TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Stephanie Katsouleas, Public Works Director
Prem Kumar, City Engineer
Gilbert Gamboa, Senior Civil Engineer
SUBJECT:Title
Resolution No. 18-0115 Authorizing Amendment No. 1 with Quantum Consulting Inc. for $25,000 for Continued Pier Utilities and Roundhouse Improvements Project Inspection Services; Resolution No. 18-0116 Authorizing Amendment No. 3 with Cambridge Seven Associates (C7A) for $50,000 for Additional Design Support Services for the Harrison Greenberg Foundation Roundhouse Aquarium Beautification Project; Approving Additional Miscellaneous Expenditures for Overnight Security Guard Services and Temporary Aquarium Trailer Rental Fees; and Resolution No. 18-0117 Approving an Additional Appropriation of $75,500 from the State Pier and Parking Fund (Public Works Director Katsouleas).
a) ADOPT RESOLUTION NOS. 18-0115, 18-0116 AND 18-0117
b) APPROVE ADDITIONAL APPROPRIATION
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that City Council take the following actions:
1. Adopt Resolution No. 18-0115 (Attachment) approving an Amendment with Quantum Consulting Inc. (Attachment) for $25,000, of which $12,500 would be covered by the Harrison Greenberg Foundation (Foundation);
2. Adopt Resolution No. 18-0166 (Attachment) approving an Amendment with C7A (Attachment) for up to $75,000 for additional design support services during construction, of which up to $30,000 would be covered by the City and up to $30,000 would be covered by the Harrison Greenberg Foundation;
3. Approve up to $26,000 for overnight security guard services for the Roundhouse during construction, which would be reimbursed to the Harrison Greenberg Foundation;
4. Approve up to $7,000 for temporary aquarium trailer rental fees during construction, which would be reimbursed to the Harrison Greenberg Foundation;
5. Adopt Resolution No. 18-0117 (Attachment) approving a supplemental appropriation in the amount of $75,500 from the State Pier and Parking Fund.
Body
FISCAL IMPLICATIONS:
Pier and Roundhouse Exterior Improvements
The City awarded a $150,000 contract to Quantum Consulting, Inc. for inspection services during both the Pier renovation and the Harrison Greenberg Foundation Roundhouse Aquarium Beautification Project (Roundhouse Aquarium Project). Due to unforeseen delays in both projects, up to $25,000 in additional funding is needed for inspection services through August 2018. This cost is anticipated to be shared by both parties equally (as discussed in the Discussion section of this agenda report), resulting in a $12,500 appropriation needed from the State Pier and Parking Fund.
Roundhouse Aquarium Improvements
The City awarded C7A a contract for $395,000 for design services and design management during construction. However, due to an extended construction schedule and thus the need to be on the project longer than anticipated, C7A has requested as much as $75,000 in additional compensation. Therefore, staff is requesting an additional $30,000 appropriation from the State Pier and Parking Fund for an extra three months of design management services during construction to supplement the existing contingency funding. The balance will be covered by the Harrison Greenberg Foundation (see Discussion section below).
Staff is also requesting an additional $33,000 appropriation from the State Pier and Parking Fund to pay for the extra expenses incurred for the temporary aquarium trailer rental and overnight security guard services needed due to associated delays in construction. Thus, the total requested appropriation is $75,500.
BACKGROUND:
On July 19, 2016, City Council approved a Cooperation Agreement between City of Manhattan Beach, Oceanographic Teaching Stations, Inc. (OTS) and the Harrison Greenberg Memorial Foundation (Foundation) for the Roundhouse Aquarium Beautification Project (which was subsequently amended on August 1, 2017; see Attachment). This project and the City’s own Pier Utilities and Roundhouse Exterior Improvement Project were scheduled concurrently in order to capitalize on potential savings as well as to minimize the impact on beach-goers and the community at large. Under the terms of the Cooperation Agreement, the three parties agreed to deliver both projects under separate project management.
Key elements of the tri-party cooperative agreement include:
1. $100,000 of City in-kind services to the Roundhouse project through staff support, permit fee waivers, etc.
2. $150,000 for project-related services, of which $75,000 was allocated to design and $75,000 was allocated to inspection services for the Roundhouse aquarium project.
The City and the Foundation agreed to share in the cost of inspection services since both projects would be occurring at the same time. The City’s own share of inspection services was also $75,000.
On February 21, 2017, the City awarded a contract to C7A for both the aquarium design itself as well as design management services during construction. Construction was anticipated to occur between January and May, 2018. During construction, a smaller, temporary aquarium was opened at the base of the pier adjacent to the south parking lot to house several aquarium animals and allow OTS to continue its operations and school outreach programs. Construction phasing has been implemented to allow limited public/fishing access to the pier during renovations.
On November 21, 2017, the City entered into its own construction contract with Archico Design-Build for the Pier utilities and Roundhouse exterior improvements for $1,692,975. On December 19, 2017, the City also awarded a contract to Quantum Consulting, Inc. for professional inspection services for both the Roundhouse Aquarium Project and the City’s own Pier Utilities and Roundhouse Exterior Project.
