City Council Report 915 I Street, 1 st Floor Sacramento, CA
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1 City Council Report 915 I Street, 1 st Floor Sacramento, CA File ID: August 9, 218 Consent Item 1 Title: Supplemental Agreement with AECOMHunt for PreConstruction Services for the Ballroom for the Sacramento Convention Center Renovation and Expansion Project Location: 14 J Street, District 4 Recommendation: Pass a Resolution authorizing the City Manager or the City Manager s designee to: 1) execute Supplemental Agreement No. 3 with Hunt Construction Group, Inc. for an amount nottoexceed 395,529, for a new total nottoexceed amount of 1,83,895 in the Convention Center Complex Renovation Project (M1711) for additional preconstruction services for the new ballroom and prefunction area; and 2) increase expenditure budget in the Convention Center Complex Renovation Project (M1711) with a transfer of 395,592 in Community Center Fund (Fund 1) from the AudioVisual Improvement Project (M1713). Contact: Sabrina Tefft, Project Manager, ; Desmond Parrington, Senior Development Project Manager, ; Fran Halbakken, Assistant City Manager/Project Executive, ; Office of the City Manager Presenter: None Attachments: 1Description/Analysis 2Background 3Resolution 4Exhibit A Supplemental Agreement with Hunt Construction Group Susana Alcala Wood, City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of
2 File ID: Consent Item 1 Description/Analysis Issue Detail: On July 25, 217, City Council approved a contract with Hunt Construction Group, Inc. (Hunt) for preconstruction services for the Convention Center Renovation and Expansion Project (Convention Center). However, the new ballroom was not part of the original project since at that time the new ballroom was to be part of a later phase. On December, 217, City Council authorized the City Manager to proceed with the design of the full program for the Convention Center, including the new ballroom. Council s decision was based on the proposal from the local hotel community to pay for the cost of the ballroom so that it could be built simultaneously with the rest of the project. On June 19, 218, the Council approved the design for Convention Center including the ballroom, which is to be funded by bond proceeds from an assessment district formed by the hotels. The hotels in the City and the unincorporated County are in the process of establishing that district. Since the ballroom and associated prefunction area add approximately 7, square feet to the project and extend the duration, additional funding is needed to allow Hunt to complete the preconstruction services and costestimating work for this additional area. Policy Considerations: The renovation and expansion of the Convention Center along with the new ballroom will allow the facility to remain attractive and competitive into the future, while providing a nationallyrecognized convention venue for residents, visitors and convention attendees. It is also anticipated to grow TOT revenue as more events will likely lead to more hotel night stays and may generate the need for additional hotel development in the Downtown. The requested actions support the following City General Plan policy: ERC The City shall support renovation and expansion of Convention Center facilities and adjacent supportive infrastructure, including hotels, to attract top tier national and international events. Economic Impacts: Not applicable Environmental Considerations: On June 19th, City Council passed a resolution certifying the Environmental Impact Report and adopting the Mitigation Monitoring Program, Findings of Fact, and a Statement of Overriding Consideration for the Sacramento Convention Center Renovation and Expansion Project. Sustainability: The Convention Center project will be designed to meet LEED Silver certification in accordance with City policy LU LEED Standard for CityOwned Buildings, Commission/Committee Action: Not Applicable City of Sacramento August 9, 218 powered by Legistar Page 2 of
3 File ID: Consent Item 1 Rationale for Recommendation: The approval of the additional scope of work for the ballroom is necessary to keep the project on track. It is also needed to ensure the City has accurate cost estimates for the ballroom as well as necessary preconstruction services so that the plans are ready for construction. Financial Considerations: Supplemental Agreement No. 3 with Hunt Construction Group, Inc will be funded by the transfer of 395,529 from the AudioVisual Improvement Project (M1713) to the Convention Center Complex Renovation Project (M1711) in the Community Center Fund (Fund 1). This will increase the agreement s original nottoexceed amount of 1,441,3 to a new nottoexceed amount of 1,83,895. There is sufficient funding in M1713 to make the transfer. Under Resolution No. 2173, this expenditure is eligible for reimbursement and the funds will be restored to M1713 once the bonds for the project are issued in October 218. The background section of this report identifies all prior financial actions associated with the project as well as those associated with the Community Center Theater project and the Memorial Auditorium project. Local Business Enterprise (LBE): Hunt Construction Group, Inc. is an LBE since it is part of AECOM, which has an office in Sacramento. City of Sacramento August 9, 218 powered by Legistar Page 3 of
