HomeMy WebLinkAbout07 - Back Bay Science CenterCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
January 23, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, Assistant City Manager
949 -644 -3002 or dkiff@ city.newport- beach.ca.us
Public Works Department
Stephen G. Badum, Director
94944 -3311 or sbadum @city.newport- beach.ca.us
SUBJECT: BACK BAY SCIENCE CENTER: BUDGET AMENDMENT,
AUTHORIZATION FOR CONTRACT AMENDMENTS
ISSUE:
Should the City Council authorize changes to the contracts for the Back Bay Science
Center on Shellmaker Island that:
• Cover costs incurred by contractors for the four -month delay to the Project that occurred
when a pair of ospreys nested near the Project;
• Cover additional design and construction management costs (some incurred, some
anticipated) due to additional time demands on the Project architect and the City's
construction manager;
• Authorize the construction of the Administration Wing at a not -to- exceed cost of
$800,000 (and accepting $800,000 from the State of California to pay for the
Administration Wing); and
• Direct the City Manager to seek shared funding from the Project's two major artners
(County of Orange and Department of Fish and Game) to cover up to 2/3 $ of the
increased design and management costs.
RECOMMENDATIONS:
Approve Amendment No. 1 to the Construction Management at Risk Agreement
with Douglas E. Barnhart, Inc., increasing their compensation by $239,815 (with up
to $100,000 of that pending Admin Wing authorization) and authorize the Mayor
and City Clerk to execute the Amendment;
Approve Amendment No. 3 to the Professional Services Agreement with Ron Yeo,
FAIA, Architect, increasing his compensation by $64,000 and authorize the Mayor
and City Clerk to execute the Amendment;
3. Approve Amendment No. 4 to the Professional Services Agreement with Gail P.
Pickart, P.E., increasing his compensation by $34,520 and authorize the Mayor and
City Clerk to execute the Amendment;
Back Bay Science Center
January 23, 2007
Page 2
4. Authorize the City Manager to enter into a contract with the State of California or its
Department of Fish and Game to accept $800,000 for the design, construction,
construction management, and contingency for the Back Bay Science Center's
Administration Wing, provided that the contract fully .compensates the City and its
contractors for design and construction management;
5. Authorize the City Manager or his designee to execute or amend any construction
trades and consultants' contracts reflecting the Administration Wing Project,
provided that costs do not exceed $800,000 in total costs (contingency, trades,
consultants) for the Wing;
6. Authorize the City Manager or his designee to execute or amend any construction
trades or management contract requested by the County of Orange for change
orders to the Water Quality Lab Wing, provided that such change orders are
approved by the County Board of Supervisors, fully funded by the County and
contain a 15% management fee to compensate the City and its contractors;
7. Direct the City Manager to seek reimbursement by the BBSC partners for their
share of osprey delay costs and additional design or construction management
costs, where such costs are not covered in change orders or new contracts; and
8. Approve a Budget Amendment that does the following
• Appropriates $1,082,358 from the unappropriated Tide and Submerged Lands Fund or
General Fund Reserves to Account No. 7457- CO310600 (BBSC). $800,000 of these
funds shall only be appropriated if the City reaches an agreement with the State or
DF &G to accomplish the Admin Wing;
• Creates contribution obligations back to the Tide and Submerged Lands Fund or
General Fund of:
-- $800,000 from the State of California or its Department of Fish and Game for the
BBSC Administration Wing (and related costs);
- up to $159,213 from the County of Orange for change orders, osprey delay share,
and management fee; and
— at least $88,707 from the BBSC's contingency account.
BACKGROUND:
The Back Bay Science Center (BBSC) on Shellmaker Island in the Upper Newport Bay
Ecological Reserve is a multi - partnered project that is now under construction. It is, set
to open in June 2007. The planning and funding partners include:
• The California Department of Fish and Game (DFG);
• The County of Orange Health Care Agency (County);
• The University of California at Irvine (UCI);
• The City of Newport Beach (City);
• The California Coastal Commission (CCC);
• The State Coastal Conservancy (SCC);
• The Irvine Company;
• The Miocean Foundation and Pacific Life; and
• The Newport Bay Naturalists & Friends (NBNF).
