City of Culver City, California
Agenda Item Report
Meeting Date: 05/10/2010 Item Number: PH-2
CITY COUNCIL AGENDA ITEM: PUBLIC HEARING - FOUR AFFIRMATIVE VOTES
REQUIRED – (1) Award of Various Contracts for the Completion of the Construction
of Fire Station No. 3 Project, P-857; and (2) Approval of an Amendment to the
Existing Professional Services Agreement with RTI Consulting, Inc. for
Construction Management Services for the Fire Station No. Project, P-857.
Contact Person/Dept.: Andy O’Connell/PW Phone Number: (310) 253-5606
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [X] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Published in the Culver City News (04/29/10 and 05/06/10(E-Mail)
Agenda and Meetings – City Council (05/06/2010)
Department Approval:
Charles D. Herbertson (04/29/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (04/29/10)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (05/05/10)
City Manager Approval:
P. Lamont Ewell (05/06/10)
RECOMMENDATION
Staff recommends the City Council:
1. Award various contracts as set forth in this report for the completion of the
construction of Fire Station No. 3 Project, P-857 (the “Project”) in a total amount
not-to-exceed $111,000 (requires four affirmative votes).
2. Approve an amendment to the existing Professional Services Agreement with
RTI Consulting, Inc. for construction management services for the Fire Station
No. Project, P-857.
BACKGROUND
On March 1, 2010, the City Council and Redevelopment Agency terminated, for
convenience, the contract with FEI. The staff report and minutes excerpts related to
that action is attached for the City Council and Agency Board’s information.
DISCUSSION
Attachment 1 identifies a list of the scope of work needed to complete construction
and the recommended contractors and their estimated bids. This work includes all City of Culver City, California
Agenda Item Report
items needed to complete construction of the Project. Along with the work not
performed by FEI, there are other items that are being requested by the Fire
Department. As set forth in the attachment, there are thirteen different contractors
needed to complete all of the necessary work for an estimated total construction cost
not-to-exceed $111,000.00. Other charges that have not been included are the
costs for the final interior and exterior cleaning and the cost to move equipment and
furniture from the existing Fire Station No. 3.
Since a general contractor will not be utilized, each of the individual contractors will
be considered as a “prime contractor.” Fifteen percent of the total construction cost
that is normally charged by a general contractor for overhead and profit will be saved
by hiring individual contractors. However, the City’s construction manager will then
need to assume some of the duties that would normally be associated with a general
contractor, such as coordinating and supervising the work. The proposal from RTI
Consulting, Inc. to complete the Project as construction manager is provided as
Attachment 2.
Staff is recommending that the City utilize those subcontractors who have performed
satisfactorily on various aspects of the Project and hire additional subcontractors
where necessary to complete work that was not completed by the former prime
contractor, FEI. By using the original subcontractors when possible, the warranty on
their original work will be kept intact. For these reasons, as well as the need to get
the new Fire Station No. 3 open and operating after the substantial delay caused by
the former prime contractor FEI, staff is recommending this expedited process. The
City Charter provisions regarding public works contracts|1010| give the City Council the
authority, with four affirmative votes, to award a contract without complying with the
bidding procedures, provided a public hearing is held on the award of the contracts
and after public notice has been given. Notice of this public hearing was published
in the Culver City News on April 29 and May 6, 2010.
It should be noted that the original contract with FEI was issued by both the City and
the Redevelopment Agency. That contract provided that the Agency would fund up
to $3,000,000 of the construction costs, with the remainder funded by the City. The
work completed under the FEI contract exceeded the $3,000,000 funded by the
Agency. Therefore, these contracts to complete the work are proposed to be
awarded by the City Council and funded solely by the City through the General Fund
appropriation made by the City Council at the time the original contact was awarded
in 2007.
Staff is also recommending extending the contract with RTI Consulting, Inc. to
prepare the necessary scope of work, manage the construction, and coordinate the
close-out documentation and final payment processes in order to fully bring closure
|1010| Charter Section 2007 provides that the procedures for awarding public works contracts as set forth in the “old” Charter
will remain in effect until such time as the City Council establishes, by ordinance, different procedures. Therefore, the
current procedures are set forth in the “old” Charter Section 1304.
