City Council
Report
City Council Meeting: July 18, 2023
Agenda Item: 5.K
1 of 5
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Approval of Sixth Modification to the Construction Contract with Hathaway Dinwiddie for the City Yards Modernization Project
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding that the Microgrid and Water Resources Tenant Improvements were analyzed as part of the City Yards Master Plan Environmental Impact Report (EIR) and Addendum, and no further review is required pursuant to the California Environmental Quality Act (CEQA).
2. Authorize the City Manager to negotiate and execute a sixth modification to Design-Build Contract #10371 (CCS) using mainly grant funds in the amount of $11,400,000 with Hathaway Dinwiddie Construction Company for design and construction services of the Microgrid and Water Resources Tenant Improvements as part of the City Yards Modernization – Package A Project for the Public Works Department. This would result in a five-year amended agreement with a new total amount not to exceed $98,673,039, with future year funding contingent on Council budget approval.
3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority.
Summary
The City of Santa Monica’s City Yards Modernization Project was prompted by an increase in Santa Monica’s population and workforce, rapid advancements in technology, and the introduction of new equipment and practices. The upgrades to City Yards would improve the operations of key city services through advanced operating efficiencies, site safety, and implementation of sustainability goals. As a part of the approved City Yards Master Plan, a Microgrid and Water Resources Tenant Improvements were envisioned to meet the immediate and future needs of the Public 2 of 5
Works Department. Due to the COVID-19 pandemic, there was a $39,925,845 reduction in funding for the City Yards Modernization Project which was one of the largest enacted by Council during the covid pandemic. Project scope reductions were enacted until alternate funding could be identified.
As part of the AB-179 Budget Act of 2022 legislation, the State’s budget authorized a grant earmark of $10 million from the California Arts Council for the City Yards Microgrid project. In addition, $1.5 million in available Water and Wastewater Funds for the Water Resources Tenant Improvements were budgeted in the Fiscal Year 2022-23 Midyear CIP Budget. Staff recommends executing a sixth amendment to the GMP design-build contract with Hathaway Dinwiddie Construction Company (HDCC) in the amount of $11,400,000 including the $10 million grant and $1.4 million of the Water and Wastewater Funds for a new total amount not to exceed $98,673,039. The remaining $100,000 will be used as budget contingency set aside to address unforeseen or unexpected costs during the project’s implementation.
Discussion
Located at 2500 Michigan Avenue, the 14.7-acre Santa Monica City Yards operates seven days a week and houses the City’s Facilities Maintenance Division, Resource Recovery and Recycling Division, Street Services Division, Fleet Maintenance Division, Traffic Operations Division, Water Resources Division, and the Fire Department Training Facility.
The approved City Yards Master Plan included both a Microgrid and Water Resources Tenant Improvements. The microgrid would include a photovoltaic array and battery backup storage and would provide efficient, reliable, and cost-effective energy that has a low environmental and carbon impact. It could also store energy, allowing the City Yards and eventually the surrounding businesses to continue critical operations in case of a major power outage. The tenant improvement project would relocate and construct a new bulk material storage, decant area, laydown, and equipment storage at the City Yards to support operations in the Water Resources Division. This project would 3 of 5
relocate the storage area away from the homes on the east side of the City Yards and minimize noise and aesthetic impacts to the adjacent residents.
This work was originally included in Package A of the City Yards Modernization Project but was later eliminated on May 5, 2020, as part of dramatic reductions to the Capital Improvement Program as a result of the economic impacts of the COVID-19 pandemic.
Among the largest reductions was the $39,925,845 decrease in funding for the City Yards Modernization Project. Staff continued to identify alternate funding sources and pursue opportunities to fund the completion of the eliminated scope of work envisioned in the City Yards Master Plan.
The availability of $10 million of grant funding for the Microgrid and $1.5 million Water and Wastewater funding for the Water Resources Tenant Improvements approved in the Fiscal Year 2022-2023 Midyear Budget by Council on April 11, 2023 (Attachment C) along with the capacity of the design-build team to advance this work due to the deferral of Phase 3 of the City Yards Modernization Project, present a unique opportunity to efficiently complete these project components now. The operational efficiencies of developing the new Microgrid and Water Resources Tenant Improvements concurrently, as well as the time saved through the expedited design-build delivery method, allow the City to reduce overhead and escalation costs associated with deferring this project scope further.
Environmental Analysis
This project has previously been analyzed through certification of the City Yards Modernization Project EIR (State Clearinghouse No. 2017111053) that was certified on January 16, 2019, with an Addendum approved in May 2022. This project is one component of the City Yards Modernization Project that was described and analyzed in the City Yards Modernization Project EIR. Therefore, no further environmental documentation is required.
Past Council Actions
4 of 5
Meeting Date Description
10/25/2016
(Attachment A)
Award Design Contract for the City Yards Modernization Project 6/14/2022
(Attachment B)
Fifth Modification to GMP with HDCC
4/11/2023
(Attachment C)
Fiscal Year 2022-2023 Midyear Budget
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water and Wastewater Funds and Miscellaneous Grant Funds to increase the amount of the GMP agreement with HDCC for design and construction services for the relocation of the bulk material and storage facility and Microgrid included in the City Yards Modernization Project Package A.
Agreement Modification Request
Agreement
#
Current
Authorized
Amount
FY 2022-23
Budget
Modified Request
Amount
Dept/CIP Account # Total Revised
Contract
Amount
10371 $0 $10,000,000 C2008760.689000 $10,000,000
10371 $0 $1,050,000 C5008790.689000 $1,050,000
10371 $0 $350,000 C5108790.689000 $350,000
10371 $1,750,000 $0 C5408070.689000 $1,750,000
10371 $48,426,082 $0 C0105410.689000 $48,426,082
10371 $19,148,100 $0 C0105410.689720 $19,148,100
10371 $7,406,100 $0 C5005410.689410 $7,406,100
10371 $1,084,600 $0 C5105410.689000 $1,084,600
10371 $60,300 $0 C7505410.689000 $60,300
10371 $1,500,000 $0 C7007720.689000 $1,500,000
10371 $650,000 $0 C5104870.689000 $650,000
10371 $372,857 $0 C2006830.689000 $372,857
10371 $6,350,000 $0 C0107500.689000 $6,350,000
10371 $200,000 $0 C0104580.689000 $200,000
10371 $325,000 $0 01500020.52914C $325,000
$87,273,039 $11,400,000 Total $98,673,039
Future year funding is contingent on Council budget approval. 5 of 5
Prepared By: Sebastian Felbeck, Senior Construction Manager Approved Forwarded to Council
Attachments:
A. Staff Report - Award Design Contract for the City Yards Modernization Project (Web Link)
B. Staff Report - Fifth Modification to GMP with HDCC (Web Link) C. Oaks Initiative Form - Hathaway Dinwiddie 2023-06-08 D. Staff Report - Fiscal Year 22-23 Midyear Budget Staff Report (Web Link) E. Contracts