HomeMy WebLinkAbout4.7 - 3316 Civic Center HVAC & Roof Design Builder AgrSTAFF REPORT
CITY COUNCIL
DATE: July 21, 2020
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Award of Design/Builder Agreement to ADC Construction Management,
Inc. for the Civic Center HVAC and Roof Replacement Project, Project No.
GI0119
Prepared by: Michael Boitnott, Capital Improvement Program Manager
EXECUTIVE SUMMARY:
The City Council will consider awarding a Design/Builder Agreement to ADC
Construction Management, Inc., for the Civic Center HVAC and Roof Replacement
project, CIP No. GI0119. The base project scope includes the replacement of the flat
roof assembly, roof mounted HVAC equipment, modifications to the existing HVAC duct
system, HVAC controls, minor structural upgrades, fire alarm panel and ancillary
devices, and the installation of new ethernet data cable drops. The City Council will also
consider approving a budget change to increase project funding.
STAFF RECOMMENDATION:
Adopt the Resolution Awarding a Design/Builder Agreement to ADC Construction
Management, Inc., for the Civic Center HVAC and Roof Replacement Project, CIP No.
GI0119, and approve the budget change.
FINANCIAL IMPACT:
As approved in the 2020-2025 Capital Improvement Program (CIP), the total budget for
the Civic Center HVAC and Roof Replacement (CIP No. GI0119) is $5,443,487.
The project is split between HVAC and roof improvements to the east side of the
Civic Center ($3,612,634) and similar improvements at the west side of the Civic
Center, the site of the future Cultural Arts Center ($1,830,853). The budget and cost of
the latter will be shifted to the Cultural Arts Center Project budget in the CIP.
The “best value proposal” (discussed later in the report) received from a pre-qualified
design-build entity for the project was $3,693,895. Staff recommends the inclusion of
one add-alternate item for $142,936, for a total Design/Builder Agreement amount of
$3,836,831. Staff also recommends including a contingency in the amount of $500,000,
which is approximately 13% of the recommended Agreement amount, bringing the total
potential design/build cost to $4,336,831.
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In addition to the Agreement costs, the project budget includes expenditures for soft
costs, which include staff time, consultant costs, permits, fees, and other miscellaneous
costs. Award of the Agreement would require a budget increase of $1,387,366. The
available project funds and proposed budget adjustment are summarized as follows:
Existing Funding Sources
General Fund $2,000,000
IT Fund $200,000
Internal Services Fund - Facilities Replacement $3,243,487
Total Funding $5,443,487
Budget Shift to the Cultural Arts Center Project ($1,830,853)
Current Project Budget (Revised) $3,612,634
Project Costs
Base Proposal $3,693,895
Add Alternate #1 - Replacement of Window Film $142,936
Contingency $500,000
Soft Costs $663,169
Total Costs $5,000,000
Funding Shortfall ($1,387,366)
Additional Funding Sources
Internal Services Fund - Facilities Replacement $887,366
General Fund Non-Streets CIP Reserve $500,000
Total Additional Funding $1,387,366
DESCRIPTION:
The 2020-2025 Capital Improvement Program (CIP) includes the Civic Center HVAC
and Roof Replacement project, CIP No. GI0119 (Project). The Project is a multiphase
and multiyear project to improve the Civic Center, including the east wing
(administration wing) and the future Cultural Arts Center. The first phase of the Project
provides for the design and construction of the flat roof assembly replacement, interior
parapet wall weather proofing, seven roof mounted exhaust fans, and seven roof
mounted HVAC units. The Project also includes a new fire alarm system, data drop
locations, a multi-split system for the second floor Information Systems closet, new
HVAC controls, installation of four-inch thick polyisocyanurate (polyiso) roof insulation,
replacement of portions of dropped ceiling, and interior patch and paint work.
In addition, to help combat against COVID-19 and other airborne pathogens, the Project
includes: air filters with higher filtration rate (minimum efficiency reporting value (MERV)
14 filters versus the current MERV 10 filters), HVAC controls and economizers to allow
up to 100% outside air during various heating and cooling settings, and ultraviolet
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germicidal coil irradiation systems using UV-C lamps. These upgrades are
recommended by various HVAC and mechanical engineering trade organizations to
improve air quality within buildings.
Design-Build Project Delivery
There are several project delivery methods for an owner to consider when proceeding
with a construction project. Each project delivery method has benefits and limitations
depending upon several factors, including but not limited to, budget, construction type,
schedule, and complexity. Most City of Dublin construction projects are delivered using
a Design-Bid-Build delivery method, in which the City design team produces complete
plans and specifications for the project, solicits bids from qualified contractors, and then
awards a construction contract to the lowest responsive bidder. Design-Bid-Build is the
traditional project delivery methods for public projects in the United States.
