HomeMy WebLinkAbout2023-02-14; City Council; ; Amendment to an Agreement with Griffin Structures, Inc. and Appropriation of Additional Funds for the Police and Fire Headquarters Improvements ProjectCA Review __AF__
Meeting Date: Feb. 14, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Steven Stewart, Municipal Projects Manager
steven.stewart@carlsbadca.gov, 442-339-2938
Mickey Williams, Police Chief
mickey.williams@carlsbadca.gov, 442-339-2130
Subject: Amendment to an Agreement with Griffin Structures, Inc. and
Appropriation of Additional Funds for the Police and Fire Headquarters
Improvements Project
District: 2
Recommended Action
Adopt a resolution authorizing Amendment No. 3 to the agreement with Griffin Structures, Inc.
for construction management and inspection services for the Police and Fire Headquarters
Improvements Project, Capital Improvement Program Project No. 4715, in an amount not to
exceed $541,000 and an appropriation of an additional $529,292 from the General Capital
Construction and Infrastructure Replacement Funds to Capital Improvement Program Project
No. 4715.
Executive Summary
The construction management and inspection services agreement with Griffin Structures, Inc.
for the Police and Fire Headquarters Improvements Project will expire on Feb. 27, 2023. The
term of this agreement was established early in the project’s design phase when the project’s
overall duration was unknown. The agreement term now needs to be extended for 15 months,
to May 27, 2024, to cover the balance of construction work and the subsequent close-out
period.
Staff recommend amending and extending the agreement with Griffin Structures, Inc. for 15
months, to May 27, 2024, in an amount not to exceed $541,000 and appropriating $529,292 in
additional project funding.
City Council authorization of the amendment is required under Carlsbad Municipal Code
Section 3.28.040 - Procurement and disposition responsibilities because the value of the
amendment is more than $100,000.
Explanation & Analysis
The Police and Fire Headquarters, formerly called the Safety Center, was permitted for
construction in 1985 to serve a staff of 95 personnel. Staffing has increased to 188 personnel,
but the building has not been significantly renovated to accommodate the growth. The
Feb. 14, 2023 Item #3 Page 1 of 15
complex, 2560 Orion Way, has a two-story administration building, which is the Police and Fire
Headquarters, and an attached one-story conference room building.
The Police and Fire Headquarters Improvements Project was incorporated into the Capital
Improvement Program during fiscal year 2014-15 and was developed, scoped and designed in
coordination with the Police and Fire Departments over several years. The project
comprehensively addresses building infrastructure needs, energy efficiency upgrades and
essential safety and security improvements, all in a more efficient office layout.
• Aug. 28, 2018 - the City Council adopted Resolution No. 2018-161, approving an
agreement with Griffin Structures, Inc. for construction management and inspection
services.
• Jan. 26, 2021 - The agreement was extended and amended to maintain the continuity of
coordination efforts, value engineering and construction sequencing work that Griffin
Structures had helped orchestrate with staff.
Amendment No. 3 to the agreement will increase the total cost of the agreement to an amount
not to exceed $1,294,500.
Fiscal Analysis
Funds from the General Capital Construction and Infrastructure Replacement funds have been
appropriated for the project as shown below:
Police and Fire Headquarters Improvements Project
Capital Improvement Program Project No. 4715
Current appropriation – General Capital Construction Fund $10,973,500
Current appropriation – Infrastructure Replacement Fund $9,993,050
Current expenditures/encumbrances – General Capital Construction Fund ($10,940,831)
Current expenditures/encumbrances – Infrastructure Replacement Fund ($8,897,357)
Current funding balance available $1,128,362
Additional project costs
Amendment No. 3 with Griffin Structures, Inc. $541,000
Construction contingency balance $966,365
Staff time, miscellaneous cost balance (estimated) $150,289
Remaining balance $1,657,654
Additional appropriation needed $529,292
Feb. 14, 2023 Item #3 Page 2 of 15
The General Capital Construction Fund balance is sufficient to support the required $400,000
and the Infrastructure Replacement Fund balance is sufficient to support the required
$129,292.
