HomeMy WebLinkAbout2008/10/07 Item 5
CITY COUNCIL
AGENDA STATEMENT
~f:.. CITY OF
'=l:~~~ CHULA VISTA
10/07/08, Iteml
SUBMITTED BY:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE FIRST AMENDMENT TO THE
DESIGN/BUILD AGREEMENT WITH ERICKSON-HALL
CONSTRUCTION CO. FOR THE DESIGN AND CONSTRUCTION
OF MT. SAN MIGUEL COMMUNITY PARK TO REVISE THE
GUARANTEED MAXIMUM PRICE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FISCAL YEAR 2008/2009 CIP
PROGRAM AND APPROPRIATING $7,769,399 FROM THE
AVAILABLE PARK ACQUISITION AND DEVELOPMENT (PAD)
FUND BALANCE TO EXISTING CAPITAL IMPROVEMENT
PROJECT, MOUNT SAN MIGUEL COMMUNITY PARK (CIP
PR260) TO COMPLETE THE PROJECT
DIRECTOR OF ENGINE~
INTERIM CITY MANAGER "7-;-
4/5THS VOTE: YES [gJ NO 0
ITEM TITLE:
REVIEWED BY:
SUMMARY
The City Council previously approved CIP Project No. PR260 and the Master Plan for Mount
San Miguel Community Park, which conceptually designed and provided for the construction of
a completed and fully functional 19-acre park On September 19, 2006, Council approved a
Design Build Agreement with Erickson-Hall Construction Co. for this park The Design Build
Agreement contained a not-to-exceed price of$5,841,067 with the GMP to be set upon receipt of
90% construction drawings. The project is nearing the end of the design phase and ready to start
the construction phase. Tonight's first resolution will approve the first amendment that will set
the Guaranteed Maximum Price (GMP) at $8,688,462. In addition, the second resolution will
amend the Fiscal Year 2008/09 CIP Program and approve the appropriation of$7,769,399 to the
existing CIP PR260 for said purpose.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance with
the California Environmental Quality Act (CEQA) and has determined that the proposed project
was adequately covered in previously adopted San Miguel Ranch Sectional Planning Area (SPA)
Plan and Subsequent Tentative Map Final Environmental Impact Report 97-02 (EIR 97-02) and
associated Addendum. Thus, no further environmental review or documentation is necessary.
5-1
10/07/08, Item2
Page 2 of 4
RECOMMENDATION
Council approve the resolutions.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
On September 19, 2006, City Council approved an agreement with Erickson-Hall Construction
Co. by Resolution 2006-290 for the services required to design and construct a completed and
fully functional 19-acre, Mount San Miguel Community Park. As part of that agreement, a
Guaranteed Maximum Price (GMP) is to be established at 90% construction documents, which
would include, but not be limited to, the cost for all labor, equipment, and material to design and
build a fully functional park in accordance with all applicable building codes. A not-to-exceed
amount of$5,841,067 for the park was established based upon rough schematic drawings in the
Design Build agreement. As the design progressed and some of the complexities of this project
became known, .the actual GMP as determined at the 90% construction drawing stage exceeded
the noHo-exceed amount in the original agreement.
PROJECT SCOPE AND CONTRACTUAL REOUIREMENTS
The Design-Build Agreement with Erickson-Hall Construction Co. provides the City with a fully
functional Mount San Miguel Community Park including the facilities and site work required to
provide park service to residents ofthat community as well as other residents of the City.
The First Amendment (Exhibit A) to the Design Build Agreement between the City of Chula
Vista and Erickson-Hall Construction Co. will include setting the GMP at $8,688,462 which
includes the revised Design Fees and General Conditions costs consistent with the project cost
(Attachment I) and revise the statement for Substantial and Final Completion dates. The GMP
shall include all design and construction services to complete a fully functional park. The GMP
is higher than the not-to-exceed amount in the original agreement due to the process of refining
the various project elements. Staff has made every effort in value engineering the project and
concurs with the Design Builder's GMP amount.
