SR 10-25-2016 3E
Ci ty Council
Report
Cit y Council Meeting : October 25, 2016
Agenda Item: 3.E
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Architecture Services
Subject: Award Design Contract for the City Yards Modernization 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 Yards Modernization in the amount of $10,000,000 (which includes an 8%
contingency); and
2. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
Executive Summary
On July 12, 2016, Council authorized staff to negotiate a Guaranteed Maximum Price
(GMP) with design -build contractor Hathaway Dinwiddie Constructi on Company for
design services for Phasing Package A (Attachment A) of the City Yards Modernization
Project. This phase includes a new Fleet Maintenance building, Facilities Management,
Resource Recovery and Recycling, Street Maintenance and Custodial Ser vices
Administration Building, Traffic and Facilities Shop s as well as Wash Bays and Fuel
Islands . Staff recommends a contract be awarded to Hathaway Dinwiddie Construction
Company for design services in an amount not to exceed $10 ,000,000 (including an 8%
contingency). Additionally, $1,700,000 will be spent on associated direct owner costs in
the design phase for surveys, permits, fees and management . All funds are included in
the FY 2016 -18 Capital Improvement Program Budget. T his is a design -build, or
i ntegrated project delivery , meaning that the designers and construction team are
coordinating early in the design phase, resulting in savings during the construction phase.
The overall cost estimate for the City Yards Modernization Project Phasing Package A
remain s $114 million.
Background
City Yards Site Characteristics and Considerations
The City Yards is a 14.7 -acre site owned and operated by the City of Santa Monica
located at 2500 Michigan Avenue, near the intersection of 24 th Street and Michigan
Av enue. The City took ownership of the site in the late 1940s and constructed three
buildings to house City Yards operations occupying the land between Michigan Avenue
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and the former Santa Monica Rubbish disposal pit. The buildings were designed by
Consulti ng Engineers Parker Zehnder and Associates to accommodate the needs and
program requirements of the City at that time . Buildings included a small garbage
transfer station and gas station, an auto repair and maintenance shop with two vehicle
lifts, and a br oom repair and blacksmith shop. Facilities shops, crew space and
administrative space w ere sized to accommodate the staffing levels at the time. The
balance of the site was occupied by a warehouse and open equipment storage bays.
This property has been use d as a base for a majority of the City’s field maintenance
operations, storage facilities, and other industrial uses since then.
City Yards circa 1954
These same three City Yards buildings from the 1940 s still house a majority of the City’s
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field mainte nance operations today. P rogram needs have changed through the years,
and the City Yards was adapted as -needed for various City functions resulting in an
expedient but inef ficient utilization of space. As additional shop space , maintenance
space or office space was needed, the existing warehouse and open equipment storage
bays were converted and reconfigured to accommodate these needs. Changing
populations, growth, updates in technology, and differing service requirements have
resulted in a series of haph azard updates throughout the site. This reconfiguration of old
buildings is the result of a decades -long process of “making do” with a facility that the
City outgrew many years prior .
The original building envelopes and substandard structure s remain in pl ace at City
Yards today. Some structures were installed as temporary trailers that became
permanent housing for critical functions. These buildings have exceeded their expected
service life and can no longer be utilized to support the current City Yards functions
safely . City Yards functions include :
Facilities Maintenance
Custodial Services
Street Maintenance
Fleet Maintenance
Traffic Operations
Resource Recovery and Recycling
Water and Wastewater Operations
Household Hazardous Waste
Fire Department Training Area
The City Yards operates seven days a week and houses significantly 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 requirements
are no longer met by the facilities for any of the operations housed at the City Yards.
Deficiencies include inadequate maintenance shop space, vehicle hoists, and covered
maintenance area for heavy duty vehicles . This results in th e need to perform some
vehicle maintenance outside the fleet shop space , creating site circulation constraints
and hazardous conditions. Further deficiencies include inadequate employee
restroom/locker facilities ; limited parking for fleet, employee, and v isitor vehicles ;
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storage and traffic circulation constraints ; and inadequate customer service facilities to
serve members of the public at the various City Yards offices. In addition, a private
recycling facility of rudimentary design utilizes a substanti al portion of the site. Santa
Monica is a rare municipality that performs ma ny of these services in -house. The
community has come to expect these services, but achieving high performance
standards is difficult with substandard facilities.
