03.01 Second Amendment Design/Build Shaffer Park Renovation Proj oF_o!jl���
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�' ;�2 AGENDA ITEM
�2�i�C�!L 6�1 GA�\��Q
� March 26, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager /
FROM: Bonnie Hagan, C munity Services Director �
REVIEW: City Manag r ,/� inance���/
1 . SUBJECT
Second Amendment to Agreement with Morillo Construction, Inc. for the design/build of
the Shaffer Park Renovation project.
2. SUMMARY
Approval of project change orders in the amount of $68,627.33.
3. RECOMMENDED ACTION
Approve second amendment with Morillo Construction, Inc. for$68,627.33 and authorize
the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this amendment is$68,627.33 and will be funded in Shaffer Park
Renovation (30042) through Park Acquisition-Infill (510).
5. STRATEGIC PLAN GOALS -
Goal 3: Enhance and promote quality of life in the Community.
a: Refurbish, maintain, develop and/or expand public use places and spaces.
6. DISCUSSION AND BACKGROUND
In December 2016, the City Council approved an agreement with Morillo Construction,
Inc. (MCI) for a design/build renovation of Shaffer Park. The project included the
demolition of the existing community building and concession building; the construction
of a new community building, new concession building with storage and attached
restrooms, realigned and reconstructed ballfield with new lighting and irrigation, new
concrete walkways and a walking path around the perimeter of the park, and a new
shaded outdoor exercise area. The existing tot-lot, picnic shelter, and restroom received
mostly cosmetic improvements to match the new park style. The tot-lot also received a
newly added shade structure and the entire park was re-irrigated and landscaped.
ITEM 3. � � 03/26/2019
The original agreement was entered into for an amount not to exceed $6,300,000 with
the provision of a Guaranteed Maximum Price (GMP) after design. A first amendment
establishing the GMP at $6,300,000 was approved by City Council on August 28, 2017.
The proposed second amendment will approve ten change orders in the cumulative
amount of $68,627.33. This represents an increase of 1.1%.
Unforeseen conditions and necessary changes required the approval of these change
orders to complete the work and meet the goals of the project. The project Change Order
Log is included as Attachment 1, and provides a list of all change order requests with
detail notes for the ten approved change orders. Two of the approved change orders
provide a credit back to the City. MCI presented ten change order proposals (COP) that
were rejected by staff. Nine of the ten COPs staff rejected because the work was included
in the original scope. The tenth item, COP 24, was rejected because the cost submitted
well exceeded the manufacturer's recommendation for installation of skate stoppers. Staff
chose to complete this work in-house. Four change orders were voided by MCI.
Substantial Completion of the project was issued on March 14, 2019. This initiates a 30
calendar day period for MCI to complete all remaining items (punch list and close out), as
well as the start of a 90-day landscape maintenance period.
Though staff issued Substantial Completion for the project, it is limited to all elements
except the outfield portion of the ball field. The contractor installed sod on the playing
surface but their subsequent mowing efforts created ruts on the playing surface. This
rendered the field unplayable and will require remediation in warm weather to correct the
issue. Staff has not accepted the ballfield and is pursuing remedy by the contractor. It is
anticipated the ball field will be ready for sports play in late summer.
Upon satisfactory completion of all remaining punch list items, staff will initiate final
closeout of the project. Final closeout will include negotiation of delay impacts, final
approval of the project (this will be a Council action item), and then subsequent release
of the appropriate retention holdings. The retention amount is 5% of the total contract
amount. Upon approval of this second amendment, the retention amount will be
$318,432.
There are sufficient funds available in the Shaffer Renovation project balance to support
the additional cost of the amendment and no additional appropriation is necessary.
Attachment 2 is a detailed project cost summary outlining project compenents and funding
status.