City of Culver City, California
Agenda Item Report
to this Project. The aggregate contract amounts for the remaining work will not
exceed the amount of funds remaining in the Project account.
FISCAL ANALYSIS
In addition to the original retention amount of $499,788.04, which is currently held in
an escrow account, there is approximately $370,000 remaining in the Fire Station
No. 3 project budget (42000857). The City may authorize a release in the amount of
$427,483.63 for retention payments, after all legal obligations have been met by FEI,
including the clearance of all stop notices. This will leave a total remaining budget of
approximately $440,000 which will be used to complete any remaining work and
other contractual obligations.
ATTACHMENTS
1. Staff report and Minute Excerpt from the March 1, 2010 City
Council/Redevelopment Agency Meeting
2. List of recommended contractors and estimated bid amounts for all work needed
to complete construction of the Project.
3. RTI Consulting, Inc. Proposal dated April 20, 2010.
MOTIONS
That the City Council:
1. Award the various contracts as set forth in Attachment 1 in a total amount not
to exceed $111,000.00 (requires four affirmative votes); and,
2. Approve an amendment to the existing professional services agreement with
RTI Consulting, Inc. for Construction Management Services for the Fire
Station No.3 Project for an additional not-to-exceed amount of $25,335.00;
and,
3. Authorize the Public Works Director/City Engineer to increase the RTI
Consulting Inc. agreement by an amount not to exceed $5,000.00, if
necessary; and,
4. Authorize the City Attorney to review/prepare the necessary documents; and
5. Authorize the City Manager to execute such documents on behalf of the City.
5/10/10
JOINT CITY COUNCIL/REDEVELOPMENT
AGENCY BOARD AGENDA ITEM:
(1) PUBLIC HEARING (FOUR AFFIRMATIVE
VOTES REQUIRED) — Award of Various
Contracts for the Completion of the
Construction of Fire Station No, 3 Project, P-
857; (2) Approval of an Amendment to the
Existing Professional Services Agreement with
RTI Consulting, Inc. for Construction
Management Services for the Fire Station No. 3
Project, P-857; and (3) Redevelopment Agency
Board Authorization to Reimburse the City for
Fifty Percent of the Total Cost of the Remaining
Work.
MEETING DATE:
AGENDA ITEM:
ATTACHMENTS|109| List of recommended contractors and estimated bid amounts for all
work needed to complete construction of the Project|109| RTI Consulting, Inc. Proposal dated April 20, 2010
3 March 1, 2010 City Council/Redevelopment Agency Joint Agenda
Item: (1) Termination of the Contract with FEI Enterprises, Inc.,
for the construction of Fire Station No. 3, Project P-857, (2)
Authorization to File a Notice of Cessation, and (3) Authorization
to Release a Portion of the Project Retention Funds. (without
attachments) and Minutes
Pages
1-2
3-4
5-8CULVER CITY FIRE STATION NO. 3
List of Recommended Contractors and Estimated Bid Amounts for All Work Needed to Complete
Construction of the Project
ITEM NUMBER
Item 1
DESCRIPTION OF ITEM
Miscellaneous electrical rework; install IWO
single door map cases; replace sheet metal
downspouts with cast iron piping; install ceiling
fans; provide stucco wood framing repair to
parapet wall at top landing of exterior stairway;
and instail new BBQ
RECOMMENDED
CON1RACTOR /
versictok
Precision One
ESTIMATED BID
-
AMOUNT
$ 10,000
Item 2
Add railing to parapet wall at top landing of
exterior stairway; add bends to stairway hand
rails; and install prefabricated ladder for roof
access
V.I.P. Iron Works, Inc. $ 3,000
Item 3 Purchase two single door map cases
Poblocki Sign
Company'
Item 4
.