City Yards Mast er Plan History
On October 8, 1996 , Council authorized a Professional Services Agreement with RNL
Interplan, Inc. (RNL) for preparation of a Master Plan for t he City Yards that would
address the physical reorganization, renovation and rehabilitation needs of the City
Yards. Between 2000 and 2009, Council changed direction in regards to the City
operating a transfer facility at the City Yards. Current direction by Council is for the City
to operate resource recovery transfer services through a contracted third -party provider.
On October 24, 2000 , Council approved t he 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 provi der. On November 12, 2002 ,
Council authorized a Professional Services Agreement with RNL to complete full design
and engineering services for a multi -phase construction process for the City Yards
Master Plan Project anticipated to begin in 2005 and to be c ompleted in 2010, including
a City -operat ed transfer facility . However, subsequent changes in City Yard s use s and
space constraints necessitated an update to the City Yards Master Plan.
On October 13, 2009 , Council authorized a Professional Services Agreement with RNL
to update the City Yards Master Plan approved in 2000. The update was substantially
completed in July 2010; however, the plan was not presented to Council due to
additional scope requirements that required further Master Plan modifications,
addressed in four subsequent modifications on September 13, 2011, February 14,
2012, September 11, 2012 and June 25, 2013 .
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On December 16, 2014 , Council authorized a Professional Services Agreement with
International Parking Design, Inc. to prepare a parking study for the City Yards. The
study reviewed financing o ptions, economics, parking demand, and viability of a shared
parking solution on the City Yards site. Parking is not a part of the Package A scope of
work, but will be addressed in the future in coordination with adjacent private
development at the Bergamo t Arts Center.
On January 27, 2015 , Council approved the updated City Yards Master Plan by RNL in
concept and authorized staff to issue a request for bids to contract with a design -build
team for the initial concept design, cost estimation services and feasibility analysis , and
to prepare a financing plan for the initial phases of the City Yards Modernization Project .
On July 28, 2015 , Council authorized staff to negotiate and execute a professional
services agreement with Hathaway Dinwiddie Construction Company (along with Miller
Hull Partnership as the architect ure firm) for these services.
On July 12, 2016 , Council authorized the City Manager to negotiate a design
Guaranteed Max imum Price (GMP) with design -build contractor Hathaway Dinwiddie
Construction Company (HDCC), a California -based company, for design services that
include s schematic design, design development, construction documents, project
management, and cost estimatin g for the City Yards Modernization Project in
accordance with the proposed “Zipper” Concept/Phasing Package A.
The HDCC agreement represents three phases of this design -build project process: 1)
feasibility and concept design ; 2) project design ; and 3) co nstruction. The first phase
has been completed, and the GMP for the design phase is herein presented for Council
approval. After project design is completed, the construction (GMP) amendment would
be presented to Council for approval.
New Water Treatment Plant
In support of the City’s water self -sufficiency goals, a new water treatment plant
(Olympic Treatment Plant) is planned to be located within the City Yards on the eastern
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portion of the site. Feasibility analysis is underway for this portion of the site, which will
proceed separately , but in coordination with the City Yards Modernization Phasing
Package A project. The work on this eastern portion of the City Yards site is envisioned
to include the Olympic Treatment Plant, Water Resources and Public L andscape
administrative offices, and Gandara Park reconfiguration.
On August 12, 2014 , Council authorized Black & Veatch to design and install a pilot
treatm ent unit to study the different treatment technologies available to produce
California Division of Drinking Water (DDW)-approved drinking water in the Olympic
Well Field. The pilot treatment unit was staged at the City Yards due to its close
proximity to s ource water and due to the availability of City -owned land being
considered for the siting of a water treatment plant. The pilot study was completed in
summer of 2016 and the study report will be completed in fall of 2016 . The pilot study
report will inclu de the preliminary design criteria for the water trea t ment plant .
On July 12, 2016 , Council authorized the City Manager to modify the agreement with
Hathaway Dinwiddie Construction Company (HDCC) to provide additional conceptual
design scope of work related to the Olympic Treatment Plant, Water Resources,
Gandara Park and Public Landscape project components.
Sustainabili ty Framework for the City Yards Modernization Project
All components of the City Yards Modernization Project, including the water treatment
plant, will proceed in a highly sustainable manner in order to turn the City’s industrial
campus in to a valued comm unity asset.
On May 24, 2016 , Council authorized a grant award of $1 ,487,609 from the California
Energy Commission for t he Santa Monica Advanced Energy District project proposal.