The increase in the GMP is a result of two-year project delay, unanticipated site conditions,
increases in the price of fuel and materials, new environmental guidelines, as well as a master
plan which at the time (2004) was overly optimistic when it came to actual
construction/management costs wher~by the scope of work exceeded the budget. Based on the
City's financial condition and proposed budget reductions, the City Manager asked that
construction of the park be delayed until the City was in a better financial condition to handle the
operating costs of the park. In that two-year delay, the price of fuel and materials increased as a
result of the current downturn in the economy and new environmental guidelines regarding
(Stormwater Prevention Pollution Program) SWPPP regulations and permanent Best
Management Practices (BMPs) which had to be incorporated to meet the new guidelines. In
addition, unanticipated soil and rock conditions provided for geotechnical challenges and the
relocation of existing utilities contributed to the cost of design and construction.
5-2
10/07/08, ltem2
Page 3 of 4
As Council may recall, the original GMP was set in 2006. Over the past two years, the Design
Build Team (DBT) created a value-engineered scope that was near or at the original budget of
$5.8M, which resulted in a significantly reduced scope. This severely impacted the
programming of the Park and was unacceptable. At that point in time, staff directed the DBT to
include all the scope of work in the master plan and value-engineer items that did not impact the
original scope, which has brought us to where we are today with a GMP of$8.7M. By doing this,
the City will realize a much nicer, programmable park while maintaining the original scope of
work.
It should be noted that although the GMP has increased, in comparison to a recently completed
Design Build Community Park, Salt Creek, the estimated cost per acre for Mt. San Miguel Park
is an increase of approximately 10%. Calculated as follows: Actual Park Costs (Salt Creek)
$381,000/acre vs. Estimated Cosntruction Park Costs (Mt. San Miguel Community Park)
$420,000/acre. This increase is reasonable based on the items described above.
The Substantial and Final completion dates will be amended to include the revised Substantial
Completion date of "no later than twelve (12) months after the Notice to Proceed" and the
revised Final Completion date of no later than thirty (30) calendar days from Substantial
Completion.
The total cost of the project and GMP exceed the amount set forth in the Design Build
Agreement as the amount not- to-exceed cost of the project. At the time of the Design Build
Agreement, staff recommended an amount not-to-exceed that was less than the total budgeted
cost of the project. This is commonly done, as the costs of the project that are estimated at the
master plan level rarely remain consistent through the design process. By establishing a less than
budgeted amount not- to-exceed, staff is better able to focus the design builder on designing a
project that remains within our budgetary constraints. Staff felt it prudent at that time to
establish a conservative cost of the project and be able to respond to unexpected changes in
material costs. The final design of the project remains consistent with the adopted master plan.
CHANGE ORDERS
Under the designlbuild process, change orders are handled differently than under the
designlbidlbuild process. Change orders are only returned for Council approval if they exceed
the approved GMP, or are for additional work requested by City, which results in a significant
change to the original scope. Otherwise, change orders are reviewed/approved by staff and the
design builder. This practice is commonplace when using the designlbuild construction
technique.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found no property holdings
within 500 feet of the boundaries of the property which is the subject of this action.
5-3
10/07/08, Item--5-
Page 4 of 4
FISCAL IMP ACT
PROJECT COSTS
GMP $8,688,462
Master Plan (complete) $96,245
Land Purchase (complete, approved by Reso 2008-164) $350,000
City Staff Costs, Consultant and Oversight
(including geotech/special inspections) $400,000
Utilities $350,000
City Contingency $200,000
FF&E $10,000
TOTAL PROJECT COSTS $10,094,707
PROJECT FUNDS
Existing Appropriation $1,190,386
San Miguel Ranch CFD 2001-1 $1,134,922
Additional Appropriation (PAD Funds) $7,769,399
TOT AL PROJECT FUNDS $10,094,707
Erickson-Hall Construction Co. has requested the GMP be set at $8,688,462. The GMP
includes, but is not limited to, design services, general conditions, insurance, bonds, construction
management, the cost for all labor, equipment, and material to design and build a fully functional
park in accordance with all applicable building codes. ;The total project cost is $10,094,707.
Approval of tonight's first resolution will approve the first amendment to the agreement with
Erickson-Hall Construction Co. to incorporate the Guaranteed Maximum Price (GMP) for the
design and construction of Mount San Miguel Community Park (CIF PR260) located in the San
Miguel Ranch Neighborhood in Eastern Chula Vista and authorize the Mayor to execute said
amendment. In addition, tonight's second resolution will authorize amending the Fiscal Year
2008/09 Capital Improvement Program and appropriate $7,769,399 from the available PAD fund
balance to Mount San Miguel Community Park (CIF PR260). Project funding in the amount of
$1,134,922 will be paid directly from the Community Facilities District (CFD) 2001-1 identified
as Improvement 15 which was established for this purpose.
