement for Park Restroom Janitorial
Approved Insurance
Proposal
Fee Schedule
Janitorial RFP


Finance Committee		5.
Meeting Date:	09/13/2022
FROM:	Bill Gallardo

Subject:

Award the Berry Street Sidewalk Project, CIP Project No. 7324

RECOMMENDATION

Approve the Plans and Specifications;
Receive bids;
Award Contract to the lowest responsive and responsible bidder, Towo Enterprise, Inc. in the amount of $370,846.25; and,
Authorize the City Engineer to issue Change Orders up to a "not-to-exceed" amount of 15% of the Contract Price.

BACKGROUND/DISCUSSION

Berry Street Sidewalk Project (“Project”) was programmed within the FY 21-22 Capital Improvement Program (“CIP”) and is located along the west side of Berry Street, a north-south arterial road within an industrial/commercial area, between Lambert Road and Central Avenue (Exhibit A).

The Project scope of work includes, but is not limited to: removal and reconstruction of PCC sidewalk, curb and gutter, curb ramps, and landscape and irrigation. This Project will provide sidewalk connectivity and continuous pedestrian and ADA access in the area.

On February 7, 2022, the Final Plans and Specifications (“Bid Documents”) were accepted by staff, and the Project was advertised for bids. A hard copy of the Bid Documents is available at the City Clerk’s Office for review (Exhibit B). There was one addendum to the Plans and Specifications. Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid.

On March 8, 2022, staff received a total of eight bid proposals. Following the bid opening, staff reviewed the apparent low bidder, CJ Concrete Construction, Inc. ($352,178.25), as well as the next two (2) bidder's proposals, Doja, Inc. ($390,000.00) and L.A. Design Group ($414,194.55).

Soon thereafter on March 8, 2022, CJ Concrete Construction provided a formal letter notifying the City that their bid contained a clerical error on one of the bid items and requested to withdraw their bid. Subsequent to the bid opening, Staff reviewed the bids with respect to conformance with the proposal requirements and to identify any bid irregularities and determined that there were several bid irregularities with the second lowest bidder’s proposal. After consultation with the City Attorney with respect to the first bidder’s request to withdraw and second bidder's bid irregularities, staff recommended that the City Council reject all bids, return all Bid Bonds, and re-advertise the Project.

On May 03, 2022, the City Council rejected the bids and authorized staff to rebid the project. Soon thereafter, staff re-advertised the bids and on August 09, 2022, whereas ten (10) bids were received. Below are the results of the bids:

Table 1 – Total Bid Summary

Bidder Number	Bidder	Amount Bid
1	Towo Enterprise, Inc.	$370,846.25
2	Premo Construction	$371,783.00
3	All Cities Engineering	$433,177.55
4	S & H Civil Works	$497,452.00
5	Doja, Inc.	$521,573.00
6	Falkon Construction	$525,197.13
7	Gentry General Engineering	$542,807.50
8	CT&T Concrete Paving	$575,209.50
9	IE General Engineering	$589,810.00
10	Garza Construction	$637,000.00
	Engineer's Estimate	$400,000.00

The lowest responsible bidder was Towo Enterprise, Inc. (“Towo”) of Fullerton, California in the total amount of $370,846.25. Their California Contractor’s license (986567) has been verified by staff and their bid package has met the City requirements. Towo has been in the construction business for 9 years and has completed construction of similar improvement projects for various cities such as the cities of Anaheim, Norwalk, and La Puente with satisfactory reviews. If awarded, construction could begin in November 2022, and take approximately two (2) months to complete.

SUMMARY/FISCAL IMPACT

The Project was programmed in the FY 2021-2022 CIP with a budget amount of $535,000. The total cost for the Project going into construction is estimated at $470,000 based on the apparent low bid amount, a 15% contingency, and construction engineering costs. The sources of funds within the approved budget are from the Gas Tax (Fund 220) and Measure M (Fund 260). Therefore, there are sufficient funds in the budget for the Project. Upon completion of the Project, the remaining fund balance within each fund will be de-obligated and transferred back into the respective funds. There is no fiscal impact to the General Fund from this Project.

This Project will provide sidewalk connectivity and continuous pedestrian and ADA access. The Project includes removal and reconstruction of PCC sidewalk, curb and gutter, ADA curb ramps, and landscape and irrigation. Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid; award a Construction Contract to Towo in the amount of $370,846.25; and authorize the City Engineer to issue Change Orders up to a "not-to-exceed" amount of 15% of the Contract Price.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Raymond Contreras, Associate Engineer
Concurrence: Michael Ho, Public Works Director/City Engineer

Attachments
Exhibit A - Location Map - Phase 1 Boundary
Exhibit B - Bid Documents
Exhibit C - Towo Enterprise, Inc. Bid Proposal


Finance Committee		6.
Meeting Date:	09/13/2022
FROM:	Bill Gallardo

Subject:

Award the Country Hills Subdivision Pavement and Water Improvements, Phase 2, CIP Project No. 7322

RECOMMENDATION

1. Approve the Plans and Specifications;
2. Receive bids;
3. Award Contract to the lowest responsive and responsible bidder, Gentry Brothers, Inc. in the amount of $2,125,523.60; and
4. Authorize the City Engineer to issue Change Orders up to a "not to exceed" amount of 10% of the Contract Price.

