City Council Agenda Report
April 15, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Glen W.C. Kau, P.E., Director of Public Services/City Engineer Mario Mera, Engineering Division Manager
Run Chen, P.E., PMP, Principal Civil Engineer
SUBJECT: AMENDMENT NO. 1 FOR HERMOSILLO PARK DESIGN BUILD – PROJECT NOS. 7359 AND 7607, ENGINEER’S REPORT 25-07
Background:
On January 16, 2024 the City approved a Design Build Agreement for the Hermosillo Park Project. City Parks and Recreation staff in collaboration with Public Services Engineering staff recommended solicitation and procurement of design and construction of the project using progressive design build (PDB) to avoid delaying the project schedule and resolve construction phasing constraints.
PDB is a variation of the Design-Build method, allowing project owners to advertise the request for qualifications (RFQs) from potential Design-Build Entities earlier in the procurement process with preliminary design and less defined project scope. Utilizing PDB, project owners can enter into contract with Design-Build entities on a shorter timeline, reduce procurement cost, and encourage higher degree of collaboration between project stakeholders resulting in a more transparent risk allocation between owner, designers, and builders.
The design build agreement for the Hermosillo Park Project was executed on March 12, 2024, and a project initiation meeting to kick off the project was held on the same day. The design build team provided 35% design on August 19, 2024 with a preliminary construction cost estimate that exceeded the project budget. City staff and the design build contractor, Reyes Construction met on several occasions to reduce the cost of the project through maximizing efficiencies and scope reduction without impacting the core nature of the project. Reyes Construction provided a 65% design on November 26, 2024 and a revised Guaranteed Maximum Price (GMP) for the project on December 30, 2024. The GMP projected a funding gap of 43% for the project.
City Council April 15, 2025
Project Nos. 7359 and 7607 - Amendment No. 1 to Hermosillo Park Design Build
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City staff submitted requests to the funding agencies to allocate additional funds to complete the Hermosillo Project. On March 11, 2025, the Lower San Gabriel River Watershed Area Steering Committee approved additional $9.9 million Measure W funding to be included in its 2025/26 Stormwater Investment Plan recommendations to the Safe Clean Water Program Regional Oversight Committee and Los Angeles County Board of Supervisors. Additionally, City Parks and Recreation staff is engaging with the California Department of State Parks and Los Angeles County to secure additional Proposition 68 and Measure A funding for the Hermosillo Park Project.
From the start of the project to date, $2,011,000 of the $2,660,668 budget for design was expended to develop 65% design. In order to maintain the current project schedule, staff recommend authorizing the Design Build Contractor Amendment No. 1 proposal for 100% design for $1,114,943. Staff will return to City Council for authorization of the Guaranteed Maximum Price to initiate project construction following Los Angeles County Board of Supervisor’s approval of Measure W funding.
Fiscal Impact:
There is no cost implication of this item. Current budget is funded with existing Measure W, Proposition 68, Measure A and Park Renovation Fund.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 2: Work in partnership with all of our communities to achieve safe and livable neighborhoods.
Recommended Action:
Staff recommends City Council approve Amendment No. 1 to the Design Build Agreement with Reyes Construction in the amount of $1,114,943 for completion of design of Project Nos. 7359 and 7607, Hermosillo Park Project; and authorize the City Manager to execute the amendment on behalf of the City, in a form approved by the City Attorney.
Attachments:
1. Cost Proposal
2. Levine Act Statement