For the Civic Center HVAC and Roof Replacement Project, Staff chose an alternative
project delivery method, Design-Build in order to fast-track the design and construction
and to take advantage of the combined experience of the builder and designer to deliver
a project that meets performance standards versus prescriptive specifications of a
Design-Bid-Build project. Design-Build projects are awarded based on the owner’s
determination of best value, rather than lowest bid.
The Design-Build method allows for a single point of accountability and eliminates
change orders that are the result of deficiencies in or incompleteness of the design.
Some other Design-Build advantages include opportunities for innovation, concurrent
design and construction which reduces schedule duration, and the builder and designer
benefiting from expanded site investigation to tailor the design to fit the existing
conditions. Some limitations or disadvantages of Design-Build are that the owner must
be willing to allow the Design-Build team handle design details and the o wner must
make sure the project performance standards are thorough to avoid costs to reconcile
inconsistent standards.
On March 6, 2020, a Request for Qualifications of Design -Build Entities was released.
Five qualification packages were received by April 16, 2020. Staff reviewed the
qualifications packages and identified four of the five firms as qualified to submit
proposals for the design and construction of the Project. On June 2, 2020 the City
issued the Request for Proposals from Pre-qualified Design-Build Entities for the
Project. A total of three proposals were received by July 1, 2020.
The three proposals received were evaluated and ranked as follows based on best
value:
1. ADC Construction Management, Inc.
2. Saarman Construction LTD.
3. Matrix HG, Inc.
The best value proposal was provided by ADC Construction Management, Inc. at a
base proposal cost of $3,693,895. Included in the Request for Proposals were five bid
alternative items in addition to the base proposal:
:
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1. Window Film Replacement
2. Additional Cat6e Data Drop Installation
3. Variable Air Volume (VAV) Boxes with Electric Heat and Controls
4. New Rectangular Light Fixtures
5. New Round Light Fixtures
At this time, Staff recommends including add alternative item 1, priced at $142,936, for
the removal and replacement of the exterior window film. The new window film will
provide for the reduction of solar heat gain through the glazing, block 99% of UV light,
and allow approximately 70% visible light transmittance. The existing window film is at
the end of its useful life and is showing signs of wear in the higher traffic areas. The
inclusion of the window film at this time allows for the HVAC system, heating , and
cooling loads to be accounted for, to take advantage of the added energy properties of
the composite glazing and new window film. The combination of the window film and
properly sized HVAC zones will result in long term energy savings. The addition of add
alternative item 1 brings the total design/builder agreement to $3,836,831.
To facilitate the approval of contract change orders and to avoid construction delay, it is
recommended that the City Manager or designee be authorized to approve change
orders up to a contingency amount of $500,000, as included in the attached Resolution.
Comparison with Original Estimate
The cost of the proposed work is $1,387,366 higher than the original budget for the
Project. One component of the cost increase relates to impacts from the COVID-19
pandemic.
The Design-Build Entity is required to comply with new County and State Health Orders,
which require additional trained personnel to monitor the construction site and strict
cleaning of the work site and equipment, resulting in reduced production during a
standard work shift. In addition, the supply chain for materials and raw products has
been disrupted and suppliers are having difficulty securing products , resulting in
increased prices as demand increases. With the increased cost of acquiring the raw
materials, the manufacturers and associated supply chains are also incurring additional
costs to market in order to comply with the various health and safety regulations, which
lead to those costs being passed onto the consumer. Finally, the design of the HVAC
system was upgraded during the proposal phase to provide for better air filtration, more
outside air with controls and added set points, and the addition of UV-C germicidal coil
irradiation systems, all of which resulted in added costs to the project.
Deferring the replacement of the HVAC system and roof in hopes of obtaining a
reduced project cost is not advisable. The roof is beyond its useful life and the building
has experienced minor leaks, which if left unchecked or unnoticed could result in more
costly repairs in the future. Similarly, the HVAC system is at the end of its useful life and
considerable costs are expended annually to keep the system functional. Additionally,
with the installation of the new HVAC system and roof, the operating costs will be
reduced and the energy savings at the Civic Center will be realized sooner.
To account for the increased costs, Staff recommends approval of a Budget Change of
$1,387,366 from the following sources:
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1. Internal Services Fund - Facilities Replacement Payment - $887,366
2. General Fund Reserve for Non-Streets Capital Improvement Program - $500,000
(current balance is $2.5 million)
Staff expects the project to begin in August 2020 and anticipates it to be completed in
April 2021.
This project is exempt under Section 15301 (Existing Facilities) of the CEQA
Guidelines.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A copy of this staff report was sent to ADC Construction Management, Inc.
