03.07 Design/Build Shaffer Park Amendment `4:�FP��9�,. y
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��i �a� AGENDA ITEM
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June 11, 2019
TO: Honorable Mayor and Members of the City Council -��
THRU: Rick Otto, City Manager
FROM: Bonnie Hagan, Community Services Directo
REVIEW: City Man er Finance �
1 . SUBJECT
Second Amendment to Agreement with Morillo Construction, Inc. for the Design/Build of
the Shaffer Park Renovation Project.
2. SUMMARY �
Approval.of final change orders in the amount of $536,939.33 and an appropriation of
$450,000 from park development fees to support this final project payment. A detailed list
of change orders is attached as the scope of the amendment.
3. RECOMMENDED ACTION
1. Authorize the appropriation of$450,000 from the Park Acquisition-Infill unreserved fund
balance to expenditure account number 510.7021.56020.30042, Park Acquisition-Infill —
Shaffer Park Renovation.
2. Approve second amendment with Morillo Construction, Inc. in the amount of
$536,939.33 for final change orders and authorize the Mayor and the City Clerk to execute
on_behalf of the City.
4. FISCAL IMPACT
The total expenditure for this amendment is $536,939.33 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
Background
In December 2016, the City Council approved an agreement with Morillo Construction,
Inc. (MCI) for #he Design/Build renovation of Shaffer Park. In August, 2017 City Council
approved the first amendment to the Design/Build agreement setting the Guaranteed
ITEM 3�� � 06/11/2019
Maximum Price at $6,300,000. The Shaffer Park Renovation project included the
demolition of the existing community building and concession building, and the
construction of a new community building; new concession building and storage with
attached restrooms; realigned and reconstructed ballfield to include new lighting and ,
irrigation; new concrete walkways and a walking path around the perimeter of the park;
and a new outdoor exercise area. The existing tot-lot, picnic shelter, and restroom remain
and received cosmetic improvements to match the new park style. The entire park�was
re-irrigated and landscaped.
The park was successfully re-opened to the public on Saturday, April 13. The community
has had a positive response to the new park, with use of the facilities in high demand.
Discussion
As the project progressed, certain unforeseen issues arose that required the approval of
change orders to complete the work and meet the goals of the project. City Council
approved a partial list of change orders as a second amendment to the agreement in the
amount of $68,627.33 at the March 26, 2019 meeting. That second amendment was
never executed. The March 26 list of change orders is now incorporated into a revised
second amendment, attached herein. An additional list of change orders was negotiated
for a total amount of $468,312. While this amount is significantly below what MCI had
requested based on work they performed, the City and MCI agreed upon the below list of
project areas that were valued at $468,312.
• Water quality compliance
• Grading operations
• Soil conditions
• Mature tree conservation
• Key card access
The new combined change order total is $536,939.33. The specific.list of change orders
agreed upon between the City and MCI is included as the scope of work to the attached
amendment.
MCI still has a few minor items to complete for final project closeout, however, presented
here is the final list of change orders. The proposed amendment includes language noting
this resolves all claims regarding change orders and compensation. Staff anticipates
returning to City Council for approval of the final Notice of Completion in July.
MCI's original contract was $6,300,000. Combined with the proposed change orders in
the amount of $536,939.33, MCI's final contract amount will be $6,836,939.33. This
represents an 8.5% increase. Total project costs, including the proposed change orders,
is anticipated to be $7.9 million. A project cost summary is attached for reference.
7. ATTACHMENTS
1. Second Amendment
2. Project Cost Summary
ITEM � 2 �06/11/2019
� AGR-6432.2
SECOND AMENDMENT
TO
DESIGN-BUILD AGREEMENT
WITH GUARANTEED MAXIMUM PRICE
THI5 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
("Owner"), and MORILLO CONSTRUCTION, INC., a California corporation ("Design-Builder"),
with reference to the following:
A. Owner and Design-Builder entered into that certain Design-Build Agreement with
Guaranteed Maximum Price (Agreement No. 6432) dated as of Deceinber 13, 2016 (the "Original
Agreement")with a Guaranteed Maxiinum Price of$6,300,000;
B. Owner and Design-Builder amended the Original Agreeinent 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 Ainendment") to amend the start and coinpletion dates,
confinn the Guaranteed Maximum Price of $6,300,000, and supplement the Contract Documents.