The project will integrate a small, localized energy grid (a microgrid) consisting of onsite
renewable energy generation and energy storage based at the City Yards and
Bergamot Arts Station. The pr oject will utilize four strategies to establish a multi -user
microgrid. First, the City will own and operate its own microgrid, serving the City Yards
facility. Second, the City will work with Worthe Development Group at the City -owned
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Bergamot Arts Statio n, to develop appropriate regulations and incentives through the
entitlement and development agreement process and establish a unique public/private
partnership model. Third, a master plan over this area will be developed to delineate the
integration and i nterconnection between the City, the public, and the utility. And finally,
the City will explore the value of its role as a Community Choice Aggregator to
incentivize, construct , and generate retail power supply.
On July 12, 2016 , i n addition to approving the City Yards feasibility analysis and
proposed concept/phasing options, Council authorized the City Manager to regis ter the
City Yards as an eco -dist rict with EcoDistricts Protocol, and s taff reported that the
design -build team would establish Envision certification targets as sustainability
standards for the City Yards Modernization Project.
Discussion
T he City Yards stands to be redeveloped sensitively to meet both the needs of City
operations located at City Yards and to be a good neighbor for the surrounding
community . Design work for the City Yards Modernization Project will proceed within the
framework of both th e EcoDistricts Protocol and the Envision sustainability infrastructure
certification, with the aim of maximizing the sustainability and community benefit of the
project.
The EcoDistricts Protocol is a process -based collaboration framework that promotes t he
neighborhood/district -scale as the ideal size to achieve “deeper green” sustainable
development that cannot normally be achieved within a single green building.
Opportunities to implement innovative community programming and to resource share
could tran scend project site boundaries. Examples include partnering the operations at
City Yards and artists at Bergamot to upcycle goods found in the local waste stream as
art; increasing the amount of training and services for the public via the shared use
Commun ity Room housing Rosie’s Girls ; or collectively creating a sense of place by
making a bioregional library or gallery space.
Emphasis will be placed on defining goals for three overarching imperatives:
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Equity
Resilience
Cli mate Protection
As well as goals for six priorities:
Place
Prosperity
Health and Wellbeing
Connectivity
Living Infrastructure
Resource Restoration
These imperatives and priorities align well wit h existing City priorities and will provide a
natural connection to ongoing efforts such as the Sustainable City Plan and the Well -
Being Index. The EcoDistrict protocol will also provide a framework to ensure effective
collaboration with surrounding land u ses and efforts, including but not limited to the
City’s own water treatment plant, Water and Public Landscape administrative offices,
reconfigured Gandara park, the Bergamot Arts Center, Ishihara Park, Pico and
Memorial Park neighborhood plans, and the Su stainable Water Master Plan.
In addition to pursuing EcoDistrict certification, the design -build team will also pursue
the Envision rating system for the City Yards Modernization project. Envision was
determined a more appropriate rating system than the LEED rating system for this
project type. Envision facilitates the development and maintenance of sustainable
infrastructure and aims to improve the performance and resiliency of physical
infrastructure. The rating system uses criteria from six categories for project
certification: Quality of Life; Leadership; Resource Allocation; Natural World; Climate;
and Risk. Achieving Envision certification would demonstrate the City’s commitment to
sustainable leadership by being one of the first municipal corporate yards projects in the
country certified under the rating system.
Design Costs
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Staff recommends a contract be awarded to Hathaway Dinwiddie Construction
Company for a design services Guaranteed Maximum Price (GMP ) in an amount not to
exceed $10,000,000 . Included in this GMP is a n 8% contingency and $750,000 for
subcontractor pre -construction services , which is pulled from the construction budget .
The net design fee amounts to 10% of the anticipated construction cost which is within
the industry standard for projects of this type.
The d esign fee includes services by 14 consultants for architectural and engineering
services, schematic design, design development, construction documents, project
management and cost estimating of Phasing Package A of the Cit y Yards
Modernization Project. Staff would return to Council for review and comment s during the
schematic design phase and when the construction documents are completed for
authorization construction financing, and GMP amendment to authorize construction
s ervices .
In addition to design contract costs, $1,700,000 in direct owner costs is included in the
FY 2016 -18 Capital Improvement Program budget for direct owner costs in the design
phase. Direct owner costs include: environmental impact report preparatio n, site and
utility surveys, fiber network hub design, utility relocation, project management, and
design contingency in the event that plans for the adjacent water treatment plant and
associated uses impact the City Yards Phasing Package A scope of work. In addition to
standard costs, in this case the direct owner funds will also cover community
engagement and registration related to the EcoDistrict protocol and Envision .
