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HomeMy WebLinkAboutAGENDA REPORT 2024 0403 CCSA REG ITEM 10ECITY OF MOORPARK, CALIFORNIA City Council Meeting of April 3, 2024 ACTION APPROVED STAFF RECOMMENDATION, INCLUDING ADOPTION OF RESOLUTION NO. 2024- 4232. (ROLL CALL VOTE: UNANIMOUS) BY A. Hurtado. E. Consider Amendment No. 1 to Agreement with M6 Consulting, Inc. for Construction Management Services for Tenant Improvements at 323 Science Drive. Staff Recommendation: 1) Approve Amendment No. 1 to Agreement with m6 Consulting, Inc., for additional construction management services for the City Hall Tenant Improvement project in the amount of $272,400; and authorize the City Manager to execute the Agreement subject to final language approval of the City Manager; and 2) Adopt Resolution No. 2024-4232, amending the Fiscal Year 2024/2025 budget allocating $272,400 from the Special Projects Fund (3004) to fund these additional services. (Staff: Jessica Sandifer, Deputy Parks & Recreation Director) (ROLL CALL VOTE REQUIRED) Item: 10.E. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jessica Sandifer, Deputy Parks and Recreation Director DATE: 04/03/2024 Regular Meeting SUBJECT: Consider Amendment No. 1 to Agreement with M6 Consulting, Inc. for Construction Management Services for Tenant Improvements at 323 Science Drive BACKGROUND In October 2021, the City Council authorized the purchase of 323 Science Drive as the location for a new City Hall. Escrow closed in February 2022, and on February 16, 2022, the City Council approved an Agreement with SVA Architects, Inc. (SVA) for Architectural Design Services for the Tenant Improvements. In March 2022, m6 Consulting, Inc. (M6) was hired to provide pre-design construction management services on a limited basis. In December 2022, the City Council authorized an agreement with M6 for full construction management services for assistance with completion of construction drawings, bidding, and construction phase services. DISCUSSION M6 Consulting is an engineering services company that currently provides land development and miscellaneous engineering services to the City of Moorpark. They also specialize in construction management services for tenant improvement projects. Given the City’s current relationship with M6, their expertise in tenant improvement projects, and the need to quickly hire a construction management firm to assist City staff with management of the project, the decision was made to hire M6 for the City Hall project. At the time of the initial engagement of M6, the scope of the City Hall Tenant Improvement project was unknown and M6 did not have enough information to provide a proposal for the entire project. During the initial phase, M6 provided services related to building programming, stakeholder engagement, conceptual design and space planning development, as well as, entitlement assistance, budget, value engineering, and schedule development. Once the design development drawings were completed and the project was ready to move into the construction document, bidding, and construction phases, M6 was able to provide a proposal to fit the work scope. To that end, a contract with M6 was prepared for construction management services for the remainder of the project tasks. Item: 10.E. 104 Honorable City Council 04/03/2024 Regular Meeting Page 2 Under the current agreement, M6 has provided services related to quality control review of the construction and bidding documents, bidding assistance including tracking and response of Requests for Information (RFI) relevant to the architectural plans and City bidding requirements and review of bids for consistency and accuracy. Once construction work was underway, M6 has managed and reviewed the contractors work on a daily basis, tracks and ensures timely response to contractor RFI, review and recommendation of change order requests, and schedule management to ensure timely project completion. The initial contract proposal included an allocation of hours for the different phases of the project and was based on a construction duration at the time that was determined to be 8 months. However, during the course of the project, several items have come up that require additional services from M6. • During the preparation of the construction documents for bidding, M6 spent a considerable amount of time with the Project Architect to review and quality control the bidding and construction documents. Staff moved hours from the construction phase of the project to the bidding phase to accommodate the need for the increased hours. • Once the project was bid, it was determined that the actual construction time frame due to equipment and material lead times would actually be 15 months, which is 7 months longer then M6 initially proposed. • Additionally, since construction has begun, M6, in addition to City staff, have spent significant time on contractor Requests for Information (RFI), and negotiating proposed change orders (PCO’s). RFI’s are submitted by contractors when they discover conflicts between the as-built