2
Back Bay Science Center
January 23, 2007
Page 3
The Project consists of three buildings architecturally joined together with sloping roof
extensions forming a single peak (Photo of model attached as Exhibit A). This new
facility will replace the scattered buildings and modular units currently occupying the
degraded former industrial site. It will serve Newport Beach and nearby communities
as a center for water quality education and testing. It will emphasize the environmental
impact of humans' living in a watershed area that drains into a major southern
California marine estuary (Newport Bay).
Shellmaker Island has been owned by the State of California since 1975, and is
managed by the Department of Fish and Game. The UCI crew base has existed. on the
property since the late 1960s and is currently covered by a lease with CDFG. UCI is
planning to replace its existing building with a new facility large enough to
accommodate its men's and women's crew teams. The proposed parking area and
utilities for the BBSC are designed to serve both facilities and costs are to be shared.
The total floor area of the proposed BBSC is slightly less than 13,000 square feet. The
largest of the three buildings is L- shaped with the longer leg serving as the County's
permanent Water Quality Laboratory and the shorter leg providing for storage of CDFG
equipment, materials, and vehicles. Public restrooms will be located at the angle point
of the two legs. The other two buildings are each approximately equal in size (3,400
square feet). One will be used as an educational and teaching laboratory ( "Teaching
Lab Wing ") and the other will have administrative offices and a conference room
available to the general community ( "Admin Wing ").
In February 2006, when the Project went to the City Council for approval, the State did
not have its share of costs for the Admin Wing. Therefore, construction of the Admin
Wing was deferred until additional funding (estimated at $800,000) was available.
Contract Award. On February 28, 2006, the City Council awarded 12 trade contracts
to construct the BBSC. The Council also approved a Construction Management at Risk
(CMAR) Agreement with Douglas E. Barnhart, Inc. ( "DEB "). On August 22, 2006, the
City Council subsequently awarded three additional trade contracts under the "Multiple
Prime" project delivery system being utilized for the construction of the BBSC project.
In mid -March 2006, construction activity began for the project. DEB's initial work
consisted of moving existing Department of Fish and Game (DF &G) modular units to a
location outside the construction area, rerouting the associated utility services, moving
a construction trailer onsite, providing temporary utility services, and installing perimeter
fencing around the construction site.
The Osprey "Problem." In April 2006, a pair of adult osprey appeared onsite and
began preparing a nest atop a power pole that had been erected several years ago just
for that purpose, but had not previously attracted nesting activity. Construction work
continued and, by late April, dirt was being imported in preparation for the start of site
grading. At that point, DF &G representatives concluded from the birds' behavior that
there were eggs in the nest and that continued construction activity might disturb the
adults causing them to abandon the nest. A formal letter directing the cessation of
construction activity on the site was issued by DF &G on May 9, 2006.
Back Bay Science Center
January 23, 2007
Page 4
There was considerable media coverage of the osprey nesting because it was
apparently the first time in Orange County that the complete reproduction cycle
(nesting, egg incubation, and fledgling development) was observed. By early July 2006,
two chicks had matured to the point that they were ready to fly away from the nest and
feed on their own. Accordingly, July 17, 2006 was the rescheduled construction start
date. This delay had a significant cost impact to the project which is described later.
NEW INFORMATION:
As a result of the Osprey Delay and other cost - related issues, this staff report. requests
the Council's approval of contract amendments and a budget amendment. The
following attempts to explain and summarize these issues and changes.
A. Time Costs (Increased Duration & Time Demands of the Project— Not Just the
Ospreys). The osprey nesting period added about four months to the Project. In
addition to that, two of the City's consultants (on "time and materials" contracts) found
that more of their time was spent on the Project than they had initially anticipated.