Remove and replace concrete slabs in many
areas due cracking caused by improper joint
control; install concrete landing at rear kitchen
•
door; and install proper curb cut at southerly
landscape area adjacent to main driveway
li American Qua ty
Builders
$ 37000
Item 5 PurchaseTurbo STS 4 burner BBQ Barbeques Galore***
Item 6
Remove and replace incorrect roof patches and
install new densdeck and tapered insulation at
low roof on north side of second floor
Westway Construction
Inc. '
Item 7
Furnish and install television mounts at various
Haas Entertainment nment
Item 8
+
Provide and install pedestrian gate lock
protection and electrical interface with swing
gate at north driveway
C & H Gates • 1,600
Item 9
Uncover and correct wiring defects along
irrigation piping; connect system to Calsense
control panel; investigate and correct low
pressure flows at north and east side of project;
and perform landscape maintenance
American Gardens
(Estimate)
15,000
Item 10 Install soap dispensers in bathroom areas Stumbaugh' $ 300
Item 11 Install glass doors in day room cabinets Precision One
$ 1,500
It 12 em
Install proper wiring in rear kitchen door and
connect to Hirsch pad system
Master Technology
Integrators, Inc.***
$ 1 , 200
em It 13
Attic Stock not furnished by FEI. Items to be
determined by Maintenance Facilities Staff
TBD
'
3 500 ,
,•,,, ,.__
'Original subcontractor to FEI on Fire Station No. 3Item 16 Aili
111111111.111111111
Item 17
Item 18
Item 19
Purchase replacement dedication
plaque at entry
H. Toji & Company*" Item 20
'
CULVER CITY FIRE STATION NO. 3
List of Recommended Contractors and Estimated Bid Amounts for All Work Needed to Complete Construction
of the Project
ITEM NUMBER DESCRIPTION OF ITEM
RECOMMENDED
CONTRACTOR!
VENDOR
ESTIMATED BID
AMOUNT
2,100
Grand Total Trade/Vendor Costs
:
*" Original Subcontractor to FEI on Fire Station No. 3
111,000Consulting, Inc.
April 20, 2010 City of Culver City Public Works Department
Engineering Division, 2 nd floor
P.O. Box 507
9770 Culver Boulevard
Culver City, California 90232-0507
Attu: Andy O'Connell, Senior Civil Engineer
RE: Culver City Fire Station NO. 3 New Construction Project
Construction Management Services — Work to Complete Scope
Dear Andy:
At your request MI Consulting Inc_ has prepared a proposal for assisting the City in addressing
the work required to be completed at the Culver City Fire Station No. 3 Construction Project
in order to allow for the Fire Department to fully occupy the new facility.
Based upon the work to complete list prepared by RTI Consulting updated February 2, 2010, our
plan is to go out to the responsible trades who performed satisfactorily on various aspects of the
fire station project. We would secure their commitment on schedule and cost to complete the
items identified in the completion list. Where no trade was utilized in the original construction,
our plan is to reach out to specific trades, formalize a proposal for work to be performed directly
for the CCPW and then follow the process through completion and acceptance by the CCPW and
CCED. Please note that each trade will become "Prime Contractors" and the process of
Construction is "CM with Multi-Primes". Once the work has been accepted by the required
agencies, we would coordinate the close-out documentation and final payment processes in order
to hilly bring closure to this project. We have under separate cover attached the Exhibit "B" for
the construction management services to be provided for this project.
We are comfortable that once released to proceed we will be able to move the process forward in
a consistent and timely manner
Sincerely,
RTI Consulting Inc.
Robert E. Neiwirth
Principal
Cc: Culver City Fire Station No. 3
8325 McConnell Avenue
Westchester, CA 90045
Tel: 310.670.5977
c-Fax: 310.919.3030
www.rti.comConstruction Management Services
Based upon 8 week
period from Council
release to completion
Culver City Fire Station No. 3
Work to Complete CM Service Schedule
Fee Computation
Work to Complete List
Prepare Proposal scopes of work and
Contract agreements for work to be
completed. Attend council meetings as
required for approvals.
Perform Daily Job walks/Document
progress. Prepare weekly project
schedules identifying work to be
performed and coordination with City
departments
Coordinate Contractor requirements with
City Agencies
If Certified Payroll documentation
required from trades, provide monitoring
and managing paperwork from each
trade
Review Payment Applications and
prepare Recommendations, Review
Waivers and Lien releases
Coordinate with Testing & Inspection
agencies
Review and distribute Submittals, RPI"s
and Completion lists
Close-out documentation & Final
Payment processes
Totals for CM Services to complete tasks
Assumptions:
I This Consultant will not provide fulltime
staff to this project nor maintain an onsite office. To do so would require
a
modification to this exhibit.
