AGENDA REPORT
Meeting Date: May 24, 2022
Item Number:
To: Honorable Mayor & City Council
From: Mandana Motahari, City Architect
Subject: AUTHORIZE THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN THE CITY OF
BEVERLY HILLS AND CLARK CONSTRUCTION GROUP – CALIFORNIA, LP FOR CITY HALL TOWER SEISMIC UPGRADE
AND SELECTIVE SHELL AND CORE IMPROVEMENTS
PROJECT; AND
APPROVAL OF A CHANGE PURCHASE ORDER IN THE NOT- TO-EXCEED AMOUNT OF $965,000 FOR A TOTAL NOT-TO- EXCEED AMOUNT OF $10,299,564 Attachments: 1. Amended Contract
RECOMMENDATION
Staff recommends that City Council move to:
1. Authorize the City Manager to negotiate and execute Amendment No. 1 to the Clark Construction Group – California, LP Agreement for the City Hall Tower Seismic Upgrade and Core Improvement Project contract; and
2. Authorize the City Manager to approve a change purchase order(s) in the not to exceed amount of $965,000 for a total contract amount of not to exceed $10,299,564
INTRODUCTION
Designed by architects William Gage and William Collier Sr., the City Hall building was built in 1932. The structure is an excellent example of the “Modified Spanish Renaissance” style, which, according to the architect, drew upon the same precedents as the Churrigueresque variant of the Spanish Colonial Revival Style. The character defining features of the Tower include the height, massing, fenestration, ornamentation, hexagonal open “belfry” and tiled dome and cupola. The tower was used for City offices until late 1980’s, and there is renewed interest in rehabilitating the tower for occupancy again.
BEVERLY
HILLS
.�
E-12
Meeting Date: May 24, 2022
A high-level structural analysis of the building was performed by the structural engineering firm of MHP and based on age, configuration and inherent structural irregularities of the City Hall building, seismic upgrade was recommended. Building strengthening will be performed in two phases. Phase One includes strengthening of the tower and its footprint through the base building with minimal impact to the existing architectural fabric of the building while achieving a high level of seismic performance of the tower. Phase Two is recommended to be performed in the future to complete the retrofit to address overall seismic performance and preserving the historic architecture of the building.
DISCUSSION
On June 24, 2021, City Council approved the award of a construction contract to Clark Construction Group – California, LP, the lowest responsible bidder, and approved a contract for $8,643,114 and a purchase order in the amount of $9,334,564, which included a $691,450 contingency (8%) for additional scope or unforeseen conditions that may be encountered during construction. The scope of work included full seismic upgrade of the tower and its footprint through the base building, core improvements including extension of the south elevator to serve the tower up to the eighth floor, partial reinforcing of the 5th floor roof area in preparation for a future usable roof terrace, new roofing, extension of the north stairway to serve as a second means of exit for the 5th floor roof area, upgrade of electrical system to serve the tower floors and replacement of the 4th floor HVAC system.
Construction is underway and about 80% complete. During the course of construction, a number of unforeseen conditions were discovered which have been above and beyond what was anticipated; submitted change orders to date exceed the contingency amount.
To mitigate the impact on the historic fabric of the building, strengthening of the tower footprint through the base building has been implemented within elevators shafts and staff offices side of the rotunda. A number of unforeseen conditions were discovered within wall cavities and elevator shafts. Furthermore, to mitigate the impact on staff and building operation during construction, concrete applications and crane activities have been scheduled and will continue to be performed afterhours, including Saturdays with premium costs. Additionally, a few fire/ life /safety measures have been implemented as additional scope including fire alarm upgrade to the base building, fire sprinkler distribution on vacant tower floors, upgrade of Fire Department connection at ground floor, etc.
Following the start of the COVID-19 pandemic, numerous economic forces have influenced construction pricing on varying degrees making prediction about pricing quite challenging. The construction industry has seen a significant supply chain pressure for supplies of construction material such as steel and other key products. While demand has increased, supply has decreased resulting in supply squeeze and increasing costs.
While the contractor has held the bid price per contract, the rising cost of material and labor have resulted in a higher cost for change orders. While staff is negotiating with the contractor on submitted change orders and anticipating future change orders, an amendment to the contractor’s contract is needed to cover these changes. Staff recommends City Council authorize the city manager to approve an increase to the current contract amount for an additional contingency in the not-to-exceed amount of $965,000. Thus, the total contingency amounts to $1,656,450 (19%) of the bid amount, bringing the not-to-exceed contract total to $10,299,564. The construction completion is anticipated in late July 2022.
Meeting Date: May 24, 2022
FISCAL IMPACT
The total project cost for the City Hall Tower Seismic Upgrade and Core Improvements is $8,643,114. A purchase order was approved in a total not-to-exceed amount of $9,334,564, which included an 8% contingency in the amount of $691,450. Based on unforeseen circumstances, an additional contract amendment and change order is necessary in the maximum amount of $965,000, bringing the not-to-exceed contract total to $10,299,564. Currently there is funding available in CIP 00851, 00811 and 00833 for this project. No additional funding is requested at this time.
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
1 B0785-0001\2665436v1.doc
AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN
THE CITY OF BEVERLY HILLS AND CLARK
CONSTRUCTION GROUP - CALIFORNIA, LP FOR CITY
HALL TOWER SEISMIC UPGRADE AND SELECTIVE
SHELL AND CORE IMPROVEMENTS PROJECT
This Amendment No. 1 is to that certain Contract between the City of Beverly Hills (hereinafter "City"), Clark Construction Group - California, LP (hereinafter "Contractor"), dated September 15, 2021 and identified as Agreement No. 246-21 (“Contract”).
RECITALS
A. City and Contractor entered into the Contract for City Hall Tower seismic upgrade and selective shell and core improvements (the “Work”).
B. The total cost of the Work under the original Contract, including the contingency, was Nine Million Three Hundred Thirty-Four Thousand Five Hundred Sixty-Four Dollars ($9,334,564.00), but unforeseen circumstances have caused the completion cost for the Work to increase up to an additional Nine Hundred Sixty-Five Thousand Dollars ($965,000) for a total not to exceed amount of Ten Million Two Hundred Ninety-Nine Thousand Five Hundred Sixty Four Dollars ($10,299,564.00).
NOW, THEREFORE, the parties agree as follows:
Section 1. The Recitals are hereby incorporated by reference into the Contract.
2 B0785-0001\2665436v1.doc
Section 2. “Compensation” under the Contract shall be amended to not exceed Ten Million Two Hundred Ninety-Nine Thousand Five Hundred Sixty-Four Dollars ($10,299,564.00) for the Work.
Section 3. Except as specifically amended by this Amendment No. 1, the remaining provisions of the Contract shall remain in full force and effect.
Section 4. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the _____ day of ___________________ 2022, at Beverly Hills, California.
CITY OF BEVERLY HILLS
a Municipal Corporation
____________________________________
GEORGE CHAVEZ
City Manager
CONTRACTOR: CLARK CONSTRUCTION GROUP - CALIFORNIA, LP.:
____________________________________
CARLOS GONZALEZ
Division President
____________________________________
MARC KERSEY
Senior Vice President
[Signatures continue.]
3 B0785-0001\2665436v1.doc
CITY OF BEVERLY HILLS:
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
____________________________________ ____________________________________ LAURENCE S. WIENER SHANA E. EPSTEIN
City Attorney City Manager
____________________________________
MANDANA MOTAHARI
City Architect
____________________________________
SHARON L’HEUREUX DRESSEL
Risk Manager