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SR-417-007 (33) EPWM:CP:AA:TR:FJS F:\DATA\SPFILES\SP1832\CONSTRUCTION\cc1832.doc City Council Meeting: March 5, 2002 Santa Monica, California TO: Mayor and City Council Chairperson and Redevelopment Agency FROM: City Staff SUBJECT: Construction Related Contracts for Seismic Retrofit of Parking Structure 8; Redevelopment Agency Funding of Seismic Retrofit of Parking Structures 7 and 8; and, Adoption of Resolutions Finding that the Project is of Benefit to the Earthquake Recovery Redevelopment Project Introduction This report recommends that: 1. The City Council take the following actions: (a) Authorize the City Manager to execute a Cooperation Agreement between the City and the Redevelopment Agency for payment of the costs associated with the seismic retrofit of parking structures 7 and 8; (b) Adopt a Resolution finding that the seismic retrofit of parking structures 7 and 8 is of benefit to the Earthquake Recovery Redevelopment Project; (c) Award a construction contract for seismic retrofit of Parking Structure 8 to the best bidder, Sea-Pac Engineering, Inc., in the amount of $3,903,230, plus $585,500 in contingency; (d) Approve a Modification to Agreement Number 7861 (CCS) with Black & Veatch Corporation for engineering support services in the amount of $97,386 with $14,600 in contingency; 1 (e) Authorize the City Manager to execute a contract with Black & Veatch Corporation for construction management services in the amount of $418,128, plus $62,720 in contingency; (f) Authorize the City Manager to execute a contract with Harris & Company for Construction Phase Public Outreach Services in the amount of $36,000, plus $4,000 in contingency; and, (g) Authorize the City Engineer to issue any necessary change orders to complete additional work in conformance with the Administrative Instructions on change orders. 2. The Redevelopment Agency take the following actions: (a) Authorize the Executive Director to execute a Cooperation Agreement between the City and the Redevelopment Agency for payment of the costs associated with the seismic retrofit of parking structures 7 and 8; and, (b) Adopt a Resolution finding that the seismic retrofit of parking structures 7 and 8 is of benefit to the Earthquake Recovery Redevelopment Project. Background All of the City?s downtown parking structures experienced some degree of damage in the 1994 Northridge earthquake. While earthquake damage has been repaired on all parking structures, none of the structures has been seismically retrofitted. The City has a commitment from the Federal Emergency Management Agency (FEMA) to fund a portion of the costs of seismic upgrades of some parking structures over the next several years. However, recent cost estimates for seismic retrofit of these parking 2 structures has shown that actual costs will substantially exceed the funding available from FEMA. Parking structures 7 and 8 are adjacent to Santa Monica Place and are among the newest and largest of the public parking structures. Both structures were constructed in 1979 in accordance with the requirements of the 1976 Uniform Building Code. Both structures are owned by the Redevelopment Agency and leased to the City. Parking structure 7 has a capacity of 958 parking spaces and parking structure 8 has a capacity of 1027 parking spaces. During the past year, the City has carried out a study to develop a comprehensive parking development strategy. In December 2000, the City Council established the Downtown Parking Task Force to develop recommendations about the existing downtown parking structures based on a downtown management program and a comprehensive parking development strategy for the downtown area. The comprehensive parking development strategy study assesses future downtown parking requirements and determines whether rehabilitating existing parking structures, or demolishing and replacing them with new structures, might best serve those requirements. The study assumed that parking structures 7 and 8 would be seismically retrofitted. Parking structure 8 will be retrofitted during 2002 and parking structure 7 in 2003. Other parking structures will not be programmed for retrofitting until the City Council reviews and approves the recommendations from the Downtown Task Force. 3 The Downtown Parking Task Force Study recommendations and the availability of funding are to be presented to City Council in April 2002. Discussion Construction The seismic retrofit of parking structure 8 includes drilling and installing new foundation pilings outside of the east, north, and west walls of the structure. Work will also be completed to structurally strengthen the facility at each floor level. The project also includes selected upgrade work to improve compliance with the Americans with Disabilities Act (ADA). A Notice Inviting Bids for seismic retrofit of Parking Structure 8 was published in the Los Angeles Times on January 11 and 12, 2002. The Notice Inviting Bids, plans, and specifications were also sent to six construction journals and five women/minority business (WBME) associations. 