An allowance of $100,000 is within the GMP to be used towards limited maintenance for one
year once a maintenance program has been agreed upon by staff and the Design Builder.
Thereafter, Public Works will acquire an annual on-going cost for the park of approximately
$11,904 per acre in FY 2010-11.
ATTACHMENTS
Attachment 1 - Revised Exhibit 2, Design Build Fee Structure
Exhibit A - First Amendment to the Design Build Agreement
Prepared by: Merce LeClair, Sr. Management Analyst, Engineering Dept. and Gordon Day, Sr. Building Project
Manager, Engineering Dept.
J:IGeneral ServiceslGS AdministrationlCouncil AgendaIMount San Miguel ParklSan Miguel GMP Al13 Final
093008 doc
5-4
Mt. San Miguel Community Park
GMP with VE and Maintenance Allowance
Mt. San Miguel Community Park - GMP incl VE and Maint
1. GMP Construction Budget - including 5% contingency
2. General Conditions -12 Months (11 months prior to GMP with VEl
3. Subtotal - Hard Construction Costs
4. Design/Builders Fee - sliding scale
Fee on first $1,000,000 of construction cost
Fee on next $500,000 over $1 ,000,000 - 6%
Fee on next $500,000 over $1,500,000 - 51/2%
Fee over $2,000,000 - 5%
5. Total - Preliminary Cost of Construction Estimate
Design and Pre-Construction Fees:
6. Preconstruction Services for Design/Builder - sliding scale
Preconstruction fee on first $1 ,000,000 of construction cost
Preconstruction fee on construction cost over $1 mil. - 3/4%
7. AlE Site Design Fees
Schematic Design
50% CD Design
100% CD Design
Final CD
Construction Administration
As-Built Preparation
Design Meetings
8. AlE Building Design Fees
9. Topo Verification of Existing Site Budget
9.1 Additional Topo survey authorized by City
9.2 Geotech report/geotech testing/materials testing by CTE
9.3 Additional CTE WQTR Report Requirements auth by City
9.4 Complete VE Design Allowance
10. Reimbursables Budget
Total Preliminary Design & Build Cost
11. Cost of bond premium - sliding scale
First $500,000 - $12.00 per 1,000
Premium over $500,000 - $8.00 per 1,000
12. Insurance
13. Building/Utility/Site Fees (by owner)
14. City staffing / Inspections (by owner)
15. Additional 1 yr Landscape Maintenance Allowance (Scope TDB)
Total Preliminary Project Cost
Design Fees, Pre-Construction Fees and GC Summary:
General Conditions (line item 2 above)
Design and Pre-Construction Fees (line items 6-9.4 above)
Total Design Fees, Pre-Canst. Fees and General Conditions
Erickson-Hall Construction Co.
Sept 30, 200
5-5
fl.TTACHMENT
I
GMP with VE
$ 7,249,813
$ 276,000
$ 7,525,813
$ 100,000
$ 30,000
$ 27,500
$ 276,291
$ 7,959,604
$ 20,000
$ 52,197
$ 14,650
$ 93,925
$ 70,580
$ 31,155
$ 39,998
$ 7,135
$ 9,040
$ 68,180
$ 5,000
$ 9,215
$ 65,000
$ 2,360
$ 25,000
$ 20,000
$ 8,493,038
$ 6,000
$ 63,944
$ 25,479
$
$
$ 100,000
$ 8,688,462
$ 276,000
$ 513,435
$ 789,435
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALL Y SIGNED UPON APPROVAL BY
THE CITY COUNCIL
-!h~~~O!5~ ~
Bart Mlesfeld II
Interim City Attorney
Dated:
lo/,/o'g
First Amendment to
the Design/Build Agreement between the City of Chula Vista
and Erickson-Hall Constru,ction Co.
. for Design and Construction of Mt. San Miguel Community Park
5-6
First Amendment to
the DesignlBuild Agreement between the City of Chula Vista
and Erickson-Hall Construction Co.
