Agenda Item Wording:
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Civic Center Project Update - Provide Council with an update for Phase 2 of the Civic Center Project, request authorization to begin the Request for Qualification process for contractors, and authorize the use of a 10% retention for the project.
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Deadline for Action: 6/17/2024
Submitting Department: Community Development
Contact Name and Phone Number:
Mike Porter, Civil Engineer, Mike.Porter@visalia.city, (559) 713-4412
Jason Huckleberry, Director Engineering and Building Department, Jason.Huckleberry <mailto:Jason.Huckleberry@visalia.city> @visalia.city, (559) 713-4495
Department Recommendation:
1. Receive an update on Phase 2 of the Civic Center Project and approve the interior and exterior colors and finishes, as well as exterior amenities as shown in the presentation and recommended by the Civic Center Committee.
2. Authorize the advertisement of the Request for Qualifications of contractors for the project.
3. Authorize the construction retention amount for this project be raised from 5% to 10% citing the complexity and size of the project as key factors.
Summary:
Civic Center Project Update
Staff and the consultant team will provide a presentation of interior and exterior details including paint colors, finishes, and exterior amenities. All details shown within the presentation were prepared by the consultant team, which included experts in the field of interior design and architecture.
The interior and exterior details and amenities were presented to the Civic Center Committee for review and approval at two meetings in May. The Committee made several comments and suggestions, requiring the consultant team to revise the plan. Once the revised details were complete, the details shown within the presentation were approved by the Civic Center committee and their recommendation is now moving forward for Council review and approval.
Request for Qualifications
Staff proposes to issue a Request for Qualifications (RFQ) for the Civic Center Project. The RFQ will serve to pre-qualify contractors for the project and to make the public aware of the project details in advance of advertising the official Request for Bids for construction.
Raise Project Retention from 5% to 10%
Due to the large and complex nature of this project staff is requesting authorization to increase the retention amount for the project from 5% to 10%. This process requires formal approval from the City Council.
Background:
Request for Qualifications
The RFQ process is typically used on large complex construction projects which adds an additional step to the bid process. This process invites interested parties to submit a qualification statement that is used by the requester/owner to evaluate and shortlist potential contractors for a construction project. The primary purpose of an RFQ is to gather information about the qualifications, capabilities, and experience of contractors before inviting them to submit detailed bids. This allows the owner to ensure they are partnering with the right contractor with the right experience for a large complex project.
In addition, the RFQ process lessens the likelihood of an inexperienced contractor bidding low on the project due to a lack of experience, winning the bid, and then not being able to complete the project within the project specifications for the price bid. The pre-qualification increases the likelihood that more qualified bidders will submit a bid, because they understand that they will be competing against experienced companies who will have the knowledge base to submit well costed out proposals.
The City Purchasing Division and Construction Manager (Griffin Structures) have worked collaboratively to create the RFQ documents. Griffin Structures will be assisting in the review and evaluation of the qualification submittals.
Once contractors have been pre-qualified, the City will issue a Request for Bids (RFB) and only the pre-qualified contractors are allowed to submit a bid on the project. This second process allows the owner to secure the best price for the project.
The RFQ is scheduled to be advertised on June 20th and all proposals will be due on July 18th. The RFB is scheduled to be advertised in August of 2024, shortly after the RFQ process has been completed and a list of qualified bidders has been established.
Increased Retention
Retention is money held by the City as a safeguard against defects which may subsequently develop and which the contractor may fail to remedy. The retention is typically paid back to the contractor as part of the final payment, which is made after the contractor has achieved final completion approval by the City. An increased retention amount provides the City more protection.
The public contracting code allows cities to only retain 5% of a contract’s costs for retention, assuring proper performance by the contractor. However, the law allows up to 10% retention in the cases where the contract is “substantially complex” and must be set at a higher amount before the contract is advertised. After a review and discussion amongst the City’s project team, including Engineering and Finance staff, as well as the City’s consultant Construction Management firm, Griffin Structures, we are requesting the retention be raised to 10% for this project.
