HomeMy WebLinkAbout2009/12/08 Item 6
CITY COUNCIL
AGENDA STATEMENT
~If~ CITYOF
.~ (HULA VISTA
12/08/09, Item~
ITEM TITLE:
RESOLUTION OF THE CITY COUNClL OF THE CITY OF CHULA
VISTA APPROVING THE FIRST AME0.TDMENT TO THE
DESIGN/BUILD AGREEMENT WITH ERICKSON-HALL
CONSTRUCTION CO. FOR THE DESIGN AND CONSTRUCTION
OF ALL SEASONS PARK (CIP NO. PR279) TO REVISE THE
GUARANTEED M~,{IMUM PRIC%~
DIRECTOR OF PUBLIC WORKf'J}'
CITY MANAGER~
ASSIST ANT CIT~- a:NAGER ,,>--r
4/STHS VOTE: YES D NO [g]
SUBMITTED BY:
REVIEWED BY:
SUMMARY
The City Council previously approved crp Project No. PR279 and the Master Plan for All
Seasons Park, which conceptually designed and provided for the construction of a completed and
fully functional 7.6-acre parle On May 15, 2007, 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 $2,015,343 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 $2,499,438.
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 the previously adopted Village Seven Sectional Planning Area Plan
and Tentative Maps Final Environmental Impact Report (EIR #04-06). Thus, no further
environmental review or documentation is necessary.
RECOMMENDATION
Council approve the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
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12/8/09, Item~
Page 2 of 4
DISCUSSION
On May 15, 2007, City Council approved an agreement with Erickson-Hall Construction Co. by
Resolution 2007-114 for the services required to design and construct a completed and fully
functional 7.6-acre, All Seasons 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 $2,015,343
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 not-
to-exceed amount in the original agreement.
PROJECT SCOPE A1~ CONTRACTUAL REOUIREMENTS
The Design-Build Agreement with Erickson-Hall Construction Co. provides the City with a fully
functional All Seasons Park including the facilities and site work required to provide park service
to residents of that 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 $2,499,438 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 GMP was estimated at $2.9 million in 2007, slightly higher than the original $2.4 million
budget. The increase in the GMP was the 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 optimistic when it came to actual
construction/management costs whereby the scope of work exceeded the budget.
Over the past two years, the Design Build Team (DBT) created a value-engineered scope that
was near or at the original budget of $2.4 million, 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 $2.499M. By doing this, the City will realize a much nicer, programmable
park while maintaining the original scope of work. In addition, moving forward now will provide
the City with an opportunity to utilize current financial advantages in construction bids.
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12/8/09, Item~
Page 3 of 4
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
reviscd Final Completion datc 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 thc 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 not- to-exceed amount, 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.
CHAt"JGE ORDERS
Under the design/build process, change orders are handled differently than under the
design/bid/build 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 design/build 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.
CURRENT FISCAL IMPACT
PROJECT COSTS
GMP $2,499,438
Master Plan $50,000 paid from ACI90 (00861-2751) - complcted
City Staff Costs, Consultant and Oversight $175,000
(including geotech/special inspections)
Utilities $125,000
City Contingency $75,562
FF&E $25,000
TOTAL PROJECT COSTS $2,879,438
PROJECT FUNDS
Budgeted Amount thru FY 1 0- Park Acquisition and Development Funds $2,449,459
Anticipated FYII Appropriation $450,541
TOTAL PROJECT FUNDS 52,900,000
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12/8/09, Item~
Page 4 of 4
Erickson-Hall Construction Co. has requested the GMP be set at $2,499,438. 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 $2,900,000.
Approval of tonight's 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 All Seasons Park (CIP PR279) located south of Birch Road, west of
SR-125, east of La Media Road (within the Otay Ranch Village Seven Subdivision) and
authorize the Mayor to execute said amendment.
