TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Jeff Fijalka, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution to Reappropriate Funds in the Amount of $157,000 and Increase the Contingency Amount in the Construction Contract with Monet Construction by that Same Amount for the Fire Station No. 2 Replacement Project and Accept as Complete Work Performed by Monet Construction (Public Works Director Lee).
A) ADOPT RESOLUTION NO. 24-0053
B) REAPPROPRIATE FUNDS
C) ACCEPT
D) AUTHORIZE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 24-0053 to accept and authorize the City Manager and/or his or her designee to approve additional construction work by Monet Construction (Monet) for the Fire Station No. 2 Replacement Project (Project) up to $1,076,500, increasing the construction contingency by $157,000;
2. Reappropriate funds totaling $157,000 within the Capital Improvements (CIP) Fund;
3. Formally accept as complete the Monet construction agreement for the Project;
4. Authorize the filing of the Notice of Completion with the County Recorder; and,
5. Authorize the release of the retention of $406,546.75 to Monet.
FISCAL IMPLICATIONS:
The construction agreement with Monet for the Project was awarded for $7,055,000, with an authorized construction contingency of $919,500. Six change orders were executed on the project in the net amount of $808,764.52, bringing the total amount expended to $7,863,764.52. Monet has now completed the contracted scope of work, as well as additional work requested by the City for a total cost of $8,130,935.01. In order to execute the final contract change order for the additional work, the City must increase the Monet contract authorization by $157,000, bringing the total contract authorization to $8,131,500.
An additional approval of $157,000 is needed to fully fund construction agreement with Monet for the Fire Station #2 Project. Funds of $157,000 are currently available for the agreement as a reappropriation from the available funds for the Annual Facilities Improvements Program in the Capital Improvements (CIP) Fund. A Project Budget and Expenditures Summary is attached.
BACKGROUND:
The original Fire Station No. 2 structure located at the southeast corner of Rowell Avenue and Manhattan Beach Boulevard at 1400 Manhattan Beach Boulevard was constructed in 1954. Over time, significant changes to Fire Department staffing and services, modernization of fire apparatus, and updates to building codes rendered the station obsolete.
On September 5, 2017, staff presented City Council with a needs assessment/feasibility study that explored renovation or replacement of Fire Station No. 2. City Council determined that the fire station, being an essential service building for emergency response, is the highest priority facility in the City. As a result, Council directed staff to move forward with the complete replacement of the existing Fire Station No. 2 facility at the existing location.
In May 2018, the City Council awarded an agreement to WLC Architects (WLC) for design and construction support services for the replacement of Fire Station No. 2. WLC, now PBK, proceeded to develop construction documents (plans, specifications, and cost estimate) for the construction of the replacement fire station.
After a competitive bid process, Monet was identified as the low bidder and was awarded a construction contract during the August 3, 2021 City Council meeting.
At the August 3, 2021 meeting, City Council directed staff to perform public outreach to help assess the need for the creation of a temporary fire station during construction of the replacement station. During the August 24, 2021 meeting, Council elected to forego the temporary station, in order to reduce the overall cost of the project by approximately $600,000. Construction of the new station began in October 2021.
At the June 6, 2023 City Council meeting, City Council authorized the City Manager to approve additional construction work with Monet Construction up to $919,500, increasing the construction contingency by $175,000.
Construction of the station was substantially complete by November 2023, and a Ribbon Cutting Ceremony was held at the station on November 29, 2023. Approximately 200 people attended the ceremony, including the City Council and numerous City staff from all departments.
Fire Department occupation of the new station was delayed as a result of an air filter validation issue that prevented the State from issuing a permit to operate the station’s emergency back-up generator. The South Coast Air Quality Management District eventually came to a resolution with the equipment manufacturer, and an air quality permit was issued on February 21, 2024. The Fire Department moved in and began operating out of the station in late February 2024.
DISCUSSION:
As of May 2024, the City has executed six change orders to the Monet agreement. Contract Change Order Nos. 1 through 6 included the following:
1. Permit fees
2. Relocation of network fiber and construction of a temporary fiber enclosure
3. Additional structural members requested by the Design Engineer
4. Electrical room reconfiguration and redesign of the building electrical feed
5. Sewer connection relocation
6. Elevator guide rail support installation
7. Electrical system modifications
8. Traffic signal improvements
9. Construction delays associated with elevator tower height conflict
10. Addition of fire dampers and in-duct detectors throughout HVAC system
11. Removal of buried concrete structure
12. Modifications to site grading to accommodate existing wall footing
13. Addition of low voltage scope of work
14. Additional casework at lobby and front offices
15. Miscellaneous product changes and additions
The total value of Change Order Nos. 1 through 6 increased the original contract price of $7,055,000 by $808,764.52, expending 88% of the authorized construction contingency. The original Contract Time of 355 working days was extended by 114 working days.