The Original Agreement and the First Amendment are incorporated herein by this reference; and
C. Owner and Design-Builder desire to further amend the Original Agreement to modify,
amend and supplement certain portions of the Original Agreeinent for the purpose of fully and finally
resolving all claims regarding change orders and compensation.
NOW, THEREFORE, the parties hereby agree as follows:
Section 1. Recitals. The Recitals set.forth above are accepted as true and correct and
incorporated herein.
Section 2. Defined Terms. Except as otherwise defined herein, all capitalized terms
used herein shall have the meanings set forth for such terms in the Original Agreeinent.
Section 3. Cross-References. Owner. and Design-Builder hereby. agree that all
references in the Original Agreement or this Second Amendment to the "Original Agreemeiit" are
deemed and construed to refer to the Original Agreement, as implemented by this Second
Amendment.
,
Section 4. Revised Scope of Services. Pursuant to Article 9.1 of the attachment to the
Original Agreement entitled "Standard Form of General Conditions of Contract Between Owner and
Design-Builder" ("Attachment to Original Agreement"), the Contract Documents set forth in Article
2 of the Original Agreement are hereby amended, modified and supplemented to include the
approved change orders described on Exhibit A, attached hereto and incorporated herein by this
reference.
Section 5. Comqensation.
A. Pursuant to Article 9 ("Changes to the Contract Price and Time"), Article
9.4.1.2 ("Contract Price Adjustments") and Article 10 ("Contract Adjustinents and Disputes") of the
Attachment to Original Agreement, the total not-to-exceed compensation for the services to be
rendered by Design-Builder is increased by FNE HiJNDRED THIRTY-SIX THOUSAND NINE
HLTNDRED THIRTY-NINE DOLLARS and 33/100 ($536,939.33) to a total of SIX MILLION
EIGHT HUNDRED THIRTY-SIX THOUSAND N1NE HUNDRED THIRTY-NINE DOLLARS and
33/100 ($6,836,939.33).
B. All pertinent Articles in the Original Agreement are hereby amended to reflect
the revised Guaranteed Maximum Price of SIX MILLION EIGHT HUNDRED THIRTY-SIX
THOUSAND NINE HUNDRED THIRTY-NINE DOLLARS and 33/100 ($6,836,939.33),
including:
• Article 2.1.2
• Article 6.1.2
• Article 6.5.2.1
C. The Parties agree that the amount set forth in Section S.A, above, constit�rtes a
� mutually accepted, luinp sum payable by Owner to Design-Builder and that said amount constitutes
payment in fizll for all fees identified in Article 6 of the Original Agreement, including but not
limited to the Contract Price; Design-Builder's Fees, Change Order Fees; Cost of the Work, and
Allowance Iteins and Allowance Values; and Liquidated Damages as identified in Article 5.4.
D. Notwithstanding any other provision of the Original Agreement, as
implemented by this Second Amendment, the parties hereto agree and covenant that Design Builder
is entitled to no additional compensation for compensable delays and Owner shall be:entitled to no
Liquidated Damages for the work performed under the terms of the Original Agreement.
Section 6. InteEration. This Second Amendment amends, as set forth herein, the
Original Agreement and the First Amendment and, except as specifically ainended 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
Ainendment and the terms and provisions of the Original Agreement and/or the First Amendment,
the tenns and provisions of this Second Ainendment shall control and govern the rights and
obligations of the parties.
[Renaainder of page intentionally left blanlc;signatures on nezt pageJ
2
IN WITNESS of this Agreement,the parties enter into this Agreement on the year and day
first above written.
