SR 04-27-2021 3C
City Council Report
City Council Meeting: April 27, 2021
Agenda Item: 3.C
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To: Mayor and City Council
From: Rick Valte, Acting Public Works Director, Public Works, Architecture Services
Subject: Approval of Third Modification to Design-Build Contract with Hathaway
Dinwiddie Construction Company for the City Yards Modernization Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a Guaranteed Maximum
Price (GMP) third modification to Design-Build Contract #10371 (CCS) in the
amount of $6,350,000 with Hathaway Dinwiddie Construction Company for
design and construction services of the Fire Department Training Facility as part
of the City Yards Modernization – Package A Project for the Public Works
Department. This would result in a five-year amended agreement with a new total
amount not to exceed $82,223,039; and
2. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
Summary
The Fire Training Center is a critical component of the City’s life safety infrastructure.
For the past 70 years, fire training activities have taken place in the 14.7-acre City
Operations and Maintenance Yards at 2500 Michigan Avenue. Over that time, Santa
Monica’s population and workforce increased significantly, technology advanced rapidly,
and City equipment and practices modernized, prompting planning for a much-
needed upgrade of the City Yards. As a part of the approved City Yards Master Plan, a
newly reconfigured and updated Fire Training Center was envisioned to meet the
department’s needs now and well into the future.
Originally intended to be a part of Phase 4 of the City Yards modernization plan, a new
12,000 s.f. Fire Training Facility was intended to be built in future years as additional
funding became available. The availability of dedicated Fire bond funds, along with the
deferral of Phase 3 of the currently underway City Yards Modernization Project, present
an opportunity to expedite the new Fire Training Facility and efficiently deliver the
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project ahead of schedule. In order to maximize the remaining bond savings and take
advantage of the existing design-build team already working at the City Yards, staff
recommends executing a third amendment to the GMP contract with Hathaway
Dinwiddie Construction Company (HDCC) in the amount of $6,350,000, for a new total
amount not to exceed $82,223,039.
Discussion
Training is one of the single most important functions of the modern Fire Department.
Over the years, Fire Service has become more mentally challenging and the demands
for knowledge by firefighters has steadily increased. The Fire Department’s Training
Division uses the Fire Training Facility daily for administering and documenting all
training activities and safety training that include:
• Evaluating the training level of individual employees and employee teams;
• Researching recommendations and providing training in new concepts;
• Planning and coordinating training with the other organizations;
• Planning, providing, and supervising department recruit academies;
• Coordinating training activities with city, county and state agencies and ensuring
compliance with relevant standards and legal requirements; and
• Developing, recommending, and implementing safe practices in relation to
operations of the department.
Like every other operation located at the City Yards, the Fire Department’s existing area
no longer adequately serves their needs. In addition to the City Yards Master Plan
process, a specific Fire Training Center programming study was conducted with Fire
Department personnel to determine how to best build the reconfigured Fire Training
Center. The study determined a new two-story facility, expanded training
areas/opportunities, and more integration with the adjacent Public Works yard are
needed.
On May 8, 2018, Council approved the issuance of lease revenue bonds to finance Fire
Station No. 1 and a Fire Training Facility at the City Yards. These funds are restricted to
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those two projects and cannot be repurposed to other priorities. Upon completion of Fire
Station No. 1, the remaining project savings were transferred to the Fire Training Facility
Project. These bond proceeds should be used within three years or as soon as
practically possible on fire station improvements, in accordance with the bond
covenants. These remaining bond funds allow for construction of the new building to
proceed now, rather than waiting for Phase 4 of the City Yards Modernization Project.
On December 10, 2019, Council approved the second amendment to the GMP contract
with HDCC for the City Yards Modernization Project. This was intended to fully fund and
authorize completion of the first three phases of the project. As part of Phase 1 of the
project, the existing 34-year-old Fire Training Center trailers were removed, and the
burn building was demolished. New trailers replaced the old center and serve as the
current interim Fire Department Training Facility, housing a classroom, offices, locker
facilities, and a small kitchen.
