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TO:
FROM
CITY OF
NEWPORT BEACH
City Council Staff Report
PREPARED BY:
APPROVED:
TITLE:
ABSTRACT:
Agenda Item No. 0
November 29, 2011
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Public Works Department
Stephen G. Badum, Public Works Director
949 - 644 -3311, sbadum(a)newportbeachca.gov
Stephen G. Badum, Public Works Director
Newport Beach Civic Center and Park Project — Proposed
Pedestrian Bridge over San Miguel Drive
The Pedestrian Bridge over San Miguel Drive was proposed as an alternative in the Civic
Center and Park Project. Due to cost concerns, the Council did not include this alternative in
the approved construction manager at risk contract with C.W. Driver on February 22, 2011.
As the project has progressed, the construction contingency has been used very sparingly
and it may be appropriate to revisit adding the pedestrian bridge alternative into the project
using contingency dollars to fund the construction. The cost of the pedestrian bridge is
$2,000,000.
RECOMMENDATIONS:
1) Authorize the Mayor and City Clerk to execute Amendment #3 to the
Construction Manager at Risk Contract with C.W. Driver of Irvine, California,
amending the Guaranteed Maximum Price (GMP) to add the construction of the
pedestrian bridge over San Miguel Drive to the scope of work for Civic Center
and Park Project at a not -to- exceed price of $2,000,000 subject to approval as to
form by the City Attorney.
2) Authorize the transfer of $1,000,000 from the Construction Manager at Risk
contract's construction contingency to the project's work scope and authorize a
change order from the City's owner contingency in the amount of $1,000,000.
Newport Beach Civic Center and Park Project — Proposed Pedestrian Bridge over San Miguel Drive
November 29, 2011
Page 2
FUNDING REQUIREMENTS:
Sufficient funds are available in the current GMP Construction contract contingency
($1,000,000) with C.W. Driver and the City's owner contingency ($1,000,000) (7410 -
C1002009) for the additional construction.
DISCUSSION:
Construction History and Status
On April 27, 2010, the City Council approved a Construction Manager at Risk Contract
(CM @R) with C.W. Driver that established the costs for the general conditions for the
entire project; authorized the export of soil, grading, and the construction of the parking
structure shoring wall; and set the cost of direct expenses and the project fee for this
phase. The export of approximately 300,000 cubic yards of soil has been successfully
exported off the project site. Rough grading is complete, topsoil has been stockpiled on
the site, and erosion control and water quality are in place and functioning as designed.
The parking structure shoring wall is also complete.
On September 14, 2010, City Council approved the second phase of the CM @R
(Amendment #1) which includes the design and construction for the parking structure
and miscellaneous items of work. This phase provided for the design and construction
of a 450 -space parking structure. The construction of the parking structure is 90%
complete with only the installation of lighting, stairways, and architectural fins remaining.
On February 22, 2011, City Council approved the third phase of the CM @R
(Amendment #2) which includes the remaining portions of the Civic Center project
including the City Hall Office building, Council Chambers, Community Room,
Emergency Command Center, Central Library Expansion, Civic Green, Central Park &
Wetlands, and the North Park & Dog Park to construct the project. As of this date, five
out of the six bays and the Community Room have their steel frames and roof structures
erected. Underground utility work for the Council Chambers is underway. The
installation of the second floor concrete deck and the roofing panels are continuing. A
new and upgraded electrical service and the temporary wall on the second floor of the
library is now complete and work on the addition will be proceeding in the coming
months. Park construction is underway as well, with retaining walls constructed and
footings for the wetlands bridges in place. As of October 31, 2011, the total cost of work
completed is $30,879,137 or approx. 30% of the total construction cost. The following
summary shows the breakdown for the project construction.
Newport Beach Civic Center and Park Project — Proposed Pedestrian Bridge over San Miguel Drive
November 29, 2011
Page 3
CM @R Contract
Scope
Amount
Original
General Conditions /Basic Services
$7,169,255
Original
GMP #1 — Mass Grading & Shoring Wall
$7,336,439
Amendment 1
GMP #2 — Parking Structure Design/Build
$7,426,853
Amendment 2
GMP #3 — City Hall, Library Addition & Park
$82,374,384
Total
$104,306,931
Continaencies
The CM @R contract, as shown above, includes $2,757,300 for construction contingencies.
To date, $585,146 of the construction contingency has been used leaving a balance of
$2,172,154. The City has its owner's contingency in the amount of $2,623,000 which is not
a part of the CM @R contract. To date, the City Council Building Committee has approved
only one change order for enhanced ADA Ramp improvements between the Library
Addition and Civic Green for $12,269. The balance of the Owner's contingency is
$2,610,731. Therefore, $4,782,884.00 remains in contingency accounts.
Most, but not all, of the construction phases where significant uncertainty exists (uncertainty
driven by risk of excavation issues, steel provision and construction, foundation installation,
utility connections, and more) and where that uncertainty could lead to significant use of
contingency are now nearly complete or fully vetted with our subcontractors. Staff and the
design team are confident that the project has passed through these critical periods
successfully and relatively unscathed. Looking forward, at least one other item remains
with cost - related uncertainty (installation of the glass curtain walls), but as that nears, the
construction management team's comfort grows.