FUND BALANCES
General capital
construction
Infrastructure
replacement
Fund balance as of June 30, 2022 (unaudited) $42,532,124 $113,164,505
Total commitments to existing projects ($33,949,019) ($43,398,795)
Total estimated revenues in FY22-23 $4,113,577 $3,977,000
Total available funding $12,696,682 $73,742,710
Construction upgrades and enhancements ($400,000)
Replacement and maintenance of existing infrastructure ($129,292)
Remaining available funding after appropriation $12,296,682 $73,613,418
Options
Staff provide the following options for the City Council’s consideration:
1. Adopt a resolution authorizing execution of Amendment No. 3 to the agreement with
Griffin Structures, Inc. extending the term for a period of 15 months, in an amount not to
exceed $541,000 and authorizing an additional appropriation of $400,000 from the
General Capital Construction Fund and $129,292 from the Infrastructure Replacement
funds to CIP Project No. 4715
Pros
• Staff determined that the proposal from Griffin Structures, Inc. was fair and
reasonable for the balance of its work on the site
• Staff have found Griffin Structures’ performance of construction management
and inspection work to be of great importance and value to the city on this
complicated project
Cons
• None identified
2. Do not adopt the resolution
Pros
• None identified
Cons
• Staff would have to issue a task order against an existing master agreement with
Griffin for these services using current funding budgeted for construction
contingency at a challenging time in the sequence of the work on site.
• Use of construction contingency funds at this time would increase the likelihood
that additional project funding would be needed for construction change orders
at a later date.
Staff recommend Option 1.
Feb. 14, 2023 Item #3 Page 3 of 15
Next Steps
Staff will process Amendment No. 3 to the agreement with Griffin Structures, Inc. Staff will also
allocate additional project funding for the amendment as described above. The project
construction is estimated to be completed in early 2024.
Environmental Evaluation
The City Planner has determined that the project is exempt from the California Environmental
Quality Act, under Guidelines Section 15301(a), which applies to interior or exterior alterations
in existing facilities, such as interior partitions, plumbing and electrical conveyances. No
exception to the exemption as set forth in Guidelines section 15300.2 applies to this project.
Exhibits
1. City Council resolution
2. Location map
Feb. 14, 2023 Item #3 Page 4 of 15
RESOLUTION NO. 2023-052
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO AN AGREEMENT WITH
GRIFFIN STRUCTURES, INC., AND APPROPRIATION OF ADDITIONAL PROJECT
FUNDS FOR THE POLICE AND FIRE HEADQUARTERS IMPROVEMENTS
PROJECT
WHEREAS, on Aug. 28, 2018, the City Council adopted Resolution No. 2018-161, authorizing
Griffin Structures, Inc. to provide construction management and inspection services for the Police and
Fire Headquarters, which was formerly called the Safety Center, Improvements Project, Capital
Improvement Program Project No. 4715, or Project, in an amount not to exceed $385,500; and
WHEREAS, on Jan. 29, 2021, the City Council adopted Resolution No. 2021-033, amending and
extending the agreement with Griffin Structures, Inc. to continue providing construction management
and inspection services for the Project, in an amount not to exceed $368,000; and
WHEREAS, the ongoing construction work is scheduled to continue through early 2024 and
requires continued construction management and inspection services provided by Griffin Structures,
Inc.; and
WHEREAS, the City Council has determined it is in the best interest of the city to maintain the
same construction management and inspection team that has been involved to date for the duration
of the Project; and
WHEREAS the City Council and Griffin Structures, Inc. desire to amend and extend the
Agreement for a period of 15 months in an amount not to exceed $541,000, with the total agreement
in an amount not to exceed $1,294,500; and
WHEREAS, appropriation of additional funds in the amount of $400,000 from the General
Capital Construction Fund and $129,292 from the Infrastructure Replacement Fund are required to
fund the Amendment; and
WHEREAS, the City Planner has determined that the Project is exempt from the California
Environmental Quality Act, or CEQA, under State Guidelines Section 15301(a) which applies to the
interior or exterior alterations in existing facilities involving such things as interior partitions, plumbing,
and electrical conveyances, and no exception to the exemption as set forth in CEQA Guidelines section
15300.2 applies to this Project.
Exhibit 1
Feb. 14, 2023 Item #3 Page 5 of 15
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the Deputy City Manager, Administrative Services, is authorized to appropriate
$400,000 from the General Capital Construction Fund and $129,292 from the
Infrastructure Replacement Fund to the Police and Fire Headquarters Renovation
Project, CIP Project No. 4715.