BACKGROUND/DISCUSSION

The overall Country Hills Subdivision Pavement and Water Improvements, CIP 7322 was programmed within the FY 2021-22 Capital Improvement Program (“CIP”). The Project is located within the Country Hills Subdivision, which is east of Associated Road, south of Lambert Road, and west of Kraemer Boulevard. The project is currently under construction to replace existing watermains and appurtenances, water services, and complete street pavement rehabilitation.

During construction, there were several existing water main breaks within areas that were not programmed for water main replacement, and were only programmed for water service replacement. Therefore, staff worked with the Contractor, Williams Pipeline Contractors, Inc. (“Williams”), to revise the scope of work through a Contract Change Order to delete certain areas of the project, add additional water main replacement work, and remain within the Contract amount plus contingency. The original project included approximately 12,000 linear feet of water main replacement. The revised scope of work, depicted as Stage 2 in Attachment A, includes an additional 7,000 linear feet of water main replacement for a total of approximately 19,000 linear feet of new water main with new services and appurtenances. To date, all water work improvements within the revised area, depicted as Stage 1 in Attachment A, is complete with pavement rehabilitation work scheduled for November 2022.

Based on the revised project scope, as part of the current Contract with Williams, staff began working with the Engineer of Record, BKF Engineering (BKF), to develop a Phase 2 set of plans to complete all water and pavement improvements from the deleted areas within the original scope of work. Therefore, the Phase 2 project entitled “Country Hills Pavement and Water Improvements, Phase 2 Project” (“Project”) work limits include the deleted streets from the original project. These streets include Carrotwood Drive, Country Club Drive, and Raintree Drive, a portion of Branch Lane, Ambling Drive, Flanders Court, Chelsea Court, and Edgemont Lane (see Stage 2 in Attachment A). This phase of the Project was programmed with additional funding in the FY 2022-23 CIP budget.

On June 24, 2022, the Final Plans and Specifications (“Bid Documents”) were accepted by staff, and the Project was advertised for bids on the CIPlist.com website and subsequently published in the Star Progress paper prior to bid opening. A hard copy of the Bid Documents is available at the City Clerk’s office for review (see Attachment B). There was one addendum to the Specifications, which amended the City’s water testing requirements. Therefore, staff recommends City Council approve the Plans and Specifications with Addendum No. 1 as bid.

On July 19, 2022, staff received a total of eight (8) bid proposals. Soon thereafter, staff tabulated the bid proposals and determined that the apparent low bid amount was $2,125,523.60 from Gentry Brothers, Inc. (“Gentry”) from Irwindale, CA (see Attachment C).

Below are the results of the eight (8) bids received as read within Table 1:

Table 1 - Total Bid Summary
Bid Number	Bidder	Amount Bid
1.	Gentry Brothers, Inc.	$2,125,523.60
2.	Williams Pipeline Contractors, Inc.	$2,132,270.00
3.	Cedro Construction	$2,143,382.90
4.	AID Builders, Inc.	$2,192,190.00
5.	CEM Construction	$2,327,045.00
6.	Stephen Doreck Equipment Rentals, Inc.	$2,461,075.00
7.	Sully-Miller Contracting, Co.	$2,523,000.00
8.	TE Roberts	$2,636,655.00
	Engineer's Estimate	$1,900,000.00

Gentry Brothers, Inc. has been in the construction business for 44 years and has completed construction of similar improvement projects for the cities of West Covina, Montebello, and Alhambra. The company has a valid contractor's license and has received a satisfactory rating according to the references. Therefore, staff recommends that the City Council consider awarding a Construction Contract to Gentry in the amount of $2,125,523.60.

Moreover, staff solicited proposals from Soils and Geotechnical firms through the formal Request for Proposal process to provide the material testing scope of work for the Project. Therefore, staff will return to City Council prior to the construction start date, estimated around early November 2022, with a recommendation to consider approving a project specific Professional Services Agreement with the preferred Soils and Geotechnical Firm upon completion of the proposal review and selection process.