ON GOING FISCAL IMPACT
Upon completion of All Seasons, the City will incur additional park maintenance costs of
approximately $11,400 per acre/year for a total of $86,640 for 7.6 acres. These costs will be
included in the fiscal year 2011-12 general fund budget which may result in budgetary tradeoffs
in the future or reduced park maintenance services.
Given the current economic picture, the City will not likely be able to add additional personnel to
maintain the park in the near future but will manage as best as possible with the limited resources
available. Prior to acquiring additional acreage to maintain (approximately 26 acres which
includes San Miguel Ranch Community Park and All Seasons), staff reductions are over 20%.
To assist in mitigating staffing deficiencies, efficiency measures are in place and will be realized
such as use of new equipment, scheduling changes, etc.
ATTACHMENTS
Attachment I - Revised Exhibit 2, Design Build Fee Structure
Exhibit A - First Amendment to the Design Build Agreement
Prepared by: Merce LeClair, Sr. Management Analyst Public Works Dep
Gordon Day, Sr. Building Project Manager, Public Works Dept.
IIEngineerIA GENDA ICAS2009\12-08-09IAIl Seasons First Amdmt Agenda Draft. doc
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GMP Cost of Construction
All Seasons Park
All Seasons Park - GMP Construction Costs
1. GMP Construction Budget ~ including 5% contingency
2. General Conditions - 8 Months
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%
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
Civil Engineering/SWPPP
Tapa Verification of Existing Site - Budget
A/E Building/Site Lighting Design Fees
Landscape Design I Construction Documents
Update City Provided Geotechnical Report
Update Structural to new Code (Davy)
Re-design as Requested By City (Davy, Cherry, DPA,EHCC)
8. Off-site engineering I design - not included
9. Reimbursables - Budget
Total GMP Design & Build Cost
10. Cost of bond premium - sliding scale
First $500,000 - $12.00 per 1,000
Premium over $500,000 - $8.00 per 1,000
11 Insurance
12. Building/Utility/Site Fees (by owner)
13. Testing and Inspections (Included in Hard Cost)
14. City staffing! Inspections (by owner)
Total GMP 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 above)
Total Design Fees, Pre-Const. Fees and General Conditions
November 19, 2009
$ 1,907,648
$ 208,000
$ 2,115,648
$ 100,000
S 30,000
$ 33,861
$ 2,279,509
$ 20,000
S 9,596
$ 30,500
$ 6,500
$ 17,500
$ 59,294
$ 6,000
S 2,150
$ 16,775
$
S 20,000
$ 2,467,824
$ 6,000
$ 15,743
$ 9,871
$
S
$
$ 2.499,438
$ 208,000
$ 188,315
$ 396,315
Erickson-Hall Construction Co.
November 19, 2009
6-5
ATTACHMENT I
b-K HI f3 II It-
First Amendment to
the DesignfBuild Agreement between the City of Chula Vista
and Erickson-Hall Construction Co.
For Design and Construction of All Seasons Park
This First Amendment is made and entered into this 8th day of December 2009 by and
between the City of Chula Vista ("City"), a municipal corporation, and Erickson-Hall
Construction Co. ("Design Builder or D/B"). City and Design Builder are sometimes
referred to as Parties ("Parties")
RECIT ALS
WHEREAS, the City and D/B entered into an agreement ("Original Agreement") dated
May 15,2007 and approved by City Council Resolution 2007-114, whereby D/B agreed
to provide design and construction services to the City for the construction of a fully
functional park, All Seasons Park CProject"), including the facilities and site-work; and
WHEREAS, pursuant to the Original Agreement, the guaranteed maximum price
CGMP") was not to exceed $2,015,343; and
WHEREAS, after design of the Project, the actual GMP, as determined at the 90%
construction drawing stage, will not exceed $2,499,438; and
WHEREAS, 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 GMP to
$2,499,438 for a fully functional All Seasons 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 D/B' subsection 1.3.1, in the
sixth line of the paragraph, delete "$349,459" and replace with "$396,315".