ATTACHMENTS:
1. Resolution Approving a Design/Builder Agreement to ADC Construction
Management, Inc. for the Civic Center HVAC and Roof Replacement, CIP No. GI0119
2. GI0119 - Civic Center HVAC and Roof Replacement
3. Budget Change Form
ATTACHMENT 1
RESOLUTION NO. XX- 20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
AWARDING A DESIGN/BUILDER AGREEMENT TO ADC CONSTRUCTION MANAGEMENT,
INC. FOR THE CIVIC CENTER HVAC AND ROOF REPLACEMENT, CIP NO. GI0119
WHEREAS, the City of Dublin did, on March 6, 2020 issued a request for qualifications of
Design-Build Entities for the Civic Center HVAC and Roof Replacement, CIP No. GI0119
(“Project”). The project includes the replacement of the flat roof assembly, roof mounted HVAC
equipment, modifications to the existing HVAC duct system, HVAC controls, minor structural
upgrades, fire alarm panel and ancillary devices, and the installation of 168 Cat6e ethernet data
cable drops within the City Hall building of the Civic Center; and
WHEREAS, the City of Dublin did, on July 1, 2020, receive Proposals from the Pre-
qualified Design-Build Entities for the Project; and
WHEREAS, the City of Dublin evaluated the three Proposals received for the Project and
determined the Best Value Proposal was submitted by ADC Construction Management, Inc.;
and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
hereby award a Designer/Builder Agreement to ADC Construction Management, Inc. for the
Civic Center HVAC and Roof Replacement Project, Project No. GI0119, for the base proposal
plus add alternate 1, and a five-hundred thousand dollar ($500,000) contingency, for a total
proposal of four-million three-hundred thirty-six thousand eight hundred thirty-one dollars
($4,336,831), the particulars of which proposal are on file in the Office of the Public Works
Director.
BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby
authorize the City Manager or her designee to execute the Design/Builder Agreement with ADC
Construction Management, Inc. and to approve Contract Change Orders based on the
appropriated funds designated for the Project up to the contingency amount of five-hundred
thousand dollars ($500,000).
BE IT FURTHER RESOLVED that the City Manager or designee is authorized to execute
the Designer/Builder Agreement with ADC Construction Management, Inc.
PASSED, APPROVED AND ADOPTED this 21st day of July 2020, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTACHMENT 1
________________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Number GI0119ProgramGENERALESTIMATED COSTSPRIOR YEARS 2019-2020 BUDGET2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 FUTURE YEARS TOTALS9100 $151 $88,949 $54,280$143,3809200$440,900 $347,000$787,9009400$2,465,000 $200,000 $1,137,358$3,802,3589500$5,000 $5,000$10,0009600$700,000$700,000$151 $3,699,849 $200,000 $1,543,638$5,443,638FUNDING SOURCEPRIOR YEARS 2019-2020 BUDGET2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 FUTURE YEARS TOTALS1001$2,000,000$2,000,0006605$200,000$200,0006205 $151 $1,699,849 $1,543,638$3,243,638$151 $3,699,849 $200,000 $1,543,638$5,443,638ANNUAL OPERATING IMPACTMiscellaneousEquipment2020-2025 CAPITAL IMPROVEMENT PROGRAMCIVIC CENTER HVAC AND ROOF REPLACEMENTTOTALIT FundTOTALGeneral FundInternal Service Fund - Facilities ReplacementSalaries & BenefitsContract ServicesImprovementsPROJECT DESCRIPTIONThis project provides for the design and replacement of the heating, ventilation, and air conditioning (HVAC) system and controls, roof replacement, associated building modifications, and code compliance upgrades for City Hall and the Cultural Arts Center within the Civic Center complex. The existing HVAC and roof systems are at the end of their useful life and are due for replacement. A new HVAC system and controls will be more energy efficient and have a greater ability to be adjusted. With the roof replace, the project will also upgrade communications infrastructure for new data connections to offices, workstations, and conference rooms. The project will be completed in several phases to minimize disruption to the public and to Staff working within the buildings. This project is funded by $2 million in a General Fund Reserve set aside for this purpose in addition to the Internal Service Fund for Facilities Replacement.ANNUAL OPERATING IMPACT: NoneMANAGING DEPARTMENT: Public Works
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves x Other
Account Amount Account Amount
GI0119.9400.9401 (Improvements - Not Building)$1,257,366
GI0119.9200.9201 (Contract Services General)$130,000
3300.9301.49999 (Transfer In)$1,387,366
GI0119.6205 (6205.9301.89101) - ISF Fund - Facilities Transfer Out $887,366
GI0119.1001 (1001.9301.89101) - General Fund Transfer Out $500,000
7/21/2020
Posted By:Date:
As Presented at the City Council Meeting
**********Finance Use Only**********
CITY OF DUBLIN
Higher than anticipated project costs based on solicitation of proposals from prequalified design-build entities, added costs for
compliance with County Health Orders during construction, and imacts to the supply and manifacturing chains due to the COVID-
19 pandemic.
REASON FOR BUDGET CHANGE
FISCAL YEAR 2020-21
BUDGET CHANGE FORM
City Council's Approval Required
EXP: HVAC and Roof Replacement (GI0119)
ATTACHMENT 3