Public Contract Code Section 7202(b)(4) contains the following exclusion for local governments, including charter cities to raise the 5% retention limit:
(4) Notwithstanding any other provision of this subdivision, the retention proceeds
withheld from any payment by the awarding entity of a city, county, city and county,
including charter cities and charter counties, district, special district, public authority,
political subdivision, public corporation, or nonprofit transit corporation wholly owned by
a public agency and formed to carry out the purposes of the public agency, from the
original contractor, by the original contractor from any subcontractor, and by a
subcontractor from any subcontractor thereunder, may exceed 5 percent on specific
projects where the governing body of the public entity or designee, including, but
not limited to, a general manager or other director of an appropriate department, has
approved a finding during a properly noticed and normally scheduled public
hearing and prior to bid that the project is substantially complex and therefore
requires a higher retention amount than 5 percent and the awarding entity
includes both this finding and the actual retention amount in the bid documents.
In a contract between the original contractor and a subcontractor, and in a contract
between a subcontractor and any subcontractor thereunder, the percentage of the
retention proceeds withheld shall not exceed the percentage specified in the contract
between the department and the original contractor.
This project is complex with a projected construction budget of $80 million dollars, includes an 18 to 24-month construction schedule, and will be constructing multiple buildings on the Civic Center site with extensive offsite improvements. The project will involve a general contractor and several sub-contractors representing a multitude of trades and disciplines necessary to complete the project including grading, irrigation, electrical, plumbing, footings and concrete, utility connections, landscaping, and general construction. Based upon these conditions, staff recommends that the Civic Center project be deemed substantially complex and carry a 10% retention amount.
Fiscal Impact:
None currently.
Prior Council Action:
October 16, 2023 - Council received a presentation, approved a contract amendment for Darden Architects, and authorized an appropriation from the Civic Center Reserve Fund.
October 2, 2023 - Council received a presentation and selected several outdoor amenities alternatives. Staff advised will return at a later date for approval of a consultant contract amendment.
June 19, 2023 - Council received a presentation on the Civic Center landscape options and directed staff to return with clarifications and alternatives.
May 1, 2023 - Council received an update and presentation on Phase 2 of the Civic Center and approved staff moving forward with completion of the schematic design phase of the project.
February 6, 2023 - Council received an update and presentation on Phase 2 of the Civic Center
December 19, 2022 - Council received an update and presentation on the site plan and possible architectural styles for the Civic Center buildings and approved the “Mission Inspired” style.
November 21, 2022 - Council received an update and presentation on the site plan and provided direction on the building orientation.
October 17, 2022 - Council accepted the presentation and approve the recommended site plan layout. City Council further considered and provided input on architectural styles via a visual exercise.
April 4, 2022 - Council Received an update on the Public Safety Office Building and City Council Chambers Project and approved a Consultant Contract Amendment requested by Darden Architects
June 7, 2021 - Council approved a motion for Mayor Steve Nelson to appoint two members of the Council to the Planning & Preliminary Project Assessment Committee.
March 15, 2021 - Council authorized the City Manager to enter into an A/E contract with Darden Architects to design the Public Safety Office Building/City Council Chambers.
November 4, 2019 - Council approved using the design-bid-build method of procurement for the PSOB Project.
August 19, 2019 - Council authorized appropriation of funds to issue an RFP for A/E Consulting Services for the new PSOB Project.
August 5, 2019 - Council received an update on the PSF project planning. Council directed staff to return with recommendation for appropriation of funds and creation of a new CIP for the planning and design of the new Public Safety Facility.
March 4, 2019 - Staff was directed to begin the planning phase of the new Public Safety Facility, and to return with an update on building size, staffing and Project funding.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I accept the Civic Center project update and approve the finishes, colors and amenities shown in the presentation, authorize staff to advertise the Request for Qualifications of contractors, and authorize a 10% project retention.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Civic Center Presentation