4 Background Projects History and Council Actions: The following is the current history including Council actions and financing transactions associated with the Convention Center, Community Center Theater and Memorial Auditorium projects: On March 9, 21, the City Council in City Resolution No. 215 suspended competitive bidding, approved a designassist delivery method, approved a 3 facility fee charged on each ticket sold, and directed staff to proceed with the renovation of the CCT. On March 15, 21, the City issued an RFQ for designassist support services for the CCT project and Kitchell CEM, Inc. was selected as the most qualified firm. On August 1, 21, Council approved the selection of Kitchell CEM, Inc. in City Resolution No for the CCT renovation. On March 2, 213, the City Council in City Resolution No approved 8.5 million toward the CCT Renovation Project. However, on November 19, 213, the City Treasurer recommended that Council defer financing of the CCT renovation given the use of some of the TOT revenue for the Entertainment and Sports Center project (now Golden 1 Center) and the outstanding debt on the facilities. As a result, in Motion No Council directed 1) staff to return immediately with a plan to address deferred maintenance; 2) the City Attorney s Office to return with a memo on the City s legal obligations and concerns; and 3) staff to return with three renovation options to include financing: a) minimum requirements for basic ADA compliance plan; b) an alternative 1year facility plan to include public engagement; c) a 3 year plan to consider either a new facility or the complete improvement plan to include public engagement. A Performing Arts Task Force was established and provided updates to the City Council in November 214 and again in April 215 on potential development options for the CCT. However, sufficient funding was not identified to provide for the construction of a new CCT. On May 3, 21, Council approved City Resolution No appropriating, from the Community Center Fund's fund balance; 2) modifying the scope and name of M1711 to include the SCC Complex; 3) approving professional services agreements with DLR/Westlake Reed Leskosky in the Page 4 of
5 amount of 98,825 (for initial design of the CCT during the project definition phase), Populous in the amount of 27, (for initial design of the SCC during the project definition phase), and Pfocus/Rider Levett Bucknall (for owner s representation and advisory services during the project definition phase) in the amount of 15,; and 4) directing staff to proceed with the project definition phase of an integrated project to renovate the CCT and expand the SCC. On October 18, 21, City Council directed staff to proceed with the design of the CCT Renovation Project and Memorial Auditorium Project, suspended competitive bidding for the SCC project to allow for a designassist method of delivery, but recommended staff explore other options for the design and financing of the SCC and to return at a later date. Council also directed staff to select a consultant to design the Memorial Auditorium upgrades and a consultant to perform preconstruction services for the Memorial Auditorium upgrades, and to bring proposed contracts to City Council for consideration as this would allow CCT events to shift to the Auditorium for one year to allow for a much quicker renovation of Theater. On January 24, 217, City Council approved City Resolution No. 2173, which declared the City Council s official intent to reimburse the City from bond proceeds for design and other predevelopment costs associated with the CCT, Memorial Auditorium, and SCC projects. On January 24, 217, City Council approved City Resolution No , which suspended competitive bidding for the Memorial Auditorium project and authorized: (1) the release of 5.5 million of the 8.5 million commitment of fund balance for the Convention Center Complex projects in the General Fund (Fund 11) to the Convention Center Complex Renovation Project (M1711); (2) a 1,,738 contract with Architectural Nexus for the design of the improvements; and (3) a 187, contract with Rider Levett Bucknall for owner representation and advisory services. On February 14, 217, City Council approved City Resolution No which authorized a 5 million loan from available fund balance in the Community Center Fund (Fund 1). This is to be repaid when bonds are issued. On May 1, 217, City Council approved City Resolution No that authorized the purchase of the VAMPS acoustic shell for Memorial Auditorium that was needed for performances with the use of 35, from the Community Center Fund (Fund 1). On May 3, 217, Populous presented the conceptual design for the SCC identifying how the project would be built in two phases. The first phase would include new exhibit space, a multipurpose room, a new kitchen, east and west Page 5 of
