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HomeMy WebLinkAboutStaff Report 2304-1310CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, May 15, 2023 Council Chambers & Hybrid 5:30 PM     Agenda Item     8.Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No. C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE-15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: May 15, 2023 Report #:2304-1310 TITLE Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract No. C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108, for additional Professional Services for the Public Safety Building Capital Improvement Program Project (PE- 15001); CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 3 to Contract No. C17165953 with RossDrulisCusenbery Architecture, Inc. (Attachment A) to add $687,500, increasing the not to exceed amount to $9,725,108, for Professional Services for the Public Safety Building project and the completed New California Avenue Area Parking Garage project. BACKGROUND The New Public Safety Building (PSB) (PE-15001) and New California Avenue Area Parking Garage (Garage) (PE-18000) were among ten key projects included in the 2014 Council Infrastructure Plan. The PSB was identified as the plan’s highest priority project, and its environmental impacts are analyzed with the parking garage project for the purposes of complying with the California Environmental Quality Act (CEQA). The parking garage opened in December 2020. On February 1, 2021, Council approved the award of the construction contract for the Public Safety Building to Swinerton Builders (Swinerton) and authorized execution and delivery of one series of Certificates of Participation (COPs) in an amount not to exceed $120 million to finance PSB construction.1 1 City Council, February 1, 2021; Agenda Item #4, SR #11752, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11752.pdf In December 2016, Council authorized a contract with RossDrulisCusenbery Architecture, Inc. (RDC) to provide design and environmental assessment services for the new PSB and the now completed California Avenue Parking Garage (Cal Ave Garage).2 On February 1, 2021, Amendment No. 1 to RDC’s contract replenished the PSB construction administration budget, augmented the Cal Ave Garage construction administration project budget, and replenished the contingency budget in the contract.3 During discussion of that item at the Council meeting, staff recommended redesigning the Multipurpose Room exterior to make it more inviting and open consistent with its planned use as a Community Room. On August 30, 2021, Amendment No. 2 to RDC’s contract provided additional compensation for multiple design changes related to the Cal Ave Garage and the PSB along with the funds required for the redesign of the Community Room exterior.4 ANALYSIS Staff recommends the approval of the attached Amendment No. 3. This amendment provides supplemental funding for five significant additional scopes of work and further replenishes the budget for additional services. The five items consist of the following: 1. Extended Construction Contract Duration: The construction contract with Swinerton has been extended via Change Orders to August 25, 2023 and is anticipated to be further extended. The amendment provides funding to cover architectural services during this extension. 2. Coordination for Building Information Modelling (BIM) for construction: The BIM process involves a 3D model of the entire PSB structure to identify and resolve clashes between building system components, structure components, and cladding systems. 3. Accommodation of supply chain issues: The Covid pandemic significantly impacted the orderly progress of the PSB work. COVID-related material shortages, discontinued products, absences of key staff and tradespeople, and unprecedented pricing escalation, all prompted Swinerton to request accelerated review of high priority Requests for Information (RFIs) and submittals so that the project could stay on schedule, subcontracts could be bought out in a timely manner and the project stay on budget. This approach afforded the contractor the benefit of securing early out-of-sequence long lead items in response to the COVID-related logistic and marketplace challenges. A 2 City Council, December 12, 2016; Agenda Item #6, SR#7417, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2016/id.