7. ATTACHMENTS
1. Change Order Log
2. Project Cost Summary
3. Second Amendment to Agreement No. 6432
ITEM 2 03/26/2019
�kk Shaffer Park Renovation Change Order Log
Project Address:1930 N Shaffer St,Orange,CA 92865
Updated: 3/15/2019
Change Order t! Date Submitted Description Change Order Status Change Order Notes
Amount Submitted Amaunt Approved
1/23/2018 Location of pipe was unknown and made of hazardous
1 Transite Pipe Removal $ 13,886.1� Approved 5 13,886.19 materials
Y 3/23/2018 , dk;t7[Idkl. _. .._ �64 VOID S ,_��., ,..
3 4/3/2018 Flush Valves&Lavatory Faucets $ (1,032.491 Approved 5 (1,032.49)Credit to eliminate sensor-type faucets
4 4/29/2018 Remove&Replace Existing Walkway(ADA Sidewalk) $ 8,257.34 I Approved S 8,25734 Required to install storm drain conduit to street
'419/ZQ38� `. =< Water Utiliry Revision ',�� 4,970.87 � VoiD ' $
6 4/29/2018 Swa�e and Gutter Additional Work $ 19,4409C ' S -
7 S/7/2018 Credit for Exterior Drinking Fountains $ (4,326.12`I Approved S (4,32612)City purchased and installed drinking fountains
8 5/29/2018 SCE Pathway $ 21,91091 Approved S 21,910.91 Required by SCE for path of travel to electrical facilities
9 5/7/2018 Repair of Existing Curb Around Playground $ 28,O1OJ9 Approved* $ 13,788.64 Repair of existing damaged curb,not induded in scope
10 5/26/2018 Furnish and Install Additional Bench $ 2,406.95 � Approved $ 2,406.95 Additional bench paid for by Women's Club
11 6/3/2018 Additional Transite Pipe Removal $ 7,633.31 Approved S 7,633.31 Same as t71
�.
Jk.'. , ., �� �81�� f . '='�� N/A
13 6/14/2018 Key Card Access $ 41,274.07 ' R e�:ed S -
14 7/30/2018 Downspout Change $ 4,�98.07 , $ 4,298.07 Change to more vandal resistant material
.�. 8/14/2018 ".' oKi Roof REKi"` ,,° S;DOQ: _
16 10/9/2018 Radius Retaining Wall $ 77,749.03 Rejected $ -
ll 8/28/2018 T&M Regrade Revisions Due to Tree Conservation $ 129,299.84 Rejected 5 -
_ ... �., 4,841.60 . � ..' _
19 8/28/2018 Sod vs Stolon $ 68,359.83 Rejected $ -
20 8/28/2018 Soil Amendment $ 5,803.47 Rejected $ -
21 10/9/2018 Low Retaining Wall NE of Comm Building $ 49,760.25 Rejected $ -
22 9/23/2018 Additional Compaction and Ripping $ 109,697.18 Rejected $ -
Change from paint to stain of interior beams for
11/Z6/2018
23 Wood Stain on MPR Ceiling Beams $ 1,804.53 5 1,804.53 aesthetics and durability
24 12/4/2018 Skate Stoppers $ 7,817.91 Rejected $ -
25 2/2/2019 Remove and Repair Asphalt due to Soil Failure $ 21,491.56 Rejected $ -
Original Contract Amount: $ 6,300,000.00
Approved Change Order Amount: $ 68,627.33
New Contract Amount: $ 6,368,627.33
`City approved lump sum submitted cost of$13,788.64.The
$28,010.79 represents the contractor's subsequent submittal which
was not approved.