6 lobbies and new meeting rooms. The second later phase would include a new ballroom. The City Council adopted City Resolution No which authorized a 3.8 million interfund loan from the General Fund (Fund 11) to the Convention Center Complex Project (the Project), a 3.8 million interfund loan from the Innovation and Growth Fund (Fund 231) to the Project, and a 3.4 million internal loan from Fund 1 to the Project. These loans are to be repaid when bonds are issued. Council also authorized the preparation of an EIR for the SCC project and executed a contract with ESA for preparation of the EIR. On June, 217, City Council approved Motion No which authorized a 177, Preconstruction Services Agreement with an option for Guaranteed Maximum Price for Construction with Kitchell CEM, Inc. for the Memorial Auditorium project. On December 5, 217, City Council agreed to move forward with the full program for the SCC which would allow the new 4, square foot ballroom to be built at the same time as the rest of the project contingent upon funding provided by the hotel community to cover the cost of the ballroom. On March 2, 218, Council approved Motion No for a supplemental agreement with Kitchell for additional services related to local hiring in the construction of the Memorial Auditorium project for an amount nottoexceed 49,57, bringing the total agreement to a new nottoexceed amount of 7,374. On March 27, 218, Council approved Motion No for a supplemental agreement with Rider Levett Bucknall, Ltd. to extend the term of their contract for owner s representation services through April 3 th and pay 24, for their services for a new total contract amount of,. That agreement was later extended by the City Manager again until May 31 st at an additional cost of,333 for a total contract amount of 238,999. Due to the size of the last increase, that supplemental agreement was done under City Manager authority and did not require staff to return to Council. On April 3, 218, City Council approved Motion No for the removal of four trees along I Street and 15 th Street for the Memorial Auditorium project to allow for the construction of improvements there. May, 218, City Council approved a resolution that authorized (1) the City Manager or his designee to execute Supplemental Agreement No. 2 to City Agreement No with Kitchell CEM, Inc., in the amount of 1,739,19 for the construction of improvements to Memorial Auditorium (M1711), for a new nottoexceed total contract amount of 1,9,543; (2) an interfund loan Page of
7 between the Water Fund (Fund 5) and the Community Center Fund (Fund 1); and (3) the transfer of 11,75,17 from Fund 5 to Fund 1. On May 29, 218, City Council approved Motion Nos and which approved contracts for Architectural Nexus for construction administration services and for construction management services, respectively for the Memorial Auditorium project. On June 19, 218, City Council approved Resolution No certifying the Environmental Impact Report for the Sacramento Convention Center (SCC) Renovation and Expansion Project. In addition, Council also approved Resolution No and Resolution No that approved the design for the SCC and CCT projects, respectively, and directed the City Manager to proceed with the projects. Council also rescinded Resolution No , which authorized the City to apply for a 15 million loan from the California Infrastructure and Economic Development Bank (IBank) for Memorial Auditorium project. City Council then approved Resolution No and Resolution No authorizing staff to submit two applications to the California Infrastructure and Economic Development Bank (IBank) in an amount not to exceed million. Finally, City Council passed Resolution No as amended directing the City Manager to return to City Council to present local hiring and local business involvement programs prior to the start of the projects. On July 3, 218, Council passed Resolution No which increased Populous contract by 35,944, for a new total not to exceed amount of 1,91,19 for additional design services for the Convention Center Complex Renovation Project. It also approved an agreement with Enovity for an amount not to exceed 27, to provide enhanced commissioning and other services necessary for LEED Silver Certification for the Convention Center Complex Renovation Project; and transferred 278,53 from the Community Center Improvements Project (M171) in Community Center Fund (Fund 1) to the Convention Center Complex Renovation Project to fund these agreements. On July 1, 218, the City Manager approved a modification to the City s agreement with AECOMHunt (Contract No. 211) that moved funds from travel expenses to be used for designassist services from trade contractors during the preconstruction phase in order to inform the final construction documents. There was no change to the overall contract amount. Also, on July 1, 218, the City Manager approved a modification to the City s contract with DLR/Westlake Reed Leskosky (Contract No ) to update the invoicing schedule for the Theater project. There was no change in the contract amount. Page 7 of
8 On August 2, 218 the City Manager approved another modification to the City s agreement with AECOMHunt (Contract No. 212), which included the scope of work for designassist services from three trade contractors dealing with piles, precast and vertical transportation services (elevators and escalators). There was no change to the overall contract amount. Page 8 of
