sr-102709-1gCity Council Meeting: October 27, 2009
Agenda Item: 0 ^G
To: Mayor and City Council
From: Lee E. Swain, Director of Public Works
Subject: Construction Contracts and Contract Modifications for City Hall Seismic
Retrofit and Jail Tenant Improvement and New Data Center Projects
Recommended Action
Staff recommends that the City Council:
1) authorize the City Manager to negotiate and execute a cohtract with West Valley
Investment Group, Inc., in the amount of $3,834,325, including a 10%
contingency, for the City Hall Seismic Retrofit and Jail Tenant Improvement (TI);
2) authorize the City Manager to negotiate and execute a ninth modification to
Contract No. 8529 (CCS) with Black and Veatch for the City Hall Seismic Retrofit
Project. This modification is not to exceed $580,429 for a revised contract total of
$2,783,048;
3) authorize the City Manager to negotiate and execute a seventh modification to
Contract No. 8725 (CCS) with Black and Veatch for the HVAC Replacement
Project. This modification is not to exceed $55,938 for a revised contract total of
$461,453;
4) authorize the City Manager to negotiate and execute aDesign/Build contract with
Data Specialties, Inc., in the amount of $727,504, including a 10% contingency,
for the new City Hall Data Center; and
5) authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority.
Executive Summary
The construction of the City Hall Seismic Retrofit and Jail Tenant Improvement (TI)
Project is in the final phase of the Hazard Mitigation Grant funding developed by the
Federal Emergency Management Agency (FEMA) attei- the 1994 Earthquake. The
construction includes retrofitting the City Hall structure and elevating the building's
structural system to essential facility standards, and relocating the City's Information
System Department (ISD) offices. Federal and State agencies are in the final stages of
the environmental clearance process.
1
Black and Veatch is currently under contract with the City to provide design services for
the Seismic Retrofit and Jail Tenant Improvement, and HVAC Replacement Projects.
The HVAC Replacement Project has been cancelled due to lack of funding.
Construction administration services were not previously included in either of Black and
Veatch's existing design contracts and are required to be added at this time.
The relocation of the existing City Hall Data Center into the renovated vacant jail area is
required as part of the seismic retrofit scope of work and will further elevate the status of
the building towards essential facility standards. Data Specialist, Inc., (DSI) was
selected as the best bidder in September 2007 through a competitive bid process. Due
to FEMA contracting restrictions, the City could not enter into a contract with the best
bidder until federal environmental clearances were obtained.
Funds are available in the Capital Improvement Program budget funded by FEMA's
Hazard Mitigation Grant and the City's General Fund. These final modifications will
cover all costs through the completion of construction.
Background
The design of the City Hall Seismic Retrofit Project began in 2005. Previous City
Council authorizations for Contact No. 8529 (CCS) were presented on May 27. 2008,
December 11, 2007, June 12 2007, May 24, 2007, Aril 25. 2006, and November 22.
2005. The design process included many additional services that exceeded the normal
scope of work for a design team, such as project management services, as-built
documentation of the existing structure, geotechnical investigation, building material
testing, hazardous material testing, ADA survey, historic impact assessment, and
additional design services due to historic impact. During this time, construction costs
were escalating at a higher rate than historically predictable. The designers "Opinion of
Probable Costs" consistently predicted that the City would have a construction budget
shortfiall and would not be able to complete the entire scope of work. The Seismic
Retrofit construction documents were completed and submitted to FEMA for
environmental review in May 2008.
The Data Center, in its current location in City Hall, creates an unsafe situation during
the construction of the Seismic Retrofit Project and requires relocation due to its
vulnerability during the retrofit construction. City staff investigated several relocation
plans and determined that a temporary relocation of the Data Center into trailers or
2
another facility was impractical due to costs, security, and functional logistics. City staff
then investigated the feasibility of permanently relocating the Data Center to the vacant
jail area of City Hall and determined that the costs were comparable to temporary
relocation, provided greater security than the existing Data Center location, and had
fewer logistical problems. City staff then issued a Request for Bids in July 2007 for a
design-build contractor and selected Data Specialist, Inc., as the best bidder. Although
DSI is not under contract with the City due to FEMA contracting restrictions, they have
provided early schematic design input to guarantee the coordination between design of
the Jail TI and the new Data Center.
Discussion
FEMA required that the federal environmental review process (Section 106) be
completed prior to awarding a construction contract for any federally-funded scope of
work. City staff is anticipating receiving approval from Section 106 shortly and is
preparing to enter into a contract for the construction of the City Hall Seismic Retrofit
and Jail TI Project upon Council authorization. With the commencement of
construction, it is necessary for the City to enter into a contract with DSI for design-build
services for the new Data Center and modify .Black and Veatch's existing design
contracts to include construction administration services for the related City Hall
projects. Construction administration services will include review of contractor shop
submittals.,. response to RFI's, attendance at project update meetings, additional
coordination meetings, mechanical/electrical/plumbing assistance, and structural
assistance to resolve issues discovered due to unforeseen conditions.
