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sr-062811-8cc7® ~;,Yp, City Council Rep®rt Santa Monica° City Council Meeting: June 28, 2011 Agenda Item: To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: .Design-Build Contract for Civic Auditorium Remodel & Seismic Upgrade Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a contract with Morley Builders, a California-based company, for preconstruction and construction services of the Civic Auditorium Remodel & Seismic Upgrade Project in an amount not to exceed $35,000,000. 2. Authorize the Director of Public Works to issue any necessary change orders to complete the work within budget authority. Executive Summary This design-build contract will provide preconstruction and construction services that are required in order to remodel and seismically upgrade the Civic Auditorium facility. A Request for Bids was issued in April 2011, and upon evaluating bids, City staff recommends Morley Builders for an amount not to exceed $35,000,000, which includes a program development fee of $48,200, a 10% contingency, and alocked-in mark-up percentage of 2% for profit and overhead for design/preconstruction and construction. This is a phased agreement with the final contract amount being modified by a construction Guaranteed Maximum Price (GMP) amendment. Background The Civic Auditorium was designated as a City Landmark by the Landmarks Commission on November 12, 2001. That decision was upheld by Council on A ril 9 2002. The designation included both the exterior of the building as well as specific character-defining features of the interior public spaces. 1 On June 28, 2005, Council adopted an update to the 1993 Civic Center Specific Plan (CCSP), setting forth planning policies and lahd use and development regulations for a 67-acre area bounded by Pico Boulevard on the south, Fourth Street on the east, Ocean Avenue on the west, and Colorado Avenue on the north. Policies in the CCSP call for the expansion and improvement of the landmark Civic Auditorium to support musical and cultural performances as well as exhibitions and community gatherings. The CCSP states that "the rehabilitation and expansion of the Civic Auditorium will give new meaning and- life to this important facility and promote its ongoing viability." Creative Capital, approved by Council on February 27, 2007, committed the City to a cultural use of the Civic Auditorium in line with the community's vision for this facility. Creative Capital suggests that the recommendations regarding the Civic Auditorium in the CCSP be refined to clearly reflect specific cultural uses envisioned by the community. That vision includes the need for significant upgrades to the building and its technical equipment in order to support its repurposing from primarily an exhibition hall to primarily a cultural venue or performing arts center, highlighting concerts, theatrical shows and other special events. On June 9, 2009, Council approved a list of Redevelopment Agency funding priorities that included $25,000,000 specifically for remodel and seismic upgrade of the Civic Auditorium. Subsequently, on June 23, 2009, Council adopted the FY2009-10 Budget including this capital improvement project. On March 8, 2011, Council approved the business terms and authorized the City Manager to execute a presenting agreement with the Nederlander Organization to act as partner with the City once the Civic Auditorium improvements are completed. Council continued a May 24, 2011, City Council, Public Financing Authority and the Redevelopment Agency joint meeting considering Redevelopment Agency immediate funding opportunities. On Mav 26, 2011, following discussion on the possible uses of funding proposed for the Civic Auditorium, Council voted to amend their funding priorities and include the full development cost for the project in the amount of $46,800,000, including the $25,000,000 previously allocated. On June 21, 2011, Council adopted FY2011-12 budget which formally allocated funds for the project. 2 Discussion A Notice Inviting Bids for design-build services was issued on April 29, 2011, and published in the Santa Monica Daily Press and posted on the City's website. The City Clerk's office received 17 sealed bids that were publicly opened by the Deputy City Clerk on June 7, 2011. The bid results are as follows: Bidder Program Preconstruction Construction Estimated Development & Design Mark-up Total Fees Fee Mark-up Percentage for Project** Percentage Morley Construction $ 48,200 2.00% 2.00% $4,241,018 USS Cal Builders $ 400,000 1.75% 2.00% $4,542,139 Bernards Builders $ 198,800 2.50% 2.50% $4,546,775 Plant Construction $ 213,500 2.75% 2.75% $4,646,148 MATT Construction $ 180,000 2.85% 2.85% $4,651,542 Turner Construction $ 170,000 1.00% 3.25% $4,705,476 Sundt Construction $ 382,000 2.50% 2.50% $4,707,086 Taisei Construction $ 295,000 2.00% 3.00% $4,769,863 McCarthy Building $ 21,000 3.85% 3.85% $4,860,407 Charles Pankow. $275,000 1.00% 3.50% $4,874,847 Clark Design/Build $ 32,000 3.00% 4.00% $4,888,356 PCL Construction $ 297,250 3.00% 3.50% $4,961,126 Ed Grush` $ 533,898 3.00% 3.00% $5,011,389 CW Driver $441,324 3.25% 3.25% $5,016,698 Tilden-Coil $ 109,009 4.50% 4.50% ` $5,161,137 Solteck Pacific $ 573,216 5.00% 5.00% $5,728,627 FTR International $ 434,100 10.00% 15.00% $8,782;055 "'Bidder did not meet the minimum qualifications, resulting in bid deemed non-responsive ""'Estimated fees are based on assumed project budget of $35 million. 