SR 11-01-2016 3C
Ci ty Council
Report
City Council Meeting : November 1, 2016
Agenda Item: 3.C
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Architecture Services
Subject: City Services Building Program Change
Recommended Action
Staff recommends that the City Council :
1. Authorize the City Manager to negotiate and execute a f irst modification to
A greement #1 0051 (CCS), in the amount not to exceed $1,692,480 (including
10% contingency), with Hathaway Dinwiddie Co nstruction Company , a
California -based company, for design services associated with program changes
and additional se rvices required for the project. This will result in an amended
Guaranteed Maximum Price agreement for design with a new total amount not to
exceed $8,756,981 . Staff will return to Council with a Guaranteed Maximum
Price amendment for construction.
2. Author ize budget changes as outlined in the Financial Impacts an d Budget
Actions section of the report.
Executive Summary
City staff has identified the need to expand the design services to include adjustments
to the City Services Building program , provide tec hnical design services to move the
City’s Traffic Management Center to the building , modify the courtyard circulation,
design additional environmental systems for the pasteurization of waste materials
produced in the building and to provide an additional C EQA historic resources technical
report for the project. Additionally, staff has identified the need to increase the scope of
work for the design -build contractor Hathaway Dinwiddie Construction Company to
include design -build services for tenant i mproveme nt s in the south wing of City Hall
necessitated by the City Services Building construction and for the design of essential
fire and life safety alterations to the City Hall as required by code officials . A new roof
and HVAC systems for the south wing of th e building are also required for pursuit of a
sufficient solar array and suitable water collection for the City Services Building, and
need to be added to this scope of work . This is for a first modification to an existing
design -build contract to provide additional professional design services for the City
Services Building project. The project construction cost of $74,566,130 provided to
Council on May 24, 2016 for the remaining work is increased by $238,599 (including a
10% contingency) for the programma tic scope changes, making the new total
$74,804,729 . The remainder of the design costs outlined in this report were anticipated
to be exp e nded at the time of bond issuance , but must be done sooner to keep the
project timeline on track .
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Background
On Marc h 27, 2012 (A ttachment A ), Council authorized staff to select a design
consultant to provide initial design feasibility analysis and cost estimation services for
the City Services Building . A City Services Building was part of the Civic Center
Specific Pl an and has long been needed in order to eliminate expensive offsite leased
space and coalesce city services in one location.
On Apr il 8, 2014 (Attachment B ), Council authorized staff to execute an agreement with
design -build contractor Hathaway Dinwiddie Construction Company (including design
firm Frederick Fisher and Partners Architects), for initial design, cost estimation
services, and feasibility analysis for the City Services Building in an amount not to
exceed $258,500.
O n Jan uary 27, 2015 (Attachme nt C ), Council reviewed and provided comments on the
feasibility analysis, concept design and financial options for the City Services Building
and authorized the design services phase for an approximately 50,000 square foot
building, with three stories abo ve grade and a basement level. Additionally, Council
directed the project team to pursue the Living Building Challenge, internationally the
most rigorous and ambitious environmental perfo rmance standard for buildings (m ore
information can be found at <htt p://living -future.org>).
On April 28, 2015 (Attachment D ), Council authorized the City Manager to execute a
design -build contract with Hathaway Dinwiddie Construction Company for a Guaranteed
Maximum Price for design services for t he City Services Build ing of $7,064,501 and to
authorize direct owners costs associated with the design phase in the amount of
$540,000. Because this is a design -build project, more technical consultants participate
in the design phase result ing in an integrated design and cos t savings in the
construction phase.
May 24, 2016 (Attachment E ), Council reviewed and commented on the schematic
design and cost estimates for the City Services Building, and directed staff to proceed
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with design development that endeavor s to achieve Liv ing Building Challenge
certification for a project cost of $74,566,130 for the remaining work .
Discussion
Staff recommends that the current agreement #10051 with Hathaway Dinwiddie
Construction Company for design -build services for the City Services Buil ding be
amended to include the proposed program changes for the City Services Building , to
provide technical design services for the relocation of the Traffic Management Center
and to provide design services of an environmental system that will pasteurize compost
waste material in the City Services Building , and that the design -build team provide a
required historic resources technical report as a CEQA support document for the
project. Additionally, staff recommends that the design -bui ld services for City H all south
wing tenant i mprovements , which are necessitated as a result of the City Services
Building construction , along with HVAC systems and roof adaptations to provide
essential fire and life safety alterations to the City Hall be added to the proje ct s cope.
The degree to which City Hall wa s going to be affected by the City Services Building
was unknown until the parameters and requirements were developed .
City Services Building Design
Design services for the City Services Building include program chan ge, traffic
management center relocation, environmental systems, courtyard design changes and
CEQA requirements.
