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Home My WebLink About10 - Final Amendement to CM at Risk contract with CWDCITY OF Q �gW PORT NEWPORT BEACH-; City Council Staff Report Agenda Item No.10 October 8, 2013 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Stephen G. Badum, Assistant City Manager 949 - 644 -3002, sbadum(a).newportbeachca.gov PREPARED BY: Stephen G. Badum, Assistant City Manager APPROVED: A TITLE: Close -out and Final Amendment to the Construction Manager at Risk Contract for Civic Center & Park Project with C.W. Driver ABSTRACT: This item is the close -out amendment to the Construction Manager at Risk Contract for Civic Center and Park project with C.W. Driver. The amendment addresses the authorization for the extended General Conditions for the period of January 2013 to the present. At its meeting on June 11, the City Council budgeted the resources for this close -out amendment. With the project complete, this item follows -up by amending the Driver agreement accordingly and authorizes the City Manager to file the Notice of Completion. RECOMMENDATIONS: 1) Authorize the Mayor to sign the final close -out amendment to the Construction Manager at Risk Contract for Civic Center and Park project with C.W. Driver. 2) Delegate the authority to file a Notice of Completion for the Civic Center & Park project to the City Manager upon his determination that the project is fully complete. Close -out and Final Amendment to the Construction Manager at Risk Contract for Civic Center & Park Project with October 8, 2013 Page 2 FUNDING REQUIREMENTS: At the June 11, 2013 City Council Meeting, a budget amendment was approved to cover the cost of project changes and extended general conditions for the project (approximately $1.4M). DISCUSSION: Following the design process, the original construction contract envisioned a 24 -month construction period from start to finish. While the project was substantially finished in January 2013, the final completion date was extended to June 2013. This is due to various factors including material delays, scheduling conflicts, weather, and the overall complexity of the project. The additional time required resulted in increased costs to the contractor, C.W. Driver (CWD), for general conditions. Since June, the construction team has been reduced substantially and has been working on various "punchlist" items (ongoing corrections and minor construction changes). Construction General Conditions As previously noted, CWD has continued to provide "general conditions" for the project on a time and materials basis. General conditions typically include the fixed costs for the construction field office (including construction trailers, office equipment, portable restrooms, copiers, computers, telephone and equipment), personnel to staff the project (including superintendent, inspection and support staff), and the coordination with the architect team, subcontractors, and City representatives. To help reduce these costs, CWD's construction management staff was downsized in early 2013 and the construction trailers and fencing were removed. CWD's project office was temporarily located in the new Training Room / Command Center until July 2013. The estimated additional cost for the extended general condition period and any residual work past July was established to be $1,400,000, and C.W. Driver has agreed to limit their request for extended general conditions to this amount. With the approval of this amendment, the contract total will be $107,904,125. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 4 Close -out and Final Amendment to the Construction Manager at Risk Contract for Civic Center & Park Project with October 8, 2013 Page 3 Submitted by: City Manager ent: CM @R Contract Amendment AMENDMENT NO. SIX TO CONSTRUCTION MANAGER AT RISK CONTRACT WITH C.W. DRIVER, INC. FOR NEWPORT BEACH CIVIC CENTER AND PARK GMP PHASE THREE (EXTENDED GENERAL CONDITIONS) THIS AMENDMENT NO. SIX TO CONSTRUCTION MANAGER AT RISK CONTRACT ( "Amendment No. Six'), is entered into as of this 9th day of October, 2013, by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ( "City "), and C.W. DRIVER, INC., a California Corporation whose address is 15615 Alton Parkway, Suite 150, Irvine, California 92618 ( "CM "), and is made with reference to the following: RECITALS: A. On June 7, 2010, City and CM entered into a Construction Manager at Risk Contract ( "CM Contract ") for the Newport Beach Civic Center and Park Project ( "Project "). B. On September 3, 2010, City and CM entered into Amendment No. One to the CM Contract ( "Amendment No. One "), as contemplated in the CM Contract, Article Six, Section 6.1.9(e), to add the Design Build 450 stall parking garage and to increase the Guaranteed Maximum Price ( "GMP "). C. On February 22, 2011, City and CM entered into Amendment No. Two to the CM Contract ( "Amendment No. Two ") for additional services not included in the CM contract or Amendment No. One, to add the construction of the City Hall Office Building, Central Library Expansion, Parks and miscellaneous items of work for the Newport Beach Civic Center; to increase the CMP by $82,374,384.00 for a total GMP of $104,306,931.00; and to update the insurance provisions consistent with the City's election to implement an Owner Controlled Insurance Program ( "OCIP "). D. On November 29, 2011, City and CM entered into Amendment No. Three to the CM Contract ( "Amendment No. Three "), to reflect the City's option to construct the San Miguel Pedestrian Bridge as part of Phase Three as originally contemplated in the CM Contract, Article One, Section 1.3, and increase the GMP to $105,306,931.00 utilizing $1,000,000.00 of the Owner's Contingency along with $1,000,000.00 of the Construction Contingency to fund the costs of construction. E. On April 24, 2012, City and CM entered into Amendment No. Four to the CM Contract ( "Amendment No. Four") for additional services not included in the CM Contract or prior amendments to add the fabrication and installation of project signing and the installation of dry utilities modifications to increase the GMP by $476,281.00 for a total GMP of $105,783,212.00. 