2. Section I: General Scope of Work to be Performed bv D/B' subsection 1.3.2, delete
"June 27, 2008" and replace with "twelve (12) months after the City-issued Notice to
Proceed".
I
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3. Section I: General Scope of Work to be Performed by DIB, subsection 1.3.3, delete
"July 31, 2008" and replace with "thirty (30) calendar days after "Substantial
Completion" (as defined in 9 I 6.1)".
4. Section II: Insurance, subsection 11.3.1.5, Builder's Risk Property Insurance, in the
ninth line of the paragraph, delete "$2,000,000 million" and replace with "2,500,000".
5. Section II: 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 I I: Insurance, subsection 1104. I .5, delete "$2,000,000" and replace with
"$2,500,000".
7. Section 13: DIB GMP for Services and Reimbursements, subsection 13.1. I, in the first
line of the paragraph, delete "$2,015,343" and replace with "$2,499,438".
8. Section 13: DIB GMP for Services and Reimbursements, subsection 13. I.1, in the
second line of the paragraph, delete "$349,459" and replace with "396,315".
9. Section 13: DIB GMP for Services and Reimbursements, subsection 13.2, in the fifth
line of the paragraph, delete "$182,000" and replace with "$208,000".
10. Section 13: DIB GMP for Services and Reimbursements, subsection 13.2, in the fifth
line of the paragraph, delete "$ 167,459" and replace with "$188,3 I 5".
11. Section 13: D/B GMP for Services and Reimbursements, subsection 13.2, in the sixth
line of the paragraph, delete "$349,549", in both places in that sixth line, and replace with
"$396,3 I 5", 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 PAGE]
7
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Signature Page to
First Amendment to
the DesignfBuild Agreement between the City of Chula Vista
and Erickson-Hall Construction Co.
For Design and Construction of All Seasons Park
City ofChula Vista
Erickson-Hall Construction Co.
By:
Name:
Title:
~J"
----
By:
Cheryl Cox
Mayor
Mi...l,a<!11:r::1l
Chief Ooeratlng Officer
ErtcI<&<Jn-H..q eonstruclion CO.
Date:
ATTEST:
Donna Norris, CMC
City Clerk
Approved as to form:
Bart Miesfeld
City Attorney
J:\General Services\GS Administration\Council Agendu\A11 Seasons Park\A1I Seasons Amendment and Sig Page Draft.doc
3
6-8
RESOLUTION 2009-
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 ALL SEASONS PARK (CIP NO. PR279)
TO REVISE THE GUARANTEED MAXIMUM PRICE
WHEREAS, on May 15, 2007, by Resolution 2007-114, City Council approved an
agreement with Erickson-Hall Construction Co. for the services required to design and construct
a completed and fully functional 7.6-acre, All Seasons Park; and
WHEREAS, as part of that agreement, a Guaranteed Ma'{imum 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; and
WHEREAS, a not-to-exceed amount of $2,015,343 for the park was established based
upon rough schematic drawings in the Design Build agreement; and
WHEREAS 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 not-
to-exceed amount in the original agreement; and
WHEREAS, the First Amendment to the Design Build Agreement between the City of
Chula Vista and Erickson-Hall Construction Co. will include setting the GMP at $2,499,438
which includes the revised Design Fees and General Conditions costs consistent with the project
cost 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; and
WHEREAS, 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 whereby the scope of work exceeded the budget; and
WHEREAS, 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.
6-9
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve the First Amendment to the Design/Build Agreement with Erickson-
Hall Construction Co. for the Design and Construction of All Seasons Park (CIP No. PR27 0
revise the guaranteed maximum price.
Richard A. Hopkins
Director of Public Works
Presented by
6-10
THE A TT ACHED 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
_.~--
Dated: /1_1 ()? /00;
J J
FIRST AMENDMENT TO
THE DESIGN BUILD AGREEMENT
BETWEEN
THE CITY OF CHULA VISTA AND
ERICKSON-HALL CONSTRUCTION CO.
