SR-07-28-2015-3J 500-006 / 911-000City Council Regular Meeting: July 28, 2015
Agenda Item:
To: Mayor and City Council
From: Martin Pastucha, Director, Public Works, Architecture Services
Subject: Professional Services Agreement for Concept Design and Feasibility Analysis
for the City Yards Stage I
Recommended Action
Staff recommends that the City Council:
1. Award Bid SP #2396 to Hathaway Dinwiddie Construction Company, a California -
based company, for concept design, cost estimation services, and feasibility
analysis for the City Yards Stage I.
2. Authorize the City Manager to negotiate and execute a professional services
agreement with Hathaway Dinwiddie Construction Company in an amount not to
exceed $387,200 (includes a 10% contingency). This agreement would be the
first of three phases in the design -build delivery method, with the final phases
being executed under a design -build contract and contingent upon future Council
approval.
3. Authorize the Director of Public Works to issue any necessary modifications to
complete the work within budget authority.
Executive Summary
On January 27, 2015, Council authorized staff to seek bids for a design -build team for
the initial phases of the City Yards Master Plan. This agreement would constitute the
first of a three -phase design -build agreement. The first phase would include concept
design, cost estimation services, and feasibility analysis. The functional needs and
space required are no longer met by the facilities for any of the operations housed at the
City Yards, nor do the facilities meet current federal, state and/or local requirements.
Deficiencies include: maintenance shop space; vehicle hoists, covered maintenance
area for heavy duty vehicles; employee restroom /locker facilities, parking for City,
employee, and visitor vehicles, storage; traffic circulation within and around the City
Yards for city vehicles, and customer service facilities to adequately serve members of
the public at the various City Yard offices.
In addition, a private recycling facility utilizes a substantial portion of the site and will be
relocated to provide required space. The City Yard has been operating with these
deficiencies for decades, and this concept and feasibility analysis will result in the
methodology, initial design, and cost for moving forward with the most urgent first
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phases of the City Yards Master Plan. Staff recommends Hathaway Dinwiddie
Construction with Miller Hull Partnership as the best bidder to provide these phase one
services for the City Yards Stage I in an amount not to exceed $387,200.
Background
The City Yards is a 14.7 -acre site owned and operated by the City of Santa Monica and
located at 2500 Michigan Avenue, near the intersection of 24`h Street and Michigan
Avenue. The City took ownership of the site in the late 1940s. The property has been
used as a base for the City's maintenance operations, storage facilities, and other
industrial uses. Currently, a majority of the City's field maintenance operations are
located at the City Yards spread out across the site in 16 buildings and structures of
various ages and conditions. These operations include:
• Facilities Maintenance
• Custodial Services
• Street Maintenance
• Fleet Maintenance
• Traffic Operations
• Resource Recovery and Recycling
• Water and Wastewater Operations
• Hazardous Waste Storage (City usage only)
• Fire Department Training Area
Operations and uses for the City Yards were adapted as- needed for various City
functions, resulting in an expedient but inefficient utilization of space. Changing
populations, growth, updates in technology, and differing service requirements resulted
in a series of haphazard updates throughout the site. Today, the City Yards operates
seven days a week and houses more functions and employees than it was designed to
accommodate. The scope and breadth of the operating divisions has evolved over time.
Functional needs and space are no longer met by the facilities for any of the operations
housed at the City Yards. Deficiencies include: maintenance shop space; vehicle hoists,
covered maintenance area for heavy duty vehicles; employee restroom /locker facilities,
parking for City, employee, and visitor vehicles, storage; traffic circulation within and
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around the City Yards for city vehicles, and customer service facilities to adequately
serve members of the public at the various City Yards offices. In addition, a private
recycling facility of rudimentary design utilizes a substantial portion of the site and will
be relocated.
The City Yards has been designated by the City as an "Essential Services Facility," and
therefore must remain operational after a major earthquake event as the Department
Operations Center for Public Works first responders. This designation adds constraints
on the design and raises greater concerns regarding the condition of these aging
structures.