25 contractors and potential subcontractors requested bid packages. The City Clerk?s office received 2 sealed bids, which were publicly opened and read aloud on February 14, 2002, by the Deputy City Clerk. The bid results were as follows: CONTRACTOR AMOUNT Sea-Pac Engineering, Inc. $3,903,230 Alfa 26 Construction Company $4,134,230 4 The Engineer?s estimate for the project was $3,430,000. The best bidder, Sea-Pac Engineering, Inc., supplied the City with numerous references, has been in operation for over 8 years, and has successfully completed numerous large building construction and seismic retrofit projects. These include building construction projects for the Department of the Navy in San Diego, Camp Pendleton, and Point Mugu, as well as seismic retrofit projects for California State University, Fullerton; California State University, Northridge; and the San Bernardino International Airport. In independent research into references and other past and current clients, staff has found Sea-Pac to have an excellent reputation. All clients indicated that they would hire them again for construction and retrofit work. One public sector client said that Sea-Pac helped them reduce overall construction costs by 30% and described them as ?the best contractor they have ever worked with.? They were said to be on schedule, responsive to client needs, with good quality control and safety records. No history of unreasonable claims nor imposition of liquidated damages was found. Additionally, staff checked with the California State Contractors? License Board and the Center for Contract Compliance and found that all licenses of Sea-Pac and it?s named subcontractors are current and in order, and that there are no past compliance issues of concern to the City. Community Impacts Throughout the project planning and design phases, City staff has worked closely with the Macerich Company, owners of Santa Monica Place, to ensure that seismic retrofit 5 work will be minimally disruptive to their tenants. The project plans and specifications include the following mitigation measures: ? No more than 100 parking spaces may be closed at any time. ? No more than one stairway may be closed at any time. nd ? All work on the Colorado Avenue and 2 Street vehicular entrances/exits will be undertaken between the hours of 10:00 PM and 6:00 AM, and traffic will be allowed to enter and exit the parking structure at other times. ? At least one exit lane to adjacent streets will remain open at all times. ? Ample signage will be provided within the parking structure and on adjacent streets to facilitate the smooth flow of pedestrians and vehicular traffic into and around the structure. Additionally, parking structure retrofit work on structure 8 is expected to be completed prior to Thanksgiving 2002, so as to not interfere with the holiday shopping season. ADA Compliance The parking structures are already largely ADA compliant. Additional work, which consists primarily of relocating parking stalls to make them more accessible, will be carried out as a part of this project. The only area where the structures will remain non- compliant is the vertical clearance for some vehicular access. A panel of four structural engineers reviewed the ADA vertical clearance requirements and unanimously concluded that they cannot be reasonably met in the existing parking structures. 6 Construction Phase Engineering Services Seismic retrofit work for parking structure 8 was designed by Black & Veatch Corporation under agreement number 7861 (CCS). Their continued services as Engineer of Record during construction will be required for the review of requests for design information, design services for unforeseen field conditions, shop drawings and submittal reviews, and the preparation of as-built drawings. In October 2001, the City requested statements of qualifications for construction management services for various construction projects in the City. Five firms submitted qualifications. Of these, Black & Veatch was evaluated as extremely qualified. They have provided construction management services to the City on the Beach Improvement Group Project, the Downtown Transit Mall Project, Moss Avenue Sewage Pumping Station, the Pacific Coast Highway Sewer Project, and the Ocean Avenue/Neilson Way Relief Sewer Project, and their services have always been of the highest quality. Considering their extensive history in construction management with Santa Monica, as well as their experience in design of seismic retrofit improvements for parking structure 8, staff is recommending that Black & Veatch be utilized for all construction phase engineering services, including both Engineer-of-Record services and construction management services. On January 25, 2002, Black & Veatch submitted a cost proposal for these services in the amount of $97,386 for Engineer-of-Record services and $418,128 for construction management services. 