FOR DESIGN AND CONSTRUCTION OF
ALL SEASONS PARK
.
,
':'
6-11
~_, _.........,'"'~,~...-,~-k-.."..,-....,...,'~."-..-
First Amendment to
thc DesignfBuild Agreement between the City of Chtila Vista
and Erickson-Hall Construction Co.
For Dcsign and Construction of All Seasons Park
This First Amendment is made and entered into this 8th day of December 2009 by and
between the City of Chula Vista ("City"), a municipal corporation, and Erickson-Hall
Construction Co. ("Design Builder or D/B"). City and Design Builder are sometimes
referred to as Parties ("Parties")
RECIT ALS
WHEREAS, the City and D/B entered into an agreement ("Original Agreement") dated
May 15,2007 and approved by City Council Resolution 2007-114, whereby DfB agreed
to provide design and construction services to the City for the construction of a fully
functional park, All Seasons Park ("Project"), including the facilities and site-work; and
WHEREAS, pursuant to the Original Agreement, the guaranteed maxim'um price
("GMP") was not to exceed $2,015,343; and
WHEREAS, after design of the Project, the actual GMP, as determined at the 90%
construction drawing stage, will not exceed $2,499,438; and
WHEREAS, 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
$2,499,438 for a fully functional All Seasons 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 I: General Scope of Work to be Performed by DfB, subsection 1.3. I, in the
sixth line of the paragraph, delete "$349,459" and replace with "$396,315".
2. Section 1: General Scope of Work to be Performed by D/B, subsection 1.3.2, delete
"June 27, 2008" and replace with "twelve (12) months after the City-issued Notice to
Proceed" .
I
6-12
3. Section I: General Scope of Work to be Performed bv DIB, subsection 1.3.3, delete
"July 31, 2008" and replace with "thirty (30) calendar days after "Substantial
Completion" (as defined in 916.1)".
4. Section II: Insurance, subsection 11.3.1.5, Builder's Risk Property Insurance, in the
ninth line of the paragraph, delete "$2,000,000 million" and replace with "2,500,000".
5. Section II: 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 II: Insurance, subsection 11.4.1.5, delete "$2,000,000" and replace with
"$2,500,000".
7. Section 13: D/B GMP for Services and Reimbursements, subsection 13.1.1, in the first
line of the paragraph, delete "$2,015,343" and replace with "$2,499,438".
8. Section 13: DIB GMP for Services and Reimbursements, subsection 13.1.1, in the
second line of the paragraph, delete "$349,459" and replace with "396,315".
9. Section 13: D/B GMP for Services and Reimbursements, subsection 13.2, in the fifth
line of the paragraph, delete "$182,000" and replace with "$208,000".
10. Section 13: DIB GMP for Services and Reimbursements, subsection 13.2, in the fifth
line of the paragraph, delete "$167,459" and replace with "$188,315".
II. Section 13: DIB GMP for Services and Reimbursements, subsection 13.2, in the sixth
line of the paragraph, delete "$349,549", in both places in that sixth line, and replace with
"$396,315", 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 PAGE]
2
6-13
Signature Page to
First Amendment to
the DesignlBuild Agreement between the City of Chula Vista
and Erickson-Hall Construction Co.
For Design and Construction of All Seasons Park
City of Chula Vista
Erickson-Hall Construction Co.
By:
Name:
Title:
~1
~
By:
Cheryl Cox
Mayor
M;,J'<Jd1 lall
Chief Ooerating omcer
~H Construction eo.
Date:
ATTEST:
Donna Norris, CMC
City Clerk
Approved as to form:
Bart Miesfeld
City Attorney
J:\General Services\GS Administration\Council Agenda\AlI Seasons Park\All Seasons Amendment and Sig Page Draft,doc
3
6-14