To address these problems, on October 8, 1996 (attachment A), Council authorized a
Professional Services Agreement with RNL Interplan, Inc. (RNL) for consulting services
to prepare a Master Plan for the City Yards that would address the physical
reorganization, renovation and rehabilitation needs of the City Yards. On October 24,
2000 (attachment B), Council approved the two proposed City Yards Master Plan
alternatives in concept. One concept included the continued operation of a City
designed and constructed transfer station, while the second concept assumed
contracted transfer station services with a third -party provider.
On November 12, 2002 (attachment C), Council awarded a new professional services
agreement with RNL for architectural and engineering services for the City Yards
expansion project. Also on November 12, 2002, Council directed staff to proceed with
the design of a new municipal transfer station. On December 10, 2002 (attachment D),
Council approved only a limited schematic design for a new transfer station.
The City Yards Master Plan continued to evolve. On January 20, 2004 (attachment E),
Council directed staff to explore different approaches for updating the transfer station
located at the City Yards including a public - private partnership and reconstruction of the
transfer station. On June 28, 2005 (attachment F), Council authorized the formation of
an Ad Hoc Committee consisting of Council Members Ken Genser and Herb Katz to
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participate with staff in the identification and analysis of a range of solid waste
management options for Council's consideration. On October 25, 2005 (attachment G),
Council authorized a contract with Gershman, Brickner & Bratton, Inc. (GBB) to assist
staff with this effort. On March 14, 2006 (attachment H), GBB presented the results of
the evaluation of Solid Waste operations to Council
On May 22, 2008 (attachment 1), Council conceptually approved the partnership with
Southern California Disposal (SCD) and Allan Company. Under this partnership, SCD
would provide transfer services and Allan would provide recycling services in the area of
the City Yards currently occupied by the City's Transfer Station, the current Allan site,
the Hanson Aggregate site and SCD land. On November 25, 2008 (attachment J),
Council approved service agreements with SCD and Allan Company. On December 6,
2011 (attachment K), Council approved staff's recommendation to cancel the design
and construction of the Resource Recovery Center and the Self -Haul Facility at the City
Yards due to costly construction estimates, rate impacts and operational issues, and
directed staff to develop a new materials processing plan in conjunction with Allan
Company and Southern California Disposal.
On October 13, 2009 (attachment L), Council authorized a professional services
agreement with RNL to update the City Yards Master Plan approved in 2002. The
update was substantially completed in July 2010 (Exhibit 2); however, the plan was not
presented to Council due to additional required updates addressed through four
subsequent modifications on September 13, 2011, February 14, 2012, September 11,
2012 and June 25, 2013.
On September 13, 2011 (attachment M), Council approved a first modification to
complete the City Yards Master Plan with additional scope to include revisions to the
configuration of the plan area, finalizing a program for the new components, and
identifying and adding additional operations on the site:
The Resource Recovery Center site located at the City Yards would become
available once the Resource Recovery and Recycling operation was moved off
site. The inclusion of this area would allow for additional programming
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components.
® The planned relocation of the Santa Monica Fire Department's training center
within the City Yard and the addition of the public safety storage facility into the
City Yards program.
On February 14, 2012 (attachment N), Council approved a second modification to
conduct a study, focusing on the best and most practical approach to build on the areas
above the landfill. The scope of work included performing additional borings to the site
and analysis of three possible approaches:
® Utilize structural slabs on piles at the buildings and vehicular circulation areas
• Remove the landfill and import engineered fill
• Amend the landfill to stabilize the area for construction and circulation
On September 11, 2012 (attachment O), Council approved a third modification to
conduct further assessment of the landfill outside the boundary of the City Yards site.
Previous geotechnical studies were limited to the City Yards site. Additional
geotechnical borings were completed in the adjacent Stewart Park to provide details on
the extent and depth of the fill that was previously insufficiently documented.
On June 25, 2013 (attachment P), Council approved a fourth modification to facilitate a
phased approach to construction to accommodate budget constraints by breaking the
reconfiguration of the City Yards site into smaller increments that would be completed
over time as funding becomes available.
On January 27, 2015 (attachment Q), Council approved the Master Plan in concept and
authorized staff to issue a request for bids for a design -build team for the initial phases
of the City Yards Master Plan and prepare a financing plan for the initial phases of the
City Yards Master Plan.