This chart attempts to show the relationship of the longer duration of the Project (due to
the Osprey Delay) AND the costs both incurred and anticipated because the two "time
and materials" consultants are spending more time on the Project then they anticipated:
Chart 1
Of the BBSC's increased management costs, which are attributable to the ospreys?
Increased Costs Relating to Time
General Conditions, DEB ($34,7751mo)
$ 382.525
$
515,612 -
$
733,087
Ron Yeo (went from $4K/mo to $8,250/mo)
$ 36,000
$
100,000
$
64,000
Gail Pickart (varied from $1,250 to $5,460/mo)
$ 36,000
$
70,520
$
34,520
Total Increased Time Demands
$ 454.525
$
686,132
Costs Incurred During Osprey Delay
General Conditions, DEB ($24.578/mo)
$ -
$
98,314
$
98.314
Construction Management, Gail Pickart
$ -
$
.5,000
$
5,000
$
103,314
As readers can see, about $231,607 more is needed for project management and
design, and about $103,314 of that (about 45 %) is directly attributable to the ospreys.
The explanation for the remaining increased Time Costs follows later in this Section A
of the staff report, along with a proposed Repayment Plan to recoup a portion of the
increased Time Costs.
Time Costs, Part 1 (Osprey). As the ospreys nested, significant costs continued to
incur. These costs include about four months' worth of General Conditions (GCs) for
DEB plus some hourly costs for our construction manager (Gail Pickart). Architect Ron
Yeo did incur some costs during this period; but those costs (including County change
orders) would have been incurred with or without the ospreys, and are addressed later
in the staff report.
1. General Conditions (GCs) for DEB. Barnhart's contract for services as the project
Construction Manager at Risk (CMAR) provides for compensation based on (1)
reimbursement of costs categorized as General Conditions ($34,775 /month for 11
u
Back Bay Science Center
January 23, 2007
Page 5
months or $382,525), and (2) a fee of 4.5% of the construction costs (the total
amount of the trade contracts awarded). General Conditions include, but are not
limited to:
• A Project Manager (full -time)
• A Project Supervisor (full -time)
• Clerical Assistant (part -time)
• Perimeter fencing (monthly)
• Construction Trailer Rental (monthly)
• Telephone, Electrical, and Computer Services for the Trailer (monthly)
• Trash Dumpster (monthly rental)
• Portable Toilets (monthly)
Even as construction stalled in mid -March 2006, DEB had already hired the Project
Manager and the Project Supervisor. They were able to delay the hiring of the
Clerical Assistant. They had put up the fence, installed and equipped the trailer,
hooked up electrical and communications, and installed the dumpster and toilets.
The two full -time positions were kept busy with project meetings, managing the 13
existing trade contracts (to ensure that the trade contracts would come back later in
July with no price penalty), securing the three August trade contracts, and
supervising the admittedly quiet construction site.
In a letter dated August 10, 2006, Barnhart explained their analyses of the actual
General Conditions costs incurred during the delay period. General Conditions for
those months totaled $98,314 for the period ($24,578 /month, down from
$34,775 /month) and they have requested approval to increase their contract
compensation by that amount. The GC monthly rate of $34,775 now applies from
mid -July 2006 to mid -June 2007, which is the construction schedule currently being
implemented.
2. Construction Management Costs. Construction Manager Gail Pickart ($105 /hour)
incurred fewer costs than he expected during these four months. Instead of an
estimated $4000 /month obligation, he incurred costs of roughly $1,250 /month (total
$5,000). Pickart attended the project meetings and assisted the City and Yeo in
building and budget issues.