-7417-public-safety-building-and-cal-ave-garage-design-contract-approval.pdf 3 City Council, February 1, 2021; Agenda Item #4, SR 11752, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11752.pdf 4 City Council, August 30, 2021; Agenda Item #4, SR #12318, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-12318.pdf two-tier “Hot” vs. “Standard” RFI review process was added to the construction administration phase additional to the requirements of the Prime Agreement. The subsequent accelerated review and approval of these Hot RFIs required the design team to add staff to support this effort so that “Hot” RFIs would be accommodated without slowing the review of lower priority RFIs. 4. Resolution of construction errors: During construction, RDC supported the city in assessing, documenting and solving a variety of construction issues which arose during the construction process including assistance with plan check comments on design-build aspects of the project (i.e., deferred submittals) and the assessment of construction work which did not conform to the requirements of the Contract Documents. The circumstances for these issues were not anticipated in the original contract and required additional hours on the part of the design team. Some of the costs associated with this category are being back charged to the Swinerton to balance the budget for this item. A partial list of construction issues covered by this item include but are not limited to the following: a. Placement of defective cast-in-place concrete work by the contractor at levels B1 & B2. This required RDC to expend additional site visits and review time to prepare field reports and issue notices of defective work and attending QA/QC meetings with Swinerton which were not originally budgeted for in RDC’s base contract. b. Improper installation of the center skylight requiring its complete removal and reinstallation. c. Off-spec vertical location of the buried emergency fire water supply storage tank requiring the development of multiple design solution alternatives for cost modeling and decision making. d. Late, missing, or out sequence exterior wall mock-up reviews. e. Provision of exterior tile which did not substantially conform with the approved tile submittal. 5. Storm-related damage assessment: The heavy December 2022 and Winter 2023 storms damaged portions of the ongoing construction work. RDC assessed the extent of various aspects of the storm damage and documented the storm-related damage in field reports and where appropriate, proposed potential solutions. The cost of this damage assessment and resulting repair could be partially covered by the general contractor’s insurance carrier. RDC’s additional services included the assessment of the following storm damage types: a. Site flooding, b. Roof top water ponding and water infiltration, c. Potential water damage to partially installed roof insulation, d. Potential water damage to roofing membrane, e. Water damage to installed gypsum wall board, f. Flooding at levels B1 & B2, g. Floating and dislodgement of underground storage tanks, h. Sloughing of open site excavations, and i. Collapse of portions of Jacaranda Lane. In addition to the above, Amendment No. 3 includes a 10 percent additional services replenishment in the amount of $62,500 to address other potential unanticipated architectural services for the project. FISCAL/RESOURCE IMPACT Funding for this contract amendment is available in the Fiscal Year 2023 Adopted Capital Improvement Program budget for the Public Safety Building project (PE-15001). Funding for this amendment is covered by the PSB project contingency and reserves for items that cost less than expected. Approval of this amendment does not increase the overall PSB budget approved by Council when the construction contract was approved in early 2021. STAKEHOLDER ENGAGEMENT Public Works has coordinated with key staff from departments whose operations will be dependent upon the PSB. ENVIRONMENTAL REVIEW An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and certified by Council on June 11, 2018 (ID #8967), by adoption of Resolution No. 9772.5 ATTACHMENTS Attachment A: RossDrulisCusenbery Architecture, Inc. Contract C17165953 Amendment 3 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 5 Resolution 9772, https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso- 9772.pdf?t=40475.53 Vers.: Aug. 5, 2019 Page 1 of 9 AMENDMENT NO. 3 TO CONTRACT NO. C17165953 BETWEEN THE CITY OF PALO ALTO AND ROSSDRULISCUSENBERY ARCHITECTURE, INC. This Amendment No. 3 (this “Amendment”) to Contract No. C17165953 (the “Contract” as defined below) is entered into as of May 15, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ROSSDRULISCUSENBERY ARCHITECTURE, INC., a California corporation, located at 18294 Sonoma Highway, Sonoma, CA 95476 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively herein as the “Parties”. