Item Number: 10
City Council / Board of Directors
Written Communications
Meeting of: April 2, 2024
Submitted By:
Fredy Bonilla, City Engineer
Scott Webb, City Planner
Subject:
Wellness Center Project Closeout
Recommendation:
That the Honorable City Council approve the following:
(1) Phase 2 Supplemental Work Order No. 12 for the Wellness Center Construction Contract with Angeles Contractor Inc., (ACI) resulting in an increase of $127,940.99;
(2) Phase Supplemental Work Order No. 13 for the Wellness Center Construction Contract with Angeles Contractor Inc., (ACI) resulting in a decrease of $329,281.03;
(3) Phase 2 Supplemental Work Order No. 14 for the Wellness Center Construction Contract with ACI resulting in an increase not to exceed $552,778.85; (4) Phase 2 Supplemental Work Order No. 15 for the Wellness Center Construction Contract with ACI resulting in an increase not to exceed $240,510.18; (5) Phase 2 Supplemental Work Order No. 16 for the Wellness Center Construction Contract with ACI resulting in an increase not to exceed $1,198,712.91; (6) Amendment No. 2 with CMC Architects resulting in an increase not to exceed $242,170 and to extend the term through June 30, 2024;
(7) Amendment No. 2 with Pacifica Services, Inc., resulting in an increase not to exceed $36,549.11 and to extend the term through April 30, 2024; (8) Amendment No. 2 to the General Services Provider Standard Agreement with Connect Homes resulting in a decrease of $311,211;
(9) Accept as complete and approve the Notice of Completion for Wellness Center Phase 1 Construction Contract with ACI and authorize the City Manager to execute the Notice of Completion; and
(10) Accept as complete and approve the Notice of Completion for Wellness Center Phase 2 Construction Contract with ACI and authorize the City Manager to execute the Notice of Completion.
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Fiscal Impact:
This action will result in a fiscal impact of $1,758,170.01. An additional appropriation is not required. The Supplemental Work Orders (SWOs) and amendments discussed in this staff report are being funded by American Rescue Plan Act (ARPA) funding available for capital projects. There are sufficient funds available from ARPA to cover the capital expenses for this contract. Please refer to the budget account number and funding source shown below:
Account No. Funding Source
2770010-55000-97063 ARPA (Capital)
To date, prior to this recommended award, contracts and purchases totaling an estimated $41,924,547.48 have been approved by the City Council for this project. Taking action in accordance with the staff recommendation for this item will increase total contracts to an estimated $43,682,717.49. Capital funding sources for the overall Wellness Center Project have come from Homeless, Housing, Assistance and Prevention (HHAP), ARPA, Permanent Local Housing Allocation (PLHA) and Community Development Block Grant (CDBG). Use of the ARPA funds for these SWOs and amendments is consistent with the funding plan approved by the City Council on July 20, 2021, and authorization granted to the City Manager to reallocate ARPA funds among funding categories.
Strategic Plan Goal:
This item aligns with Goal D “Reduce Homelessness” Strategy 1 in the City of Victorville Strategic Plan 2023-2026. Completion of the Wellness Center was the City’s priority project to reduce homelessness through the provision of shelter and wraparound services.
Background:
On February 16, 2021, the City Council approved a Consultant/Professional Services Agreement in accordance with §2.28.280(c) of the Municipal Code with CMC Architects and Engineers (“CMC”) to complete the construction documents for the Wellness Center Campus in the amount of $416,550. After receiving a Homekey award, announced on December 2021, the Agreement with CMC was increased by $397,622.80 in January 2022 to account for final engineering documents needed to commence construction that were not included in the original scope of work, such as a Storm Water Pollution Prevention Plan and foundation calculations, as well as additional scope to provide support during construction and a new subdivision map to memorialize the new property lines of the project. This contract anticipated construction to be complete by December 2022 but was completed a year later.
On March 15, 2022, the City Council approved a Consultant/Professional Services Provider Agreement in accordance with §2.28.280(c) of the Municipal Code for the Wellness Center Project construction management with Pacifica Services, Inc., in an amount not to exceed of $2,373,601. On August 15, 2023, the City Council approved Amendment No. 1 to this agreement in the amount of $616,677. Amendment No. 1 extended Pacifica’s contract through December 31, 2023. 3 5
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Also, on March 15, 2022, City Council approved the initial ezIQC Sourcewell construction contract/Work Order with Angeles Contractor, Inc. (“ACI”) in the amount of $4,827,947.76, for the construction of Phase 1 of the Victorville Wellness Center (the “Project”).
On April 1, 2022, construction for Phase 1 started. The scope of the Phase 1 construction included the following: the VVWRA Interceptor through the project boundaries; grading of the site; a stormwater detention basin; and underground utilities for storm drain, sewer, domestic water, fire suppression, electrical, and gas. The project was separated into two construction phases to start construction as soon as feasible with the goal of completing construction by December 15, 2022, which was the original Homekey grant deadline.
Phase 1 was started while the plans for the project were being completed. The Phase 1 plans were subsequently approved by the City for grading, drainage, sewer, domestic water, fire suppression, plumbing, and electrical.