Chart 2
Costs Incurred During the Osprey Delay
Costs Incurred During Osprey Delay
General Conditions, DEB ($24,5761mo) $ - $ 98,314 $ 98,314
Construction Management, Gail Pickart $ - $ 5.000 $ 51000
$ 103,314
Time Costs, Part 2 (increased Construction Support and Construction
Management Demands). Notwithstanding the ospreys, both Yeo and Pickart assert
that the time involved in managing (Pickart) and providing construction support (Yeo)
for this Project has exceeded what they estimated would be needed when they first
provided us with estimates. The duration of the Project AND the time per month are
longer and higher than anticipated. Again, both Yeo and Pickart bill on time and
materials bases. DEB has not incurred costs relating to increased design or
management demands. A summary of Yeo's and Pickart's situation follows:
Back Bay Science Center
January 23, 2007
Page 6
Ron Yeo's Costs. Ron Yeo has requested additional compensation because this
Project has taken more of his time and his subconsultants' time — the subconsultants
(mechanical /electrical, structural engineer, etc) bill Yeo and Yeo includes this in his
roughly $150/hour cost. Some of these costs have already been incurred by Yeo, and
some are anticipated to occur given the time demands of the Project. If Yeo does not
incur these costs in the months to come, he won't bill for them. The City receives
detailed billings from Yeo that explain his hours worked.
Yeo describes these costs as follows: (1) design additions and changes in the Water
Quality Lab and Teaching Lab as requested by the users (covered in part by a 15%
management fee to be paid by the County); (2) a significant increase in the amount of
time spent from the Project's start in construction support (estimated now at $6,250 per
month compared to the initial budget estimate of $4,000 per month); and (3) anticipated
costs relating to the construction support of the Admin Wing (reimbursable). According
to Yeo:
:..There are two key items that relate to not having enough funds to cover the bid and
construction administration phase for us.
MULTIPLE BIDS & CMAR
• The project was bid several times, requiring unanticipated time demands.
• At one point in time, we went down a different track for the structure (requested by
the Partners) to examine metal building bids.
• Revisions to the bid package necessary for CMAR bids. Interviewing and
evaluating CMAR firms.
• Value engineering and revising drawings in attempting to bring down the
construction cost.
• Re- formatting the bid package for bidding several portions of the project that
were not acceptable during the bid process.
• Where once we assumed being on the Project site once every two weeks, we are
finding that we need to be on site 3-4 times a week.
EXTENSION OF TIME
• Our A &E agreement with the City for the bid and construction administration
phase was an hourly fee based upon an anticipated 9 -month duration. The bid
and construction process is now anticipated to take 16 months.
Yeo bills on a time and materials basis. If time demands are less in the months to
come, Yeo's bills will reflect that. With this staff report, we are requesting that Yeo's
contract be authorized for another $64,000 beyond what it is authorized today (with the
change, the Yeo contract would assume a 16 -month Project at $6,250 per month).
2. Gail Pickart's Costs. As the consulting project manager on behalf of the Public Works
Department, Gail Pickart has experienced that significantly more time has been and is
being required during the project construction phase. The same reasons described for
Ron Yeo's increased cost are applicable to the project manager. For example, 8 -10
hours per week was budgeted for Gail Pickart's project management services during the
project construction phase and he is now finding that 12 -14 hours per week is required.
With this staff report, we are requesting that Pickart's contract be authorized for another
$34,520 beyond what it is authorized today (with the change, the Pickart contract would
assume a 16 -month Project at $5,460 per month less 4 months of osprey delay time
when Pickart billed at roughly $1,250 per month).
Back Bay Science Center
January 23. 2007
Page 7
Summary of Time Costs. To close Section A of the Staff Report, the below chart
shows the budget changes we are requesting. Readers should note that the dollar
figures on the chart below are INCLUSIVE of the $103,314 osprey delay costs. A
Repayment Plan is shown in later in the Staff Report.
Chart 3
Increased Costs Relating to Time
Increased Costs Relating to Time
Estimated
(9 or
11 mos)
AcluallAnticip.
