sr-052510-1bGity Council Meeting: May 25, 2010
Agenda Item: ~ ~g
To: Mayor and City Council
From: Lee E. Swain, Director of Public Works
Subject: Design-Build Agreement for the Resource Recovery Center
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager. to negotiate and execute a contract with Morley
Construction Company -for preconstruction services of the Resource, Recovery
Center in an amount not to exceed $65,000 (including a 10% contingency); and
2. Authorize the City Engineer to issue any necessary change orders to complete
the work within budgetary authority.
Executive Summary
The City is working with Southern California Disposal, Allan Company, and design
consultant J.R. Miller & Associates to finalize a site plan for the proposed Resource
Recovery Center (RRC) that meets the needs. of all the public/private partners, On
November 17. 2009, the City Council approved a conceptual design that fulfills many of
the commitments previously made to the team members and the public.
In order to ascertain the current costs associated with the project and integrate cost
controls early in the design process, staff recommends contracting with Morley
Construction Company for preconstruction services in an amount not to exceed $65,000
(including a 10% contingency). This first agreement is to confirm the- design
consultant's project schedule, develop a baseline cost estimate from the conceptual
plans, and establish project goals. Once the criterion is identified, adesign-build
agreement will establish a Guaranteed Maximum Price (GMP) for completing the design
and construction document services and be amended for constructing the project.
Background
Over the past three years; the City has been engaged in a review of the .City's solid
waste operations. On October 30: 2007, the City Council reviewed the results of an
extensive Request for Proposals (RFP) process to provide transfer and recycling
services for municipal solid waste. At that time, Council directed staff to explore the
1
possibility of having either the City or a private company provide transfer services. In
both options, Allan Company would provide recycling services.
On May 22, 2008, Council approved a public/private partnership with Southern
.California Disposal to provide transfer services and Allan Company to provide recycling
services. On November 25. 2008, Council approved a Professional Services
Agreement with J.R. Miller & Associates for the design of the Recycling Drop-Off
Center. This agreement would be included in the first GMP with Morley Construction
Company for design and construction document services. On November 17. 2009,
Council reviewed and approved the concept design for the RRC, formerly known as the
Recycling Drop-Off Center.
On March 24. 2010, staff presented an Information Item to Council regarding the history
of environmental studies implemented at the proposed RRC site and the implications of
pursuing the Leadership in Energy and Environmental Design (LEED) Gold or Platinum
Certification for the project.
Discussion
In order to ascertain the current costs associated with the RRC project and integrate
cost control measures early in the design process, staff concluded that there was an
immediate need to determine the potential budget impact of the conceptual plans and
provide real-time cost assessment of the ongoing design development phase. By
introducing adesign-build contractor into the design process, the contractor can
facilitate integration of the technical criteria with current construction cost controls and
efficient scheduling.
Contractor Selection
The City issued a Request for Bids for design-build services of the RRC on February
27, 2010. The bid. consisted of a preconstruction amount for both the RRC and the
Delaware Street Improvement Project, and it included a percentage fee for construction
profit and overhead. The preconstruction amount includes the general contractor's cost
2
for estimating, scheduling, constructability review, as well as value engineering
services.. The project fee percentages include the general contractor's overhead and
profit for design and construction services. The City received the following five bids on
March 19, 2010:
Delaware Street RRC Facility Profit &
Firm Preconstruction Preconstruction Overhead
Amount Amount Percentage of
Construction
Amoroso Construction $15,000 $250,000 5.00%
Bernard's Builders $19,250 $140,000 4.75%
Diffenbaugh $15,000 $110,000 3.00%
Morley Construction $9,500 $49,450 2.00%
USS Cal Builders $62,000 $1,200,000 9.00%
USS Cal Builders proposal included fees for design consultants, contrary to the instructions in the
Request for Bids.
Staff from the Solid Waste Management and Architecture Services Divisions reviewed
the proposals and selected Morley Construction Company based on their proposed
project fee percentages, qualifications of the team members, and experience in public.
works projects, several of which were with the City of Santa Monica. Morley's past
projects include the construction of the Santa Monica Main Library, Santa Monica Big
Blue Bus Maintenance Facility, Getty Villa remodel and addition, Cathedral of Our Lady
of the Angels, and UCLA Royce Hall renovation.
Next Steps in the Design-Build Process
The scope of the preconstruction services agreement includes preparing a project
schedule, developing a baseline cost estimate from the conceptual plans, and
establishing overall project .goals. If necessary, staff will present a prioritized list of
adjustments to the scope of the project to Morley Construction Company to align the
conceptual plans with the proposed budget. Upon completing the preconstruction
3
services, staff will return to Council with two additional GMPs: the first for design and
construction document services and the second for the construction of the RRC.
The first GMP will incorporate the previously approved J.R. Miller & Associates contract
for architectural and engineering design services with Morley Construction Company's
fee for preconstruction.and design services. Staff anticipates presenting the first GMP
to Council in July 2010.
After the completion of the design and construction documents, Morley Construction
Company will obtain bids for the construction of the RRC and Delaware Street
Improvements. Staff will negotiate a second GMP with Morley Construction Company
for these construction costs. Staff will present the second GMP to Council in fall of
2010 and it will include all of the costs associated with constructing the project.
Financial Impacts & Budget Actions
The contract amount to be awarded to Morley Construction Company is $65,000.
(including a 10% contingency) and is available in account number 0274019.589000
Resource Recovery Center. Staff is developing adebt-financing plan for the RRC in
conjunction with an ongoing Solid Waste rate study and will return to Council with
recommendations when the plan is complete. Costs associated with this project,
including those incurred under this design-build agreement with Morley Construction
Company, will be reimbursed through debt proceeds upon issuance.
Prepared by: Michael Collins, Architect
Approved:
Forwarded to Council:
~ ~ 5~.."
Lee E. Swain
Director of Public Works
Rod Gould
City Manager
4
Reference Contract No.
9215 (CCS).