On April 5, 2022, the City Council approved contracts with Connect Homes in the amount not to exceed of $5,067,607 for the manufacturing of 46 modular shelter units, and Urban Bloc in the amount not to exceed of $1,200,021 for the manufacturing of five modular bathroom units. On June 2, 2022, the City Council approved a contract with Connect Homes in the amount not to exceed of $3,385,515 for the manufacturing of 24 modular units for four community buildings.
The plans for Phase 2 of the Project were subsequently completed to include street improvements, structural work, architectural work, and landscaping. The scope of the Phase 2 construction includes a sewer lift station and grease interceptor; street improvements; a fire access road; a parking lot; building foundations; anchoring the modular buildings to the foundations; electrical wiring; utility connections to the buildings; finishes on the community buildings; food service equipment in the cafeteria building; wood decking for porches and patios; accessible concrete sidewalk and paths; irrigation; landscaping; fencing; gates; and other miscellaneous improvements.
On August 16, 2022, the City Council approved a Construction Contract / Work Order with Angeles Contractor Inc., for the Phase 2 construction of the Wellness Center Project in an amount not to exceed $15,427,974.88. On the same agenda, City Council approved the purchase, manufacturing, and delivery of the sewer lift station from ROMTEC Utilities in the amount of $292,277.88. Phase 2 construction started on October 3, 2022.
There were delays in the project schedule, mainly due to ground water being higher than expected, revisions to the plans, and delays in procuring various equipment and materials. Staff requested periodic grant construction completion extensions to align with the construction timeline. Progress pictures and narrative reports were submitted to the Department of Housing and Community Development (HCD) to illustrate that the City was making progress on the project, but unforeseen circumstances caused delays.
On August 10, 2023, HCD advised that their management had agreed to consider additional requests for extensions, and on August 16, 2023, staff received confirmation that an extension was approved.
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HCD considered the project substantially complete when the initial certificates of occupancy were issued on November 16, 2023.
On December 8, 2023, the City hosted a ribbon cutting ceremony for the Wellness Center and began servicing clients on December 12, 2023.
On February 2, 2024, the City completed the final HCD Homekey required milestone by achieving a maximum 10% vacancy, when 99 of the 110 units became occupied by clients.
Discussion:
Tables 1 and 2 below provide a summary of the Phase 1 Contract and Supplemental Work Orders:
Table 1
Phase 1 Supplemental Work Order Summary
SWO
No.
Description Amount City Council
Approval
Date
1 Fabric & rock under building pads 5, 6 & 7 $120,399.24 7/19/22 2 Dewatering system for VVWRA
interceptor
$165,785.99 7/19/22
3 Additional dewatering system for VVWRA
interceptor
$254,552.92 7/19/22
4 Transportation - Connect Home 46
modular shelter units
$222,388.87 7/19/22
5 Additional work for drainage and water
systems
$447,908.47 12/20/22
6 Credits to SWO Nos. 1, 3 & 4 (-$234,123.74) 12/20/22 7 Offsite electrical work for SCE service $302,968.86 10/4/22 8 Various items $704,326.76 2/7/23
9 General Conditions of Phase 1 Contract $32,397.21 2/7/23 10 Relocate SCE vault $32,763.01 6/6/23
11 Delays costs. Extra security. Regrade
pads due to design changes.
$407,923.95 6/6/23
12 Storm drain repairs $51,189.83 10/3/23
13 Reduced grading (value engineering) (-$120,670.75) 10/3/23 Total $2,387,810.62
Table 3
Phase 1 Construction Contract Summary
Original Contract Amount $4,827,947.76
SWO Nos. 1 - 13 (previously approved) $2,387,810.62
Total Contract Amount $7,215,758.38
The final scope of work on the Phase 1 contract was the MSB Certification and Ground Fault Commissioning for the Southern California Edison service installation, which 3 5
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occurred on February 1, 2024. This is when the Phase 1 Contract was substantially completed. The one-year warranty on the improvements began the date the work was accepted as substantially complete. Per California Public Contract Code §7107(c), within 60 days after the recordation of the Notice of Completion, the City can release the final retention monies withheld on this project, provided there are no claims or unreleased liens against the contract. The current amount retained for the Phase 1 Contract is $360,787.91.
Tables 3 and 4 below provide a summary of the Phase 2 Contract and Supplemental Work Orders:
Table 3
Phase 2 Supplemental Work Order Summary
SWO
No.