On May 5, 2020, Council approved dramatic cuts to the Capital Improvement Program
as a result of the economic impacts of the COVID-19 pandemic. Among the largest was
the $39,925,845 reduction in funding for the City Yards Modernization Project. Through
negotiations with HDCC, staff established a new reduced fee for the construction of
modified versions of Phases 1 and 2 only that can be completed with the remaining
funding.
The availability of bond funding dedicated to the Fire Training Facility, along with the
capacity of the design-build team due to the deferral of Phase 3 of the City Yards
Modernization Project, present a unique opportunity. The operational efficiencies of
developing the new Fire Training Facility concurrent with the Phase 2 Operations
Center Facility, as well as the time saved through the expedited delivery method, allow
the City to reduce overhead and escalation costs. The result would be a new critical
piece of City infrastructure completed in 18 months, using only restricted bond savings.
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Next Steps
HDCC is currently completing Phase 1 of the City Yards Modernization Project, with
staff occupancy expected by June 2021. Preparation for Phase 2 is already underway
with construction to be completed in early 2023. Upon Council approval, design and
construction of the new Fire Training Facility would be scheduled to begin immediately
and occur concurrently with Phase 2. Estimated completion would also be in early 2023.
Past Council Actions
Meeting Date Description
07/28/15
(Attachment A)
Professional Services Agreement for Concept Design and
Feasibility Analysis for the City Yards Stage I
05/24/16
(Attachment B)
Consultant for Multiuser Microgrid Design Services
under California Energy Commission Grant
07/12/16
(Attachment C)
City Yards Modernization Concept Design Recommendation
10/25/16
(Attachment D)
Award Design Contract for the City Yards Modernization Project
05/08/18
(Attachment E)
Public Hearing and Issuance of Lease Revenue Bonds, Series
2018 to Finance Fire Station No. 1
06/11/19
(Attachment F)
First Modification to GMP with HDCC and Award RFP to Twining
for Deputy and Material Testing Inspection Services
12/10/19
(Attachment G)
Second Modification to GMP with HDCC
05/05/20
(Attachment H) City Restructuring and Associated Modifications to the Fiscal Year
2020-21 Budget Resulting from Economic Impacts of COVID-19
Pandemic
Financial Impacts and Budget Actions
Staff seeks authority to approve restricted funding from the General Fund to increase
the amount of the GMP agreement with HDCC for design and construction services for
the City Yards Modernization Project Package A. Restricted bond funding was approved
in the FY 2020-21 Capital Improvement Program budget and is available in the account
referenced below.
GMP Agreement Modification Request
Agreement
#
Current Authorized
Amount
Modified
Request Amount
FY 2020-21 Budget
CIP Account #
Total Revised
Contract Amount
10371 $0 $6,350,000 C0107500.689000 $6,350,000
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10371 $48,651,082 $0 C0105410.689000 $48,651,082
10371 $16,148,100 $0 C0105410.689720 $16,148,100
10371 $7,406,100 $0 C5005410.689410 $7,406,100
10371 $1,084,600 $0 C5105410.689000 $1,084,600
10371 $60,300 $0 C7505410.689000 $60,300
10371 $1,500,000 $0 C7007720.689000 $1,500,000
10371 $650,000 $0 C5104870.689000 $650,000
10371 $372,857 $0 C2006830.689000 372,857
$75,873,039 $6,350,000 Total $82,223,039
Prepared By: Christopher Dishlip, Interim City Architect
Approved
Forwarded to Council
Attachments:
A. July 28, 2015 Staff Report
B. May 24, 2016 Staff Report
C. July 12, 2016 Staff Report
D. October 25, 2016 Staff Report
E. May 8, 2018 Staff Report
F. June 11, 2019 Staff Report
G. December 10, 2019 Staff Report
H. May 5, 2020 Staff Report
I. Hathaway Dinwiddie Oaks Form
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3.C.i
Packet Pg. 40 Attachment: Hathaway Dinwiddie Oaks Form (4541 : Third Modification to City Yards Design-Build Contract)
3.C.i
Packet Pg. 41 Attachment: Hathaway Dinwiddie Oaks Form (4541 : Third Modification to City Yards Design-Build Contract)