4 F. On October 23, 2012, City and CM entered into Amendment No. Five to the CM Contract ( "Amendment No. Five ") for additional services not included in the CM Contract or prior amendments for Library Clerestory repair to increase the GMP by $720,913.00 for a total GMP of $106,504,125.00. . G. City desires to enter into this Amendment No. Six for additional services not included in the CM Contract, or prior Amendments for extended general conditions and to increase the GMP by $1,400,000.00 for a total GMP of $107,904,125.00. H. City and Consultant mutually desire to amend the Contract, as provided below. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. GUARANTEED MAXIMUM PRICE Section 6.1.1 of the CM Contract shall be amended to increase the GMP to One Hundred and Seven Million Nine Hundred Four Thousand Three Hundred Twenty - Five Dollars and 001100 ($107,904.125.00). 2. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the CM Contract as amended shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] C.W. DRIVER, INC. Page 2 5 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. Six on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: to 12 l 13 Aaron C. Harp City Attorney 111Y ATTEST: Bv: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A California municipal corporation Date: Bv: Keith D. Curry Mayor CONSULTANT: C.W. DRIVER, INC., a California Corporation Date: By: Dana Roberts President Date: By: Bessie Kouvara Chief Financial Officer [END OF SIGNATURES] C.W. DRIVER, INC. Page 3 y Agenda Item No. 10 October 8, 2013 ATTACHMENT 1 I 1 , AMENDMENT NO. SIX TO CONSTRUCTION MANAGER AT RISK CONTRACT WITH C.W. DRIVER, INC. FOR NEWPORT BEACH CIVIC CENTER AND PARK GMP PHASE THREE (EXTENDED GENERAL CONDITIONS) THIS AMENDMENT NO. SIX TO CONSTRUCTION MANAGER AT RISK CONTRACT ( "Amendment No. Six "), is entered into as of this 9th day of October, 2013, by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ( "City "), and C.W. DRIVER, INC., a California Corporation whose address is 15615 Alton Parkway, Suite 150, Irvine, California 92618 ( "CM "), and is made with reference to the following: RECITALS: A. On June 7, 2010, City and CM entered into a Construction Manager at Risk Contract ( "CM Contract ") for the Newport Beach Civic Center and Park Project ( "Project "). B. On September 3, 2010, City and CM entered into Amendment No. One to the CM Contract ( "Amendment No. One "), as contemplated in the CM Contract, Article Six, Section 6.1.9(e), to add the Design Build 450 stall parking garage and to increase the Guaranteed Maximum Price ( "GMP "). C. On February 22, 2011, City and CM entered into Amendment No. Two to the CM Contract ( "Amendment No. Two ") for additional services not included in the CM contract or Amendment No. One, to add the construction of the City Hall Office Building, Central Library Expansion, Parks and miscellaneous items of work for the Newport Beach Civic Center; to increase the GGMP by $82,374,384.00 for a total GMP of $104,306,931.00; and to update the insurance provisions consistent with the City's election to implement an Owner Controlled Insurance Program ( "OCI P "). D. On November 29, 2011, City and CM entered into Amendment No. Three to the CM Contract ( "Amendment No. Three "), to reflect the City's option to construct the San Miguel Pedestrian Bridge as part of Phase Three as originally contemplated in the CM Contract, Article One, Section 1.3, and increase the GMP to $105,306,931.00 utilizing $1,000,000.00 of the Owner's Contingency along with $1,000,000.00 of the Construction Contingency to fund the costs of construction. E. On April 24, 2012, City and CM entered into Amendment No. Four to the CM Contract ( "Amendment No. Four') for additional services not included in the CM Contract or prior amendments to add the fabrication and installation of project signing and the installation of dry utilities modifications to increase the GMP by $476,281.00 for a total GMP of $105,783,212.00. F. On October 23, 2012, City and CM entered into Amendment No. Five to the CM Contract ( "Amendment No. Five') for additional services not included in the CM Contract or prior amendments for Library Clerestory repair to increase the GMP by $720,913.00 for a total GMP of $106,504,125.00. G. City desires to enter into this Amendment No. Six for additional services not included in the CM Contract, or prior Amendments for extended general conditions and to increase the GMP by $1,400,000.00 for a total GMP of $107,904,125.00. H. City and CMonsultant mutually desire to amend the Contract, as provided below. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. GUARANTEED MAXIMUM PRICE Section 6.1.1 of the CM Contract shall be amended to increase the GMP to One Hundred and Seven Million Nine Hundred Four Thousand Three Hundred Twenty - Five Dollars and 00 /100 ($107,904.125.00). Payment by City to CM shall not be a waiver of anv of Citv's riahts to recover damaaes or anv other tvoe of monetary or non monetary relief including reimbursement of any amounts paid by City to CM. 2. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the CM Contract as amended shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] C.W. DRIVER, INC. Page 2 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. Six on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By: Aaron C. Harp City Attorney ATTEST: Date: By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A California municipal corporation Keith D. Curry Mayor CONSUL-T- ANT: -C.W. DRIVER, INC., a California Corporation Dana Roberts President By: Bessie Kouvara Chief Financial Officer [END OF SIGNATURES] C.W. DRIVER, INC. Page 3