In the event that Council thinks it appropriate to part with some of the contingency at this
point in time, the proposed action will add the construction of the San Miguel Pedestrian
Bridge to the work scope of the existing Civic Center and Park Project. The original Civic
Center and Park Plan included this pedestrian bridge to connect the North and Central
portions of the park as an alternative item. At the time of the contract approval, City Council
elected to defer the addition of the pedestrian bridge alternative with the plan to revisit this
decision if project savings and /or the preservation of the construction contingencies could
be accomplished. As noted above, the City's and C.W. Driver's staff believe that this point
in the construction timeline would be the appropriate time to cost effectively add the
pedestrian bridge, if desired. In an effort to support the addition of the pedestrian bridge,
C.W. Driver has proposed that they utilize $1,000,000 from the construction contingency
within their GMP contract. The remaining balance of $1,000,000 would come from the City's
owner contingency.
C.W. Driver was incentivized to reduce costs by sharing (25% to Driver, 75 % to the City) of
left -over construction contingency. This proposal means that Driver would be "giving up" a
$250,000 share in potentially saved contingency. At the same time, Driver would also earn
$65,000 (3.25%) in construction management fee (same percentage as the rest of the GMP
Contract), so the net difference to Driver is a reduction in potential revenue of $185,000.
C.W. Driver is willing to offer this reduction to enable the City to complete the original vision
of the park design and to create jobs. The net cost to the City for the pedestrian bridge
Newport Beach Civic Center and Park Project — Proposed Pedestrian Bridge over San Miguel Drive
November 29, 2011
Page 4
would be $1,750,000. ($750,000 of foregone construction contingency savings, $l million of
the City's owner contingency).
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find the California Environmental Quality Act
( "CEQA ") is satisfied by the discussion in Environmental Impact Report No.
2009041010 for the City Hall and Park Development Plan. Specifically, the Project
Description for EIR No. 2009041010 included the San Miguel Pedestrian Bridge and the
environmental impacts for the San Miguel Pedestrian Bridge, if any, were analyzed in
EIR No. 2009041010 such that no further environmental is necessary or required at this
time.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
en G. Badum
:Works Director
CITY OF NEWPORT BEACH
CITY ATTORNEY'S OFFICE
DATE: November 29, 2011
TO: Honorable Mayor & Members of City Council
FROM: Leonie Mulvihill, Assistant City Attorney
MATTER: City Hall: CW Driver Contract
No.: A09 -00022
SUBJECT: Special Meeting November 29, 2011, Agenda Item 3 — Newport Beach
Civic Center and Park Project — Proposed Pedestrian Bridge Over
San Miguel Drive
Agenda Item 3 requests authority for the Mayor and City Clerk to execute Amendment No.
Three to the Construction Manager at Risk Contract with C.W. Driver, Inc.
Since the posting of the agenda, the City Attorney's Office prepared a draft of the
proposed Amendment No. Three, which is attached hereto as Attachment 1. If this item
is approved, a final draft of Amendment No. 3 will be prepared by the City Attorney's Office
and will be in substantially the same form as Attachment 1.
Submitte by:
Leonie Mulvihill
Assistant City Attorney
Attachment 1: Draft of Proposed Amendment No. Three
Late Communication to MBCC from LM 11.29.11 Mig
AMENDMENT NO. THREE TO CONSTRUCTION MANAGER AT RISK
CONTRACT WITH C.W. DRIVER, INC.
FOR
NEWPORT BEACH CIVIC CENTER AND PARK
GMP PHASE THREE (CIVIC CENTER BUILDING,
CENTRAL LIBRARY EXPANSION, PARK &
SAN MIGUEL PEDESTRIAN BRIDGE)
THIS AMENDMENT NO. THREE TO CONSTRUCTION MANAGER AT RISK
CONTRACT ( "Amendment No. Three "), is entered into as of this 29TH day of November,
2011, by and between the CITY OF NEWPORT BEACH, a California Municipal
Corporation ( "City"), and C.W. DRIVER, INC., a California Corporation whose address
Is 15615 Alton Parkway, Suite 150, Irvine, California 92618 ( "CM "), and is made with
reference to the following:
RECITALS:
A. On June 7, 2010, City and CM entered into a Construction Manager at Risk
Contract ("CM Contract ") for the Newport Beach Civic Center and park Project
( "Project").
B. On September 3, 2010, City and CM entered into Amendment No. One to the
CM Contract ( "Amendment No. One "), as contemplated in the CM Contract,
Article Six, Section 6.1.9(e), to add the Design Build 450 stall parking garage and
to increase the Guaranteed Maximum Price ( "GMP ").
