Title
a. Support staff recommendation to authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute Renewal and Amendment No. 1 to the Master Agreements with Kasavan Architects (A-12347), Hammel, Green, and Abrahamson, Inc. (A-12348; formally known as Reel Grobman & Associates), The Stinnett Group, LLP (A-12349) and Wald Ruhnke and Dost (A-12350) for architectural services whereby the architectural projects do not exceed $100,000 per project at NMC per RFQ #9600-25, retroactive to November 6, 2013 and extending the Agreements an additional two (2) year period each for a revised full term of November 6, 2012 through November 5, 2015.
b. Support staff recommendation to authorize the Deputy Purchasing Agent for NMC to execute the Acknowledgment and Consent to the Assignment and Assumption Agreement to the Master Agreement for architectural services (A-12348) between Reel Grobman & Associates (Assignor) and Hammel, Green and Abrahamsom, Inc. (Assignee), whereby all contractual rights and obligations are transferred from Reel Grobman & Associates to Hammel, Green and Abrahamsom, Inc.
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
a. Support staff recommendation to authorize the Deputy Purchasing Agent for Natividad Medical Center (NMC) to execute Renewal and Amendment No. 1 to the Master Agreements with Kasavan Architects (A-12347), Hammel, Green, and Abrahamson, Inc. (A-12348; formally known as Reel Grobman & Associates), The Stinnett Group, LLP (A-12349) and Wald Ruhnke and Dost (A-12350) for architectural services whereby the architectural projects do not exceed $100,000 per project at NMC per RFQ #9600-25, retroactive to November 6, 2013 and extending the Agreements an additional two (2) year period each for a revised full term of November 6, 2012 through November 5, 2015.
b. Support staff recommendation to authorize the Deputy Purchasing Agent for NMC to execute the Acknowledgment and Consent to the Assignment and Assumption Agreement to the Master Agreement for architectural services (A-12348) between Reel Grobman & Associates (Assignor) and Hammel, Green and Abrahamsom, Inc. (Assignee), whereby all contractual rights and obligations are transferred from Reel Grobman & Associates to Hammel, Green and Abrahamsom, Inc.
SUMMARY/DISCUSSION:
The Request for Qualifications (RFQ) #9600-25 for architectural services was solicited for on July 15, 2011 and eleven architectural service firms replied submitting their qualifications. On June 13, 2012 NMC identified the top four qualified architectural firms (listed below) which received the highest ranking from the NMC Selection Committee and, in conformance with State laws regarding qualification-based selection, were invited to be listed on the master agreement to provide architectural services at Natividad Medical Center.
1. Wald Ruhnke and Dost
2. The Stinnett Group
3. Kasavan Architects
4. Reel Grobman & Associates
The Master Agreements for Architectural services were each intended to have a three (3) year total agreement term as per RFQ #9600-25. When NMC presented the board report to the Board of Supervisors on November 6, 2012 asking for authority to execute the four agreements, NMC also included a request to authorize an aggregate not to exceed amount of $750,000 per year for all agreements through June 30, 2015. This request was inconsistent with the term expiration dates stated in the agreements. The agreements actually expired on November 5, 2013 as each had an initial term of one year; November 6, 2012 through November 5, 2013. Unfortunately, NMC and all four contractors have been operating under the assumption that the terms of the agreements were good through June 30, 2015 so the agreements themselves were not amended before now and NMC has only recently discovered its error. Therefore, NMC needs to request that these Renewal and Amendment No. 1 documents be retroactive to November 6, 2013 in order to cover services rendered since that time. Because the agreements did expire back on November 5, 2013 a two year extension (retroactive to November 6, 2013) will set the new expiration dates to November 5, 2015.
On January 1, 2015, Hammel, Green and Abrahamsom, Inc. (HGA) acquired Reel Grobman & Associates (RGA). HGA has assumed all rights and obligations of RGA and both parties have signed an Assignment and Assumption Agreement to confirm that all contractual rights and obligations are transferred to HGA. NMC is requesting authority to acknowledge its consent of the Assignment and Assumption by signing the Assignment and Assumption as approved by the Board of Supervisors.
The original aggregate total annual spending limit for all architectural services agreements requested by NMC and approved by the Board was $750,000 per year. For clarification this aggregate spending limit is not stated within the individual Agreements themselves, it is set within the Board Order and is effective per approval by the Board of Supervisors. At this time NMC does not foresee a need to increase the aggregate spending limit.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved Renewal and Amendment No.1 to the master agreements as to legal form and risk provisions, and the Auditor-Controller has reviewed and approved as to payment provisions. Renewal and Amendment No. 1 to the master agreements has also been reviewed and approved by NMC’s Finance Committee on 6/25/15 and by its Board of Trustees on 7/10/15. This report is scheduled to be presented to the Capital Improvement Committee on July 23, 2015.
FINANCING:
The aggregate cost for these Renewal and Amendment No. 1s is $750,000 for the period 11/6/12-11/5/13, plus $750,000 for the period 11/6/13-11/5/14 plus $750,000 for the period 11/6/14-11/5/15, of which $750,000 was included in the Fiscal Year 2015-16 Adopted Budget. There is no impact to the General Fund.
Prepared by: Andrea Rosenberg, Asst. Administrator Operations & Support Services, 783-2562
Approved by: Gary R. Gray, DO, Interim Chief Executive Officer, 783-2504