Attachment i
SHAFFER PARK RENOVATION
PROJECT COST SUMMARY
., a . , _
, '.;e,.,, , . PROJECT CQMPONEN�TS ; . . Cit 's`Costs
Construction Management—GKK Works $ 438,511
Design/Construction—Morillo Construction Inc. (MCn 6,300,000
Utilities and Testing—geotechnical, electrical support, materials and soils 269,983
testing,environmental assessment, abatement
Shade Sails—Shade Structures Inc. 160,769
Surveillance Camera System 60,000
Equipment—drinking fountain, waste containers, litter receptacles, delta 69,301
controls for HVAC,restroom maintenance, skate stoppers
Furniture,Fixtures and E ui ment(FF&E) 60,000
Painting of south ro erty wall 10,000
Sub-total 7,368,564
� .. . . _
°ITEM�FQR�CONSIDERATION,�MARCH 26,2019 `
MCI Change Orders 68,627
Sub-total 7,437,191
.. : ,
$ _. ..�.
�ESaTIMATED PROJECT T,OTAtL.�R�� _ ,,�� , ` ° ` '
. �,�� :, � . "�$7 437'�191,>r
.�.,`:�. ,. `<� . �` � ..'.. F.UNDING`STATUS � - � ;
. _.. . � . 4�
� , . .. . . . :
,.Funds� re�iousl a ro riated�to:;Shaffer Park;:Renovatiori�,.:•. � , . . . : . , :. . ,.,:
Fund 510(Park Ac uisition—Infill) $7,437,602
Fund 500—Women's Club Donation 4,000
Sub-total 7,441,602
TOTAL r� `� � t �7,441;.6.02'
_, .... ._ _. _ _w�. ,w: . . e_�. � . . .... ...... �_._ _� ,� ._.�«K_.�_��.� .. ...,> ., _.�_ r,� _. , . _. _����. ., , r .�
PROJECT ACCOUNT BALANCE $ 4,411
Attachment 2
AGR-6432.2
SECOND AMENDMENT
TO
DESIGN-BUILD AGREEMENT
WITH GUARANTEED MAXIMUM PRICE
This Second Amendment to Design-Build Agreement with Guaranteed Maximum Price (the
"Second Amendment") is made and entered into as of , 2019, by and between
the CITY OF ORANGE, a municipal corporation (the "Owner"), and MORILLO
CONSTRUCTION, INC., a California corporation (herein referred to as the "Design-Builder"), with
reference to the following:
A. The City and the Design-Builder entered into that certain Design-Build Agreement
with Guaranteed Maximum Price (Agreement No. 6432) dated as of December 13, 2016 (the
"Original Agreement"), which was later amended by that certain First Amendment to Design-Build
Agreement with Guaranteed Maximum Price, dated as of August 28, 2017 (Agreement No. 6432.1)
(the "First Amendment"). The Original Agreement and the First Amendment are incorporated herein
by this reference; and
B. The City and the Design-Builder desire to further amend the Original Agreement to
modify, amend and supplement certain portions of the Original Agreement.
NOW,THEREFORE,the parties hereby agree as follows:
Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms
used herein shall have the meanings set forth for such terms in the Original Agreement.
Section 2. Revised Scope of 5ervices. The 5cope of Services, Exhibit A to the Original
Agreement, is hereby amended, modified and supplemented to include the services described on
Exhibit A attached hereto and incorporated herein by this reference.
Section 3 Compensation. The total not-to-exceed compensation (exclusive of
reimbursables) set forth in Article 2 of the Original Agreement for the services to be rendered
thereunder was the sum of SIX MILLION THREE HLTNDRED THOUSAND DOLLARS and
00/100 ($6,300,00.00). Article 2 of the Original Agreement is hereby amended to provide for an
increase of SIXTY.EIGHT THOUSAND SIX HUNDRED TWENTY SEVEN DOLLARS and
33/100 ($68,627.33) in the total not-to-exceed compensation such that the Design-Builder's total
compensation under the Original Agreement, as amended by this Second Amendment shall not
exceed SIX MILLION THREE HLTNDRED SIXTY EIGHT THOUSAND SIX HUNDRED
TWENTY SEVEN DOLLARS and 33/100 ($6,368,627.33) without the prior authorization of the
City.
