TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: JULY 6, 2004

SUBJECT: POINT VICENTE INTERPRETIVE CENTER EXPANSION PROJECT – PROJECT UPDATE REPORT

Staff Coordinator: Nicole Jules, Sr. Engineer

RECOMMENDATIONS

1. Receive a report and an evaluation of the bids received for the Point Vicente Interpretive Center Expansion Project;

2. Review Staff’s recommendations for ancillary services for various architectural, engineering and inspection services to administer the construction contract;

3. Review the process for designing and constructing the exhibit area;

4. Consider the alternatives for project funding; and

5. Continue the issue of contract awards to the City Council meeting of July 20, 2004.

EXECUTIVE SUMMARY

On May 18, 1999 the City Council awarded a contract for the expansion of the Point Vicente Interpretive Center in the amount of $2,408,614. Now, slightly more than five years later, the same project will require an award of a construction contract of $4,013,420, reflecting an increase in the cost of the project of approximately 67%. Further, the Public Works Department will recommend that the City Council establish a contingency fund of 10% of the contract amount for unforeseen changes during construction.

In addition to the construction cost, the project will require up to an additional $474,969 for construction management, architectural, engineering and inspection services during construction. There is also a proposal for an additional $175,000 to design and construct exhibits in the new center and an estimated cost of $40,000 for asbestos removal in the current facility. The total funds required for the project are $5,076,015. The amount budgeted for the project is $3,500,000.

The low bid on the project was over $1 million less than either of the other two bids and the low bidder has requested that he be able to withdraw his bid due to a $338,000 estimating error. He is willing to proceed with the project if the City approves a change order in the amount of his error.

The City may be able to negotiate some additional contract change orders eliminating some of the project features to reduce the cost of construction. It is doubtful that more than $100,000 could be realized by doing so.

There are approximately $443,499 of un-obligated EET, Quimby and Measure A funds that could be utilized for the Interpretive Center project. Funds in excess of this amount would have to come from General Fund reserves or from other funds established by Council for specific purposes.

DISCUSSION

Construction of the Point Vicente Interpretive Center (PVIC) Expansion is nearing reality. The lead contamination has been remediated to the satisfaction of the Department of Toxic Substances and Control (DTSC), the storm drain has been constructed and the site has been partially opened to the public for it’s enjoyment.

The PVIC Expansion Project is a 7,474 square foot single story addition to the existing PVIC building. Miscellaneous remodeling will occur in the existing building for the incorporation of interpretive exhibits. Site work includes grading, landscaping, and paving for service drives, terraces and walkways.

Subsequent to the remediation efforts, the PVIC Expansion plans were finalized and advertised. Bids were opened on Thursday, April 15, 2004. Three bids were received, ranging from a low of $3,675,420 to a high of $4,967,803. The bid results are as follows:

2004 Bid Results

Contractor Amount
Engineer’s Estimate $3,700,000.00
MTM Construction, Inc. $3,675,420.00
Mallcraft, Inc. $4,873,071.50
DJM Construction Company, Inc. $4,967,803.00

The bid documents requested that prospective bidders participate in a mandatory pre-bid walk to familiarize themselves with the unique conditions of the site. MTM participated in the recommended pre-bid walk.

MTM Construction, Inc. is the apparent low bidder. The Public Works Department has contacted MTM’s references and all reported satisfactory or above performance on similar projects. The bid documents and bonds are in order and their contractor’s license is current.
Due to the unique character and history of this project, there are many elements of the project that are complex and an integral part of the construction. The project budget was established in 1999 and has been carried over from year to year. The cost of construction, particularly the increased prices on materials, has continually risen. The project scope has remained the same, although when compared to the low bidder from 1999, the cost to construct the project is $1,266,806 more today than 1999. The 1999 construction award was $2,408,614 and the 2004 apparent low bidder’s cost will be $4,013,420.

Change Order No. 1 ($338,000) – Eleven days after submittal of their bid, MTM Construction, Inc. submitted a letter to Public Works requesting to withdraw their bid due to miscalculation errors. Their request to withdraw was denied pending further detailed explanation of the miscalculation. MTM provided letter from two sub-contractors citing miscalculations in the electrical quantities and masonry veneer quantities which produced a bid $338,000 less than the intended bid. After reviewing MTM’s explanation of the bid error, Staff was satisfied that the error claim was legitimate and agreed to issue a change order for the $338,000 bid error. This approach is less expensive than allowing MTM to withdraw their bid and award the project to the second lowest bidder, at a cost approximately $1.2M more than the lowest bid.