3.That the Mayor is authorized and directed to execute Amendment No. 3 to the
agreement with Griffin Structures, Inc., attached hereto as Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 14th day of February, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder.
None.
None.
None.
KEITH BL
L, SHERRY FREISINGER, City Clerk1 V (SEAL)
Feb. 14, 2023 Item #3 Page 6 of 15
~
DocuSign Envelope ID: 2B39D5C2-DE9C-4F76-B37D-0A0209FF6381 Attachment A
PSA 19-502TRAN
AMENDMENT NO. 3 TO EXTEND AND AMEND AGREEMENT FOR
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE CARLSBAD
PUBLIC SAFETY AND SERVICE CENTER IMPROVEMENTS
GRIFFIN STRUCTURES, INC.
This Amendm nt No. 3 is entered into and effective as of the I {B ..yt,-v day of
___ -1..:.:::.L.U~~+----' 2023, extending and amending the agreement dated August
30, 2018 (the "Agree ent") by and between the City of Carlsbad, California, a municipal
corporation, ("City"), nd Griffin Structures, Inc., a California corporation, ("Contractor")
(collectively, the "Parties") for the Carlsbad Public Safety and Service Center Improvements.
RECITALS
A. On February 10, 2020, the Parties executed Amendment No. 1 to the Agreement
to extend the Agreement for a period of one (1) year; and
B. On January 27, 2021 , the Parties executed Amendment No. 2 to the Agreement to
extend the Agreement for a period of two (2) years and to alter the Agreement's scope of work to
include construction management and inspection work for the expanded scope of work for the
Safety Center administration building and the Emergency Operations Center/Conference Room
wing of the Safety Center; and
C. The Parties desire to alter the Agreement's scope of work to further extend the
continuation of construction management services; and
D. The Parties desire to extend the Agreement for a period of fifteen (15) months; and
E. The Parties have negotiated and agreed to a supplemental scope of work and fee
schedule, which is attached to and incorporated in by this reference as Exhibit "A", Scope of
Services and Fee.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. In addition to those services contained in the Agreement, as may have been
amended from time to time, Contractor will provide those services described in Exhibit "A". With
this Amendment, the total annual Agreement amount shall not exceed one million two hundred
ninety-four thousand five hundred dollars ($1 ,294,500).
2. City will pay Contractor for all work associated with those services described in
Exhibit "A" on a time and materials basis not-to-exceed five hundred forty-one thousand dollars
($541 ,000). Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed
to include hours performed, hourly rates, and related activities and costs for approval by City.
3. Contractor will complete all work described in Exhibit "A" by May 9, 2024.
4. All other provisions of the Agreement, as may have been amended from time to
time, will remain in full force and effect.
City Attorney Approved Version 12/28/2022
Feb. 14,2023 Item #3 Page 7 of 15
OocuSign Envelope ID: 2839O5C2-DE9C-4F76-837D-0A0209FF6381
PSA 19-502TRAN
5. All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, will include coverage for this
Amendment.
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Feb. 14,2023 2
City Attorney Approved Version 12/28/2022
Item #3 Page 8 of 15
DocuSign Envelope ID: 2839O5C2-DE9C-4F76-B37D-0A0209FF6381
PSA 19-502TRAN
6. The individuals executing this Amendment and the instruments referenced in it on
behalf of Contractor each represent and warrant that they have the legal power, right and actual
authority to bind Contractor to the terms and conditions of this Amendment.
CONTRACTOR
GRIFFIN STRUCTURES, INC., a
California corporation
By:
By:
(sign here)
Mark Hoglund, CFO
(print name/title)
(sign here)
Jon Hughes, Vice-President
(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
ATTEST:
~ for Sherry Freisinger, City Clerk
If required by City, proper notarial acknowledgment of execution by Contractor must be attached.