2 Reporting requirements are reduced to specific reports on progress, issues, changes and/or completion.,
3 Each Prime Contractor has the responsibility for site safety, has not based their costs on prevailing wage
compliance, they have based their costs on quality workmanship.
Spreadsheet of CM Services
Page 1 of 1|10101010101010|8Agendas Public Notification: (E-Mail) Meetings and
. Enterprises, Inc. (02/24/10)
Commission Action Required: Yes [] No [X]
Department Approval:
Charles Herbertson (02/23/10)
Chief Financial Officer ApprOS/ 01
Mark Scott (by N Kimball) (02123/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/23/10)
Agency General Counsel:
Murray Kane (02/24/10)
City Manager/Executive Di
Approval: (02/24/10)
City of Culver City, California
Agenda Item Report
Meeting Date: 03/0112010
Item Number: J-1
CITY COUNCIL I REDEVELOPMENT
AGENCY
JOINT AGENDA ITEM- (1)
ion to Release a
Portion of the Project R'eitnec.
otifoo
a Notice of Cessation,
.
n r the
n d
e
s . .
and (3) n o. , Project P-857, i Authorization onstruction of Fire
Station of the Contract with
FEI
Enterprises Termination
-
Author' t-
- — ,
‘2)
Auth - -
to File N 3
iza
:•••••::.••••••••• •••••••••• ••••• •• ••••, • • •
Phone Number: (310) 253-5606
Fiscal Impact:
[X]
General Fund'
[Xi
Public Hearing' . Action Item: [Xi
,Mtagnmentspc]::::
RECOMMENDATION:
Staff recommends that the City Council 1) terminate the contract with FEI
Enterprises, Inc. for the construction of Fire Station No. 3, Project P-857; 2)
authorize the filing of a Notice of Cessation; and 3) authorize the release of a portion
of the retention after the expiration of the 35-day lien period and the clearance of all
stop notices.
Staff recommends that the Redevelopment Agency Board terminate the contract
with FEI for the construction of Fire Station No. 3, RDA Project (55393700).
BACKGROUND:
On June 18, 2007, at a joint City Council/Redevelopment Agency meeting, FEI
Enterprises, Inc. ("FEI") was awarded a contract for the construction of the new Fire
Station No. 3 located at 6030 Bristol Parkway (the "Project"). Work started on the
Project on August 7, 2007, with a contract duration of 345 days and formal
completion date of July 16, 2008. During the first year of work, the contract duration
was formally extended to September 11, 2008 due mostly to rain delays.
Between January 9, 2009 and February 18, 2009, after the untimely death of the
City's construction manager, work on the Project was suspended. Upon
recommencement of the work, FEI provided the City with assurances the Project
would be completed by the end May 2009. Despite the fact that this "new"City of Culver City, California
Agenda Item Report
completion date was eight months after the last approved completion date
(September 11, 2008), FEI was unable to complete the Project by the May 2009
deadline and continued providing the City with new completion dates that were
never met. Finally, in November 2009, the City informed FEI that the Project must
be completed by December 11, 2009, and the cost of all unfinished work would be
deducted from their final payment. On December 28, 2009 a formal letter
(Attachment 1) was sent to FEI stating the Project was substantially complete on
December 11, 2009 and the cost of all corrective work (Attachment 2) would be
submitted to FEI as a deductive change order. On February 9, 2010, the deductive
change order was mailed to FEI by certified mail and was received by FEI on
Thursday February 11, 2009 (Attachments 3 and 4). FEI was instructed to review
and sign the deductive change order within five days of its receipt. Liquidated
damages of approximately $385,000 ($1,000 per day) for Project delay were also
included in the deductive change order as allowed in the contract documents. Staff
has calculated an increase in contract time of 61 days which reflects all of the
reasonable delays, beyond September 11, 2008, caused by the temporary
shutdown, rain, and change order work (Attachment 5). Subtracting the deductive
change order amount of $358,860.21 from the remaining FEI contract balance of
$296,519.77 leaves FEI owing the City $62,340.44. FEI has declined to sign the
deductive change order.
