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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 Palisades Garden Walk and Town Square
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a phased contract with
W.E. O'Neil Construction Company, a California-based company, for
preconstruction and construction services of the Palisades Garden Walk and
Town Square Project in an amount not to exceed .$39,000,000.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete the work within budget authority.
Executive. Summary
This contract will provide preconstruction and construction services that are required in
order to build the park and town square as well as to provide construction services for
the grading and compaction of imported soils from the Village site (September/October
2011) and minor preliminary utility work in .advance of construction scheduled for spring
2012. A Request for Bids was issued in March 2011, and upon evaluating three bids,
City staff recommends W.E. O'Neil Construction Company with apre-construction fee of
$75,750, including a 10% contingency. Additionally, their bid includes locking in their
mark-up percentage for profit and overhead for both the remaining preconstruction and
construction phases at 2.5%. This is a phased agreement with the final contract
amount, which will not exceed $39,000,000, being modified by a Guaranteed Maximum
Price amendment.
Background
On June 28, 2005, Council adopted an update to the 1993 Civic Center Specific Plan
(CCSP), setting forth planning policies and land 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.
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An important element of the CCSP is the creation of new parks and open space. This
includes creating Palisades Garden Walk, anew six-acre park north of Olympic Drive,
west of Main .Street, south of the Interstate-10 Freeway, and east of Ocean Avenue,
with an additional one-acre Town Square in front of City Hall that is oriented to civic and
community activities. Additionally, improvements to the surrounding streetscapes and
freeway capping are an integral part of the CCSP. During the CCSP community input
process, participants articulated their vision for Palisades Garden Walk, seeing this
project as possibly the last opportunity to create a new public open space in Santa
Monica that rivaled other renowned gathering places nationally and internationally.
On June 9, 2009, Council approved a list of Redevelopment Agency funding priorities
that included a partial allocation of $25,000,000 specifically for design and construction
of Palisades Garden Walk and Town Square and their surrounding streetscapes. In
addition, $2,000,000 for capping the I-10 Freeway at the adjacent McClure Tunnel was
approved. Subsequently, on June 23, 2009, Council adopted the FY2009-10 Budget
including these capital improvement projects. On May 24 2011, Council amended their
funding priorities and allocated the full development cost for the project.
On April 13, 2010, Council awarded a design contract to James Corner Field Operations
(JCFO) to design the park and town square described in the CCSP. A key factor in the
selection of James Corner Field Operations was its creative design approach and
commitment to engaging the public in the planning and design of public open spaces.
During the last 12 months, the community and City staff, along with numerous Boards
and Commissions and the City Council, have been involved in a hands-on design
process for the Palisades Garden Walk and Town Square Project with JCFO. JCFO
and its sub-consultants have included and welcomed everyone who wished to have a
say in the shaping of this great park through a series of five community workshops. The
design process has progressed to 100% design development and the process is ready
to include the expertise and knowledge of a builder to begin the task of assisting in the
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successful execution of the project's vision and the managing of costs and schedule for
the construction of the park, set to begin with preliminary site work in August 2011.
Discussion
A Notice Inviting Bids for design-build services was issued on April 6, 2011, and
published in the Santa Monica Daily Press and posted on the City's website: The City
Clerk's office received four sealed bids that were publicly opened by the Deputy City
Clerk on March 25, 2011. The bid results are as follows:
Bidder
W.E. O'Neil
Bernards
Matt Construction
Morley Builders
Preconstruction Fee
$ 68,864
$174,700
$ 62,000
$ 38,500
Design Mark-up
2.50%
2.95%
9.40%
3.95%
Construction Mark-up
2.50%
2.95%
2.95%
3.95%
Staff from Public Works and Community and Cultural Services Departments evaluated
the bids based on qualifications, fees, direct experience on similar projects, record
performing public sector work, and understanding of the project's scope, approach to
the work, qualifications of proposed staff and scheduling of project activities. After a
thorough review and interview process, staff. recommends W.E. O'Neil Construction
Company (W.E. O'Neil) as the best bidder.
W.E.O'Neil has a clear understanding of the project, a good track record of projects of a
similar size and scope, the most competitive bid and. excellent references. Projects
completed by W.E.O'Neil include recent upgrades to Santa Monica Parking Structures 7
and 8, Cal Poly Pomona Residential Suites, Beverly Canon retail development,
Archstone Warner Center, Belmont Village in Thousand Oaks, and the West Hollywood
Library. Staff checked references and all reported that W.E.O'Neil performed very well
on their projects. Furthermore, the Contractors State License Board of California
verified that their license is current, active, and in good standing.
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This contract is for a modified design-build delivery system, where the previously
retained designer, JCFO, is assigned to the design-builder. The design-builder
proposed a preconstruction fee for an initial expedited preconstruction phase which
includes assessing the relevant programming documents, tests, reports, preliminary
concepts in order to give the City a concise, accurate Guaranteed Maximum Price
(GMP) for the remaining design and. preconstruction phase. W.E. O'Neil's bid also
locked in a percentage mark-up for this design and preconstruction GMP and for the
construction GMP amendment, thereby providing a fixed profit margin for the project
duration.
The not-to-exceed contract amount of $39,000,000 will be modified by the GMP
amendment for construction, which is obtained through a transparent, competitive bid
process to subcontractors. The GMP amendment for construction will be coming to
Council for approval in spring 2012.
Staff will return to Council with requests for authorization for additional third party
contracts which will include, but not be limited to, inspection and testing services and
construction management services, in an amount not to exceed $7,000,000.
California Environmental Quality Act (CEQA) Review
Pursuant to CEQA, environmental impacts associated with Palisades Garden Walk. and
Town Square were addressed in the CCSP Environmental Impact Report (EIR) [SCH
#2003011074], certified by Council on June 28, 2005. On June 14, 2011, the City
Council found that the Civic Center Specific Plan EIR was adequate to inform its design
development direction in compliance with CEQA. No changes have occurred since the
June 14, 2011, Council action that require additional environmental review pursuant to
CEQA Guideline section 15162.
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Financial Impacts and Budget Actions
The contract amount to be awarded
to W.E.O'Neil Construction Company is
$39,000,000. Funds for completion of the work shall be paid exclusively by the
Redevelopment Agency from the stream of payments set forth in Implementing
Agreement No. 9318 to Cooperation Agreement No. 9267 between the Redevelopment
Agency and the City. Funds in the amount of $1,000,000 have been included in the
Adopted Budget for FY2010-11 at account 0172071.589000, Civic Center Palisades
Garden Walk, and the remaining $38,000,000 have been included in FY2011-12 budget
under the same account.
Prepared by: Jean Gellman, Architect
Approved:
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Martin Pastucha
Director of Public Works
Forwarded to Council:
~___~
Rod Gould
City Manager
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Reference Contract No.
9395 (CCS)