3 This contract is for adesign-build delivery system. The design-builder was required to propose a program development fee for a two to four month initial analysis of the building and systems which includes assessing the relevant existing documents, drawings, tests, and reports in order to arrive at a detailed program- for the facility.. The bid also locked in a 2% percentage mark-up for preconstruction and design services and for the construction GMP amendment, thereby providing a fixed profit margin for the project duration. The contract amount would. be modified by a GMP amendment for construction, with the not-to-exceed construction GMP as a cap, obtained through a transparent, competitive bid process for subcontractor selections. The GMP amendment for construction will be presented to Council for approval in the fall of 2012. In addition, if .amendments to the Civic Center Specific Plan are required as a result of changes in the approved design and construction documents, staff will also return at that time with conforming amendments to the CCSP along with the appropriate CEQA review documents. Staff from Public Works and Community & Cultural Services Departments evaluated the eligible 16 bids based on qualifications, fees, direct experience on similar projects, record performing public sector work, understanding of the project's scope and design- build project delivery method, approach to the work, availability, qualifications and integration of key staff with consultant teams and scheduling of project activities. To further assess their qualifications, the four highest ranked design-build teams were then interviewed by staff from Public Works and Community & Cultural Services Departments and interview panelist, Renzo Zecchetto, a Santa Monica resident and the architect of the Santa Monica College Performing Arts Center Eli & Edythe Broad Stage. After the review and interview process, staff unanimously recommends Morley Builders as the best design-builder for the project. Morley Builders, their design-build architectural partner, Levin & Associates Architects, and an associated team of consultants in the fields of theater, acoustics, audio/video and lighting design area are a fully integrated team of specialists that exhibit a deep understanding of the project, have an excellent track record of projects of a similar size and scope; an extensive history of collaboration with each other, excellent references 4 and the most competitive bid. Morley Builders has completed 80 projects in Southern California over the past 30 years with a reputation for high quality construction and experienced project managers. Examples of their renovation and seismic upgrade projects, many of which involved historic or performance venues, include the Geffen Playhouse Renovation & Addition, UCLA's Royce Hall Renovation & Addition, the Hollywood Palladium Exterior Renovation, the Getty Villa Renovation & Expansion, UCLA's Powell Library, and USC's Doheny Library. The team's seismic repair projects of note include California Institute of the Arts, Rockwell Building 80, Hughes Building S- 12 Switchgear, and the Los Angeles City Hall. Morley Construction and the proposed structural engineer, Nabih Youssef Associates, have worked closely together on numerous seismic upgrade and repair projects for over twenty-five years. Team members also include acoustic, sound and theater specialists who have worked on projects including CSUN Valley Performing Arts Center and the sustainable design of the Beijing Olympic Stadium and the Royal Shakespeare Company Theater and acoustical upgrades to Symphony Hall in Phoenix whose original acoustic design was completed by Vern Knudsen, the same acoustician of the Santa Monica Auditorium. Because this project involved a designated local landmark by Welton Beckett, the knowledge and expertise of the design architect is critical to the project. Levin and Associates, led by Principal Brenda Levin, FAIA, specializes in historic preservation of Southern California landmarks and has notable experience in dealing with the application of the Secretary of Interior's Standards for Historic Preservation. Notable rehabilitation projects include the Wiltern Theater, the Anson Ford Theatre and Master Plan, the Greek Theater,. the Griffith Observatory, Grand Central Market, the Bradbury Building, the Boone Gallery at the Huntington, and the conversion of the 1960's classroom building at the Claremont College into a performance space. Staff checked references and all reported that the team has performed very well on their projects. Furthermore, the Contractors State License Board of California verified that Morley Builder's license is current, active and in good standing. 5 uests for authorization for additionseNi es and Staff will also return to Council with req inspection and testing but not be limited to, 000. contracts which will include, construction management services, in an amount not to exceed $11,80 , et Actions 000. Funds for Financial Impacts & Budg guilders is $35,000, b the The contract amount to be awarded to Mor ey lementing e of work described above shall be paid exclusively Y completion of the scop the stream of payments set forth in Imp ment Redevelopment Agency from 9287 between the Redevelop 000,000 have been included in the Agreement No. 9318 to Cooperation Agreement No. Funds in .the am account$ 0174063.589000, Civic Auditorium Agency and the City. Budget for FY2010-11 at 000 have been included in the FY2011-12 Adopted $32,000, Renovation, and the remaining budget under the same account. Prepared by: Voneelya Simmons, Project Manager Forwardedrded t gpproved: ~~ Martin Pastucha piiector of'Public Works 5 tj ` t Rod Gould City Manager 6 Reference Contract No. 9396 (CCS)