SR-04-28-2015-3CCouncil ID
'.9ma City
City of
Santa Monica
City Council Regular Meeting: April 28, 2015
Agenda Item:6
To: Mayor and City Council
From: Susan Cline, Interim Director of Public Works
Subject: Design GMP for the City Services Building Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to execute a contract with Hathaway Dinwiddie
Construction Company, a California -based company, for design services for the
City Services Building for a Guaranteed Maximum Price (GMP) of $7,064,501.
2. Authorize direct owners costs associated with the design phase of the City
Services Building in the amount of $540,000.
3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions
section of this report.
4. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
Executive Summary
On January 27, 2015, Council authorized the City Manager to negotiate a Guaranteed
Maximum Price (GMP) with design -build contractor Hathaway Dinwiddie Construction
Company, a California -based company, for design services that include schematic
design, design development, construction documents, project management, and cost
estimating for the proposed City Services Building, which will attempt to achieve Living
Building Challenge certification with net zero energy and net zero water. Living Building
Challenge represents a much higher level of sustainability demonstrated by the fact there
are currently only seven certified in the world, none being a government building of this
size. Staff recommends a contract be awarded to Hathaway Dinwiddie Construction
Company for design services in an amount not to exceed $7,064,501. Additionally, funds
need to be appropriated for direct owner costs in the design phase for surveys, permits,
fees and management in the amount of $540,000. Because this is a design -build or
integrated project design project, more consultants participate in the design phase which
saves money in the construction phase. The overall project cost identified as
$56,385,310 will remain unchanged.
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Background
City Hall was constructed in 1938 when the city population was 53,500. The
approximately 60,000 square foot building was designed to consolidate staff offices,
services, and activities of three separate municipal entities including: City Hall, a fire
station and a police station /jail. Santa Monica's population has grown to 92,400 and
City services and staffing levels have evolved and increased to serve the needs of an
active community and commercial hub. In addition to the 243 staff located in the historic
City Hall building, approximately 200 administrative city employees are housed in
leased spaces throughout Santa Monica at a cost of almost $2 million per year. There
are also City employees located at City Yards, Colorado Yards and some other
locations whose work requires them to remain at their present city -owned locations.
Current lease agreements stipulate increases as high as 5 percent annually, based on
the consumer price index (CPI). Given the strengthening economy and real estate
recovery, these increases could be much higher once leases expire and must be
renegotiated. Lease and utilities payments are estimated to increase to $2.4 million
annually by 2020.
On March 27, 2012 (attachment A), Council authorized staff to seek proposals for the
feasibility, initial design and cost estimates for a City Services Building located on the
site just east of City Hall.
On October 8, 2013 (attachment B), staff issued an Information Item detailing the
proposed design -build delivery method for the design and construction of the City
Services Building. This approach offers phased implementation, starting with a
feasibility analysis, concept design and cost estimation.
On April 4, 2014 (attachment C), Council authorized staff to negotiate and execute a
professional services agreement with Hathaway Dinwiddie Construction Company for
the feasibility analysis, concept design and cost estimates for the City Services Building.
This agreement was the first of three phases in the design -build process, which includes
feasibility analysis, concept design and cost estimates in phase one; design services
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including schematic design, design development, construction documents, project
management, and cost estimating in phase two; and construction in phase three. The
project design and construction phases would follow under a design -build contract
subsequent to Council approval for each phase.
A concept design of the proposed structure was completed, and was focused on the
building massing, scale and location on the site. Concept design excludes consideration
of the structure fagade and appearance (this would be developed as part of the design
phase).
A three story building on the proposed site could accommodate both a state of the art
public permit center and staff from leased spaces located throughout Santa Monica.
The study shows that sufficient space can be constructed in this location to eliminate
five City leases totaling approximately 43,500 square feet. Operating groups identified
for relocation to the City Services Building include: Housing and Economic
Development, Information Systems, Finance and Risk Management, the Office of
Sustainability and the Environment, Architecture Services, Civil Engineering and
Cultural Affairs. These groups currently occupy leased office space at three separate
sites in Santa Monica.
On January 27, 2015 (attachment D), Council authorized the City Manager to negotiate
a GMP with design -build contractor Hathaway Dinwiddie Construction Company, a
California -based company, for design services (including schematic, design
development and construction documents), for the proposed City Services Building.
Discussion
Staff recommends a design -build contract with a GMP for design services to include
architectural and engineering services, schematic design, design development,
construction documents, project management and cost estimating with Hathaway
Dinwiddie Construction Company in the amount of $7,064,501. Staff would return to
Council for review and comment during the design phases of schematic design and
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design development and when the construction documents are completed for
authorization of a GMP for construction.
Contractor /Consultant Selection
The Hathaway Dinwiddie Design -Build team was selected in a competitive process
conducted in 2014. Professional Services Agreement was utilized to conduct the
Feasibility Analysis which was presented to Council on January 27, 2015.
Public Outreach and Commission Action
During schematic design, the project will be publicly presented to Council, the
Landmarks Commission and the Planning Commission. Additionally, the Architectural
Review Board will have a courtesy review at the end of schematic design. During the
design development phase, the Landmarks Commission, the Planning Commission and
the City Council will review and comment on presentations of the proposed design.
Next Steps
Upon Council approval of the GMP, staff anticipates the following project timeline:
• Schematic design — spring 2015 through summer 2015
• Design development— summer 2015 through spring 2016
• Complete construction documentation phases — spring 2016 through fall 2016
• Return to Council for authorization of a Guaranteed Maximum Price for
construction and to issue lease revenue bonds — winter 2016
• Site preparation and start of construction— spring 2017
• Complete construction — summer 2019
Additionally, based on Council direction staff would return to Council to amend the Civic
Center Specific Plan to allow for the use of the proposed site. Staff will return to Council
to request authorization of the GMP amendment for construction and to review debt
service financing plans, and to issue revenue bonds estimated in the winter of 2016.
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The debt service for the Living Building Challenge building would be approximately $4.2
million per year. Assuming a $4 million equity contribution and a 4% annual increase in
rental costs over a thirty year horizon of debt service, this project would generate lease
savings that, along with utility savings, would eventually exceed the cost of annual debt
service in FY 2034 -35. Initially, debt service and other costs related to building
ownership would exceed savings by approximately $2 million a year. This cost would
steadily decrease until FY 2034 -35. Funds would need to be diverted from available
General Fund CIP allocation annually during this time to accommodate the net cost of
debt service as indicated in the January 27, 2015 staff report to Council.
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Financial Impacts and Budget Actions
The contract to be awarded to Hathaway Dinwiddie Construction Company is for an
amount not to exceed $7,064,501. Additionally, direct owner costs in the design phase
for surveys, permits, fees and management are estimated at $540,000. Award of the
contract and direct owner costs require the following budget actions:
1. Release of $7,604,501 from Unassigned Future Expenditures at 1.390015.
2. Appropriation of $7,604,501 to account 0014083.589000.
Prepared By: Homa Mojtabai, Senior Administrative Analyst
Approved Forwarded to Council
Susan Cline, Interim Director of 14I16001t5
Attachments:
A. A - March 27, 2012 Staff Report
B. B - October 8, 2013 Information Item
C. C -April 14, 2014 Staff Report
D. D - January 27, 2015 Staff Report
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Elaine M Polachek, Interim City M&WOW5
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Reference:
Contract No. 10051
(CCS)