City Services Building Program Change: Technology has reshaped the way work is
done and the new building will reflect the potential for more efficient and collaborative
workspace . We are committed to accelerate the digital transformat ion for City staff
operations. T he original contracted building program requirements for the City Services
Building are recommended to be adjusted to convert pri vate o ffices for division
managers and department heads to shared workspaces available for use by all staff.
This will create options for more formal and informal collaborative conference spaces
and office spaces for focused work and meetings . This also c reates more flexible work
space better accommodating staff fluctuations. By providing more open spaces through
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the elimination of dedicated offices and providing natural light and air available to all
workspaces, these program changes further contribut e to the project by satisfying the
requirements of the International Living Future Institute’s Living Building Challenge
certification.
The proposed open working environment represents a change in working culture at the
City and is in keeping with a trend of Workplace Transformation in offices across the
country . The City is planning a change management effort and a digital transformation
process to begin soon in order to shift more towards the use of mobile technology with a
focus on collaboration and teamwo rk. A variety of workspaces have been planned
within the City Services Building to accommodate different working styles including
open flexible workspaces , break rooms and break out areas and a collection of small,
medium and large spaces that can be utili zed for quiet work or meetings. As staff
becomes more mobile using laptops and tablets , the ability to work not only at an
assigned workstation but throughout the building in one of more than 30 other locations
will become the norm.
Representatives from each staff division, called Liaisons, have been identified to collect
and disseminate information regarding the project . A series of meetings have been, and
will continue to be, held to review the project throughout the project development.
Approximately 58 % of the original building design is affected mid -project in the Design
Development phase by this program change which results in an increase in design
services fees of $238,599 (including a 10% contingency). Refer to Exhibit 1 for
additional details. This is the sole design cost being proposed that is additional to the
original scope of work brought to Council on May 24, 2016.The remainder of the design
costs outlined in this report were anticipated to be expended at the time of bond
issuance, but mus t be done sooner to keep the project timeline on track.
Traffic Management Center: The existing Traffic Management Center located in the City
Hall will be relocated to the City Services Building. The Owner’s Project Requirements
(OPR) did not identify t his element in the original contracted program. City staff
recommends that the design -build team provide technical design services to identify the
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existing equipment and provide design for the relocation of this important project
element. The cost of this design work is $8,084 (i ncluding a 10% contingency).
Environmental Systems for pasteurization of waste material in the City Services
Building : Staff recommends that the design -build team provide design services for
systems to pasteurize the compost that will be a by -product of the foam -
flushing/composting toilets that a re an integral component of the proposed methodology
to achieve net -zero water in the building. The Bullitt Center in Seattle, which is an LBC
certified building, transports their compost t o a remote facility to complete the
pasteurization process. City staff recommends that the design -build team provide
design solutions to pasteurize the compost on site, in the basement , resultin g in a
greener solution. The design for these systems will det ermine whether this waste
material may be sanitized and turned into a tested compost by -product that may be
utilized in the landscape on site . The cost of this design work is $41,705 (including a
10% contingency.)
Design change for courtyard ISD door (to room 105) to be replaced by a historic replica
window: Due to the placement of the City Services Building, loading access to the
Information Systems Department would require adjustment. In the future, ISD materials
would be able to be delivered through th e City Hall north loading area and into room
105. The ISD division would be accessed from within City Hall , which would be a more
secure condition. The courtyard circulation and design has shown that the ISD door
should be restored to a window per the hist oric façade. The cost for this design work is
$18,041 (i ncluding a 10% contingency.)
CEQA Historic Resources Technical Report: As part of the regulatory process, the
design -build team’s historic preservation consultant was asked to prepare a formal
analys is of the proposed project to identify potential impacts according to CEQA
requirements. The cost of this report is $17,545 (i ncluding a 10% contingency.)
City Hall Improvements
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As a general rule, competitive bidding for public entities is a mandatory req uirement as
provided by statute, charter or ordinance. However, there are certain well recognized
exceptions to said rule. One exception is where the nature of the subject of the contract
is such that competitive proposals would be unavailing or would not produce an
advantage, and the advertisement for competitive bid would thus be undesirable,
impractical, or impossible. The City Services Building design contract was let after a
competitive RFP process. The construction of the City Services Building nece ssitates
work in the existing City Hall building to which it adjoins. Exiting requirements, fire and
life safety requirements and staff relocation requirements result in work that also must
be perfectly coordinated with the City Services building. This w ork in City Hall is so
intertwined with the City Services Building, for instance the exiting requirements that
involve both buildings as one entity and fire protection requirements that involve the
interface construction between the old and the new, that b ringing in another design -
build team to handle the work in City Hall would add time and cost to the project. A
separate team would have a steep learning curve, and the coordination of the two
scopes of work would be difficult, creating significant cost, t ime delay, and potential
design liability issues to the extent that professional accountability may be difficult to
allocate with two designers involved instead of one. The time required for competitive
bidding would also likely jeopardize the financing schedule to issue bonds for this
project. It was therefore determined that the City Hall scope should be added to the
City Services Building scope, modifying the contract of the existing design -build team. It
is anticipated that this added scope is less t han ten percent of the overall cost of the
project and will ultimately produce the best advantage for the City.