condition and the plans or request information on items that were not considered in the plans, but that the owner may want to consider. PCO’s are submitted if the RFI response produces an additional charge or if a credit is needed. For this project to date, we have processed and reviewed 149 RFI’s and 71 PCO’s. Since these responses can lead to additional project costs, M6 spends considerable time reviewing them with the project Architect, Contractor, and City staff. This is in addition to managing review and approval of over 100 material and equipment submittals. • Staff has also requested that M6 allocate some time to assisting City staff with coordination of the furniture acquisition, delivery, and installation scope. The procurement of the furniture and installation of it are being provided by the furniture vendor and there is coordination required between the furniture vendor and the General Contractor. Tenant improvement projects on older buildings are filled with unknowns. M6’s services have been invaluable to City staff during the construction phase. Their professionalism and expertise have allowed the project to run smoothly, and they have been instrumental in navigating solutions for the different RFI’s and reducing costs on the PCO’s. In consideration of the longer construction timeframe and the added work, M6 has requested an Amendment to their Agreement. Staff worked with M6 to calculate the time needed to get through the remainder of the project in consideration of the amount of work that has 105 Honorable City Council 04/03/2024 Regular Meeting Page 3 been needed to date. Charges for M6’s services will be billed on a time and materials basis which means that they will only be paid for the time they spend on the project. If the hours are not used, the money is not spent. Staff and M6 are confident that the budgeted time will cover the remainder of the project needs, through building turnover to the City. The original Agreement with M6 was for $216,455. The additional cost proposed by M6 is $272,400, based on the current time needs, construction schedule and project close out in November 2024. With the approval of the amendment, the total not-to-exceed Agreement amount will be $488,855. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT As stated, the cost of the additional services is $272,400. Additional funds need to be budged within the Capital Improvement Project Budget (C0070) to fund these additional services. Staff is requesting a budget amendment of $272,400 from the Special Projects Fund (3004) to fund these services. After the allocation of these funds, the balance in the Special Projects Fund (3004) will be $22,682,102. COUNCIL GOAL COMPLIANCE This action is consistent with City Council Goal 3, Objective 3.9: “New City Hall Tenant Improvements and Move.” STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) 1. Approve Amendment No. 1 to Agreement with m6 Consulting, Inc., for additional construction management services for the City Hall Tenant Improvement project in the amount of $272,400; and authorize the City Manager to execute the Agreement subject to final language approval of the City Manager; and 2. Adopt Resolution No. 2024-____, amending the Fiscal Year 2024/2025 budget allocating $272,400 from the Special Projects Fund (3004) to fund these additional services. Attachment 1: Amendment No. 1 to Agreement with m6 Consulting, Inc. Attachment 2: Draft Resolution No. 2024-____ 106 Rev. 12/15/2023 AMENDMENT NO. 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MOORPARK AND M6 CONSULTING, INC. FOR CONSTRUCTION MANAGEMENT SERVICES This Amendment No. 1 to the Agreement between the City of Moorpark, a municipal corporation (“City”), and m6 Consulting, Inc., a California corporation (“Contractor”), for construction management services (“Agreement”), is made and entered into on _____________________, 2024. RECITALS WHEREAS, on January 4, 2023, the City and Contractor entered into an Agreement to have the Contractor provide construction management services; and WHEREAS, the City and Contractor now desire to amend the Agreement to increase the compensation for services to be performed by Contractor from two hundred sixteen thousand four hundred fifty-five dollars ($216,455.00) by a value of two hundred seventy-two thousand four hundred dollars ($272,400) for a total contract value of four hundred eighty-eight thousand eight hundred fifty-five dollars ($488,855.00), and document said agreement to amend by jointly approving Amendment No. 1 to the Agreement. NOW, THEREFORE, it is mutually agreed by and between the parties to the Agreement as follows: I. Section 1, SCOPE OF SERVICES, is amended by replacing this section in its entirety as follows: “City does hereby retain Consultant, as an independent contractor, in a contractual capacity to provide construction management services, as set forth in Exhibit C and D. In the event there is a conflict between the provisions of Exhibit C and D, and this Agreement, the language contained in this Agreement shall take precedence. Consultant