Contract No. 8529 (CCS) with Black and Veatch for the Seismic Retrofit Project has
been modified to extend the contract completion date, add scope of work and extend
the project duration due to project changes (elevator location, HVAC project
cancellation), and unexpected delays (Section 106 review) that have occurred. The
added design scope of work includes: project management services, as-built
documentation of the existing structure, geological testing, material testing, hazardous
3
material testing, ADA survey, historic impact assessment, and additional design
services, due to historic impact.
Contract No. 8725 (CCS) with Black and Veatch for the HVAC Replacement Project
includes the design of the electrical room addition. The HVAC replacement portion of
the project has been cancelled due to lack of funding; however, the electrical room
addition is still being executed. The construction of the electrical room needs to occur
at the same time as the Jail TI construction project. This modification is required to
include construction administration services in their scope of work for the electrical room
addition portion of the project.
Contractor/Consultant Selection (Seismic Retrofit)
A Notice Inviting Bids was issued on July 13, 2009. A total of 54 contractors registered
on the site for project information, 49 companies attended the first pre-bid job walk, 23
companies attended a second job walk, and six sealed bids were received by the City
and were publically opened on August 31, 2009, by the City Clerk's staff. The bid
results are as follows:
Bidder
West Valley Investment
Group, Inc.
Icon West, Inc.
MTM Construction, Inc.
G-2000 Construction, Inc.
Bayley Construction, Inc.
USS Cal Builders, Inc.
Base Bid Total Base & Additive
$1,377,750
$1,782,180
$2,594,400
$2,351,640
$1,778,900
$3,170,000
$3,485,750
$3,777,745
$4,074,400
$4,441,640
$4,827,165
$4,600,000
A selection committee comprised of City staff and project consultants evaluated the bids
based on competitive pricing, understanding of the project scope, accuracy in bidding,
experience with historic structures and references. Upon evaluation, the selection
4
committee short-listed the two lowest bidders for interviews: West Valley Investment
Group; Inc., and Icon West, Inc.
City staff contacted reference agencies provided by the short-listed bidders. All
respondents confirmed their experience with similar projects, and delivering difficult
projects on time and of top quality. This experience is particularly important considering
that the building will be occupied during construction and has tight deadlines by FEMA.
West Valley Investment Group, Inc., was selected as the lowest responsible bidder.
Contractor/Consultant Selection (Data Center)
A Request for Bids was issued on July 30, 2007. On August 27, 2007, City staff
received three sealed bids and they were publically opened by the City Clerk's staff.
The bid results are as follows:
Bidder Base Bid
Data Specialties, Inc. $510,395
Syska Hennessy $697,441
Heery $900,000
A selection committee consisting of City staff from the Information System and Public
Works Departments reviewed the bids and selected Data Specialties, Inc., as the lowest
responsible bidder. Data Specialists, Inc., was selected based on their bid, qualifications
and experience. City staff contacted their reference agencies and all respondents
reported that DSI's work was completed in a timely and cost-effective manner while
maintaining consistent quality. As a result of additional design requirements for the new
Data Center by City staff, DSI revised their fee from $510,395 to $661,368 to reflect the
changes. The revised fee is still considerably lower than the second lowest bidder.
5
Financial Impacts & Budget Actions
Funds in the amount of $2,615,000 are available in account E130748.555010, City Hall
Seismic Retrofit, and $1,219,325 are available in account C022060, HMG-City Hall, for
the construction of the Seismic Retrofit and Jail Tenant Improvement Project.
Funds in the amount of $580,429 are available in account E130748.555010, City Hall
Seismic Retrofit, for the ninth modification to Contract No. 8529 (CCS) with Black and
Veatch to provide construction administration services for the design of the Seismic
Retrofit and Jail Tenant Improvement Project.
Funds in the amount of $55,938 are available in account C024002, City Facility
Maintenance, for the seventh modification to Contract No. 8725 (CCS) with .Black and
Veatch to provide construction administration services for the electrical room addition
portion of the project.
Funds in the amount of $727,504, includes 10% contingency, are available in account
C022060, City Hall Seismic Retrofit, for the design and construction of the new Data
Center.
Prepared by: Alex Parry, Architect
Approved:
~~
Lee E. Swain, Director
Department of Public Works
Forwarded to Council:
6
~mont Ewell
Manager
Reference Contract Nos.
9143 (CCS), 9144 (CCS),
and amendment to
Contract Nos. 8725 (CCS)
& 8529 (CCS).