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RESOLUTION NO. 2014-171 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE DESIGN BUILD AGREEMENT WITH WEBCOR BUILDERS AND TO INCORPORATE THE GUARANTEED MAXIMUM PRICE (GMP) FOR THE DESIGN AND CONSTRUCTION OF ORANGE PARK (CIP PR316) LOCATED ON FOURTH AVENUE IN WESTERN CHULA VISTA
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The City Council previously approved CIP project No. PR311 and the Master Plan for Orange Park, which provided a budget item and a design concept for a fully functional 3.9-acre park. In July 2013, City Council approved a Design Build Agreement with Webcor Builders for this park. The project is nearing the end of the construction document phase, has been reviewed by the public, and is ready to start the construction phase this month. Tonight's resolution will approve the first amendment that will set the GMP at $2,541,780.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 4(b)[New gardening/landscaping] categorical exemption pursuant to Section 15304 [Minor Alterations to Land] of the State CEQA Guidelines, because the proposal consists of local passive park with minimal physical changes to the environment that will introduce water efficient landscaping. Thus, no further environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
On July 23, 2013, City Council approved a Design Build agreement with Webcor Builders by Resolution 2013-143 for the services required to prepare the project plans based on the approved Orange Park Master Plan, engage the community to obtain additional input, and construct Orange Park. As part of that agreement, a GMP is to be established at 90% construction documents, which would include, but not be limited to, the cost for all labor, equipment, and material to design and build a fully functional park in accordance with all applicable building codes. A not to exceed amount of $2,391,781 dollars for the Park was established in the Design Build agreement. Staff felt it prudent at that time to establish a conservative cost of the project and be able to respond to unexpected changes in material costs.
As the design progressed and some of the complexities of this project became known, the actual GMP as determined at the 90% construction drawing stage exceeded the not to exceed amount in the original agreement. This $ 150,000 increase is due in part to the additional requirements by SDG&E (owner of the property where the park will be located) as well as changes resulting from incorporating feedback from the community.
PROJECT SCOPE AND CONTRACTUAL REQUIREMENTS
The Design-Build Agreement with Webcor Builders provides the City with a fully functional Orange Park providing park service to residents of that community as well as other residents of the City.
On February 12, 2014, the design build team and staff presented the park design to the public at the South Library for comment. All comments were considered in the 100% design.
The First Amendment (Exhibit A) to the Design Build Agreement between the City of Chula Vista and Webcor Builders will include setting the GMP at $2,541,780, which includes the revised Design Fees and General Conditions costs consistent with the Project cost (Attachment 1) and revise the statement for Substantial and Final Completion dates. The GMP shall include all design and construction services to complete a fully functional park. The GMP is higher than the not to exceed amount in the original agreement due to the process of refining the various project elements. The project team has made every effort to ensure the final design provides the park elements contemplated in the Master Plan, identified by the community, and remain within the project's State Grant funding requirements. City staff has reviewed and concurs with the Design Builder's proposed GMP.
The Substantial and Final completion dates will be amended to include the revised Substantial Completion date of March 2015 and the revised Final Completion date of May 2015.
The total cost of the project and GMP exceed the " not to exceed" amount set forth in the Design Build Agreement. At the time of the Design Build Agreement, staff recommended an amount not to exceed that was less than the total budgeted cost of the project. This is commonly done, as the costs of the project that are estimated at the master plan level rarely remain consistent through the design process. By establishing a less than budgeted amount not to exceed, staff is better able to focus the design builder on designing a project that remains within our budgetary constraints. The new proposed GMP is within the original grant fund budget established for the Orange Park project.
CHANGE ORDERS
Under the design/build process, change orders are handled differently than under the design/bid/build process. Change orders are only returned for Council approval if they exceed the approved GMP, or are for additional work requested by City, which results in a significant change to the original scope. Otherwise, change orders are reviewed and approved by staff and the design builder then charged to the construction contingency until the fund is exhausted. Any remaining funds in the contingency are returned to the City. This practice is commonplace when using the design/build construction technique. Staff's goal is to use all available project funds remaining before completion to add and/or enhance any items that have been removed through the value engineering budget process.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the Chula Vista City Council and has found that Council member Ramirez has property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, nor has staff been informed by any Chula Vista City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Upon completion, Orange Park will support the Healthy Community Goal by attracting and enabling residents and visitors to become more physically active as individuals or as groups. The park will provide a venue for all age groups to exercise, relax or just play which promotes health and well being.
CURRENT YEAR FISCAL IMPACT
GMP, including City controlled contingency of $149,397 $2,541,178
City Staff Costs, Special Inspections, Consultant and Oversight 158,822
Utilities 100,000
Total Project Costs $2,800,000
Director of Public Works has requested the GMP be set at $2,541,178.00. The GMP includes, but is not limited to, design services, general conditions, insurance, bonds, construction management, the cost for all labor, equipment, and material to design and build a fully functional park in accordance with all applicable building codes. The total project cost is $2,800,000, which is funded by Proposition 84 State Grant funds. There is no additional impact to the State Grant Fund as sufficient funding of $2,494,339 is available for the remaining cost to complete the project (PR316).
Approval of tonight's resolution will approve the first amendment to the agreement with Webcor Builders to incorporate the Guaranteed Maximum Price (GMP) for the design and construction of Orange Park (CIP PR316) located at 1475 Fourth Avenue in western Chula Vista, and authorize the Mayor to execute said amendment.
ONGOING FISCAL IMPACT
Upon completion of Orange Park, the City will incur additional park maintenance costs of approximately $11,400 per acre/year for a total of $44,460 for 3.9 acres. These costs will be included in the fiscal year 2015-16 general fund budget.
ATTACHMENTS
Exhibit A, Design Build Agreement Amendment
Staff Contact: Gordon Day, Building Project Manager, Public Works Department