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of professional design and environmental services for a new Public Safety Building (PSB) and a new Parking Garage, as detailed therein. B. The Parties entered into Amendment No. 1 to provide an additional Scope of Services under the Contract, increase the Compensation, and extend the Contract term, as detailed therein. C. The Parties entered into Amendment No. 2 to provide an additional scope of services under the Contract and to increase the compensation by Two Hundred Eighty-Three Thousand Four Hundred Ten Dollars ($283,410), from Eight Million Seven Hundred Fifty-Four Thousand One Hundred Ninety-Eight Dollars ($8,754,198) to Nine Million Thirty-Seven Thousand Six Hundred Eight Dollars ($9,037,608), as detailed therein. C. The Parties now wish to amend the Contract in order to provide additional services under the Contract and to increase the compensation by Six Hundred Eighty-Seven Thousand Five Hundred ($687,500), from Nine Million Thirty-Seven Thousand Six Hundred Eight Dollars ($9,037,608) to Nine Million Seven Hundred Twenty-Five Thousand One Hundred Eight Dollars ($9,725,108), as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C17165953 between CONSULTANT and CITY, dated December 12, 2016, as amended by: Amendment No.1, dated February 1, 2021 Amendment No. 2, dated August 30, 2021 DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Vers.: Aug. 5, 2019 Page 2 of 9 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. SECTION 1, “SCOPE OF SERVICES,” of the Contract is hereby amended to read as follows: “CONSULTANT will perform the Services described in Exhibit “A,” Exhibit “A-1,” Exhibit “A-2,” and Exhibit “A-3” in accordance with the terms and conditions contained in this Agreement, to the reasonable satisfaction of CITY.” SECTION 3. SECTION 4, “COMPENSATION,” of the Contract is hereby amended to read as follows: “4.1 Basic Services. The compensation to be paid by CITY to CONSULTANT for performance of the Services (also referred to in this Agreement as the “Basic Services”) shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Eight Million Seven Hundred Sixty-Five Thousand Five Hundred Eighteen Dollars ($8,765,518). CONSULTANT agrees to complete all Basic Services, including specified reimbursable expenses, within this amount. 4.2 Additional Services. In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Nine Hundred Fifty-Nine Thousand Five Hundred Ninety Dollars ($959,590) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Nine Million Seven Hundred Twenty-Five Thousand One Hundred Eight Dollars ($9,725,108), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A, Exhibit A-1, Exhibit A-2, and Exhibit A-3. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit E, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Vers.: Aug. 5, 2019 Page 3 of 9 (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. 4.3 Rate Schedule. The applicable rates and schedule of payment are set forth in Exhibit “C- 1”, entitled “Schedule of Rates” (“Rate Schedule”). CONSULTANT is not entitled to compensation for any Services performed or reimbursement for expenses incurred to the extent that payment would result in a total exceeding the maximum amount of compensation set forth herein.” SECTION 5. The following exhibits to the Contract are hereby deleted and replaced in the entirety, or added, as indicated below, to read as set forth in the attachments to this Amendment, which are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A-3” entitled “SCOPE OF SERVICES, AMENDMENT No. 3,” ADDED. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT No. 3,” AMENDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “COMPENSATION, AMENDMENT No. 3,” AMENDED, REPLACES PREVIOUS. SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 7. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Vers.: Aug. 5, 2019 Page 4 of 9 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO _____________________________ City Manager APPROVED AS TO FORM: _____________________________ City Attorney or Designee ROSSDRULISCUSENBERY ARCHITECTURE, INC. Officer 1 By:___________________________ Name:________________________ Title:_________________________ Officer 2 By:__________________________ Name:_______________________ Title:________________________ Attachments: Exhibit “A-3”: SCOPE OF SERVICES, AMENDMENT NO. 3 (ADDED) Exhibit “B”: SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS) Exhibit “C”: COMPENSATION, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Principal Mallory Cusenbery, Principal Michael Ross, CEO CEO Vers.: Aug. 5, 2019 Page 5 of 9 EXHIBIT “A-3” SCOPE OF SERVICES, AMENDMENT NO. 3 (ADDED) CONSULTANT will provide the Services detailed in this Exhibit “A-3” in addition to the Services detailed under Exhibit “A”, Exhibit “A-1”, and Exhibit “A-2” of this Agreement. Additional Scope of Work related to Task B.5 (PSB Construction Administration and Closeout): a. Perform extended Construction Administration services to cover extra days granted to the General Contractor through September 30, 2023 b. Perform additional construction phase Building Information Modeling (BIM) coordination with the General Contractor c. Accommodate increased review of material substitutions and accelerated review of submitted products to mitigate excessive instances of specified products being discontinued and products having extremely long procurement times due to supply chain impacts d. Resolve construction issues due to General Contractor errors where deductions to the construction contract were made to offset design team costs e. Assist with storm-related damage assessments due to the extreme weather events that occurred near the end of 2022 and in early 2023. DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Vers.: Aug. 5, 2019 Page 6 of 9 EXHIBIT “B” SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3 (AMENDED- REPLACES PREVIOUS) Consultant must perform the Services to complete each milestone within the date specified below, measured from the date of City’s issuance of the Notice to Proceed (NTP) with the Services. The time to complete each milestone may be increased or decreased by mutual written agreement of Consultant and City so long as all Services are completed within the Term of the Agreement. Consultant must provide a detailed schedule of Services consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Milestones Target Completion Date Task A.1: PSB Preliminary Design - CEQA / EIR December 2017 Task B.1: PSB Schematic Design September 2018 Task B.2: PSB Design Development March 2019 Task B.3: PSB Permit Set / Construction Documents December 2019 Task B.4: PSB Project Bidding and Award September 2020 Task B.5: PSB Construction Administration and Closeout September 2023 Task C.1: Garage Preliminary Design – CEQA / EIR December 2017 Task C.2: Garage Schematic Design February 2018 Task C.3: Garage Design Development March 2018 Task C.4: Garage Permit Set / Construction Documents May 2018 Task C.5: Garage Project Bidding and Award October 2018 Task C.6: Garage Construction Administration and Closeout August 2020 Task E.2: PSB Threat Assessment (Predesign) January 2018 Task E.4: PSB Programming Services for Technical Systems January 2018 Task E.6: PSB Fixtures, Furniture and Equipment Design and Procurement Documents March 2020 Task E.7: PSB Commissioning (Cx) June 2023 DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Vers.: Aug. 5, 2019 Page 7 of 9 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below, or as further specified in each Task Order approved by the CITY pursuant to this Agreement. Compensation shall be calculated based on the hourly rate schedules attached as Exhibit C-1 up to the not-to-exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work in 3 phases as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation does not exceed the amounts set forth in Section 4 (Not to Exceed Compensation) of this Agreement. Each phase requires a separate written Notice-to-Proceed (NTP). Phases 2 and 3 will be authorized at CITY’s discretion, and upon approval of environmental review and budget for the project. (CONTINUED ON THE NEXT PAGE.) DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Vers.: Aug. 5, 2019 Page 8 of 9 BUDGET SCHEDULE NOT TO EXCEED AMOUNT BASIC SERVICES (TASK) Phase 1 Phase 2 Phase 3 Task A.1: PSB Preliminary Design - CEQA / EIR $242,696 Task B.1: PSB Schematic Design $495,700 Task B.2: PSB Design Development $856,210 Task B.3: PSB Permit Set / Construction Documents $2,966,336 Task B.4: PSB Project Bidding and Award $90,127 Task B.5: PSB Construction Administration and Closeout $2,050,973 Task C.1: Garage Preliminary Design – CEQA / EIR $121,347 Task C.2: Garage Schematic Design $142,607 Task C.3: Garage Design Development $190,143 Task C.4: Garage Permit Set / Construction Documents $528,367 Task C.5: Garage Project Bidding and Award $19,014 Task C.6: Garage Construction Administration and Closeout $512,220 Task E.2: PSB Threat Assessment (Predesign) $47,634 Task E.4: PSB Programming Services for Technical Systems $34,164 Task E.6: PSB Fixtures, Furniture and Equipment (FF&E) Design and Procurement Documents $287,622 Task E.7: PSB Commissioning (Cx) $27,173 Additional Excess Insurance Coverage $25,000 DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA Vers.: Aug. 5, 2019 Page 9 of 9 BASIC SERVICES (TASK) Phase 1 Phase 2 Phase 3 ROW TOTALS TOTAL BASIC SERVICES $2,155,501 $3,891,466 $2,590,366 $8,637,333 REIMBURSABLES $128,185 $128,185 SUBTOTAL (BASIC SERVICES & REIMBURSABLES) $2,283,686 $3,891,466 $2,590,366 $8,765,518 ADDITIONAL SERVICES $637,090 $322,500 $959,590 TOTAL NOT-TO-EXCEED AMOUNT $2,920,776 $3,891,446 $2,912,866 $9,725,108 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or overtime, word processing, photocopying, in- house printing, insurance and other ordinary business expenses are included within the scope of payment for Services and are not reimbursable expenses. CITY will reimburse CONSULTANT for the following expenses at cost, provided that the expenses were reasonably and necessarily incurred solely for providing the Services: A. Travel outside the San Francisco Bay Area, including transportation and meals, will be reimbursed at actual cost subject to limits of the CITY’s policy for reimbursement of travel and meal expenses for CITY employees. B. Long distance telephone service charges, cellular phone service charges, overnight delivery, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses must be accompanied by appropriate documentation of the claimed expenditure, such as written receipts. Any expense anticipated to be more than $500 must be approved in writing in advance by the CITY’s Project Manager. DocuSign Envelope ID: 0A62814D-B9A4-424B-B5B3-CEEFE4A252BA