Description Amount City Council
Approval
Date
1 Various changes to modular buildings $173,929.87 1/17/23 2 Various items $150,220.85 2/7/23
3 Additional sidewalk and waterproofing for
buildings
$57,336.01 2/7/23
4 Additional scope not included in original
contract to complete Connect Homes
units
$481,629.94 6/6/23
5 Additional scope for vents, metal frames
and concrete for HVAC
$82,893.98 6/6/23
6 Added scope and costs related to
modular buildings
$743,461.71 6/6/23
7 Added scope for miscellaneous items $457,334.66 6/6/23 8 Added scope for miscellaneous items $79,917.50 6/6/23 9 Requested. Completing modular units $1,640,679.38 6/20/23 10 Sewer lift station and added scope for
miscellaneous items
$742,519.70 8/15/23
11 Added scope for miscellaneous items $67,019.57 10/17/23 12 Conduits, circuit breakers, dog kennel
ramp, striping, and toilet partitions
$127,940.99
13 Credit for Phase 2 modular building
allowance
(-$329,281.03)
14 Additional site security, final cleaning
services, additional trench shoring, and
generator diesel for temporary power
$552,778.85
15 Additional site concrete walkways,
installation of Community Building
canopies, installation of HVAC access
panels, installation of bollards, and
installation of external gate and hardware
$240,510.18
16 Added scope for construction staking,
landscaping & irrigation modifications,
$1,198,712.91
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installation of synthetic turf, multiple
repairs to Connect Homes units, and
detailed cleaning services prior to ribbon
cutting ceremony
Total $6,467,605.07
Table 4
Phase 2 Construction Contract Summary
Original Contract Amount $15,427,974.88
SWO Nos. 1 - 11 (previously approved) $4,676,943.17
SWO Nos. 12-16 $1,790,661.90
Total Contract Amount $21,895,579.95
The backup for Phase 2 SWO Nos. 12 through 16 are included in Attachments A through E. SWO No. 13 is a credit in the amount of $329,281.03 representing the unspent portion of the modular allowance in the Phase 2 Contract. SWO Nos. 12, 14, 15, and 16 are for additional scope of work that was done on a time & material basis to meet the deadline of December 8, 2023. Please see Table 3 for additional information. Staff recommends that the City Council approve Phase 2 SWO Nos. 12 through 16 for the Wellness Center construction contract resulting in an overall increase in the amount of $1,790,661.90.
The final scope of work on the Phase 2 contract was the OSHPD Certification which occurred on February 7, 2024. This is when the Phase 2 Contract was substantially completed. The one-year warranty on the improvements began the date the work was accepted as substantially complete. Per California Public Contract Code §7107(c), within 60 days after the recordation of the Notice of Completion, the City can release the final retention monies withheld on this project, provided there are no claims or unreleased liens against the contract. The current amount retained for the Phase 2 Contract is $981,905.14.
Due to various delays in the construction schedule, plan revisions and the need for additional construction support, CMC is requesting to be compensated for the additional construction support and civil design services provided for the project in the amount of $242,170. CMC’s current contract underestimated the amount of time the architect would be needed during construction. Only 200 hours of construction support from the architect was anticipated, whereas an additional 778 hours was provided. Similarly, CMC’s civil engineering budget did not anticipate the revisions to would need to occur due to the rise in the water table. The water table caused revisions to the site’s pad elevations, building foundations, drainage design, and sewer lift station installation. All the professional services specified within proposed Amendment No. 2 to CMC’s agreement have been completed, except for a final subdivision map for the property. Although this is not customary to bring these items before the City Council after the work has been completed, the construction schedule and refuted invoices all contributed to settling CMC’s scope of work after the project construction concluded. If Amendment No. 2 is approved, the final design contract with CMC Architects will be in the amount of $1,056,342.80. Staff 3 5
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recommends that the City Council approve Amendment No. 2 with CMC Architects in the amount of $242,170.
Pacifica Services, Inc., provided additional construction management services in January 2024 and for project close-out in February 2024. Amendment No. 2 in the amount of $36,549.11 covers services rendered in January and February 2024. If Amendment No. 2 is approved, the final construction management contract with Pacifica Services, Inc., will be in the amount of $3,026,827.11. Staff recommends that the City Council approve Amendment No. 2 with Pacifica Services, Inc., in the amount of $36,549.11.
Connect Homes has provided credits for the shades that were installed by the ACI in Cluster Buildings 1, 2, and 4 and a storage credit since the City received the units at stored them at Southern California Logistics Airport (SCLA) while Phase 1 was under construction. If Amendment No. 2 is approved, the final service contract with Connect Homes will be reduced to a total amount of $8,143,901.00. Staff recommends that the City Council approve Amendment No. 2 with Connect Homes resulting in a credit in the amount of $311,221.
Lastly, staff recommends that the City Council accept as complete and approve the Notice of Completions for the Wellness Center Phase 1 and Phase 2 Construction Contracts and authorize the City Manager to execute the Notice of Completions.
At this time, all construction for the Wellness Center has been completed except for the low-voltage installation which is still ongoing. Apple Valley Communications will be completing the low-voltage installation in the coming months. Should any additional work result in a change-order to the contract beyond the City Manager’s authority, a separate item will be presented to the City Council for consideration.
Staff is available for any questions Council may have.
Attachments: A. SWO No. 2.12
B. SWO No. 2.13
C. SWO No. 2.14
D. SWO No. 2.15
E. SWO No. 2.16
F. Amendment No. 2 with CMC Architects
G. Amendment No. 2 with Pacifica Services, Inc.
H. Amendment No. 2 with Connect Homes
I. Phase 1 Notice of Completion
J. Phase 2 Notice of Completion