Discussion
The City Yards have housed the staff and shop resources for the majority of the City's
infrastructure maintenance; from street resurfacing and repair to water and sewer line
maintenance; from the maintenance /fueling of police vehicles and trash trucks to the
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locker rooms for the custodians of our city buildings including libraries, the Public Safety
Facilities and City Hall; from the shops for our carpenters and plumbers to the training
area for our firefighters. These functions are heavily relied upon by our community and
efficiencies and effectiveness are compromised by inadequate space, dangerous traffic
circulation, substandard electrical systems, and dated equipment and technology.
The unsafe circulation condition is created by the confluence of large city vehicles, the
adjacent Southern California Disposal operation, and members of the public coming to
both the City Yards and the adjacent Bergamot Art Center. For the safety of both staff
and the public, and for the improvement of facilities necessary for the continuation of the
high level of City services that residents and businesses have come to expect, this
concept design, cost estimate and feasibility analysis provides the first step toward the
design and construction of the initial phases.
On April 16, 2015, a Request for Bids (RFB) was issued for the selection of a design
build team to provide concept design, cost estimating services, and feasibility analysis
for the City Yards Stage I. The RFB was posted on the City's online bidding website and
in the Santa Monica Daily Press in accordance with the City Charter and Municipal
Code provisions. A total of 26 individuals attended the pre -bid job walk held on April 28,
2015. On January 14, 2014, bids from seven design build teams were received and
publicly opened. The bid results are attached in Attachment R.
Representatives from the Architecture Services and Facilities Maintenance Division
formed an evaluation committee and evaluated bids based on demonstration of the
published criteria including:
• Ability, capacity and skills of the proposed team.
• Quality of the design, technical and management services offered.
• Demonstrated ability of the proposed team and members to successfully create
similar facilities.
• Team cohesiveness as proven by working relationships and previous successful
mutual projects.
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• Ability and methodology to successfully design and construct to a given design
program within budget and time constraints.
• Capacity of the team to provide the services promptly and without delay or
interference.
• Character, integrity, reputation, good judgment, training, experience and
efficiency of the team.
• Commitment to sustainable building.
• Availability of lead firm and design build team.
• Sufficiency of the team's financial resources.
• Fee and fee percentage.
The evaluation committee shortlisted three teams: Hathaway Dinwiddie Construction
with Miller Hull Partnership, Taslimi Construction with HLW and Studio Jentzen, and
Clark Construction with RNL Interplan. On June 9, 2015, the evaluation committee
interviewed these three teams. The evaluation committee focused on the ability,
capacity and skills of the proposed team, commitment to sustainability and the best fit
for the City Yards Stage I. Based on the evaluation criteria and the shortlist interviews,
the committee recommends the team of Hathaway Dinwiddie Construction Company
with Miller Hull Partnership as the best bidder.
Bids were evaluated on the published criteria. The selected team scored particularly
high on the quality of the design, technical and management services offered; the
demonstrated ability of the proposed team to successfully create similar facilities; and
exceptional commitment and achievement in sustainable building. To put the fees into
context, the Phase I fee is a lump sum for the feasibility, concept design and cost
estimates. Phase II is a fixed percentage mark up for the design phase only. A design
guaranteed maximum price of $2.5 million was assumed to evaluate this number
(Attachment A). Phase III is a fixed percentage mark up for the construction phase only
and a construction guaranteed maximum price of $25 million was assumed (Attachment
A). These assumptions allow comparison of probable fee differentials over all three
phases. The recommended team of Hathaway Dinwiddie Construction with Miller Hull
Partnership submitted a bid estimated at approximately $42,000 over the lowest bid - a
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difference representing less than 0.18% of the total project cost of approximately $25
million. Hathaway Dinwiddie Construction also has the lowest Phase III percentage
mark up of 2.95% on the construction cost, which could ultimately be the most
significant factor if the construction cost escalates.
