June 21, 2000

To: Supervisor Gloria Molina, Chair

Supervisor Michael D. Antonovich, Chairman Pro-Tem

Supervisor Yvonne Brathwaite Burke

Supervisor Zev Yaroslavsky

Supervisor Don Knabe

From: David E. Janssen

Chief Administrative Officer

HARBOR-UCLA MEDICAL CENTER SURGERY/EMERGENCY REPLACEMENT

PROJECT: PLAN REVISION AND RELATED ACTIONS

(ITEM #4 - JUNE 26, 2000 BUDGET DELIBERATIONS AGENDA)

On May 9, 2000, your Board deferred a financial decision regarding the Harbor/UCLA Medical Center Surgery/Emergency Replacement Project and the execution of a supplemental agreement to Contract IS-10966 with Leo A. Daly/HKS+BTA/JGM to revise and complete design documents to meet current code requirements and maintain SB1732 eligibility, until Budget Deliberations.

At this time, however, negotiations regarding an extension of the 1115 Waiver, which could have a material impact on the Department=s financial position, have yet to be concluded. It is anticipated that negotiations will be completed in the next few weeks.

It is recommended that action on the proposed Project and supplemental agreement be deferred until July 18, 2000. This deferral will permit the Department to assess any impact on the Department=s financial position and determine its ability to finance their previously recommended actions. The Department is also discussing an extension of the current deadline of December 31, 2000 for the proposed plan revision with the Office of Statewide Health Planning and Development. The Department will report to your Board on such a time extension by July 18, 2000.

DEJ:SNY

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Attachment

c: Executive Office, Clerk of the Board

County Counsel

Department of Health Services

Department of Public Works

May 4, 2000

The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, CA 90012

Dear Supervisors:

HARBOR-UCLA MEDICAL CENTER

EMERGENCY POWER SYSTEM PROJECT

AWARD OF CONSTRUCTION CONTRACT

SPECS. 5395-R1; C.P. 86230

SUPERVISORIAL DISTRICT 2

3 VOTES

JOINT RECOMMENDATION WITH THE DIRECTOR OF HEALTH SERVICES THAT YOUR BOARD:

PURPOSE OF RECOMMENDED ACTIONS

On March 7, 2000, your Board adopted drawings and Specifications 5395-R1 and authorized advertising for construction bids for the Harbor-UCLA Medical Center Emergency Power System Project. We are recommending that your Board award the construction contract to Perera, the lowest responsive and responsible bidder.

JUSTIFICATION

The project includes installing four 2,000-kW emergency generators and distribution equipment housed in a new 6,535-square-foot reinforced concrete masonry block structure. The structure will also have the capacity to accommodate two additional generators should the hospital's emergency electrical requirements increase in the future. In the event of a power outage, the four new generators will be capable of producing sufficient power to meet all of the hospital's electrical needs.

The additive alternates for the project provide new automatic transfer switches, a load bank, and a reinforced concrete masonry wall around the perimeter of the hospital's existing electrical equipment. The new automatic transfer switches are designed to withstand seismic loads and to eliminate the short interruption of power in the emergency circuits when weekly testing of the generators is conducted, as required by the Joint Commission on the Accreditation of Healthcare Organizations. The load bank allows the emergency power system to be tested at full capacity as required by the JCAHO. The concrete masonry wall surrounding the existing hospital electrical equipment replaces the existing, deteriorated chain-link fence that secures access to this high-voltage area.

The original fair construction cost estimate projected that bids would be between $2,183,530 and $3,002,355. Since the low bid of $2,850,700 is within the estimated range, we recommend that your Board award the construction contract to the apparent low bidder, Perera.

FISCAL IMPACT

The apparent low-bid construction cost is $2,850,700. With support of the CAO, monies within the project budget are being shifted to the "Construction" category from the "Equipment Change Order Allowance" and "Consultant Services, Others" to allow contract award. The Total Project Budget, which includes construction, equipment, consultant services, permits and fees, County services, and miscellaneous expenditures, will remain unchanged at $7,425,000. The Project Schedule and the Project Budget Summary are included in Enclosure A.

FINANCING

On November 23, 1999, your Board authorized the issuance of Lease Revenue Bonds (Multiple Capital Facilities Project VI, 2000 Series A) to finance the project through completion.

FACTS AND PROVISIONS/LEGAL REQUIREMENTS

As requested by your Board on August 12, 1997, and as a threshold requirement for consideration for contract award, Perera is willing to consider Greater Avenues for Independence Program participants for future employment.

Perera is in full compliance with Los Angeles County Code Chapter 2.200 (Child Support Compliance Program).

CONTRACTING PROCESS

On April 4, 2000, two bids were received. The low bid of $2,850,700 was submitted by Perera. Based on Public Works' review of the bid and current market conditions, we recommend that your Board award the contract to the responsible and responsive apparent low bidder, Perera. The bids are summarized in Enclosure B.

The project specifications contain provisions requiring the contractor to report solicitations of improper consideration by County employees and allowing the County to terminate the contract if it is found that the contractor offered or gave improper consideration to County employees.

Participation by Community Business Enterprises in the project is encouraged through Public Works' Capital Projects' CBE Outreach Program and by monitoring the good faith efforts of bidders to utilize CBEs. A summary of Perera's CBE participation fact sheets and three-year contracting history are on file with Public Works.

As requested by your Board on February 3, 1998, this contract opportunity was listed on the Office of Small Business website.

IMPACT ON CURRENT SERVICES (OR PROJECTS)

Construction activities will limit the use of a portion of the medical center's parking lot and access to the hospital's warehouse loading dock for a period of approximately 15 months. Arrangements have been made to allow for alternative parking and access to the warehouse loading dock during the construction period.

NEGATIVE DECLARATION/ENVIRONMENTAL IMPACT REPORT

On November 23, 1999, your Board considered and approved the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Harbor-UCLA Medical Center Emergency Power System Project. Additionally, your Board returned a finding that the project will have no adverse effect on wildlife resources and authorized the Director of Public Works to file a Certificate of Fee Exemption.

The Honorable Board of Supervisors
May 4, 2000
Page

CONCLUSION

Please return one approved copy of this letter to Health Services and Public Works.

Respectfully submitted,

HARRY W. STONE MARK FINUCANE
Director of Public Works Director of Health Services

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cc: Chief Administrative Officer

Department of Public Social Services (GAIN Program)

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