C. On February 22, 2011, City and CM entered into Amendment No. Two to the CM
Contract ( "Amendment No. Two") for additional services not included in the CM
Contract or Amendment No. One, to add the construction of the City Hall Office
Building, Central Library Expansion, Parks and miscellaneous items of work for
the Newport Beach Civic Center, to increase the GMP by $82,374,384 for a total
GMP of $104,306,931; and, to update the insurance provisions consistent with
the City's election to Implement an Owner Controlled Insurance Program
("OCIP ").
D. City desires to enter into this Amendment No. Three to reflect the City's option to
construct the San Miguel Pedestrian Bridge as part of Phase Three as originally
contemplated in the CM Contract Article One, Section 1.3, the costs of which
were not previously included In the GMP.
E. The City desires to utilize $1,000,000.00 of the Owner's Contingency thereby
increasing the GMP to $105,306,931.00. CM desires to utilize $1,000,000.00 of
Construction Contingency to fund the costs of construction with no adjustment to
the GMP.
F. City and CM mutually desire to amend the Contract, as provided below.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. SCOPE OF WORK
City and CM acknowledge that the above Recitals are true and correct and are hereby
Incorporated herein by reference. Article Two of the CM Contract shall be
supplemented to include the Scope of Work dated , 2011, which is attached
hereto as Exhibit A, and incorporated herein by reference. The City may elect to delete
certain tasks of the Scope of Work at its sole discretion.
2. GUARANTEED MAXIMUM PRICE
Section 6.1.1 of the CM Contract shall be amended to increase the GMP to One
Hundred Five Million, Three Hundred Six Thousand, Nine Hundred Thirty One
Dollars and no1100 ($105,306,931.00) to reflect contribution of the Owner's
contingency to the GMP.
3. COMPENSATION FOR GMP CHANGE ORDER
The parties hereby agree that the Scope of Work dated . 2011, which is
attached hereto as Exhibit A shall be considered a GMP Change Order pursuant to
Section 6.1.9. It is hereby agreed that this GMP Change Omer does not change the
Basic Services identified in the CM Contract nor trigger any of the provisions included in
Article 4 pertaining to Additional Compensation.
The parties further agree that the contribution by CM of a portion of the Construction
Contingency in the amount of $1,000,000.00 will not result in any increase to the GMP
as described in Section 6.1.
The parties further agree that the $1,000,000.00 funded by CM's Construction
Contingency may only be used to fund the Scope of Work dated 2011 attached
hereto as Exhibit A.
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants set forth
in the CM Contract as amended shall remain unchanged and shall be in full force and
effect.
[SIGNATURES NEXT PAGE]
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
Three on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: l(lZ9 /ii
B : —
Aaron -2' Harp,
City Attorney
ATTEST:
Date:
By:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
A California municipal corporation
Date:
By:
Michael F. Henn
Mayor
CONTRACTOR: C.W. DRIVER, INC., a
California Corporation
By:
John Thornton,
Executive Vice President
Date:
By:
Bessie Kouvara,
Chief Financial Officer
[END OF SIGNATURES]
Attachment: Exhibit A – Scope of Work dated 2011
San Miguel Pedestrian Bridge
Newport Beach Civic Center and Park
November 29, 2011
Rendering of bridge looking south
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Rendering looking across Bridge
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Rendering of Bridge looking Northeast
Rendering of the Bridge looking East
Potential view from the end of the Bridge
View of the Future North Park & Dog Park
View from Bridge looking South
View of Harbor View and Corona del Mar
Potential view of Wetlands /Park from the Bridge
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Proposed Funding
• Cost remains at $2,000,000 (no increase from
2010) "all in" includes 3.25% management fee
• $1,000,000 from Construction Contingency
within current Construction Contract with
C.W. Driver ($104,306,931 GMP)
• $1,000,000 from the City's Owner
Contingency.
Contingencies to Date
As of Oct 31, 2011
Construction Contingency, $2,757,300
$587,316 (21 %) used to date, $2,169,984 balance
includes 22 items and 4 credits
Citv Owner's Continizencv, $2,623,000
$23,233 (0.9%) used to date, $2,599,767 balance
includes two change orders,
CCO
#
1
ADA
Ramp improvements
CCO
#
2
Dog
Park Surface Revisions
Total contingencies balance = $4,769,751
Civic Center & Park Project
Original General Conditions /Basic Services $ 7,169,255
Original GMP #1 —Mass Grading & Shoring Wall $ 7,336,439
Amendment 1 GMP #2 — Parking Structure Design /Build $ 71426,853
Amendment 2 GMP #3 — City Hall, Library Addition, & Park $ 82,374,384
Subtotal = $104,306,931
Amendment 3 GMP #4 —San Miguel Pedestrian Bridge $ 1,000,000
Subtotal = $105,306,931
Pending
Amendment 4 GMP #5 —Underground Utilities $ <140,000
Amendment 5 GMP #6 - Signage $ <400,000
Total = $105,846,931
Remaining Const. Contingency (less 25 %) $ - 877,488
Remaining City Owner's Contingency $ - 1,599,767
Best Case Total = $103,369,676