Item 15/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Craig Beck
Dept:
City Manager Dept: Economic Development and
Housing
Date: 1/28/2025
Subject: Approval of an Amendment to the agreement with Project Finance Advisory Limited for the P3 Project Feasibility and Project Management consultant services for the Garden Grove Civic Center Project. (Cost: $149,803.50) (Action Item)
OBJECTIVE
For the City Council to consider approval of Amendment No. 4 to Professional Services Agreement with Project Finance Advisory, Limited (PFAL) to provide Phase 6 services for the Garden Grove Civic Center Revitalization Project, in an amount not to exceed $1,599,754.36, which is an increase of $149,803.50.
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 inadequate 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.
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.
Item 15/2025
January 24, 2023, City Council authorized Amendment No. 2 to the professional services agreement with PFAL to include additional services for developing a Request for Qualifications/Proposals (RFQ/P) to select a preferred developer (Phase 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 not to exceed $1.3 million, an increase of $1.1 million.
On September 24, 2024, City Council authorized Amendment No. 3 to the professional services agreement with PFAL to include additional services in Phase 4 in an amount not to exceed $150,000. These services include supporting 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 for change orders, continuing to oversee project management and coordination, offer strategic input and advice, maintain an issues list and meeting schedules, and safeguarding the City’s interests. Phase 4 work commenced in July 2024.
DISCUSSION
To date, PFAL’s team has provided services to identify cost savings and challenge developer costs to help the City deliver an affordable project that meets its needs. Some examples of this work include:
1. Supported the City's financing approach, resulting in nearly $1.5 million in savings in bond issuance costs.
2. Recommended adjustments based on the 100% Design Drawing cost estimate, achieving $4.8 million in cost savings.
3. Argued against approximately $2 million in developer change orders for elements included in the Project Specifications.
4. Provided independent evaluation of the project’s current construction pricing to instill confidence in the City and its leadership regarding the proposed costs.
5. Identified a discrepancy of over $2.1 million between market rates and the developer’s proposed general conditions costs.
Additional work to be carried out by the PFAL team in Phase 6 is focused on cost control and verification only. This work is needed to monitor the validity of payment requests and is to be undertaken by Dharam Consulting.
Item 15/2025
Task Description Task Parameters
Monthly Applications for
Payment
Check, validate and agree application value and
recommend payment amount. Validate based
upon market pricing, and Clark subcontract
agreements.
Contract/Construction
Management Cash Flow
Forecasting Reviews
Review planned vs actual expenditures from
invoices, monitor Contract/Construction
Management cash flow
Contract/Construction
Management Schedule
Monitoring
Review contractors schedule reporting and
validate progress. Identify critical path issues
that will impact financing draws.
Monthly
Contract/Construction
Management Project Report
Monitoring
Provide monthly report and check in calls to
review findings on payment applications,
forecasting reviews, and schedule monitoring
FINANCIAL IMPACT
The cost of Amendment No. 4 to Professional Services Agreement with Professional Finance Advisory, Limited (PFAL) in the amount of $149,803.50 (bringing the contract total to $1.6M) will be paid from the existing budget for Capital Improvement Project, Civic Center Facilities in Fund 504. No additional appropriation is needed.
RECOMMENDATION
It is recommended that the City Council:
Approve Amendment No. 4 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
Authorize the City Manager, or designee, to execute the Amendment on behalf of the City, and make minor modifications thereto as needed.
ATTACHMENT(S)
1. Amendment No. 4
2. Phase 6 Proposal