9 RESOLUTION NO. 218 Adopted by the Sacramento City Council AUTHORIZING A SUPPLEMENTAL AGREEMENT AND FUNDING FOR PRECONSTRUCTION SERVICES FOR THE NEW BALLROOM IN THE SACRAMENTO CONVENTION CENTER RENOVATION AND EXPANSION PROJECT A. On July 25, 217, City Council in Motion No. 217 approved a contract with Hunt Construction Group, Inc. for preconstruction services for the Convention Center Renovation and Expansion Project, but that contract did not include the new ballroom as that was originally to be part of a later phase of the project. B. On December, 217 City Council directed staff in Motion No to proceed with the design of the full program for the renovation and expansion of the Sacramento Convention Center (SCC), which added the future ballroom to the current phase of work. C. In order to allow Hunt to do the work on the ballroom needed for Construction Document (CD) and Guaranteed Maximum Price (GMP) phases of the project, additional funding is required. D. Funding is needed presently from specific CIPs in the Community Center Fund to pay for the additional preconstruction services for the new ballroom in the Convention Center and Community Center Theater projects. E. The funding is being advanced until the bonds for the project are issued, at which time the will be reimbursed. In the event the City Council does not authorize construction of this project, the funds will not be repaid. F. On January 24, 217, City Council approved Resolution No which allows for bonds issued for the Community Center Theater, Memorial Auditorium and Convention Center projects to be used to cover design, preconstruction services, and other soft costs associated with these projects. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS: Section 1. The City Manager or his designee is authorized to execute Supplemental Agreement No. 3 with Hunt Construction Group, Inc. for an amount nottoexceed 395,529, for a new total nottoexceed Page 9 of
10 Section 2. amount of 1,83,895 in the Convention Center Complex Renovation Project (M1711) for additional preconstruction services for the new ballroom and prefunction area. The City Manager or his designee is authorized to increase expenditure budget in the Convention Center Complex Renovation Project (M1711) with a transfer of 395,592 in Community Center Fund (Fund 1) from the AudioVisual Improvement Project (M1713). Exhibit A Supplemental Agreement with Hunt Construction Group, Inc. Page 1 of
11 ontractor Page 11 of
12 Attachment 1 Revised PreConstruction Cost DesignAssist Preconstruction to GMP Revision to include new timeline and Phase 2 Estimating EXHIBIT B PRECONSTRUCTION COST PROPOSAL Sacramento Convention Center Renovation and Expansion Aug 217 Sep 217 Oct 217 Nov 217 Dec 217 Concept Concept Concept Concept Schematic Original Original Original Original Original Position Rate PrincipalinCharge Jan 218 Feb 218 Mar 218 Apr May 218 Jun 218 Jul 218 Aug 218 Credit Sep 218 Oct 218 Nov 218 Dec 218 Design Design Design Design Backlog Design GMP & GMP & Permitting SUMMARY 119 Project Executive. 8 18,885 2,4 17, ,4 2 4,4 2, , 2 4,4 2 4,4 17, , ,772 17, ,19 28,72 2,4 11 2, ,77 243,218 Sr. Project Manager ,9 4,428 32, ,38 3 7,38 4, ,52 3 7,38 3 7,38 32, , ,49 32,251 17,138 11, , , Preconstruction Manager ,297 4,2 3, ,2 3 7,2 4, ,8 3 7,2 3 7,2 3, , ,423 3,77 1,32 1,74 4,2 21 4, ,441 Project Manager ,118 1,14 4 7, ,9 1 1,9 1,135 3, 1 1,9 1 1,9 15,48 1,197 1,197 29,891 15,8 1,488 4, , ,5 Local Procurement Manager , , ,8 15,48 14, , , ,71 General Superintendent , ,33 4,2 4 7,7 15, , ,382 2, , , MEP Project Manager ,94 1,32 4, ,72 1 1,72 1,28 3, ,72 1 1, ,173 1, 1, 39, ,19 9,494 1, ,439 Engineering Manager / Operations Coordinator ,913,77 8, ,1 QA/QC Manager ,8 39 7, 14,27 Program Manager ,19 23,913 97,77 8, ,285 Sr. Estimator ,8 7 1,34 29,21 2,244 2, , ,928 2,244 2,244 29,21 8 1, ,414 29,419 15,33 1,3 7 1,34 7 1, ,745 Estimator ,21 14, ,235 29,21 29,419 15,33 1,3 9 13,2 (18,43) (14,744) Estimator ,83 4 5, , , , ,88 15, BIM/VDC Manager ,8 13 1,3 8 1,7 44 5,774 Scheduler , , ,5 1 1, ,8 1 1,5 1 1,5 48 7,1 1,4 1,4 47 7, , , ,59 Safety Manager. 24 2, , , ,38 8, Invoiced Amount (From current contract) , , , , , , , , , ,314 15,788 14,182 2,314 2,314 28,945 2,52 17,53 1,578 Difference 13,2 2,153 81,2 (9,73) Running Difference (1) (1) 13,2 33, ,597 14,81 (14,853) 43,471 3, , ,15 745,472 Running Total of Invoices 141,928 Running Total of Hours, ,898 1,72 (1) 348,2 1, 374,52 1,978 2, 3,35 3,173 3, ,81 17, , , ,59 97 (33,174) ,37 5 3,458 1, ,85 14,57 7,199 19,37 254,57 (211,29) 13,373 () () () (14,853) 17,54 (13,375) () (1) () () 1,33,135 4,82 72,5 4,913 4,999 1,173,72 7,39 1,243,91,5 1,413,538 7,815 1,53,99 8,528 23,24 1,5,2 8, ,873 (251,714) (1) 3, ,24 21, ,92 1,581,895 Proposed New Contract Value 1,18,3 Existing Contract Value 395,529 Amount of Supplemental 1,581,893 8,771 This proposal includes estimating, scheduling, and GMP services for Phase1 and the added Phase 2 Ballroom level which was not included in the original Contract estimate. Total SF of building to be estimated has increased from 159,5 SF to 232, SF, or roughly a 4% increase in building size. Duration of services has increased from 13 months to 18 months. Revised Hunt's Preconstruction Fee Estimate 1,581,895 Original Contract 1,18,3 DA Consulting Allowance 2, 1, Travel Allowance, 1, Total Precon Fee 1,83, ,529. 1,441,3 Page 1 of 2 Page of
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