For Design and Construction of Mt. San Miguel Community Park
This First Amendment is made and entered into this 7th day of October, 2008 by and
between the City of Chula Vista ("City"), a mUIllcipal corporation, and Erickson-Hall
Construction Co. ("Design Builder or DiB"). City and Design Builder are sometimes
referred to as Parties ("Parties")
RECITALS
WHEREAS, the City and D/B entered into an agreement ("Original Agreement") dated
September 19, 2006 and approved by City Council Resolution 2006-290, whereby D/B
agreed to provide design and construction services to the City for the construction of a
fully functional park, Mt. San Miguel Community Park ("Project"), including the
facilities and site-work; and
WHEREAS, pursuant to the Original Agreement, the guaranteed maximum pnce
("OMP") was not to exceed $5,841,067; and
I'.'HEREAS, due to the complexities of the Project, the actual OMP, as determined at the
90% construction drawing stage, will exceed $5,841,067; and
VlHEREAS, D/B and City staff have value-engineered the Project to provide the best
product at the most effective price; and
WHEREAS the Parties desire to amend the Original Agreement to increase the OMP to
$8,688,462 for a fully functional Mt. San Miguel Community Park.
NOW, THEREFORE, in consideration of the Recitals and the mutual obligations of the
Parties as set forth in this First Amendment, the City and Design Builder agree as
follows:
AGREEMENT
1. Section 1: General Scope of Work to be Performed bv DiE. subsection 1.3.1, in the
sixth line of the paragraph, delete "$640,386" and replace \Vith "$789,435".
2. Section 1: General Scope of Work to be Performed by DiE. subsection 1.3.2, delete
"March 28, 2008" and replace with "rn'elve (12) months after the City-issued Notice to
Proceed" .
1
5-7
3. Section 1: Oeneral Scope of Work to be Performed bv DIB, subsection 1.3.3, delete
"June 28, 2008" and replace -with "thirty (30) calendar days after "Substantial
Completion" (as defined in S16.1)".
4. Section 11: Insurance. subsection 11.3.1.5, Builder's Risk PropertY Insurance, in the
ninth line of the paragraph, delete "$4,800,000 million" and replace with "7.9 million".
5. Section 11: Insurance. subsection 11.3.1.5, Builder's Risk Property Insurance, in the
third paragraph in this subsection, delete "$5,000" and replace with "$10,000".
6. Section 11: Insurance, subsection 11.4.1.5, delete "$4,800,000" and replace with "$7.9
Million".
7. Section 13: D/B OMP for Services and Reimbursements. subsection 13.1.1, in the first
line of the paragraph, delete "$5,841,067" and replace with "$8,688,462".
8. Section 13: DIB OMP for Services and Reimbursements, subsection 13.1.1, in the
second line of the paragraph, delete "$640,386" and replace with "789,435".
9. Section 13: DIB OMP for Services and Reimbursements, subsection 13.2, in the fifth
line of the paragraph, delete "$253,000" and replace -with "$276,000".
10. Section 13: DIB aMP for Services and Reimbursements, subsection 13.2, in the fifth
line of the paragraph, delete "$387,386" and replace with "$513,435".
11. Section 13: D/B OMP for Services and Reimbursements, subsection 13.2, in the sixth
line of the paragraph, delete "$640,386", in both places in that sixth line, and replace with
"$789,435", in both places in that sixth line.
12. Exhibit 2: Design Build Fee Structure, delete Exhibit 2, Design Build Fee Structure,
to the Original Agreement and replace with the attached Revised Exhibit 2, Design Build
Fee Structure.
All other terms of the Original Agreement shall remain in full force and effect.
[END OF PAGE. THE NEXT PAGE IS THE SIGNATURE PAGEl
2
5-8
Signature Page to
First Amendment to
the DesignlBuild Agreement between the City of Chula Vista
and Erickson-HaD Construction Co.
For Design and Construction ofMt. San Miguel Community Park
Cheryl Cox
Mayor
Erickson-Hall Construction Co.
~
Na.n1e: (.. VI.._I....a1
Title: . CHoI~OtI\Cer
,i. ..:... "'-- I Co.
