The URL can be used to link to this page

Home My WebLink About10-09-14 Civic Center PSA-At-Risk-CW Driver GMP #2CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. September 14, 2010 I[ 0�:[ 0 L4[ 07: 7_\: 34:8JiUf fir e]: LVI oil �LIWYAiI :IA:We]aI.I:9y1WYK0111►[yl11111 FROM: Public Works Department Stephen Badum - sbadum @newportbeachca.gov 949 - 644 -3311 SUBJECT: NEWPORT BEACH CIVIC CENTER PROJECT: PARKING STRUCTURE, GUARANTEED MAXIMUM PRICE (GMP), PHASE TWO ISSUE: Staff is requesting the approval and funding of the next phase of the Newport Beach Civic Center Project which includes the design and construction of a Parking Structure. RECOMMENDATIONS: 1) Approve an amendment to the Construction Manager At Risk Contract with C.W. Driver, Irvine, California, amending the Guaranteed Maximum Price (GMP) to add the design and construction of the parking structure and miscellaneous items of work (GMP #2) for the Newport Beach Civic Center project at a not -to- exceed price of $7,426,853 and authorize the Mayor and City Clerk to execute the contract. 2) Establish a budget of 5% of GMP #2 ($350,000) as the City's contingency for unforeseen costs and authorize the Public Works Director and City Manager execute change orders upon concurrence by the City Council Building Committee. 3) Approve Budget Amendment No. 11BA -- appropriating $7,776,853 from the Major Facilities Master Plan Fund to Newport Beach Civic Center Project Account No. 7410- C1002009. DISCUSSION: The following bids were received from prequalified contractors for the Newport Beach Civic Center parking structure: Prequalified Design Assist / Build Contractors Amount Bomel Construction $6,367,000 McCarthy Builders $6,713,000 ARB Structures $6,894,361 Preliminary Estimate — Design Development Phase (4/27/10) $8,018,500 Preliminary Estimate — Schematic Design Phase (11/10/09 ) - normalized' $11,021,000 Newport Beach Civic Center Project Parking Structure, GMP Phase 2 September 14, 2010 Page 2 As shown by the above table, the City has benefitted from the current downward trend in construction costs: • Parking Structure. The lowest bid received was almost $2 million (about 20 %) less than our April 2010 estimates. The initial, preliminary estimates for the structure were set at $11 million back in November 2009 ('normalized to delete the Shoring Wall, which was later considered part of the "Mass Ex" package). • Mass Excavation and Shoring Wall. This contract, let in April 2010, secured savings of almost $1 million (about 12 %) from initial estimates. On April 27, 2010, the City Council approved a Construction Manager at Risk Contract with C.W. Driver in the amount of $14,617,374 with included general conditions for the entire project ($7,169,255); mass excavation and shoring construction (GMP #1, $6,726,574); direct expenses for the GMP #1($265,412); and the project fee for GMP #1 ($456,133). Additionally, a City contingency was approved in the amount of $673,000 bringing the total cost to $15,290,374. In an effort to expedite the project, the City elected to start the early phases of the project such as grading and the construction of the parking structure in advance of the final design completion of the parks, City Hall building, and Central Library Expansion. To accomplish this goal, the City Council entered into a phased Construction Manager at Risk (CM @R) contract with C.W. Driver. To review, the current contract is broken down into four components. Basic Services / General Conditions. The first component is the basic services or general conditions. These include the fixed costs for the construction field office (including construction trailers, office equipment, portable restrooms, copiers, computers, telephone and equipment) and the necessary personnel to staff the project (including superintendent, inspection and support staff). The work scope included in basic services includes: • Managing the public bidding and award process in full compliance with the California Public Contract Code. • Providing full and complete construction administration, coordination and construction observation services during and following construction, including but not limited to the following: :• Onsite administration and management Project and construction cost management ❖ Quality assurance, inspection, and quality control ❖ Coordinate with the City's Building Inspectors ❖ Dispute resolution ❖ Submittal coordination Management of Requests for Information (RFI) ❖ Change order review and negotiations ❖ Manage construction materials testing, and specialty inspection services Newport Beach Civic Center Project Parking Structure, GMP Phase 2 September 14, 2010 Page 3 ❖ Provide schedule analysis and continuous updates ❖ Manage project close -out, including assuring the A &E team provides complete record (As- Built) drawings Construction punch -list management and completion ❖ Manage substantial and final completion processes, and project acceptance. ❖ Compile program warranties ❖ Deliver operations and maintenance manuals ❖ Coordinate the installation of FF &E and move -in activities Manage final payment and project closeout for all consultants and contractors under direct contract with the City ❖ Coordinate warranty work for a period of up to one year. The Basic Services, based upon the current project schedule for the entire project, are estimated at a not -to- exceed cost of $7,169,255. Basic Services are billed monthly on a time and material basis at the agreed rates as shown on Exhibit A of the CM @R contract. City Council approved these costs as a part of the original contract with C.W. Driver on April 27, 2010 and no adjustments are proposed for GMP #2. Construction Costs / GMP. The second component of this contract is the actual cost of the construction work. The cost of the work is set as a Guaranteed Maximum Price (GMP). The GMP will include the actual bid plus a contingency. Under the CM @R project delivery method, C.W. Driver will bid out the various construction trade contracts in accordance with the Public Contract Code and oversight from the City Clerk. The City Council will then approve the expenditure and accept C.W. Driver's GMP proposal for the work. C.W. Driver will then be responsible for delivering all work and construction included in the approved work scope for the maximum cost stated in the GMP. Any costs exceeding the GMP will be borne by C.W. Driver. Any savings under the GMP will be shared by the City and C.W. Driver. The City will receive 75% of