Section 4. Integration. This Second Amendment,the agreements specifically referred to
herein, and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein,
and supersede all negotiations with respect to the subject matter hereof. This Second Amendment
amends, as set forth herein, the Original Agreement and the First Amendment and, except as
specifically amended hereby, the Original Agreement and the First Amendment shall remain in full
force and effect. To the extent that there is any conflict or inconsistency between the terms and
provisions of this Second Amendment and the terms and provisions of the Original Agreement
and/or the First Amendment, the terms and provisions of this Second Amendment shall control and
govern the rights and obligations of the parties.
IN WITNESS of this Agreement, the parties enter into this Second Amendment on the year
and day first above written.
"CONTRACTOR" "CITY"
MORILLO CONSTRUCTION, INC., CITY OF ORANGE, a municipal corporation
a California corporation
*By: By:
Printed Name: Mark A. Murphy,Mayor
Title:
*By: ATTEST:
Printed Name:
Title:
Pamela Coleman, City Clerk
APPROVED AS TO FORIVI:
Gary A. Sheatz, City Attorney
*NOTE: If DESIGN-BUILDER is a corporation,the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President,A1VD (2) the Secretary,
the Chief Financial Officer, the Treasurer, an Assistant SecYetary or an Assistant
Treasurer. If only one corporate officer exists or one corporate officer holds more than
one corporate office,please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into
this Agreement. A copy of the corporate resolution, certified by the Secretary close
in time to the execution of the Agreement, must be provided to the City.
2
�kkwor�cs Shaffer Park Renovation Change Order Log
Project Address:1930 N Shaffer St,Orange,CA 92865
Updated: 3/15/2019
Change Order q' Date Submitted , : ` � �-r- • 4 Descr.iption ��:' .;' ,° "'Chenge Order AmounL�Submitted ,;• �=5tatus . . `: 'Change Order Amount'Approved�_�
1 1/23/2018 f Transite Pipe Removal $ 13,886.19 $ 13,886.19
" ��� 2 3 2B�'201"8; `'�Peciestal'Diirikin'�Fauntai,n,- . � °" � �� �^' '�� `� �
, . .u..., ..
�, . �1' / ��. . . ..,a g . � .�.u,�,.�. _. ,.�� a�='. ,, : �, ;3;�72384�`�� �� VO{D ���.,,� ����.� ��r u, �� �..'.,,;
3 4/3/2018 Flush Valves&Lavatory Faucets $ (1,032.49) $ (1,032.49J ,
4 4/29/2018 Remove&Replace Existing Walkway(ADA Sidewalk) $ 8,257.34 $ 8,25734
, ... .. _
"'� .f� $ ,. :4f9/ZO'18' " ?��'�,Wa#e�U�ility'�Reuision��k .$�„�.�`��{'�'�.�''�':�$��:s�._&�;��", . .� �"�"'4':970'87"�� UOID# .,�M�S�°�°��r:��^��?r��.��� * .4.. ..�'��-�
6 4/29/2018 Swale and Gutter Additional Work $ 19,440.90 Rejected $ -
7 5/7/2018 Credit for Exterior Drinking Fountains $ (4,326.12) $ (4,326.12)
8 5/29/2018 SCE Pathway $ 21,910.91 $ 21,910.91
9 5/7/2018 Repair of Existing Curb Around Playground $ 28,010.79 $ 13,788.64
10 5/26/2018 Furnish and Install Additional Bench $ 2,406.95 $ 2,406.95
11 6/3/2018 Additional Transite Pipe Removal $ 7,633.31 $ 7,633.31
_, n .,,.. � �� � � � �# '� a �a:�� s
�:. 12 . .N/A; ,�..���. .'� w �� �",,.�allo,COP,=Su�iri�tted;��x:��,.^�,.,. .��t � �;�'".,.���.��,,a�°'"�N%Pl<`�'�` :�; / ��`�,.�
., .
