SR - AGR-6323 - CONSTRUCTION MANAGEMENT SHAFFER PARK1. SUBJECT
Agreement between the City of Orange and gkkworks, Inc., for construction management services
for the Shaffer Park Renovation Project, for an amount not to exceed $276,511.00.
2. SUMMARY
This Agreement provides construction management services for the Shaffer Park Renovation
Project for $251,511.00 plus $25,000.00 for additional services on an as- needed basis, for a total
not to exceed amount of $276,511.00. The Shaffer Park Renovation Project will be a design -build
project, whereby one firm will be selected to design and to construct the park improvements. This
Agreement provides construction management services to oversee and manage the project from
start to finish, including selection of a design -build firm, preparation of design plans, and oversight
in the field during construction.
3. RECOMMENDED ACTION
1. Appropriate $110,000.00 from the Fund 510 (Park Acquisition - Infill) unreserved fund balance
to expenditure account number 510.7022.56020.30042; and
2. Approve the Agreement between the City of Orange and gkkworks, Inc., and authorize the
Mayor and City Clerk to execute the Agreement on behalf of the City.
4. FISCAL IMPACT
Upon appropriation, funds for this Agreement will be available in the following account:
510.7021.56020.30042 Shaffer Park Renovation Project $276,511.00
5. STRATEGIC PLAN GOAL(S)
3. Enhance and promote quality of life in the Community.
a. Refurbish, maintain, develop and/or expand public use places and spaces.
6. GENERAL PLAN IMPLEMENTATION
Goal 5.0 Provide recreational facilities and programs that adequately serve the needs of residents.
Policy 5.1: Maintain existing City parks at levels that provide maximum recreational benefit to
City residents.
1 7. DISCUSSION and BACKGROUND
Background
In May 2014, the City Council approved an agreement with Richard Fisher Associates, to create a
Master Plan for three existing City of Orange parks: LaVeta Park, Eisenhower Park and Shaffer
Park. The Master Plans have been prepared for LaVeta and Shaffer Parks and will be completed
for Eisenhower Park later this fiscal year. Although funding has not yet been identified for the La
Veta and Eisenhower Park projects, funding has been set aside for Shaffer Park in the approved
Seven Year CIP and this project is planned to begin in FYI 6.
Shaffer Park is a 7.32 acre active sports park built in 1964. The Park features a large tot lot built
in 2000 and a large picnic shelter built in 2006. Other than these two popular amenities, the
remainder of the Park has not changed since its inception. The Park also features a community
building and baseball /softball field with a soccer /football overlay.
The planned renovation includes the demolition of the existing community building which is
poorly situated and in deteriorating condition. A new community building will be constructed in a
location away from adjacent residences and closer to the street and parking, and the parking lot
will be enlarged and reconfigured. A small existing and run down concession building used by
the local sports organization will be demolished and a new concession building with restrooms
and utility storage is being planned. The existing ballfield will be realigned and renovated to
include new lighting and irrigation, and new concrete walkways and a walking path around the
perimeter of the park are also planned. The existing tot -lot, picnic shelter and restroom are planned
to remain and will not be part of the renovation.
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Discussion
The City of Orange, and many other cities traditionally utilize a process for public works projects
which is referred to as design- bid - build. In this process, the City hires an architect /designer to
prepare project design and construction documents, and then circulates a bid package with those
documents to hire a contractor to build the project. This process requires that the City hire the
lowest bidder for the construction, as all contractors are bidding on the same project plans, and
therefore, the lowest cost bidder is considered to be the most fiscally responsive. Although this
process has yielded some very good projects, there are sometimes issues which arise whereby the
true cost of construction is not known initially, and through change orders, the cost of the project
construction escalates. This occurs after the contractor is hired, and it is not possible to foresee
before the construction contract is awarded to the lowest bidder. In addition, in many cases,
disputes occur between the designer and the construction contractor as to who is responsible for
these cost overruns and the result is a less than desirable construction process, with costly overruns
and uncertainty regarding responsibility for these oversights and construction challenges.
The design -build process allows for one firm to design and construct the project, thereby placing
the responsibility for potential oversights and errors onto the one entity. In other words, the design -
build firm is responsible for designing a project which they can also build. It enables the City to
know more about the costs up front, and minimizes the chances of cost overruns which result from
confusion between design and construction.
City staff has met with professionals in the building industry to learn more about the design -build
concept and to determine if the City would benefit from utilizing the design -build process on the
Shaffer Park Renovation Project. After much research, City staff concluded that the design -build
process could be advantageous for the City, and selected the Shaffer Park Renovation Project to
utilize the design -build process. This park project is relatively simple, and with the exception of
the two buildings, is largely flat work involving grading, walkways, lighting, irrigation and
plantings.
As this will be the first design -build project for the Community Services Department, City staff
reached out to the Design Build Industry of America (DBIA) to identify an industry expert on
design -build project delivery to assist the City in selecting a construction management firm for
this project. As a result of this contact, the Community Services Department hired Umstot Project
and Facilities Solutions, to help prepare an RFP to hire a construction management firm with
design -build experience. In November 2015, an RFP was circulated for construction management
services for the Shaffer Park Renovation Project. Six firms responded, and after review and
evaluation by a selection committee of City staff from Community Services and David Umstot
from Umstot Project and Facilities Solutions, three firms were invited for interviews based on their
qualifications and experience with design -build projects. Attached is a copy of the rating
summaries for all six proposals (Exhibit A). In order to ensure that the selection process focused
on identifying the most highly qualified firm without placing an emphasis on cost, proposers were
asked to submit their cost proposal in a separate, sealed envelope, to be opened upon identification
of the most highly qualified firm.
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Based on a combination of the scoring from the evaluations of the written proposals and the
interviews, one firm rose to the top and was selected by the committee as the most qualified.
gkkworks, Inc has been providing construction management services for 21 years and is a full
service firm, which includes planning, design, construction and construction management services.
Their design -build experience, both as a design -build firm, and as a construction manager, includes
multiple projects for cities and other governmental agencies, such as an aquatics center, public
safety training center, and several school facilities. In addition, City staff had very positive
experiences with gkkworks when they provided construction management services for Steve
Ambriz Park in 2011, and has an on -going relationship with them in Santiago Hills where they
have been providing contract landscape maintenance oversight for the past several years.
Upon selection of gkkworks, Inc., as the most highly qualified construction management firm with
public design -build experience, the cost proposals for all six firms were opened and reviewed. The
cost proposal for gkkworks, Inc. was the lowest of the proposals submitted by the six firms (Exhibit
B). City staff negotiated with gkkworks, Inc. to provide construction management services as
outlined in the RFP for $251,511.00, and to include up to $25,000.00 for additional services on an
as- needed basis, at the currently proposed hourly rates and contingent upon the City's needs.
The services covered under this Agreement include preparation of an RFP for selection of the
design -build firm, oversight of the design process and plan approvals, and on -site management of
the construction process. The Agreement locks in the flat fee of $251,511.00 for these services,
and includes $25,000 (10 %) for additional services on an as- needed basis, subject to approval by
the City representative, and at the hourly rate included in the proposal.
Upon execution of this Agreement, gkkworks, Inc. will begin preparing the RFP for the design -
build firm. Below is a tentative timeframe for the Shaffer Project:
Selection of a Design/Build Firm
City Project /Environmental Approvals
Construction
Fall 2016
early Spring 2017
mid - Spring 2017 — Spring 2018
8. ATTACHMENTS 7_71
• Shaffer Park Master Plan
• Professional Services Agreement
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