shall perform the tasks described and set forth in Exhibit C and D. Compensation for the services to be performed by Consultant shall be in accordance with Exhibit C and D. Compensation shall not exceed the rates or total contract value four hundred eighty-eight thousand eight hundred fifty-five dollars ($488,855) as stated in Exhibit C and D, without a written Amendment to the Agreement executed by both parties. Payment by City to Consultant shall be in accordance with the provisions of this Agreement.” ATTACHMENT 1 107 Rev. 12/15/2023 Amendment No.1 to Agreement between City of Moorpark and m6 Consulting, Inc. Page 2 II. Section 5, PAYMENT, is amended by replacing the second and third paragraph in its entirety as follows: “The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit C and D, based upon actual time spent on the above tasks. This amount shall not exceed four hundred eighty-eight thousand eight hundred fifty-five dollars ($488,855) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services and compensation are authorized, in advance, in a written amendment to this Agreement executed by both parties. “ III. Remaining Provisions: Except as revised by this Amendment No. 1, all of the provisions of the Agreement shall remain in full force and effect. In Witness Whereof, the parties hereto have caused this Amendment to be executed the day and year first above written. CITY OF MOORPARK M6 CONSULTING, INC. _______________________________ _______________________________ Troy Brown City Manager Masoud Mahmoud, PE, Principal Attest: _______________________________ Ky Spangler, City Clerk Attachment – Exhibit D 108 4165 E. Thousand Oaks Blvd, Suite 355 Westlake Village, California 91362 805 379 1015 Phone Exhibit “A” Client Initials _____ March 4, 2024 Ms. Jessica Sandifer Community Services Manager City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Subject: Cost Proposal for Engineering Project and Construction Management Services City Hall Tenant Improvement – Add Services Request Number 1 Dear Ms. Sandifer, As you know, m6 Consulting Inc. (m6) has been providing engineering project and construction management and owner representation services to the City of Moorpark (City) for the City Hall Tennant Improvement Project through the design, bid period, and construction phases of the project. The initial schedule included in our proposal was based on the architect’s project schedule which anticipated that construction drawings and agency approvals would be completed by February 2023, bidding and contract award would be completed by July 2023, and construction would be completed by March 2024 with 8 months of construction duration. The completion of the design phase was extended from February 2023 to July 2023 (5 additional months), due to agency review time, plan comments and resubmittals required, value engineering efforts to stay within the approved project budget ($6,550,000), and plan revision time. This resulted in additional efforts by m6 for project management and owner representation services associated with the design phase, meeting attendance and review of additional submittals. The bidding and contract award extended from July 2023 to September 2023 (2 additional months). The notice to proceed start date for the contractor was October 2, 2024. Monet provided the construction schedule for the project, with a project completion date of November 2024 (14 months of construction). The project completion date was extended by 8 months. During the construction phase, there have been several unforeseen items discovered which require additional project and construction management efforts than originally anticipated. To that end, please find below the additional budget amount being requested to perform the project and construction management and owner representation services through completion of the project including one month of post construction phase support services. Specifically, the anticipated services include: Task 101 – Construction Phase: m6 will continue to provide engineering project and construction management services associated with the construction phase of the project. m6 will continue to provide management of the contractor, the design team, the furniture vendor, and the security and fire alarm contractor, and support the City for the construction duration. m6 will continue to track and review all EXHIBIT D 109 4165 E. Thousand Oaks Blvd, Suite 355 Westlake Village, California 91362 805 379 1015 Phone Exhibit “A” Client Initials _____ required submittals and RFIs and distribute documents to the design team and/or City for review and response. m6 will continue to prepare and track responses to RFIs and submittals to distribute back to the contractor. m6 will continue to participate in the weekly construction meetings and perform weekly site visits, or as needed to document work completed. m6 will continue to review pay application and related tasks and change order submittals for necessity and cost. m6 will continue to organize inspections from NV5, as requested by Monet. m6 