City Hall South Wing Tenant I mprovements: City staff recommends parity of the d esign
and construction details for the City Services Building fo r the design for the tenant
i mprovements for the south wing of City Hall. The impetus for this request is because
both the design concept and the s cope of construction services for this multi -faceted
project is highly integrated with the construction of th e City Services Building. The timing
of this work is critical to make way for the construction of the City Services Building and
to ensure that staff relocation s are coordinated . Note that the first phase of the City
Services Building construction project includes the design and construction of a new
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main fire sprinkler water service to provide water for sprinkler systems for the entire City
Hall. This sprinkler system will be continued in the design and construction of new
sprinklers located throughout th is south wing tenant improvement s projec t resulting in
the need for the two projects to be well integrated. Hathaway Dinwiddie Construction
Company estimates $951,273 (i ncluding a 10% contingency) to provide design services
for the approximately 14,200 SF project as detailed in Exhibit 2.
Fire and life safety City Hall adjustments : The Fire Chief and the Building Officer for the
City of Santa Monica have reviewed the project and have determined that a new fire
sprinkler connection must be installed in orde r to begin the long term process of
installing sprinklers in City Hall. As a part of this project , fire hose connections will be
installed in the City Hall lobby on each floor to assist fire fighters in the event of fire.
Sprinklers will be installed in f uture tenant improvements as they become funded. The
exiting study for the City Hall complex (consisting of the City Services Building and The
City Hall combined) indicate that an added exit from the courtyard will be required . The
City Hall’s first floor north exit corridor will require modifications to create a fire
passageway . The cost is $57,756 (i ncluding a 10% contingency) to provide design
services for these City Hall adjustments .
Facilities Funded Added Maintenance Scope: Because of the City Servic es Building’s
pursuit of Net Zero Energy, there is an enormous requirement of photovoltaic panels. In
order to prepare for this, City Hall’s existing antiquated HVAC units need to be removed
and replaced by more efficient units. The roofing material need s to be replaced with
material appropriate for water re -use. The HVAC systems on the south wing had been
previously identified for replacement and include systems for the City Hall Chambers
and room 214 Planning Administration. The design for this work is intertwined with the
design and construction of the south wing tenant improvements. These w ould be funded
through the Facilities Maintenance budget. The cost is $359,477 (i ncluding a 10%
contingency) to provide design services.
Financial Impacts and Bud get Actions
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The agreement modification to be awarded to Hathaway Dinwiddie Construction
Company for additional professional and design services is for an amount not to exceed
$1,692,480 (including a 10% contingency), for an amended agreement total not to
e xceed $8,756,981. Funds in the amount of $359,477 are available in the FY 2016 -17
Capital Improvement Program budget . Award of the agreement modification requires
the following budget actions:
1) A ppropriat e $1,333,003 to account C014083.589000 (City Service s Building);
and
2) Release of fund balance from reserve account 1.380246 (Capital Improvement
Program savings) of $1,333,003 .
The agreement modification will be charged to the following accounts:
M010085.589000 $359,477
C014083.589000 $1,333,003
Total $1,692,480
Construction of the City Services Building and associated tenant improvements to the
existing City Hall building are proposed to be financed with a lease revenue bond for
approximately $7 5 million. The debt service payments would be partially covered from
what the City would have otherwise paid in rent at other facilities, and the difference
would be diverted from the General Fund CIP allocation annually (currently estimated to
reduce a vailable CIP funding by approximately $3.4 million initially and decreasing
thereafter). The CIP budget allocation will impact future biennial CIP budget cycles.
Over time, the building would generate lease savings that, along with utility savings,
would e ventually exceed the cost of annual debt service and provide long -term savings
to the City. The building debt would be retired in 30 years while the building is designed
with a useful life of 150 years. Staff will return to Council to seek approval of bon d
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issuance and authorization for a guaranteed maximum price for construction.