SUMMARY/FISCAL IMPACT

The Phase 2 Project was programmed in the FY 2022-2023 CIP with a budget amount of $2,600,000 consisting of Water Fund (420), Measure M (260), and Gas Tax (220). The Project will install approximately 4,000 linear feet of new water main with services and water appurtenances, ADA compliance items, and complete the street pavement rehabilitation within the Stage 2 project limits. Staff is recommending the City Council approve the plans and specifications, receive bids, award Contract to Gentry Brothers, Inc. in the amount of $2,125,523.60, and authorize the City Engineer to issue change orders up to a "not-to-exceed" amount of 10% of the Contract amount. There are no impacts to the General Fund.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Raymond Contreras, Associate Engineer
Concurrence: Michael Ho, Public Works Director/City Engineer

Attachments
Attachment A - Location Map
Attachment B - Bid Documents
Attachment C - Bid Proposal


Finance Committee		7.
Meeting Date:	09/13/2022
FROM:	Jason Killebrew

Subject:
Consideration of Parking Agreement at 220 S. Orange Avenue with Brea Olinda Unified School District (BOUSD)
RECOMMENDATION
Staff recommends that the Finance Committee recommend the City Council take the following actions: Provide direction on the terms and conditions for the proposed parking agreement between the City of Brea and the Brea Olinda Unified School District (BOUSD) located at 220 S. Orange Avenue. Authorize the Community Development Director, or his designee, to execute, administer, and take the necessary actions to implement an agreement with BOUSD for the use of the parking lot located at 220 S. Orange Avenue.
BACKGROUND/DISCUSSION
The City of Brea owns property located at 220 South Orange Avenue, which is currently improved with approximately 20 marked parking spaces. The Brea Olinda Unified School District (“BOUSD”) is seeking to lease this area in order to provide additional parking spaces for Laurel Elementary Magnet School. This surface parking lot was previously utilized for valet parking for downtown businesses and has since been underutilized following the construction of the Downtown Brea parking structure located across Orange Avenue to the west. The parking lot was identified in the Kittleson Report as an opportunity for Laurel Elementary Magnet School staff to utilize. In a continued partnership effort, staff is supportive of BOUSD's use of the parking lot based on the following terms and conditions: Terms: The terms of the agreement would be as follows: The term of the agreement would align with the current school year. It would commence on the date executed and remain in place through June 30, 2023. There would be an opportunity for up to three one-year extension(s), upon agreement of both parties, that would commence on July 1, 2023. Each space would be leased to BOUSD for $100.00 per space annually. Since BOUSD intends to rent all 20 spaces, the total annual rental payment to the City would be $2,000.00 per year. The first year would be prorated for BOUSD, as determined per the agreement commencement date. Conditions: The City would request certain conditions of BOUSD to ensure the lot is utilized in a mutually-agreeable manner. The following conditions would be proposed by the City: BOUSD would share the parking spaces outside the school’s typical operational hours. While staff supports allowing opportunities for BOUSD staff to utilize the parking lot during their work hours, the City would also like to preserve the opportunity for parking by members of the public outside of school hours, such as during nights and weekends. This would allow for parking for those visiting businesses in Downtown Brea during its peak hours. BOUSD would be responsible for the general routine clean-up of the lot. As predominant users of the lot, BOUSD would be responsible for the general removal of trash, debris, etc. from the area. City staff is seeking direction from Finance Committee regarding the terms and conditions of this proposal, as well as the authorization for the Community Development Director, or his designee, to execute, administer, and take the necessary actions to implement this agreement with BOUSD.
SUMMARY/FISCAL IMPACT
By approving this agreement, the City will receive an additional $2,000.00 annually as revenue to the General Fund.
RESPECTFULLY SUBMITTED
William Gallardo, City Manager Prepared by: Melissa Davis, Management Analyst II Concurrence: Jason Killebrew, Community Development Director