06 MOS) Difference
General Conditions, DEB ($34.775/mo)
$
382,525
$
515,612 $ 133,087
Ron Yeo (went from $4K/m0 to $6,250 /mo)
$
36,000
$
100,000 $ 64,000
Gail Pickart (varied from $1,250 to $5,460/mo)
$
36,000
$
70,520 $ 34,520
Total increased Time Demands
$ -
454,525
$
686,132
B. Trade Contracts Let In August 2006 — DEB Fee. Thirteen of 16 trade contracts
were let in February 2006, along with DEB's contract. Three additional trade contracts,
the amounts of which were unknown in February, were let in August 2006. As such,
DEB's contract (set at 4.5 %) must be increased by $12,000 to accommodate the three
trade contracts totaling $266,676 awarded by the City Council on August 22, 2006.
C. County of Orange Requested Change Orders. As construction has progressed,
the County of Oranges Health Care Agency has requested or will request $124,775 in
change orders for the Water Quality Lab. This amount includes a 15% management
fee (equaling $16,275) to cover additional costs borne by the City's contractors
(primarily Ron Yeo's design work, but 4.5% will go to DEB per the trade contracts).
Chart 4
County of Orange Change Orders
Vac systems, electrical, fume hood $
- $
63,500
$
63,500
New flooring $
- $
45,000
$
45,000
Design /management Fee (15 %) $
- $
16,275
$
16,275
$
124,775
$
124,775
D. Department of Fish and Game and the Admin Wing. In late December 2006,
Fish and Game informed us that the State had set -aside $800,000 in one -time
appropriations to help complete the Admin Wing. The Admin, Wing today is a poured
slab with in- ground utilities and rebar set.
To take advantage of economies of scale, DFG would like the City to add the
construction of the Admin Wing to the current Project. Doing so would still allow most
of the BBSC to open in mid -June, with the Admin Wing is complete about three months
later (September 2007).
DEB did an initial survey of its current trade contractors, most of whom bid on the
Admin Wing as an Alternate Bid Item, and they came up with a budget of slightly less
than $800,000 to complete most of the core - and -shell of the Wing. Wall and ceiling
finishes, plumbing and lighting fixtures, and interior dividing walls would not be covered
by the $800K. Completing "as much as we can" with a not -to- exceed amount of
$800,000 is acceptable to DFG.
Back Bay Science Center
January 23. 2007
Page 8
Chart 5
Administration Wrng Estimated Costs
Addition of Administration Wing
-.
Trades
$
547,078
$ (547,078)
General Conditions (DES)
$
100,000
$ (100,000)
Construction Fee (4.5% to DEB)
$
24,619
$ (24,619)
City Consultants (Yeo and Pickart)
$
50,000
$ (50,000)
Contingency (10 %)
$
72,170
$ (72,170)
$
793.866
$ (793,866)
Environmental Review: A Mitigated Negative Declaration was prepared and processed
to assess the environmental impact associated with constructing the Back Bay Science
Center. Identified mitigation measures have been included in the project design. The
California Department of Fish and Game was the lead agency for the environmental
review and the documentation was completed in September 2003.
Project Status: Construction of the Back Bay Science Center project is approximately
55% complete. We expect completion by mid -June 2007 as planned.
Funding Availability: This Project's change orders and additional consultant's time
demands may be funded in the manner shown on the below chart. The City Manager's
office will work to secure the two major partners' contributions/payments as this Project
goes forward. Some of these commitments are not made yet — but we will strongly
encourage the commitments and notify the Council when they are secured.
The consultants have incurred some of these costs already. Some that are not incurred
at this time may not ever be incurred, because they are time and materials contracts
with specific billings. We believe that we need to appropriately budget for an estimated
monthly rate based on past history and make billed payments to keep good
relationships throughout this ongoing project. The City, as project manager, will need to
take the good faith lead to pay the consultants for these changes without delay.