If a corporation, Agreement must be signed by one corporate officer from each of the following
two groups:
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
CINDIE K. McMAHON ,City Attorney
BY: ---'-~-~_f'_rb~st __ _
Assistant City Attorney
City Attorney Approved Version 12/28/2022
Feb. 14,2023 3 Item #3 Page 9 of 15
DocuSign Envelope ID: 2839D5C2-DE9C-4F76-B37D-0A0209FF6381
PSA 19-502TRAN
EXHIBIT "A"
SCOPE OF SERVICES AND FEE
Continuation of current construction management services to include:
1. Coordination for and leadership of construction progress meetings, review of shop
drawings and submittals, field inspections for quality assurance, coordination with city staff
throughout sequence of work, review and approval of monthly payment applications and
proposed change orders, review and critique of construction progress schedules, review
of plans and specifications, site walks to verify site conditions, construction staffing, work
progress and site safety precautions, photo documentation and coordination with city
during project close out. $525,375
2. Schedule review services $10,000
3. Reimbursable expense allowance on not to exceed basis $5,625
NOT TO EXCEED TOTAL FEE FOR SERVICES $541,000
City Attorney Approved Version 12/28/2022
Feb. 14,2023 4 Item #3 Page 10 of 15
DocuSign Envelope ID: 2839D5C2-DE9C-4F76-837D-0A0209FF6381
11
ASR02
GRIFFIN STRUCTURES FEE PROPOSAL
CARLSBAD PUBLIC SAFETY & SERVICE CENTER PROJECT
CITY OF CARLSBAD
12/01/2022
PSA 19-502TRAN -Amendment No. 3
Exhibit "A"
Grifiin SLruclurcs' Fee Proposal is based 011 all reasonable costs necessary Lo perform Additional Services for the
City of Carlsbad's Public Safety & Service Center Project. For these requisite services, Griffin Structures proposes
the following ol to Exceed Fee:
Construction Management: $ 525,37.5
Scheduling Services: $ 10,000
Reimbursable Expenses $ .5,62.5
Total $ 541,000
All proposed hourly rates arc fully burdened am! include overhead, profit, laxes, and benefits. The hours
identified for each individual employee and Lask arc estimates only and are not to be construed as not to exceed
hours for any individual task, phase, or time-pe1iod. We reserve the right to reallocate hours between staff
members and tasks to accomplish the overall objectives and requirements of the project_
Services are based on the attached Contract Analysis which provides compa.iison of Base Conlracl resource
allocation schedule a.11d the Actual resource allocation schedule as it is cuITenlly forecaslcd. Any extension of L11e
schedule or services may result in additional fee, in good faill1 negotiation wil11 Ll1e City.
ADDITIONAL SCOPE
T his ASR represents additional Construction Management costs related to U1e following:
Amendment 02 anticipated construction to be completed by December of 2022. As of !ale, substantial
completion of construction is now anticipated Lo be March 3 1, 2024. This re presents 15 additional months of
construction ma.i1agcmenl. This ASR captures those additional months of construction and also includes 2
months of closeout services, resulting in a final completion date of May 30, 2024.
QUALIFICATIONS AND EXCLUSIONS
I . Hourly rates have been updated lo rcllect escalation from 2020 lo Ll1e present, and will remain fi xed
Ll1rough December 3 1, 2024. Any rates associated will1 extensions of schedule beyond 2024 will escalate
by CPI a.imually L11creafler.
2 Technology Dr., Suite 150 ■
Feb. 14,2023
Irvine, CA 92618 ■ 949.497.9000 ■ www.griffinstructures.com
Item #3 Page 11 of 15
DocuSign Envelope ID: 283905C2-DE9C-4F76-B37D-OA0209FF6381 PSA 19-502TRAN -Amendment No. 3
Exhibit "A"
2. Insurance costs arc i11cluded as a reimbursable expense and will be billed monthly al the rale of$ IO per
$1,000.
3. On-site trailer rental, fomiture, utilities, and sanitary facilities for our field staJT (Project Management Learn)
a.re excluded. W e assume that olliccs will be provided as part of the construction siLe trailer(s) being
pro,~ded by tJ1e City's contractor.
4. Costs for all permits required for the pr~ject are excluded. It is assumed tJ1al tJ1e City will pay for all
permitting fees, assessments, casements, school fees, ,md other agency or governmenlal fees or costs Lo
support tJ1e design and construction of the project. We have not included any permit related fees witJ1in
our kc proposal. Permits will be pulled by others.
5. AL no cost to tJ1e Owner, and subject to Internal Revenue Code 179D, (Deduction for Energy Efficient
Commercial Buildings) Owner agrees to allocate ,my applicable Lax deductions Lo construction manager
(G1i1Ti11 Structures) as may be rclewu1L to 'public c11tity' project.~.