T his is a design -build, or integrated project, meaning that designers and construc tion
team are coordinating early in the project design phase , resulting in savings during the
construction phase. The overall cost for the design and construction of the City Yards
Modernization Project Phasing Package A (Attachment A) remain s at $114 mill ion.
Public Outreach
Two community meetings were held to conduct public outreach in early 2016 for the
City Yards Modernization feasibility analysis and concept design recommendations. In
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February 2016, the design -build team and City staff held a commun ity meeting at
Virginia Avenue Park to present the project vision and goals for improving the essential
city services based out of the City Yards facilities. The purpose of this initial community
outreach meeting was to hear the hopes, dreams , and concerns of the adjacent
community near the City Yards. A ttendees had an opportunity to discuss their ideas
along with their responses to the project’s goals. The design -build team documented the
public comment received and attempted to visualize and prioritize th ese comments.
The intended outcome was to understand what the community wants (or doesn’t want)
in the development of the project. Following are some of the specific comments from
the community:
Provide learning programs for broader groups
Consciousn ess of the level of disruption to the neighbors
Provide opportunities for public art
Use the City Yards project to enhance Stewart St. Park and solve some of the
current challenges there
Connection to adjacent neighborhood to NE/ provide connection from the
mobile home park to Bergamot
Mindfulness of overlap between pedestrians / cars / heavy equipment moving
in & out of site
Allow for more visibility into the City Yards - celebrate the functions there
Enhance Michigan Street - Street trees, pl anting buffer
Community Room
Provide more space to Rosie’s Girls (a community program)
Pursue net -positive energy
Produce electricity for the neighborhood
Focus on opportunities for water re -use
Greater operational efficiency to conserve resour ces
Composting opportunities
The results of the first community meeting influenced the City Yards concept design s,
and a s a follow -up, a second community meeting was held in March 2016. The design -
build team and staff presented the updated concept desig n options , and the community
offered more feedback based upon their evaluation of the concept design options . If
Council authorizes the design phase to commence for the City Yards Modernization
Project , further community outreach would occur during the des ign process of Phasing
Package A.
Next Steps
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S taff anticipates the following project timeline:
Schematic design - fall 2016 - spring 2017
Design development , regulatory approvals - spring 2017 - winter 2017
Co nstruction documentation - winter 2017 - summer 2018
Return to Council for authorization of a Guaranteed Maximum Price for
construction and to approve construction financing - summer 2018
Site prepara tion and start of construction - fall 2018
Estimated completion of construction - summer 2021
Additionally, based on Council direction on July 12, 2016 , the design -build team will
provide additional feasibility and concept design scope of work related to the Olympic
Water Treatment Plant, Water Resources Administrative Offices , Public Lands cape
relocation from Colorado Yards, and the reconfiguration of Gandara Park . Staff will
return to Council with the updated feasibility analysis after the conclusion of this work.
Financial Impacts and Budget Actions
The contract to be awarded to HDCC i s for an amount not to exceed $10,000,000 .
Additionally, direct owner costs for design phase work are $1,700,000 . Funds are
available in the FY 2016 -17 Capital Improvement Program budget in account
C014028.589000.
The previously approved feasibility ana lysis provided an estimated cost in the amount of
$114 million to complete the design and construction of Phasing Package A. The FY16 -
18 CIP biennial budget appropriated $11.7 million in Charnock settlement funds in FY
2016 -17 to fully fund the design phas e, and $38.3 million in remaining available
Charnock settlement funds in FY 2017 -18 to partially fund project construction. The
unfunded construction budget is estimated to be $64 million and is proposed to be bond
financed . The General Fund would not bear the full burden of debt service ; c osts would
be allocated to other funds with associated operations at the City Yards, including
Resource, Recovery and Recycling and the Vehicle Management Fund. A djacent Water
and Wastewater plans are anticipated to be fu nded with Gillete/Boeing settlement
funds, though cost estimates are pending. Staff will return to Council with more detailed
cost estimates and financing plans for both the City Yards construction and for the
adjacent Water Treatment Plant and associated project components.
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Prepared By: Tom Afschar, Architect
Approved
Forwarded to Council
Attachments:
A. Phasing Package A
Reference:
Contract No. 10371
(CCS)