Item 389/2024
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 9/24/2024
Subject: Approval of an Amendment to Project Finance Advisory Limited for the P3 Project Feasibility and Project Management consultant services for the Garden Grove Civic Center Project. (Cost: $149,950.86) (Action Item)
OBJECTIVE
For the City Council to consider approval of Amendment No. 3 to Professional Services Agreement with Professional Finance Advisory, Limited (PFAL) to provide Phase 4 services for the Garden Grove Civic Center Project in an amount not to exceed $1,449,950.86, an increase of $149,950.86.
BACKGROUND
In January 2019, the City Council commissioned Dewberry to conduct a comprehensive space needs assessment for the Garden Grove Police Department (GGPD) facilities, addressing both current and future requirements. The findings of this assessment were presented to the City Council on January 28, 2020. The Dewberry Report highlighted several deficiencies in the existing GGPD facilities, including inadequat e space for buildings, parking, and other site needs to meet the demands of public safety operations. The report concluded that the current police facilities are undersized and poorly configured to support the department’s needs. It was determined that a new GGPD facility would most effectively address the needs of the department (Project).
In February 2022, the City of Garden Grove issued a formal Request for Proposals (RFP) for P3 Project Feasibility and Project Management Consulting Services, specifically targeting the Civic Center area, including the existing Garden Grove Police Department (GGPD) public safety facilities. The RFP was published on the City’s Planet Bids portal on February 17, 2022.
After receiving five proposals, the City Council awarded a professional services agreement in the amount of $181,448, on July 12, 2022, to PFAL for requested services (Phase 1 Scope of Work). On December 12, 2022 Amendment No. 1 was executed for an additional $18,145, a 10% contingency to cover additional scope.
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On January 24, 2023, City Council authorized Amendment No. 2 to the professional services agreement with PFAL to include additional services to develop a Request for Qualifications/Proposals (RFQ/P) to determine selection of a preferred developer (Phas e 2 Scope of Work), and to support the City through a progressive process to finalize a design - build-finance (DBF) agreement with the selected developer (Phase 3 Scope of Work). The cost of Phase 2 and 3 services is an amount not to exceed $1.3 million, an increase of $1.1 million.
DISCUSSION
The PFAL team has concluded the scope of work associated with Phases 2 and 3. These tasks included:
1. Development of the evaluation criteria that was used to assess qualifications and proposals.
2. Assisted the City t eam to draft the RFQ and RFP and add in Technical Requirements and performance specifications.
3. Assisted drafting of the Project Agreement in an efficient manner to allocate delivery risks to protect the City’s interests.
4. Played an active role in evaluating proposals, helping to determine the submittals were in compliancy.
5. Participated in in-person meetings to support the City as it negotiated the final Project documentation with shortlisted bidders.
6. Assisted in negotiating the Project Agreement with Edgemoor.
7. Participated in design and technical meetings to finalize the program design.
8. Assisted in finalizing the documentation to financial close.
9. Held weekly meetings with the City team.
The services being requested of the PFAL team in Phase 4 includes suppor ting the City in evaluating the affordability of the final design and guaranteed maximum price for the Project, monitoring and overseeing construction activity and any associated waivers or change orders, and continue to oversee project management and coor dination, offer strategic input and advice, maintain an issues list and meeting schedules, and safeguard the City’s interests.
Phase 4 work commenced in July 2024.
Task Description Task Parameters Task Total
Work completed in July
and August - Invoice 1520
Weekly check in calls with City and/or
subcontractor team, design review and
meeting attendance, cost estimate review
and briefing, strategic advice
$53,923.97
Work completed in
September (estimate)
Weekly check in calls with City and/or
subcontractor team, design review and
meeting attendance, cost estimate review
and briefing, strategic advice
$17,748.89
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Project Management until
approval of 100% CD and
GMP (2 months)
Weekly check in calls with City and/or
subcontractor team, invoicing, schedule
maintenance and coordination, strategic
advice and maintain issues list
$18,440.00
100% CD Design and Cost
Review, 100% CD Estimate
CM Reconciliation
Review 100% CD plans and provide
review comments, perform market cost
validation exercise; Full measurement,
take-off and pricing, including all below
the line mark-ups; Prepare CM / Dharam
estimate comparison. Carry out CM
reconciliation with Clark Construction.
Arrive at a mutually agreed GMP contract
value and recommendation to the City.
$42,052.00
Review CM monthly
applications for payment.
Check, validate and agree application
value and recommend payment amount.
Validate based upon market pricing, and
Clark subcontract agreements.
$17,786.00
TOTAL $149,950.86
PFAL’s ongoing involvement in the design process is crucial for assessing the affordability of the Guaranteed Maximum Price (GMP) and evaluating proposed change orders throughout the construction phase.
The important deliverables during Phase 4 services include:
1. Design Review - PFAL will participate in weekly design meetings, provide commentary on design documents, and review the 100% Construction Drawings
2. Meeting Notes and Follow up - PFAL will hold weekly meetings with the City and attend weekly technical meetings with the developer team.
3. GMP Validation - PFAL's team will perform validation of the proposed and final guaranteed maximum price.
4. Invoice Review and Commentary - The PFAL team will agree the form of invoice with the developer, review the developer's invoices, and provide commentary to the City.
FINANCIAL IMPACT
The cost of Amendment No. 3 to Professional Services Agreement with Professional Finance Advisory, Limited (PFAL) in the amount of $149,950.86 will be paid from the existing budget for Capital Improvement Project, Civic Center Facilities in Fund 503.
RECOMMENDATION
It is recommended that the City Council:
Approve an Amendment to the Professional Services Agreement by and between the City and Project Finance Advisory Limited (PFAL) in an amount not to exceed $150,000; and
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Authorize the City Manager to execute the Amendment on behalf of the City, and make minor modifications thereto as needed.
ATTACHMENT
1. PFAL Budget Phase 4
2. Amendment No. 3