Roundhouse Aquarium Interior Renovations Update
The project includes an overall interior remodel and reconfiguration of the aquarium along with two upgraded public-access restrooms. Completed phases for the interior renovations include:
1. Installation of the temporary aquarium facility at the south pier parking lot area
2. Demolition of the entire existing Roundhouse interior configuration
3. Framing of the reconfigured first and second floor per the approved design
4. Electrical, mechanical and plumbing for the building operation
5. Electrical, mechanical and plumbing for the aquarium systems
6. Installation of aquarium tanks
7. Drywall plastering, painting and flooring
Remaining elements include installation of enhanced interior architecture and exhibit designs, finishes, fixtures, tension fabric ceiling, equipment, and punch list items.
Pier and Roundhouse Exterior Improvements Update
The existing Roundhouse improvements are consistent with the original architectural character and design of the building. Upgrades have been completed to building elements that were in need of repair due to deteriorating conditions. The summary list of completed improvements include:
1. Potable water, fire protection and sanitary sewer main pipeline upgrades
2. Sanitary sewer sump pump system and controls upgrades
3. Replacement of plumbing below Roundhouse and lifeguard pier station
4. Installation of two fish cleaning sink stations
5. Installation of two life ring cabinets on the Pier
6. Installation of communication infrastructure for emergency callbox system
7. Installation of four exterior surveillance cameras
8. Electrical power utility upgrades
9. Replacement of the Roundhouse mission tile roof, cupola and weathervane
10. Replacement of all exterior doors, windows, shutters, louvers and vents
11. Installation of rain gutter across Roundhouse building main entrance
12. Repairs to stucco and paint exterior walls with anti-graffiti coating
Remaining items to be completed include shutter controls, door and window trim finishes, electrical finishes, sump pump controls, and punch list items.
DISCUSSION:
The targeted construction completion date was May 2018. However, various construction related delays impeded the original project schedule by approximately two months. The primary delay was due to the original material (fiberglass) selected by the City for the doors and windows. Unfortunately, after bidding it became evident that the window openings were too large to have windows made in fiber glass and still be able to maintain the historic look of the building and functionality of the windows themselves. This triggered redesign, new materials selection, State architect approval and then ordering/procurement for all exterior windows, doors and shutters, all of which took approximately two months to resolve.
This delay ultimately caused a cascading effect that impacted the Roundhouse interior renovation project’s schedule. Because high value aquarium-related materials were delivered to the Roundhouse and some even installed before the doors, windows and shutters could be installed, it resulted in the need for overnight security guard services for the Roundhouse. Furthermore, vandalism and theft of construction equipment occurred on two separate occasions, necessitating the need for security guard services. This delay affected the timing of the aquarium tanks setup and conditioning, and consequently the need for two additional months of trailer rental for OTS’s operations.
The delay also extended C7A’s weekly involvement of design support activities for the project and associated inspection services provided by Quantum Consulting, Inc.
These impacts have generated additional costs that were not contemplated in the City’s project contingency, and there are insufficient funds to cover them. Of the City’s 10% contingency of $169,298, approximately $100,000 was spent on a single change order for the revised doors, windows and shutters; and other miscellaneous change orders were approved totaling approximately $46,000. The City’s remaining contingency balance is approximately $23,000, which staff recommends reserving for any further unforeseen construction changes associated with the pier and exterior renovations rather than for the increased delay costs discussed in this staff report.
A forensic analysis is being conducted in the review of these increased costs, and the costs will be shared with the Foundation as appropriate. While negotiations regarding the actual cost-sharing amounts are ongoing, staff is confident that the City’s portion should not exceed the estimated amounts listed here:
Impact Item Total HGFoundation
Estimated Cost City Portion Portion
Inspection Services $25,000 $12,500 $12,500
C7A Design Support $50,000 $30,000 $45,000
Security Guard Services $26,000 $26,000 $0
Temp. Aquarium Trailer $10,000 $7,000 $3,000
TOTAL $136,000 $75,500 $60,500
Therefore, staff recommends that City Council adopt Resolution Nos. 18-0115, 18-0116 and 18-0117: 1) authorizing the required contract amendments with Quantum Consulting, Inc. and Cambridge Seven Associates as listed above; and 2) approving the additional appropriation of $75,500 to be distributed as outlined in the fiscal implications above.
PUBLIC OUTREACH/INTEREST:
There have been periodic community announcements and presentations to City Council to provide status updates on the project. A project focused webpage is also available on the City’s website. The community was invited to review the information and provide comments through social media outreach.
ENVIRONMENTAL REVIEW
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and was determined that the project qualifies for a Class 1(d) categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. A Notice of Exemption was filed with the Los Angeles County Clerk’s office for the project.
LEGAL REVIEW
The City Attorney has reviewed this report; no further legal analysis is necessary.
Attachments:
1. Resolution No. 18-0115
2. Amendment No.1 - Quantum Consulting Inc.
3. Agreement - Quantum Consulting Inc. (2017)
4. Resolution No. 18-0116
5. Amendment No.3 - Cambridge Seven Associates
6. Agreement and Amendments - Cambridge Seven Associates
7. Resolution No. 18-0117
8. Agreement - Roundhouse Project Cooperation (2017)
9. PowerPoint Presentation