Hathaway Dinwiddie Construction Company is a 104 year -old firm based in California. A
sample of government clients include: General Services Administration, County of
Santa Clara, and Elihu M. Harris State Office Building in Oakland. The firm has
extensive construction experience with academic and private sector clients including:
buildings for the University of Southern California, University of California Irvine,
California Institute of Technology, Stanford University, and Emerson College Los
Angeles Campus. Hathaway Dinwiddie corporate clients include Disney Corporate Real
Estate, Agensys Inc., Pixar Animation Studios, Tishman Speyer Properties, Kilroy
Realty, Irvine Company, Wilkes Bashford, and Amgen, Inc. In addition to an extensive
list of corporate and academic clients, the firm has constructed iconic buildings including
the Getty Center, the original Getty Villa as well as the Transamerica Pyramid and
Grace Cathedral in San Francisco. Hathaway Dinwiddie Construction Company is
currently contracted by the City for the design and construction of the City Services
Building.
Miller Hull Partnership has created sustainable modern structures that are based on
simple, innovative and authentic designs. Since its inception in 1977 the firm has
received over 200 design awards and has been published in numerous national and
foreign design journals. The firm has worked on projects such as the Seattle Public
Utilities South Transfer Station, the San Ysidro Land Port of Entry and the Cascadia
Center for Sustainable Design and Construction (Bullitt Building).
The team of Hathaway Dinwiddie with Miller Hull Partnership has the most qualified
team members and the experience with similar types of projects in addition to
competitive fees for the project. The proposed team's staff members have very strong
backgrounds and experience utilizing the design -build approach, creating sustainable
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architecture and design as well as creating highly innovative, sustainable, and humane
industrial building environments. This proposed team has the background and
experience to facilitate the design and construction of the first stage of the City Yards
project and would create synergy and efficiency for both the staff and the public works
functions.
Upon Council authorization of this agreement, Hathaway Dinwiddie Construction
Company and Miller Hull Partnership would conduct a feasibility analysis of the
proposed site and concept design services, building upon the master plan. The team
would recommend strategies for implementing construction in conjunction with the
concept designs. This is a phased agreement. Staff would return to Council at the
conclusion of the Phase I feasibility analysis and concept design for direction and
authorization to continue to Phase II for design services. The project cost would be
modified by two guaranteed maximum prices: one for the design services (Phase 11) and
a second guaranteed maximum price for construction (Phase III) with Council approval
and authorization at each phase.
Next Steps
Upon Council approval of the recommended design build team, staff anticipates the
following next steps:
® Return to Council with a presentation of the feasibility analysis, concept design
and cost estimates and recommendation of a financing strategy (winter 2016).
• With additional Council approval, staff would negotiate contract terms and a
guaranteed maximum price (GMP) for design costs for architectural and
engineering design services with the design build team (summer 2016).
• Phase 11 of the project for design services would begin after Council approval of
the GMP for design costs. During the design services phase, staff would return to
Council to present designs, cost estimates, and financing strategies.
• Staff would return to Council for approval of the GMP for construction and
permitting (Phase 111).
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Financial Impacts and Budget Actions
The agreement to be awarded to Hathaway Dinwiddie Construction Company is for an
amount not to exceed $387,200 (includes a 10% contingency). Funds are available in
the FY 2015 -16 Capital Improvement Program budget in account 0014028.589000 (City
Yards Master Plan Phases 1a through 2b). Future construction costs for this project
would be funded using existing City resources.
Prepared By: Tom Afschar, Architect
Approved
Martin Pastucha, Director 7/21/2015
Attachments:
Forwarded to Council
Elaine M Polachek Asst. City MaUdguL015
A. October 8, 1996 Staff Report (web link)
B. October 24, 2000 Staff Report (web link)
C. November 12, 2002 Staff Report (web link)
D. December 10, 2002 Staff Report (web link)
E. January 20, 2004 Staff Report (web link)
F. June 28, 2008 Staff Report (web link)
G. October 25, 2005 Staff Report (web link)
H. March 14, 2006 Staff Report (web link)
I. May 22, 2008 Staff Report (web link)
J. November 25, 2008 Staff report (web link)
K. December 6, 2011 Staff Report (web ink)
L. October 13, 2009 Staff Report (web link)
M. September 13, 2011 Staff Report (web link)
N. February 14, 2014 Staff Report (web link)
O. September 11, 2012 Staff Report (web link)
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P. June 25, 2013 Staff Report (web link)
Q. January 27, 2015 Staff Report (web link)
R. Bid #SP2396 Results - City Yards Stage I (PDF)
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Reference:
Agreement No. 10145
(CCS)