Asbestos Removal ($40,000) – After the remediation efforts, asbestos testing was conducted on the existing PVIC building and it was determined that asbestos exists in the lead-based paint and the roof mastic. The asbestos must be remediated prior to the General Contractor mobilizing on site. This work will be performed by a specialty contractor and was not included in the contract bid.

Youth-At-Risk (Los Angeles Conservation Corps) ($14,784) – As part of satisfying requirements associated with Measure A funds, the City is required to use a portion of the project budget towards the employment of Youth-At-Risk. The Los Angeles Conservation Corps has submitted a proposal to conduct site preparation work such as, weed abatement, brush and trail clearance, and Palos Verdes stone separation for use in the PVIC Native Garden. The Los Angeles Conservation Corps has performed satisfactory work with the development of Lower Hesse Park, another Measure A funded project.

Construction Contingency ($401,342) – Construction contingency is often needed for unexpected construction related items that may occur. Normally we establish a contingency equal to 10% of the contract cost.

Construction Management ($292,154) – CBM Consulting, Inc. will provide construction management services for the project. CBM will function as an extension of Staff, managing the construction of PVIC as well as other consultants, on a daily basis for the entire duration of the project. Although CBM’s proposed fee is $292,154, staff anticipates reducing the proposed fee, as we are still negotiating with CBM.

Exhibit Design ($43,500) – Michael Jurdan, Inc. will design and specify interpretive exhibits for PVIC and produce interpretive plans and specifications for the existing building. Interpretive elements include:

Sea Cave Element
Time and Terraced Land
Kelp Forest
Whale Mural
Adobe
Vanderlips Dream
WWII, Japanese
Peninsula History
Relief Map
Whale Comparison Mural with accompanying artifacts
Multiscreen projection theater
Whaling Interpretive Area

Sea Cave Exhibit Construction ($131,500) – Construction of the PVIC sea cave exhibit will commence after the building is completed and before PVIC is operational and open to the public. The sea cave exhibit is a dramatic entrance exhibit made of a variety of materials with integrated Plexiglass displays.

Building Code Inspection ($25,000) – Building Code inspections will be conducted by Charles Abbott Associates.

Site Inspection ($10,000) - Charles Abbott Associates will also conduct the site inspections. Site inspections include utility trenches and layout, concrete finish, pavement inspections, striping inspections, landscape, lighting and irrigation inspections.

Environmental Inspection and Compliance ($15,360) - The Source Group, Inc. will provide environmental monitoring and consulting services during the construction phase. This firm is intimately knowledgeable of the site and has been involved since the initial lead discovery. The Source Group will ensure that the Contractor adhere’s to the restrictions on the site and exercises due diligence with soil on site. The Source Group will serve as extended Staff working closely with the Constructor Manager and Public Works Department.

Geotechnical Inspection ($23,230) - Group Delta will provide geotechnical and geological consulting services during the construction of PVIC. Group Delta has been the consulting geotechnical engineer on this project since the remediation efforts. Group Delta will certify the compaction for the building foundation and sitting wall, as well as, conduct geotechnical tests for adequacy of fill material.

Architectural Support ($57,525) - Ron Yeo Architects, Inc. prepared the original expansion plans and the updated plans for the project. Architectural support services include review of submittals and shop drawings, attend meetings, and respond to “requests for Information” inquiries.

Civil Engineering Support ($5,000) – Merit Civil Engineering prepared the original storm drain, grading and civil improvement plans for the project. This firm will review submittals, attend meetings and respond to “requests for information” inquiries.

Landscape Design Support ($3,200) - Jon Cicchetti Landscape Architects prepared the landscape and irrigation plans for the project. Joh Cicchetti’s office will review shop drawing submittals, attend meetings an conduct irrigation coverage test.

Lastly, Staff has identified elements of the project that may be eliminated from the project scope to reduce the cost of construction. These features will have to be negotiated with the contractor after award of project. It is premature to assign a cost associated with each feature, however, recognizing, yet another potential cost savings is prudent at this time. Some of the features include:

? Delete Amphitheatre
? Delete Parking lot overlay
? Change Roof material
? Modify PV Stone facade
? Textured concrete in lieu of flagstone (California Coastline Walkway)
? Standard concrete in lieu of enriched paving (whale tail pattern)
? Delete operable wall in all-purpose room
? Delay parking lot striping

FISCAL IMPACT

The following table summarizes the financial outlook of the PVIC project

CURRENT BUDGET
Measure A $2,824,785
Quimby $337,900
EET $135,024
Prop 40 $27,291
Exhibits
EET $175,000
TOTAL BUDGET $3,500,000

