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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: DECEMBER 12, 2023
FROM: PUBLIC WORKS AND FIRE & RESCUE DEPARTMENTS
SUBJECT: TERMINATION OF THE DESIGN-BUILD AGREEMENT FOR THE ANAHEIM FIRE STATION 12 (PLATINUM TRIANGLE) PROJECT
AND AWARD OF DESIGN AGREEMENT
ATTACHMENT (Y/N): YES ITEM # 09
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve the termination for convenience of the design-build agreement (Design-Build Agreement with Soltek-ECC A Joint Venture/Jeff Katz Architecture (Soltek-ECC) for the construction of the Design-Build Fire Station 12 (Platinum Triangle) Project (Project) and authorize and direct the Director of Public Works, on behalf of the City of Anaheim (City), to implement and administer the termination for convenience settlement agreement (T4C Agreement), authorize and direct the Finance Director to release the contract escrow retention funds in the amount of $57,989.92 and process a final settlement payment to Soltek-ECC in the amount of $154,010.07, which compose the Settlement Sum amount of $211,999.99; and
2) Approve a Design Agreement (Agreement) with COAR Design Group, in an amount not-to-exceed $385,000, to complete the design documents to permit-ready status and provide construction support services for Fire Station 12 and authorize and direct the Director of Public Works or designee, on behalf of the City to execute the Agreement and any related documents and to take actions as are necessary to implement and administer the Agreement.
DISCUSSION:
The design and construction portions of the Fire Station 12 Project were awarded to Soltek-ECC by the City Council on August 9, 2022. The City issued Soltek-ECC the Notice to Proceed (NTP) on October 13, 2022, with a completion date ending April 5, 2024. Soltek-ECC was tasked to design and construct an efficient, functional, and sustainable fire station so that delays in response time within the Platinum Triangle and adjacent areas would be minimized by the addition of two fire companies and two paramedic units. The station includes two buildings: a 10,400 square foot (SF) main building to house the primary response apparatus, dormitories, and administrative offices; and the 2,222 SF auxiliary building for staging, covered parking, and for showcasing Anaheim Fire & Rescue’s oldest antique apparatus.
Termination of the Design-Build Agreement and Award of Design Agreement for the Anaheim Fire Station 12 (Platinum Triangle) Project December 12, 2023
The fire station design-build process consists of an initial Design Development phase that transitions the 100% design documents to the 100% construction documents/plan check with the plan of commencing onsite construction and breaking ground as soon as the City is able to issue permits.
The proposed site for the fire station is strategically located in the Platinum Triangle Area on Parcel 1 of Parcel Map No. 2006-262 on South State College Boulevard between Gene Autry Way and Katella Avenue. However, the site of the fire station is encumbered by an existing parking lease agreement that needs to be modified or terminated before any contractor breaks ground, and its status is presently indeterminate. Therefore, City staff and Soltek-ECC have determined that it is not mutually advantageous to continue the Design-Build Agreement, as additional delays will likely compromise the quality, delivery, and budget of the Project.
City staff initiated dialog with Soltek-ECC in July 2023, notifying them to stop work, and initiated steps to terminate the Design-Build Agreement. At this midway juncture, Soltek-ECC has submitted Design Development Documents considered to be complete. The next phase would be to complete the design necessary for Construction Documents followed by the applications for the City Building and Grading permits.
On August 4, 2023, the City sent a Notice of Termination for Convenience letter to Soltek-ECC, formally directing Soltek-ECC to turn over all performed Design Development documents and a termination settlement proposal within ninety (90) days of the effective date of termination. City staff, including the City Attorney’s Office, is in receipt and has reviewed the turnover Design Development documents, the termination settlement proposal and its terms and conditions, and recommends approval of the T4C Agreement and the final settlement payment. The settlement amount settles all future claims for the Soltek-ECC Design-Build contract.
Soltek-ECC and Jeff Katz Architecture composed the original Joint Venture team; Jeff Katz Architecture is now COAR Design Group (COAR). City staff requested a proposal for completion of design for preparation of all construction drawings, calculations, bidding, and construction administration support for a traditional Design-Bid-Build delivery of the Project.
City staff determined that COAR Design Group is the most qualified firm to complete the final construction documents; COAR has the ability to perform the services outlined in the Request for Proposal (RFP) exhibited by the firm’s knowledge and familiarity of the subject, approaches to address the scope of work, qualifications of the proposed team and its key personnel, as well as previous experience. The Agreement was negotiated for a total contract not-to-exceed amount of $385,000. The cost appears reasonable, and Staff recommends that COAR provide the architectural and engineering services for the Construction Documents.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is covered “Project Work” as defined in the project list (Attachment F) of the CWA that the City entered into with the Los Angeles/Orange Counties Building and Construction Trades Council and the Signatory Craft Councils and Local Unions.
Termination of the Design-Build Agreement and Award of Design Agreement for the Anaheim Fire Station 12 (Platinum Triangle) Project December 12, 2023
ENVIRONMENTAL DETERMINATION:
Pursuant to the provisions of CEQA, the City Council of the City of Anaheim, as lead agency for the Project, found and declared in Resolution No. 2022-073, based upon its independent review and consideration of the Twelfth Addendum to previously certified FSEIR No. 339 prepared in connection with the Project, together with the Mitigation Monitoring and Reporting Plan No. 353, and the requirements of CEQA, including Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, and the evidence received at the public hearing on August 9, 2022, that previously – certified FSEIR No. 339 and the Twelfth Addendum to FSEIR No. 339, together with the Mitigation Monitoring and Reporting Plan No. 353, were adequate to serve as the required environmental documentation for said Project and satisfied all of the requirements of CEQA, and that no further environmental documentation need be prepared for said Project.
IMPACT ON BUDGET:
Terminating the agreement has no budgetary impact. The remaining funds will be set aside and available for the project when it is reconsidered.
Respectfully submitted, Concurred by:
Rudy Emami Patrick Russell
Director of Public Works Fire Chief
Attachments:
1. Termination for Convenience Settlement Agreement Soltek-ECC
2. Notice of Termination Letter Soltek-ECC
3. Executed Design-Build Agreement Portion of Contract Soltek-ECC
4. Agreement with COAR Design Group
5. Vicinity Map