Prepared By: Brooke Sween -McGloin, CIP Project Manager
Approved
Forwarded to Council
Attachments:
A. March 27, 2012 Staff Report
B. April 8, 2014 Staff Report
C. January 27, 2015 Staff Report
D. May 24, 2016 Staff Report
E. Exhibit 1
F. Exhibit 2
Exhibit 1 ‐ Program Change Background
On June 16, 2016, a change was made to the City Services Building program by senior city
management which occurred after the completion and project submission of the 50% Design
Development Phase. The completed drawings at that time conformed to the original Owners
Project Requirements (OPR), the building program in the contract executed with the design ‐
build team (Hathaway Dinwiddie Construction Company). The original OPR required that the
design ‐build team create a design that included 29 individual private offices for City Directors
and Managers located on all floors of the building.
In lieu of private offices senior city management requested that a new building program be
utilized and that the building design be modified to provide all staff with an equal amount of
space allocated for individual staff workstations (36 SF each). The total building square footage
of 50,200 SF remains the same.
The program change to remove private offices and replace them with workstations produced a
shift in the use of the square footage. This area was used to increase the number of
collaborative spaces and meeting rooms, from 15 to a new total of 27 meeting rooms. This
program change results in a more efficient, democratic and collaborative work environment,
and it aligns with 21 st century office planning best practices.
At 50% Design Development, the projects floor plans, reflected ceiling plans, mechanical and
electrical plans were in advanced stages of completion. Approximately 120 of the 204 sheets of
drawings (58%) were affected. The engineering for air conditioning and electrical systems had
to be redesigned as well as the locations of the ventilation panels in the building skin to
coordinate with adjustments to the interior spaces. Therefore, the need to modify the
agreement is necessary to make these program adjustments.
Exhibit 2: Additional Scope of Work: City Hall South Wing Tenant Improvements
The long ‐range plan to centralize staff in a City Hall complex is multi phased process that includes
adjustments to the interiors of the existing building and systematically rehabilitating the historic City
Hall to provide for a safer, more efficient and code compliant building.
These changes in City Hall are a result of staff redistribution created by the construction of the City
Services Building and in order to satisfy multiple code requirements. This project focuses on the two
floors of the south wing. Total area is approximately 14,200 SF and 91 staff located in these areas. The
design fees associated with this work are $951,273. (Including a 10% contingency).
The design and construction work in these tenant improvement projects will consist of the demolition
and replacement of outdated and substandard information technology and electrical systems and
adding fire sprinklers to increase safety as well as construction of new staff areas with new finishes
and furnishings in order to bring the south wing of the historic 1939 building into the twenty first
century. This project will also include the last remaining seismic work for the City Hall structure. Air ‐
Conditioning systems and south wing roofing systems will be replaced simultaneously through a
facilities renewal project.
This project is considered as a long term preservation of the beloved historic City Hall in order to
rehabilitate and preserve the building for continued use into the future. The two phases of south wing
tenant improvement work, each with multiple parts, are bundled according to the timing of their
construction and their relationship to the construction of the City Services Building. Each phase will
include a historic preservation assessment of the Primary Areas of Significance to identify important
historic areas that will be retained. It is envisioned that the design standards for all office areas in the
City Hall tenant improvements projects will seek to achieve parity with the City Services Building’s
design standards. In lieu of endeavoring to be a Living Building Challenge certified project, this
interiors project will endeavor to be a WELL certified project which is more applicable to a tenant
improvement in a historic building. Open workstations and collaborative spaces to work will be
created, no private staff offices will be provided. The exception will be where historic spaces, as
identified by the project team’s historic consultant, should be retained and used for an adaptive reuse.
For example an important historic paneled office would be retained and may be used as a conference
room.
Phase I work must be done to clear the way for construction of the City Services Building. This phase
includes the relocation of CCTV from an area of City Hall that is slated for demolition (both Master
Control and Production Control), and for the creation of staff offices for the City Manager’s Office ‐
Communications Division. This phase of work would be designed and constructed in FY16/17 and it
impacts approximately 2,200 SF of City Hall and 11 staff locations.
Phase II will be designed in FY 16/17 and will be constructed in the first quarter of 2020 after the City
Services Building is constructed and occupied. It is only then that these areas of City Hall will be
available for refurbishment when vacated by staff moving into the City Services Building. This includes
work on both the first and second floors of the south wing of City Hall. The first floor will include staff
offices for Finance & Risk Management (where the Permit Center, Public Works Administration and
Planners currently are located) and a conference facility to be shared by Human Services, Housing and
Rent Control (in the area currently used as swing space). The second floor will include offices for
Human Services staff who will be co ‐located for the first time. This phase is anticipated to include new
information technology installation and the design and construction for a new code compliant
elevator in the lobby that would serve all three floors of City Hall. The total square footage of this
phase is approximately 12,000 SF and there will be approximately 80 staff located in these areas.
Reference:
Modified Agreement No. 10051
(CCS)