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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).