will coordinate with the furniture vendor on field verifications, submittal reviews, and installation timelines. m6 will coordinate furniture installation and prepare a punch list for the furniture vendor and installer. Task 102 – Post Construction Phase: Once construction is complete, in collaboration with the architect’s team, m6 will perform a final walk through and create a final punch list that incorporates the architect’s comments, City comments, and provide the punch list to the contractor and track completion of all punch list items. Additionally, in collaboration with the architect’s team, m6 will review as-built drawings provided by the contractor to ensure all substitutions, change order, and field revisions are accurately captured on the plans. m6 will document all system testing completed, attic stock provided, and staff training of the systems provided. m6 will review project closeout documents including warranty and maintenance manuals. It is assumed that project closeout duration will extend one month after construction completion. A total of 1500 hours is allocated for Task 101 and 102. A reimbursable budget has been established for this project, to allow for mileage, reproduction, and other incidental items. Efforts associated with the above Tasks are based on estimates of hours and based on the current project schedule provided by the contractor. Anticipated efforts related this Scope of Work (Exhibit “A”) at various staff levels and associated hourly rates are summarized in the following compensation section (Exhibit “B”). Assumptions of efforts and related hourly distribution across staffing levels are approximate based on the project schedule provided by the contractor, and may change based on unforeseen conditions during construction that may cause extension of the construction schedule, and associated efforts. Should you have any questions or require additional information for your review, please feel free to call me at (805) 379-1015. Sincerely, m6 Consulting, Inc. Masoud Mahmoud, PE Principal 110 4165 E. Thousand Oaks Blvd, Suite 355 Westlake Village, California 91362 805 379 1015 Phone Exhibit “B” Client Initials _____ EXHIBIT “B” COMPENSATION Cost Proposal for Project Management Services Add Services #1 City Hall Tenant Improvement City agrees to compensate Consultant for such services as follows: On an hourly basis, the Tasks outlined in Exhibit “A” above, and per the enclosed staff hours (Exhibit “C”). Staff will be billed based on their functional classification and corresponding hourly rate, as approved by the City. TASK DESCRIPTION FEE 101 Construction Phase $237,600.00 102 Post Construction Phase $ 33,300.00 Reimbursable Allowance $ 1,500.00 Total $272,400.00 111 Principal Project Project Project Project Designer RE Admin.Reimb.Total Total Eng Director Manager Eng.Designer I CM Clerical Exp Hours Fee Rate $225 $195 $165 $150 $120 $110 $150 $64 $0 ($) Task 101 Construction Phase 330 990 1320 $237,600 Task 102 Post Construction Phase 60 120 180 $33,300 Sub Total Hours 390 0 1110 0 0 0 0 0 0 1500 Total $87,750 $0 $183,150 $0 $0 $0 $0 $0 $0 $270,900 $1,500 Note:272,400.00 EXHIBIT "C" PROPOSED HOURS AND STAFF ALLOCATION Prepared By: Masoud Mahmoud Date: March 4, 2024 Project: City Hall Tenant Improvement Project and Construction Management - Add Services #1 m6 Reimbursable Total Position 112 RESOLUTION NO. 2024-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2023/24 BUDGET TO ALLOCATE $272,400 FROM THE SPECIAL PROJECTS FUND (3004) FOR CITY HALL TENANT IMPROVEMENT PROJECT (C0070) WHEREAS, the City Council adopted the Operating and Capital Improvement Budget for Fiscal Year 2023/24 on June 21, 2023; and WHEREAS, a staff report has been presented to City Council requesting approval of an agreement amendment with m6 Consulting, Inc. which requires a budget amendment in the amount of $272,400 from the Special Projects Fund (3004) to fund additional Construction Management Services for the City Hall Tenant Improvement Project (C0070); and WHEREAS, Exhibit “A” hereof describes said budget amendment and its resultant impact to the budget line items. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the amount of $272,400 from the Special Projects Fund (3004), as more particularly described in Exhibit “A”, is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 3rd day of April, 2024. ________________________________ Chris R. Enegren, Mayor ATTEST: ___________________________________ Ky Spangler City Clerk Attachment: Exhibit “A” – Budget Amendment ATTACHMENT 2 113 Resolution No. 2024-_____ Page 2 EXHIBIT “A” BUDGET AMENDMENT FOR SPECIAL PROJECTS FUND CITH HALL TENANT IMPROVEMENT PROJECT (C0070) ADDITIONAL CONSTRUCTION MANAGEMENT SERVICES FY 2023/24 FUND BALANCE ALLOCATION: Fund Title Current Fund Balance Revision Ending Balance SPECIAL PROJECTS FUND (3004) $ 22,954,502 ($ $272,400) $ 22,682,102 Total $ 22,682,102 EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 3004-120-C0070-55300 $ - $ 272,400.00 $ 272,400.00 $ - $ - $ - $ - $ - $ - Total $ - $ 272,400.00 $ 272,400.00 114