, . �� ..._ , �., �x.: �. N A ,�: 4,..� ,�:NLA.. ;.�, '���
13 6/14/2018 Key Card Access $ 41,274.07 Rejected $ -
14 7/30/2018 Downspout Change $ 4,298.07 $ 4,298.07
,:.�. .;�. . . ,, w, _::. ,.
g ; ��15�„�.�8/14j2018�,�:{, ���''.�;��'��..'....;ReStropCn4RoOf`Re1t,o,VattOit.�..s��� '�� �� ;S, �.� �� ' ,�`?..`.: rr�,��35';00000. r�'"�".V,OIR �'. ..�°zy.�."a,,�� � �^°��.�_��,� ���,���
,
�;.�t�...� �. .,.,�,
,.,,�.,w ,,.,,. W., n. �,�, �.,... . ..
16 10/9/2018 Radius Retaining Wall $ 77,749.03 Rejected $ -
17 8/28/2018 T&M Regrade Revisions Due to Tree Conservatian $ 129,299.84 Rejected $ -
.� .�� .,_. ,. ,.. . .� ,, .>. ..,w ,. �.,� , F� , s �� � s � ^�� +a ��� �� , �
�',� � 4�8 � 8/28�20�18��� Additional_Cont�eie Ped�for„�BR+Txesh�...�r,.� .$.. �....„�•�..�..��.,�;.4;�4160� ,.�m� UOi4����...��?,,.��,�a���a�,�„,�d�" <.�,�:;�. .��;
19 8/28/2018 Sod vs Stolon $ 68,359.83 Rejected $ -
20 8/28/2018 Soil Amendment $ 5,803.47 Rejected $ -
21 10/9/2018 Low Retaining Wall NE of Comm Building $ 49,760.25 Rejected $ -
22 9/23/2018 Additional Compaction and Ripping $ 109,697.18 Rejected $ -
23 11/26/2018 Wood Stain on MPR Ceiling Beams $ 1,804.53 $ 1,804.53
24 12/4/2018 Skate Stoppers $ 7,817.91 Rejected $ -
25 2/2/2019 Remove and Repair Asphalt due to Soil Failure $ 21,491.56 Rejected $ -
Original Contrect Amount: $ 6,300,000.00
Approved Change OrderAmount: $ 68,627.33
New Contrect Amount: $ 6,368,627.33
*City approved lump sum submitted cost of$13,788.64.
The$28,010.79 represents the contractor's subsequent
submitted which was not approved.
Exhibit A
Page 1 of 1
APPROVED BY THE CITY COLJNCIL ON MAY 14, 2019
CITY COUNCIL ORANGE, CALIFORI�IIA
MEETING MINUTES MARCH 26, 2019
5:00 P.M.
1. OPENING
Mayor Murphy called the meeting to order at 5:05 p.m.
1.1 PLEDGE OF ALLEGIANCE TO THE FLAG
Led by Councilmember Chip Monaco.
1.2 ROLL CALL
PRESENT-Alvarez, Murphy,Nichols, Monaco
ABSENT- None
1.3 PRESENTATIONS/ANNOUNCEMENTS/INTRODUCTIONS—None
2. PUBLIC COMMENTS—None
3. CONSENT CALENDAR
3.1 Second Amendment to Agreement with Morillo Construction, Inc. for the
design/build of the Shaffer Park Renovation project.
ACTION: Approved second amendment with Morillo Construction, Inc. for $68,627.33
and authorized the Mayor and City Clerk to execute on behalf of the City.
3.2 Memorandum of Understanding for the North Orange County Service Planning
Area Homelessness Outreach Efforts.
ACTION: Approved Memorandum of Understanding for the North Orange County
Service Planning Area and authorized the Mayor and City Clerk to execute on behalf of
the City.
MOTION —Alvarez
SECOND —Nichols
AYES —Alvarez, Murphy,Nichols, Monaco
All items approved as recommended.
END OF CONSENT CALENDAR
�x � � �x * �x * �x
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