"DESIGN-BUILDER" "OWNER"
MORILLO CONSTRUCTION, INC., CITY OF ORANGE, a municipal corporation
a California corporation
�By: By:
Printed Name: Mark A. Murphy, Mayor
Title:
*By: ATTEST:
Printed Naine:
Title:
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
Gary A. Sheatz, City Attorney
*NOTE: The City requires the following signature(s) on behalf of the Design-Builde�:
=- (1) tlze Chairmnn of the BoaYd, the President or a Vice-President, AND (2) the Sec�etary,
the Chief Filzancial Officer, the Treasurer, an Assistant Secreta�y or an Assistant
Treasurer. If only one co�porate officer exists or one corporate officer holds more than
one corporate office,please so indicate. OR
-- The corporate of'fccer named in a corporate resolution as authorized to enter into this
Agreement. A copy of the coYporate resolution, certified by the Secretary close in time to
the execution of the AgreehZent, h:ust be pvovided to tlze City.
3 .
Shaffer Park Renovation Change Order Log
Project Address: 1930 N Shaffer St, Orange, CA 92865
. E �
No Date Submrtted �§ � � Description , �,� ' Change Order
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1 1/23/2018 Transite Pipe Removal $ 13,886.19
3 4/3/2018 Flush Valves&Lavatory Faucets $ (1,032.49)
4 4/29/2018 Remove&Replace Existing Walkway(ADA Sidewalk) $ 8,257.34
7 5/7/2018 Credit for Exterior Drinking Fountains $ (4,326.12)
8 5/29/2018 SCE Pathway $ 21,910.91
9 5/7/2018 Repair of Existing Curb Around Playground $ 13,788.64'
10 5/26/2018 Furnish and Install Additional Bench $ 2,406.95
11 6/3/2018 Additional Transite Pipe Removal $ 7,633.31
14 7/30/2018 Downspout Change $ 4,298.07
23 11/26/2018 Wood Stain on MPR Ceiling Beams $ 1,804.53
Combined sub-total for change orders listed below $ 468,312.00
6 4/29/2018 Swale and GutterAdditional Work
13 6/14/2018 Key Cord Access
16 10/9/2018 Radius Retaining Wall
17 8/28/2018 T&M Regrade Revisions Due to Tree Conservation
19 8/28/2018 Sod vs Stolon
20 8/28/2018 Soil Amendment
21 10/9/2018 Low Retaining Wall NE of Comm Building
22 9/23/2018 Additiona/Compaction and Ripping
25 2/2/2019 Remove and RepairAspha/t due to Soil Foilure
26 4/8/2019 Additional Earthwork and Turf Repair
�„ �_ ' � } ; Total Change Order Arnoun� _ $_ 536,939 33„:
$ 6,300,000.00 Original Contract Amount
$ 536,939.33 Approved Change Order Amount '
$ 6,836,939.33 New Contract Total �
Exhibit A
Page 1 of 1
SHAFFER PARK RENOVATION
PROJECT COST SUMMARY
� � PROJECT COMPON:ENTS � ' Ci 's.Costs .
Construction Management—GKK Works $ 438,511
Desi n/Construction—Morillo Construction Inc. (MCI) 6,300,000
Utilities and Testing—geotechnical, electrical support, materials and soils 265,371
testin , environmental assessment, abatement
Shade Sails—Shade Structures Inc. 146,154
Park and Program Fixtures,Furniture&Equipment 170,440
Sub-total 7,320,476
ITEM FOR CONSIDERATION JUNE 11,2019
MCI Change Orders 536,939
ESTI.MATED PROJECT TOTAL' ' ' ' $7,857,415
�� FUNDING STATUS , � . - '
Funds reviousl a ro riated to Shaffer Park Renovation �
Fund 510 (Park Ac uisition—Infill) $7,437,602
Fund 500—Women's Club Donation 4,000 .
Sub-total 7,441,602
Pro osed funds for allocation on June 11,2019
Fund 510 (Park Ac uisition—Infill) 450,000
PROJECT ALLOCATION TOTAL AFTER.JUNE 11,2019 � . $7,891.,6.02
PROJECT ACCOUNT BALANCE $34,187
Attachment 2