Attachments
Exhibit - Map of Parking Lot


Finance Committee		8.
Meeting Date:	09/13/2022
FROM:	Bill Gallardo

Subject:
Amendment No. 2 with PeopleSpace for Civic & Cultural Center 3rd Floor Redesign and Furniture Purchase
RECOMMENDATION
Approve Amendment No. 2 with PeopleSpace in an amount not-to-exceed $250,000 - 265,000 (estimate) resulting in a total contract not-to-exceed $754,000 - 769,000 (estimate); and Authorize Public Works Director to approve change orders up to 5% of the not-to-exceed amount; and Appropriate up to $15,000 from the Fixed Asset Replacement Fund (182) to the Capital Improvement Program (CIP) Budget to complete the project.
BACKGROUND/DISCUSSION
The Civic & Cultural Center 3rd Floor Redesign Project has been an operational goal for over ten years and began to be implemented in 2018. At that time, a cross-departmental working group was formed to determine the needs of the organization, and how those needs relate to offering premier customer service to the Brea community. On July 16, 2019, the City Council authorized a contract in the amount $347,606, plus a 10% contingency, with PeopleSpace to implement Phase 1 of the Civic & Cultural Center 3rd Floor Redesign Project. This phase included the purchase and installation of approximately 90 workstations for staff working on the 3rd floor. Since the existing cubicle furniture on the 3rd floor was original to the building, the main goal of this phase was to bring the current office up to date to improve safety and reduce potential hazards of old infrastructure. An additional goal was to bring individuals from the same teams closer together, as many were separated, to increase efficiency, collaboration and innovation. On August 18, 2020, the City Council authorized Amendment No. 1 to implement Phase 2, bringing the aggregate not-to-exceed amount to $503,468, plus a 5% contingency. This phase included the purchase and installation of office furniture for mid-level managers, as well as additional furniture for collaborative spaces and meeting rooms across the 3rd floor. City Council authorized funding for Phase 3, the final phase, as part of the Capital Improvement Program for Fiscal Year 2021-22. Staff is now seeking City Council approval to amend the original contract to implement Phase 3. This final phase would include purchasing furniture for the remaining existing offices on the 3rd floor to achieve consistency with the recent improvements and a professional, yet affordable, aesthetic across City offices. This would complete the project and provide office furniture needs for the next decade or more. PeopleSpace recently made staff aware that the product manufacturer is anticipating an overall pricing increase of 15% effective October 1, 2022, which could equate to roughly $40,000 in additional charges. Staff has been working with PeopleSpace to expedite ordering product in advance of this price increase, however, staff is still awaiting the final and complete cost estimate. Staff is estimating a final cost proposal will be available by the time Finance Committee meets and will be able to facilitate a discussion at that time. Currently, staff is anticipating the cost to be near the CIP budget amount of $250,000, but due to other cost increases over the past year related to supply chain issues there is a chance prices could exceed that original budget. If so, staff's recommendation would be to appropriate additional funds to complete and close out this project, as opposed to deferring any purchases and risk additional price increases. When this project was first implemented, PeopleSpace was selected as the preferred vendor due to their participation in the County of Orange's competitive bid process. For this reason other local agencies have also recently utilized PeopleSpace to refurnish their office spaces, including the cities of La Habra, Laguna Niguel, Westminster, and Buena Park.
SUMMARY/FISCAL IMPACT
City Council has already authorized $250,000 for Phase 3 of this project to be included in the Capital Improvement Program. Upon receipt of the final cost estimate, staff will be able to determine if additional funds (up to $15,000 from the Fixed Asset Replacement Fund (182)) are needed to complete the project.
RESPECTFULLY SUBMITTED
William Gallardo, City Manager Prepared by: Jenn Colacion, Management Analyst and Melissa Davis, Management Analyst

Attachments
Amendment No. 2 - Draft
Amendment No. 1
Original Professional Services Agreement


Finance Committee		9.
Meeting Date:	09/13/2022
FROM:	Bill Gallardo

Subject:
Approve an Extension to the Professional Services Agreement for Investment Advisory Services with Chandler Asset Management
RECOMMENDATION
City staff recommends the Finance Committee to approve an extension with Chandler Asset Management to perform investment advisory services through December 31, 2023. In addition, authorize the City Manager to execute the contract amendment.
BACKGROUND/DISCUSSION
On October 7, 2014, the City Council awarded a contract to Chandler Asset Management to provide investment advisory services to manage the investment of the City's and the Successor Agency to the Brea Redevelopment Agency's ("Agency") operating, capital and reserve accounts. As of July 31, 2022, the City's current investment portfolio for the City and Agency is approximately $95.8 million in operating and capital funds (non-pension funds). This excludes short-term investments through the Local Agency Investment Fund (LAIF) as these funds are currently managed by staff. The initial term of the agreement was for a period of five (5) years with an option to automatically renew for three (3) successive one (1) year terms. This request will amend the agreement to extend the term from October 7, 2022 through December 31, 2023. This will provide staff with the opportunity to evaluate issuing a formal Request for Proposal (RFP) for future investment advisory services as well as ensure the City is receiving the best service at the best rate. During the term of this agreement, Chandler Asset Management has maintained an excellent relationship with past and present Investment Advisory Committee (IAC) members as well as staff. Thus, staff feels comfortable extending the term of the agreement while continuing the high level of service from Chandler Asset Management during the amended contract term.
SUMMARY/FISCAL IMPACT
The investment advisory fee schedule remains unchanged from the original agreement. For reference, investment advisory fees for Fiscal Year 2021-22 were approximately $75,730 and are paid from cash investments.
RESPECTFULLY SUBMITTED
William Gallardo, City Manager Prepared by: Alicia Brenner, Senior Fiscal Analyst Concurrence: Kristin Griffith, Administrative Services Director

Attachments
Agreement with Chandler Asset Management - Investment Advisory Services
Amendment No. 1 - Investment Advisory Services