6. Costs for surveying, constrnction slaking, environmental ,md hazardous matc1ials sun1cys, ,md all
environme11Lal ,md hazardous materials transporlatio11 ,md remediation costs are excluded
7. Software licenses or user fees and all software training costs for specific project management software being
required by either the City or tJ1eir conlractor(s) ,u-e excluded.
8. T he cosl of bulk blueprinting for phms ,md specifications for use by tJ1e conlraclors ,md subconl.raclors is
excluded. Funds included in reimbursable expenses ;u·e for Grillin printing costs alone.
9. Wage Compli;u1ce ProgTtUTI including Certified Payroll auditing, field interviews, or reporting is excluded.
Based on Stale Law SB 854, iL is assumed tJ1at the Dept. of Industrial Relations (DIR) will manage tJ1is
effort at the State level. Griffin will enforce the Contractor registration requirements stipulated by the DIR.
10. Independent or third-party testing comp.mies such as Roofing, Peer Reviews, LEED, or other specialized
third-p;uty oversight sen~ces other than those listed herein ,u-c excluded.
11. Commissioning requirements required by Cal Green (Title 24) ;u·e excluded. G1i ffin will m,magc tJ1c
commissioning process, but we have not included a commissioning agent. nor development of
commissioning specifications.
12. No FF&E or OS&£ is included in this proposal
13. Secu1iLy ;u1d 24~hour surveillmce is excluded.
M. Constrnction Manager will review all RFI's, SubmitLals, and Substitutions only for compleLeness, approvals
to be executed by tJ1e designer of record.
15. For document Lracking control, Griffin has included tJ1c use of "Submiual E,xch;u1ge" !'or m;u1agi11g
construction documentation, and based the hours allocated in this proposal accordingly. T he cost of
"Submitlal Exch.u1ge" is included here as a rein1bursable expense.
16. This proposal docs not include a fonnal independent Inspector of Record (IOR). All City Building Dept.
Permil Inspections arc assumed to be performed by tl1e City Building Dept.
17. Co11structio11 Cost Estimates, when proviclccl, ;u·e based on sland;u·d i11duslry practice, professional
experience ;u1d knowledge of m;u·ket conditions. Griffin has no control over material ;u1d labor costs,
contractor's methods of establishiug p1ices or the market ;uKI bidding conditions at the time of bid.
2 Technology Dr., Suite 150
Feb. 14,2023
I Irvine, CA 92618 I 949.497.9000 I www.griffinstructures.com
Item #3 Page 12 of 15
DocuSign Envelope ID: 2839D5C2-DE9C-4F76-B37D-0A0209FF6381 PSA 19-502TRAN -Amendment No. 3
Exhibit "A"
Therefore, G1iffin does not guarantee that bids received will not vary from tJ1e cost estimate provided ;md
Griffin is not liable for any costs, liabilities, or damages incurred by Client aiising from GriHin's opinion
of cost, tJ1e actual project cost lo Client, delays caused by events outside tJ1e control of G1iflin, or any labor
or material cost increases.
18. Grillin is uol responsible for, ai1d Client will hold G1iffin harmless from , any schedule delays ai1<l/or any
losses, damages, or liabilities resulting tJ1crcfrom tJ·1al arc caused by ( l) events or conditions tJ1al are outside
or Grilliu's control or (2) tJ1e acts or omissions or parties for whom Griffin is not legally liable (collectively,
"N ou-Consullaill Delays"). The schedule for completion will be extended for ai1y Nou-Consultai1l Delays.
If Griffin incurs additional costs or expenses due Lo Non-Consultai1L Delays, tJ1en Griffin's fee
compensation will be equitably adjusted to cover such additional costs or expenses.
2 Technology Dr., Suite 150
Feb. 14,2023 • Irvine, CA 92618 • 949.497.9000 ■ www.griffinstructures.com
Item #3 Page 13 of 15
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Item #3 Page 14 of 15
Exhibit 2
LOCATION MAP
WHIPTAIL
NOT TO SCALE
PROJECT NAME
POLICE AND FIRE HEADQUARTERS IMPROVEMENTS PROJECT, CIP Project No. 4715
EXHIBIT
2
PLOTTED BY: :5/29/18 PA111:D:\aTY FAaLJ11ES\AUTOCAD IJAPS\LOCAT/00 AIAPS\SAFITY CENTER LOCA