DISCUSSION:
In order to release the undisputed retention funds and move forward with the
completion of the final corrective work and complete the Project, staff recommends
the City and Agency terminate the contract with FEI for convenience per Section
14.4 of the contract documents (Attachment 6). Subsection 14.4.3 of the contract
documents states that the contractor is entitled to reasonable overhead and profit on
work not executed. Applying a 15% rate on the estimated cost to complete the
unfinished work ($94,250.00), the overhead and profit amount is determined to be
$14,137.50. Subtracting that amount from the $62,340.44 that FEI owes the City,
leaves a balance due to the City of $48,202.94. The provisions of the contract
documents, as well as State Law, allow the City to withhold 150% of the disputed
amount from the retention funds, which amounts to $72,304.41. Staff recommends
the City Council authorize the release of a portion of the retention (less 150% of the
disputed amount) in the amount of $427,483.63 after the expiration of the 35-day
lien period and clearance of all stop notices
FISCAL ANALYSIS:
In addition to the original retention amount of $499,788.04, which is currently held in
an escrow account, there is $370,763 remaining in the Fire Station No. 3 project
budget (42000857). The City may authorize release of the $427,483.63 retention
payment, after all legal obligations have been met by FEI, including the clearance ofCity of Culver City, California
Agenda Item Report
all stop notices. This will leave a total remaining project budget of approximately
$440,000 which will be used to complete any remaining work and other contractual
obligations. Staff expects the final Fire Station No. 3 Project to be completed under
budget due primarily to the liquidated damages charged against FEI due to Project
delays.
ATTACHMENTS:
1. Substantial Completion Letter, dated December 28, 2009
2. Estimated Cost to Complete Work
3. Deductive Change Order Letter, dated February 9, 2010
4. Deductive Change Order
5. Liquidated Damages Calculation
6. Section 14.4 of Contract documents
MOTION:
That the City Council:
1. Terminate the contract with FEI Enterprises, Inc. for the construction of Fire
Station No. 3, Project P-857 per Section 14.4 of the contract documents; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City;
and
4. Authorize the City Manager to execute the Notice of Cessation and submit it
to the Los Angeles County Recorder's office; and,
5. Authorize the release of a portion of the retention (less 150% of the disputed
amount) in the amount of $427,483.63 following the expiration of the 35-day
lien period and the clearance of all stop notices.
That the Redevelopment Agency Board:
1. Terminate the contract with FEI Enterprises, Inc. for the construction of Fire
Station No. 3, Project P-857 per Section 14.4 of the contract documents.
2. Authorize the Agency General Counsel to review/prepare the necessary
documents; and,
3. Authorize the Executive Director to execute such documents on behalf of the
City. March 1, 2010
Joint Item
Item J-1
(1) Termination of the Contract with FEI Enterprises, Inc.
for the Construction of Fire Station No. 3, Project P-857,
(2) Authorization to File a Notice of Cessation, and (3)
Authorization to Release a Portion of the Project Retention
Funds.
Discussion ensued between the City Council and staff
regarding a suggestion to examine the way contracts are
awarded; concern with awarding to the lowest bidder and
clarification that the City awards to the lowest
responsible bidder; and a suggestion to more clearly define
the word responsible in terms of contract evaluation.
MOVED BY COUNCILMEMBER MALSIN, SECONDED BY MAYOR WEISSMAN
AND UNANIMOUSLY CARRIED, THAT THE CITY COUNCIL:
1.TERMINATE THE CONTRACT WITH FEI ENTERPRISES, INC. FOR
THE CONSTRUCTION OF FIRE STATION NO. 3, PROJECT P-857
PER SECTION 14.4 OF THE CONTRACT DOCUMENTS;
2.AUTHORIZE THE CITY ATTORNEY TO REVIEW/PREPARE THE
NECESSARY DOCUMENTS;
3.AUTHORIZE THE CITY MANAGER TO EXECUTE SUCH DOCUMENTS
ON BEHALF OF THE CITY;
4.AUTHORIZE THE CITY MANAGER TO EXECUTE THE NOTICE OF
CESSATION AND SUBMIT IT TO THE LOS ANGELES COUNTY
RECORDER'S OFFICE; AND
5.AUTHORIZE THE RELEASE OF A PORTION OF THE RETENTION
(LESS 150% OF THE DISPUTED AMOUNT) IN THE AMOUNT OF
$427,483.63 FOLLOWING THE EXPIRATION OF THE 35-DAY
LIEN PERIOD AND THE CLEARANCE OF ALL STOP NOTICES.
o0o|1013|