Chart 6
Proposed Repayment Plan tor $231,607
Repayment Plan
City Contribution $ 34,438
DFG Contribution ($34,438 +$116,900) $ 151,338
Co of Orange Contribution (1/3 Osprey Delay) $ 34,438
Co of Orange Change Orders (15% less DEB fee) $ 11,393
Subtotal
0
Back Bay Science Center
January 23, 2007
Page 9
Upon approval of the recommended Budget Amendments, sufficient funds will available
in the following account for the project:
Account Description Account Number Amount
BBSC 7457- CO31O6OO $1,082,358.00
Total: $1,082,358.00
Proposed uses and fund sources are as follows:
Chart 7
Sources and Uses of Funds, with Notes
Muglas E. Barnhardt (Construction Management - GCs)
Muglas E. Barnhardt (4.5% Fee based on larger Scope)
ion Yeo, Architect (Construction S upporQ
Sall Pickart (Project Management)
trade Contracts (Admi n Wing)
0% Contingency (Admin ling)
:ounty of Orange Change Orders (WO Lab Wing)
$ 198,314 4 mos,Q 24578+ 100,000 for Adm in Wing
It
41,501
For Admin. Co Changes and $12K for 3 August Trades
$
64,000
Going from $4K/mo to $6,250hro
$
34,520
$50K for osprey delay plus goes to $5,46O4n o
$
547,078
8 bids — estimated mldJan 2007
It
72,170
Eased on$721,697 cost
$
124,775
Includes 15 %managementlee
$
1,082,358
B of California (Admin Wing)
$
800,000
From 510 miflion avail to DFG statewide.
qty of Orange (Change Orders)
$
124,775
qty of Orange (Osprey Delay Contribution — Pending)
$
34,438
Co share of osprey delay
on (55 %) of City Share of Cume rd Projeas Contingency
$
88,707
Tidelands Fund- Unappropriated Reserves
$
34,438
City share of osprey delay
$
1,062,358
Project Surplus (Deficit) $
Note that if the City is unable to reach an agreement with the State to complete the
Admin Wing, we will not incur the Admin Wing's related costs.
We respectfully urge your support of this Agenda Item.
Submitted by:
rl
Dave Kiff
Assistant City Manager
Attachment: Budget Amendment
Stephen G. Badum
Public Works Director
q
City of Newport Beach NO. BA- 07BA -040
BUDGET AMENDMENT
2006 -07 AMOUNT: $993,651.00
EFFECT ON BUDGETARY FUND BALANCE:
X Increase Revenue Estimates Increase in Budgetary Fund Balance
Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
X from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure appropriations to cover costs associated with additional time demands on the architect and the
construction manager and the four month delay to the project due to ospreys. To authorize construction of the
Administration Wing and seek shared funding; if funding is not obtained, Tidelands /General Fund will cover incurred costs.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account
230 3605
REVENUE ESTIMATES (3601)
Fund/Division Account
9457 6000
457 4858
457 4879
EXPENDITURE APPROPRIATIONS (3603)
Description
Tide & Submerged Land - Fund Balance
Description
ND Marine Science Center - Transfers In
Marine Science Ctr - Govt Refunds/Rebate
Marine Science Ctr - Dept of Fish & Game
Signed: (�// L
Financial Approval: Administrative Services Director
Signed
Signed:
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$34,438.00 '
$34,438.00
$159,213.00
$800,000.00
Automatic
$34,438.00
$993,651.00
Date
Date
Date
Description
Division
Number
9230
ND Tide & Submerged Land
Account
Number
9900
Transfers Out
Division
Number
.7457
Marine Science Center
Account
Number
C0310600
Marine Education Facility
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed: (�// L
Financial Approval: Administrative Services Director
Signed
Signed:
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$34,438.00 '
$34,438.00
$159,213.00
$800,000.00
Automatic
$34,438.00
$993,651.00
Date
Date
Date