CONSTRUCTION COSTS
Building Construction $3,675,420
Construction Contingency $401,342
Change Order #1 - Bid Error $338,000
Building Total $4,414,762
Asbestos Removal $40,000
Los Angeles Conservation Corps $14,784
PVIC Sea Cave Exhibit Const $131,500
Total Construction Cost $4,601,046
INSPECTION & ENGINEERING COSTS
Construction Management $292,154
Building Code Inspection $25,000
Site Inspection $10,000
Geotechnical Inspection $23,230
PVIC Exhibit Design $43,500
Construction Support - Ron Yeo Architects $57,525
Environmental Compliance - The Source Group $15,360
Engineering Suppoort - Merit Civil Engineering $5,000
Engineering Suppoort - Jon Cicchetti $3,200
Total Inspection & Engineering Costs $474,969
TOTAL COSTS $5,076,015
DIFFERENCE $1,576,015

The PVIC project is currently under funded by approximately $1,576,015. Staff has identified potential funding sources to partially cover the shortfall.

Un-appropriated Restricted Funds
EET $269,188
Quimby $124,311
Measure A $50,000
Total Un-appropriated restricted funds $443,499
Left-over restricted funds
Quimby – left over from project $30,300
Total Available Restricted Funds $473,799
General Fund (Fund Balance)
PVIC Soil Remediation $56,500
Roadway Beautification* $410,718
Underground Utilities** $235,820
Capital Improvement Project (CIP) Fund*** $598,488
Total General Funds $1,301,526
Proposition C Swap
Prop C funds used to replace General Funds $400,000
Total Prop C funds $400,000
Waste Reduction Swap
Waste Reduction funds used to replace
General funds (Parking Lot Paving) $50,000
Total Waste Reduction funds $50,000
Total Genenal Fund $1,751,526
Grand Total $2,225,325
*Roadway Beautification Fund – In 2001, the City Council directed staff to
establish a separate Roadway Beautification fund to accumulate monies for
landscape improvements along the City’s roadways. Half of the money in this
fund are General funds and the other half are Beautification Funds. Staff
believes these funds could be utilized on the PVIC project.
**Utility Undergrounding Fund – In 2001, the City Council directed staff to
establish a separate Utility Undergrounding fund to accumulate monies for relocating utility poles and lines on City arterial roadways underground, as well
as provide residents with assistance with utility undergrounding in residential
areas of the City. The General Fund transferred monies into this fund in
FY2001-2002 and FY2002-2003. Staff believes that these funds could be
utilized on the PVIC project.
***This is an un-obligated balance of General Fund monies in the Capital
Improvement Projects Fund.

There are $443,499 un-appropriated EET, Quimby and Measure A funds available. Additionally, There are $30,300 Quimby funds remaining from the Ladera Linda and Hesse Park Swing set projects. Total funds available from restricted funds is $473,799.

General Funds, currently allocated for the PVIC Soil Remediation Project, Roadway Beautification Fund, the Underground Utilities Fund, and the Capital Improvement Projects Fund have been identified as potential fund sources. If Council decides to utilize these funds for the PVIC Expansion Project, $1,301,526 will be available to offset the shortfall. Additionally, Proposition C funds have been identified as being available if replaced with General Funds and Waste Reduction Funds can replace General Funds if we use asphalt rubber for the parking lot overlay. Currently, there are two projects, the ’03-’04 Arterial Slurry and the ’04-’05 Arterial Slurry projects that are currently funded with General Funds. These funds can be swapped with Prop C funds to free-up $400,000 in General Funds and $50,000 of General Funds can be replaced with Waste Reduction funds for the PVIC project.

ALTERNATIVES

1. Reject all bids and re-advertise the Point Vicente Interpretive Center Expansion Project.

2. Award a construction contract for the Point Vicente Interpretive Center Expansion Project to MTM Construction, Inc. for an amount not to exceed $3,675,420, issue Change Order No. 1 for $338,000 to cover bid discrepancies, authorize staff to spend an additional $401,342 for possible extra work for a total authorization of $4,414,762 and authorize the Mayor and City Clerk to execute the Contract;

3. Award construction contracts for specialize construction activities for the PVIC Expansion project for Asbestos remediation and employment of Youth-at-Risk in the amount totaling $54,784 and authorize the Mayor and City Clerk to execute the Contract;

4. Award various Professional Services Agreements in the amount totaling $474,969 for construction management, architectural, engineering and inspection services and authorize the Mayor and City Clerk to execute the Agreement;

5. Adopt Resolution No. 2004-xxx; approving a budget adjustment of $1,576,015 to the Capital Improvement Project Budget for the Point Vicente Interpretive Center Expansion Project to cover additional project construction, inspection, and engineering costs.

Respectfully Submitted,

___________________________
Dean E. Allison
Director of Public Works
Reviewed,

_________________________
Les Evans
City Manager