any savings and C.W. Driver will receive 25% of any savings as an incentive to reduce overall costs. The first phase of the project, the Mass Excavation and Shoring Construction Phase (GMP #1), is already underway. The second phase of the GMP is the Design Assist/Build for the parking structure and miscellaneous items of work. This phase (GMP #2) will design and construct a 450 - space, mechanically vented parking structure. On June 21, 2010, the City Clerk oversaw the public opening of the sealed proposals for this phase of the work. Upon scoring of these proposals, the top three firms, Bomel Construction, McCarthy Builders, and ARB Structures were invited to meet with the design team, City staff, BCJ and C.W. Driver, to discuss cost - saving proposals and alternative construction. The design team revised the bridging documents to incorporate the desired proposals and alternative designs and asked each firm to submit a bid based upon the revised bridging documents. A summary of those bids is attached for Council review. C.W. Driver has compiled GMP #2 which includes the lowest bid from Bomel Construction ($6,637,858), the relocation fiber optic cable that was discovered during Newport Beach Civic Center Project Parking Structure, GMP Phase 2 September 14, 2010 Page 4 the grading operation ($42,630) and incidental work items for a total of $6,721,558. A breakdown of the project components is listed in exhibit A. Subsequent GMP phases will include a third phase for the City Hall, library expansion, and park improvements. Upon City Council approval, Bomel will complete parking structure plans and specifications; submit and obtain a building permit; and construct the parking structure. Direct Expenses. The third component is the Direct Expenses which include the direct costs for bond premiums; field office expenses such as equipment and supplies; general liability insurance; and additional services as requested by the City. Direct expenses will include known costs and allowances for variable items. The Direct Expenses for the Parking Structure Design Assist and Construction Phase (GMP #2) total $137,757 including general liability insurance cost of $64,224 and an allowance for bonds and expenses at $73,533. Construction Management Fee / Profit. The fourth component is the project fees for managing the construction. These construction management fees represent the markup, overhead, and profit. The Basic Services, Direct Expenses, and GMP represent actual costs without any markups, overhead or profit. The rate for the construction management fee is set at 3.25% for the entire project. The maximum construction management fee for this phase of work (GMP #2) is calculated at $231,460. The actual amount paid to C.W. Driver is based upon actual work completed (i.e., the amount could be less if the construction contingency is not spent). More about Contingencies. There are typically two contingencies in a project like this — a "Construction Contingency," for unforeseen changes that arise during actual construction. For the parking structure, this is set at 5% of the bid. There also is an "Owner's Contingency" that the City can use if needed to add elements to the project if it so chose. For the parking structure, this is also set at 5% of the bid. The following chart shows more: Parking Structure Contingencies The total cost of the proposed amendment GMP #2, Parking Structure Design Assist/Build is $7,426,854. To provide for potential unforeseen costs, staff recommends that a contingency of $350,000 (5 %) be established. Unforeseen costs may include delay and recovery costs should we discover changed foundation conditions and delays due to environmental or weather conditions. Staff also proposes that any adjustments to the CM @R contract compensation be authorized by the Public Works Director and City Manager with concurrence by the City Council Building Committee. With the approval of GMP #2, the total cost allocated to the project to date How much is City eligible to get if saved? Bid Price Bomel $6,721,558 Construction Contingency $350,000 $262,500 75% Owner's Contingency $350,000 $350,000 (100 %) The total cost of the proposed amendment GMP #2, Parking Structure Design Assist/Build is $7,426,854. To provide for potential unforeseen costs, staff recommends that a contingency of $350,000 (5 %) be established. Unforeseen costs may include delay and recovery costs should we discover changed foundation conditions and delays due to environmental or weather conditions. Staff also proposes that any adjustments to the CM @R contract compensation be authorized by the Public Works Director and City Manager with concurrence by the City Council Building Committee. With the approval of GMP #2, the total cost allocated to the project to date Newport Beach Civic Center Project Parking Structure, GMP Phase 2 September 14, 2010 Page 5 is $23,067,227. The following chart lists the various components of the project costs including construction and owner's contingencies. Construction Manager at Risk Costs to date Amount General Conditions /Basic Services (for all phases of the Project) $ 7,169,255 GMP #1 -Mass Excavation & Shoring Construction includes 8% construction contingency) 6,726,574 Direct Expenses (GMP #1) 265,412 Construction Management Fee (GMP #1) 456,133 Subtotal $7,448,119 Owner's Contingency GMP #1 (10 %) 673,000 GMP #1, Subtotal $8,121,119 GMP #2 Parking Structure Design Assist/Build (includes 5% construction contingency) $7,057,636 Direct Expenses (GMP #2) 137,757 Construction Management Fee (GMP #2) 231,460 Subtotal $7,426,853 Owner's Contingency GMP #2 (5 %) 350,000 GMP #2, Subtotal $7,776,853 Project Total to date $23,067,227 ENVIRONMENTAL REVIEW: CM @R services are not projects as defined in the California Environmental Quality Act (CEQA) Implementing Guidelines. An EIR for the Newport Beach Civic Center Project was certified by City Council in November 2009. Newport Beach Civic Center Project Parking Structure, GMP Phase 2 September 14, 2010 Page 6 1111 \IQIZ"IX17-11IA_1:1IIIes With the approval of the recommended budget amendment in the amount of $7,776,853 sufficient funds are available in the following account: Account Description Newport Beach Civic Center Submitted by: Stephen G. Badum Public Works Director Account Number Amount 7410- C1002009 $ 7,776,853 Attachments: Amendment to PSA with C.W. Driver, including work scope, schedule and fee exhibits CM @R contract with C.W. Driver — GMP Breakdown Budget Amendment