7 Construction Phase Public Outreach Services Prior to and during retrofit construction, it will be necessary to keep motorists, shoppers, merchants and others advised of work in progress, schedules and potential impacts. It is also necessary to have a readily available and convenient point of contact for the public to ask questions and advise of problems. Harris & Company has provided excellent public outreach services on the Pacific Coast Highway Sewer Construction Project, the Moss Avenue Sewage Pumping Station Project, the Main Street Sewer Construction Project, and the Downtown Transit Mall Project. While working on the Transit Mall Project, they have become familiar with all of the issues facing Santa Monica Place, downtown merchants, shoppers and motorists. Staff is recommending that the City enter into a contract with Harris & Company to provide public outreach services for this project. On January 31, 2002, Harris & Company submitted a cost proposal for these services in the amount of $36,000. Budget/Financial Impact FUNDS REQUIRED: Construction Contract $3,903,230 Construction Contract Contingency $585,500 Modification to Contract 7861 (CCS) for Engineering Support Services $ 97,386 Contingency for Engineering Support Services $ 14,600 Contract for Construction Management $418,128 Contingency for Construction Management $ 62,720 Contract for Public Outreach Services $ 36,000 Contingency for Public Outreach Services $ 4,000 Total Funds Required $5,121,564 8 FUNDS AVAILABLE FEMA E13112000 $ 400,000 REDEVELOPMENT C17039296.589000 $1,000,000 C17067500.589000 $1,433,222 C17062102.589000 $2,288,342 TOTAL $5,121,564 Redevelopment Considerations The Redevelopment Agency, as the owner of parking structures 7 and 8, is authorized by Health and Safety Code Section 33400 to maintain, manage, and repair the structures. The Cooperation Agreement delegates to the City the Agency?s authority to carry out the seismic retrofit of parking structures 7 and 8 and provides for the Agency?s funding of those costs that will not be paid for with FEMA funds. A total of $4,721,564 is available from Earthquake Recovery Redevelopment Accounts C17039296, C17067500, and C17062102. To use redevelopment funds for the seismic retrofit of parking structures 7 and 8 the City Council and Redevelopment Agency must make the appropriate findings, as required by Health and Safety Code Section 33445. The attached Resolutions (Attachments A and B) would determine that the use of these funds is of benefit to the Earthquake Recovery Redevelopment Project Area, no other reasonable means of financing the improvements are available, the project will assist in earthquake recovery efforts and eliminating one or more blighting conditions in the Earthquake Recovery 9 Redevelopment Project Area, and the project is consistent with the Agency?s Five-Year Implementation Plan. CEQA Requirements Section 15301(d) of the CEQA Guidelines allows exemptions for projects that involve the restoration of deteriorated or damaged structures or facilities to meet current standards for public health and safety. Section 15301(f) allows exemptions for projects that involve the addition of safety or health protection devices for use during construction of or in conjunction with existing structures and facilities. A Notice of Exemption was prepared by PCD and filed with County Clerk on October 23, 2001. Recommendations Staff recommends that the City Council: 1. Authorize the City Manager to execute a Cooperation Agreement between the City and the Redevelopment Agency for payment of the costs associated with the seismic retrofit of parking structures 7 and 8; 2. Adopt a Resolution finding that the seismic retrofit of parking structures 7 and 8 is of benefit to the Earthquake Recovery Redevelopment Project; 3. Award a construction contract for seismic retrofit of Parking Structure 8 to the best bidder, Sea-Pac Engineering, Inc., in the amount of $3,903,230, plus $585,500 in contingency; 10 4. Approve a Modification to Agreement Number 7861 (CCS) with Black & Veatch Corporation for engineering support services in the amount of $97,386 with $14,600 in contingency; 5. Authorize the City Manager to execute a contract with Black & Veatch Corporation for construction management services in the amount of $418,128, plus $62,720 in contingency; 6. Authorize the City Manager to execute a contract in the amount of $36,000 to Harris & Company for Public Outreach Services, plus $4,000 contingency; and, 7. Authorize the City Engineer to issue any necessary change orders to complete additional work in conformance with the Administrative Instructions on change orders. Staff recommends that the Redevelopment Agency: 1. Authorize the Executive Director to execute a Cooperation Agreement between the City and the Redevelopment Agency for payment of the costs associated with the seismic retrofit of parking structures 7 and 8; and, 2. Approve the Resolution finding that the seismic retrofit of parking structures 7 and 8 is of benefit to the Earthquake Recovery Redevelopment Project (Attachment B). Attachments: A- City Council Resolution B- Redevelopment Agency Resolution Prepared by: Craig Perkins, Director, Environmental and Public Works Management 11 Anthony Antich, P.E., City Engineer Jeff Mathieu, Director, Resource Management Tina Rodriguez, Redevelopment Administrator F.J. Schroeder, Disaster Recovery Program Manager 12