Completion of the station required additional work and additional time beyond which was authorized in Change Order Nos. 1 through 6. This additional work and time is accounted for in the proposed Change Order No. 7, the final change order for the project. Change Order No. 7, which requires an increase in the amount of approved construction contingency funds, will include the following:
1. Structural modifications to accommodate the four-fold door system
2. Additional electrical requirements to support the operation of the elevator
3. Fire alarm panel relocation
4. Electrical circuit modifications at the data room
5. Addition of coaxial cabling throughout for the delivery of cable television
6. Additional sleeving for low voltage wiring
7. Installation of panic door hardware at electrical room, per Southern California Edison’s request
8. Electrical relays for appliance shut-off
9. Addition of 16 24-inch box shrubs at east planter
10. Improvements to existing block walls at south and east property lines
11. Concrete replacement within right-of-way
12. Flooring change at upstairs hallway
13. Delays associated with air quality permit for back-up generator
14. Miscellaneous product changes and additions
The total value of Change Order No. 7 will increase the contract amount by $267,170.49, resulting in a final contract amount of $8,130,935.01. The Contract Time of 469 working days will be extended by an additional 52 compensable days to account for the additional work.
Provided that the additional contingency funds are authorized, the Monet contract budget and expenditure summary is as follows:
Budget:
$7,055,000.00 Original Contract Award
$ 744,500.00 Original Contingency Authorization
$ 175,000.00 Additional Contingency Authorized June 6, 2023
$ 157,000.00 Additional Contingency Authorized June 4, 2024
$8,131,500.00 Total Combined Monet Contract Budget
Expenditures:
$7,055,000.00 Contract Expenditures
$ 18,491.84 CCO #1 - Additional Work and Additional Working Days
$ 12,319.90 CCO #2 - Additional Work and Additional Working Days
$ 150,182.23 CCO #3 - Additional Work and Additional Working Days
$ 272,166.61 CCO #4 - Additional Work and Additional Working Days
$ 284,600.96 CCO #5 - Additional Work and Additional Working Days
$ 71,002.98 CCO #6 - Additional Work
$ 267,170.49 CCO #7 - Additional Work and Additional Working Days
$8,130,935.01 Final Monet Contract Costs
Monet has completed all work for a total construction cost of $8,130,935.01, pending execution of Change Order No. 7. As all work is now complete, Monet has requested formal acceptance of the project. All work inspected by the Public Works Department has been found to be in conformance with the plans and specifications and of good quality.
The five percent retention amount of $406,546.75, less the mandated withholdings described in the following paragraph, will be released 35 days after the recordation of the Notice of Completion with the County Recorder.
As of May 28, 2024, the City has received two separate Civil Wage and Penalty Assessments (CWPA’s) from the Department of Industrial Relations Division of Labor Standards Enforcement (DIR DLSE) regarding this project. This includes a CWPA against Anchor Plumbing served on November 30, 2023, as well as a CWPA against Air Exchange, Inc. that was served on May 7, 2024. Both Anchor Plumbing and Air Exchange, Inc. were subcontractors to Monet during the construction of the Fire Station No. 2 project. The current assessment amounts are $217,460.41 and $5,000, respectively, but these values are subject to change pending resolution of the DIR cases. Withholding requirements will be confirmed with the DIR prior to the release of any retention monies to Monet.
PUBLIC OUTREACH:
During the preliminary design phase, the City held a public meeting on October 29, 2018, and another on December 3, 2018, to review the floorplan, site plan, and design concepts for the building exterior. The City advertised the meetings in The Beach Reporter and the City’s social media channels. The designs were also posted on the City’s website under Community News and Updates.
During the construction phase, public outreach consisted of monthly status updates posted to the project webpage, along with social media posts to provide the public advance notice of lane closures on Manhattan Beach Boulevard.
During the Ribbon Cutting Ceremony held at Fire Station No. 2 on November 29, 2023, members of the public were invited to tour the inside of the facility. The ceremony was announced on the City website, on social media outlets, and via postcards sent to residents of the blocks adjacent to the station.
ENVIRONMENTAL REVIEW:
The City previously reviewed the Fire Station No. 2 Replacement Project for compliance with the California Environmental Quality Act and determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15332 (Infill Development Projects). Furthermore, there are no features that distinguish the project from others in the exempt class, and therefore, there are no unusual circumstances. Thus, no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 24-0053
2. Budget and Expenditure Summary Report
3. Location Map