By:
City of Chula Vista
By:
Date:
ATTEST:
Donna Norris, CMC
Interim City Clerk
Approved as to form:
Bart Miesfeld
Interim City Attorney
J:\General Services\GS Admil1istration\CouncH Agenda\Mount San Miguel Park\SMR Amendment and Sig Page Final 09300&.doc
3
5-9
RESOLUTION 2008-
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING THE FIRST
AMENDMENT TO THE DESIGN/BUILD
AGREEMENT WITH ERICKSON-HALL
CONSTRUCTION CO. FOR THE DESIGN AND
CONSTRUCTION OF MT. SAN MIGUEL
COM:YIUNlTY PARK TO REVISE THE
GUARANTEED MAXIMUM PRfCE
WH EREAS. on February In. 2004. pursuant to Resolution No 2004-044. the City
COllnci I approved the Final DI'an Master Plan for a 19-acre public community park site in the
San VIigucl Ranch subdivision; and
WHEREAS. on September 19, 2006, pursuant to Resolution No. 2006-290, the City
Council approved a Design/Build Agreement with Erickson-Hall Construction Co. for the design
and construction of Mt. San Miguel Community Park; and
WHEREAS, the Design/Build Agreement included a not-to-exceed price of $5.841,067
with the Guaranteed Maximum Price ("GMP") to be set upon receipt by the City of 90%
CO\lstrllctioll drav'v'ings; and
WHEREAS, Erickson-Hall Construction Co is nearing the end of the design phase and is
re;lcI v to stan the construction phase for the Park; and
WHEREAS, Erickson-Hall Construction Co. has requested that the GMP be set at
S8.!,88,4(,2 and that the dates for Substantial Completion and Final Completion be revised.
NOW. THEREFORE. BE [T RESOLVED by the City Council of the City of Chula Vista
that it approves the First Amendment to the Design/Build Agreement with Erickson-Hall
Construction Co. for the design and construction of Mt. San Miguel Community Park to revise
the (;uaranleed Maximum Price.
Presemed by:
Approved as to form by
. JiL,,-1L ~
Bali Miesfeld
Interim City Attorney
/
n~
{/
Richard A. Hopkins
Director of Engineering
IIT~:i r I ~ I-.I~ 1< I': L: \( lS RI.:~I\~~()()X ] (1-()7 -llk'}vlt \Jll IVI i~L1c1 Il'~1\ : I'c\i~cd hy' 'x .dnc
5-10
RESOLunON 2008-
REsownON OF THE C[TY COUNCfL OF THE
CITY OF CHULA VISTA AMENDrNG THE FISCAL
YEAR 2008/2009 CIP PROGRl\M AND
APPROPRIATING $7.769,399 FROM THE
AVAILABLE PARK ACQUISITION AND
DEVELOPMENT (PAD) FUND BALANCE TO
EXISTlNG CAP[TAL IMPROVEMENT PROJECT,
MOUNT SAN MIGUEL COMMUNITY PARK (CIP
PR260) TO COMPLETE THE PROJECT
WHEREAS. on Febl-uary 10, 2004. pursuant to Resolution No. 2004-044. the City
Council approved the Final Draft Master Plan for a 19-acre public community park site in the
San,\[ I"uel Ranch subdivision; and
WHEREAS. on September 19. 2006. pursuant to Resolution No. 2006-289. the City
Counci I e,;tabl ished a new Capital Improvement Project entitled "MoLll1t San Miguel Community
Park (PR260)"': and
WHEREAS. on September 19. 2006. pursuant to Resolution No. 2006-290. the City
Council approved a Design/Build Agreement with Erickson-Hall Construction Co. for the design
and construction of Mt. San Miguel Community Park; and
WH EREAS. the Design/Build Agreement contain'ed a not-to-exceed price of $5.841.067
with the GMP to be set upon receipt of90% construction drawings.
WHEREAS, Erickson-Hall Construction Co. has requested the GMP be set at
$8,rJ88,462; and
WHEREAS. the total project cost for Mt. San Miguel Community Park is $lO,094.707;
and
WHEREAS. staft- requests that $7.769.399 from the available Park Acquisition and
Development ("'PAD"') runci balance be appropriated to the Mount San Miguel Community Park
(CIP PR260) project.
5-11
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it amends the Fiscal Year 2008/2009 C1P Program and appropriates $7,769,399 from
avail,lble Park Acquisition and Development ("PAD") Fund balance to existing Capital
Improvement Project Mount San Miguel Community Park (CIP PR260) to complete the project
Presented by:
Approved as to fonn by
Richard A. Hopkins
Director of Engineering
Y-i'-o~_ t~ -01.-?~l ~
Bart Miesfeld / ?
Interim City Attomey
1--[: 1:\ i i I N F F I": I~ I~:,,( J."R<:~lls2(j(jX' 11l_()7 -():-\',v!t SJll rvl iO;lIel 1-<:Sl' :: r"evised hy ec.d\lc
5-12