Administrative
Report
H.7., File # 22-5208 Meeting Date: 12/6/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE AN AMENDMENT TO THE DESIGN-BUILD CONTRACT WITH SPOHN RANCH, INC.
FOR ADDITIONAL SERVICES RELATED TO SKATE FACILITY INSTALLATIONS AT PAD 10 AND PERRY PARK INCREASING THE NOT TO EXCEED AMOUNT TO $403,000
EXECUTIVE SUMMARY
The City Council authorized additional funding for the Citywide Skate Facilities - Perry Park and Pad 10 Locations Project, Job No. 30740 (project) in the FY 2022-23 Budget to provide additional skating features at the two locations currently under contract with Spohn Ranch, Inc. (Spohn Ranch). The appropriation will allow for the modification of skate features at Perry Park and an expansion of the facility design for Pad 10 to include the “Master Plan” alternative presented to the City Council on March 15, 2022.
The amendment to the design-build contract with Spohn Ranch will increase the not to exceed amount of the agreement from $140,000 to $403,000 and is within budget. The additional funds will cover new features at Perry Park, estimated at approximately $30,000, and expanded improvements to the Pad 10 location valued at approximately $233,000. A copy of the amendment is attached.
Spohn Ranch has indicated it is ready to begin its final design work as soon as the First Amendment is executed and that the City can expect completion of the additional improvements at Perry Park in March 2023 and at Pad 10 in April 2023.
BACKGROUND
On October 5, 2021, the City Council approved a $140,000 design-build contract with Spohn Ranch to provide and install skate facilities at two identified locations, Perry Park and Pad 10 at the Pier.
The installation at Perry Park was to consist of skating features that could be installed along concrete areas historically used by the skating community. The Perry Park installation had an estimated cost of $30,000. The Pad 10 installation was to be larger in scope and the design-build contract outlined a $110,000 budget for this portion of the project.
On March 15, 2022, the City Council was presented with a status report for the project including the installed features at Perry Park and the design alternatives to the upcoming Pad 10 installation. The presentation for Pad 10 included two alternatives, the “Base Plan” and the “Master Plan,” and outlined the features and costs of each. The Base Plan was designed in a way that Spohn Ranch indicated could be built within the existing $110,000 budget for Pad 10, while the Master Plan would require additional funding. At that time the Council adopted a motion to proceed with the “Base Plan”
H.7., File # 22-5208 Meeting Date: 12/6/2022
require additional funding. At that time the Council adopted a motion to proceed with the “Base Plan” and to direct staff to provide a Budget Response Report concerning modifications to the facilities at Perry Park.
On June 1, 2022, the City received a letter from Spohn Ranch indicating that due to the hyper inflationary market they could no longer construct the Pad 10 Base Plan for the contract price of $110,000. As this occurred just prior to City Council’s budget deliberations for FY 2022-23, staff provided a Budget Response Report (BRR) to explain available options and potential costs. FY 2022 -23 BRR #40 is attached. Staff also proposed a $30,000 project in the Draft FY 2022-23 Capital Improvement Program for additional skate facility features at Perry Park. As part of the FY 2022-23 Budget Adoption, the Council appropriated $250,000 to the Project for Pad 10 and $40,000 to the Project for Perry Park and directed staff to draft a contract amendment with Spohn Ranch to complete the Master Plan design option at Pad 10 and additional features at Perry Park.
Spohn Ranch presented a proposed change order for the new scope in early September 2022, but it significantly exceeded the Project budget. Staff worked with Spohn Ranch to identify areas of savings, and believes an appropriate cost has been determined. The attached first amendment to the Agreement with Spohn Ranch increases the not to exceed value of the contract with Spohn Ranch by $263,000 to a new total not to exceed $403,000. Of the $263,000 increase, $30,000 is designated to address new features at Perry Park and $233,000 is designated to address the Master Plan build out at Pad 10. The amount for Pad 10 in the First Amendment includes additional funding to address the constructability issues at that location, which were anticipated by staff but not included in the estimated price given by Spohn Ranch as stated in BRR #40. This accounts for the difference in the price presented then in the BRR and that contained in the First Amendment.
The project schedule adopted when the design-build contract was approved targeted installation of the Pad 10 elements in May 2022. The revised schedule tentatively proposed in the first Amendment reflects a substantial completion date of March 31, 2023 for Perry Park and April 15, 2023 for Pad 10.
Spohn Ranch has indicated it can meet these milestones.
The Harbor Commission’s adopted Resolution entitling the Pad 10 portion of the Project includes approval of the “Master Plan” project and specifying the design of railings encircling the skate facility.
The railings are being completed through another vendor as part of a separate City project. Staff is also working on modifications to the Redondo Beach Municipal Code (RBMC) and changes to posted signage to allow skating at the Pad 10 site. Staff will return to Council in the coming weeks to present proposed modifications to the RBMC.
COORDINATION
The modified elements of the project and have been coordinated with the Waterfront and Economic Development Department, the Community Services Department and the Public Works Department.
The First Amendment has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Funding for the First Amendment is available and has been appropriated to the City’s adopted Capital Improvements Program, Job No. 30740, which includes money from the Subdivision Parks Trust (Quimby) Fund, Uplands Fund and the City’s Capital Projects Fund.
Funding Expenditures
Subdiv. Parks Trust Fund $163,508 Agreement - Spohn Ranch $140,000 Capital Projects Fund $ 16,492 1st Amendment - Spohn Ranch $263,000 Uplands Fund $250,000 Contingency/PM/Insp. $ 27,000
Total $430,000 Total $430,000
H.7., File # 22-5208 Meeting Date: 12/6/2022
Funding Expenditures
Subdiv. Parks Trust Fund $163,508 Agreement - Spohn Ranch $140,000 Capital Projects Fund $ 16,492 1st Amendment - Spohn Ranch $263,000 Uplands Fund $250,000 Contingency/PM/Insp. $ 27,000
Total $430,000 Total $430,000
In addition to funding appropriated to the Project by the City Council, the Los Angeles Kings Foundation donated $25,000 in January 2022 to support the development of skate facilities in the City. That funding is sitting in the City’s Police Department Skatepark Donation Fund but has not yet been appropriated to the Project. Staff is in contact with representatives of the Kings to determine how this donation might be applied to this project and/or future skate facilities in the City and will return to Council with a proposed use of the funds at the appropriate time.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - First Amendment to Agreement with Spohn Ranch
· FY 2022-23 BRR #40