Title
Recommendation to Authorize the City Manager to Execute an Agreement with Blach Construction, Inc. for Phase I Design/Build Services for up to Four Years, in an Amount Not-to-Exceed $3,427,840, Including a 3% Contingency, for the Design and Permitting of the City Aquatic Center. [Requires four affirmative votes] (Recreation 10051400)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City Aquatic Center (Center), located on the west side of Sweeney Park, will provide critical additional pool space to meet the increasing and unmet community needs for competitive and recreational aquatic programs. This agreement with Blach Construction, Inc. is for the first of two phases for the design/build of the Center and this scope of work is for design and permitting of the Center. The design process will include extensive public input, including a joint meeting of the Recreation and Parks Commission and City Council, and options will be provided to City Council for final approval. These options will include a 30-meter pool and activity pool, a 50-meter pool, and potential infrastructure improvements for remaining areas of Jean Sweeney Open Space Park. The design will also include the associated building with locker rooms, office space, restrooms, and community room as well as the associated parking lot and amenities to support the Center.
BACKGROUND
In Fiscal Year (FY) 2019-20 budget, City Council authorized funding for the City Aquatic Center conceptual design. In January and February 2020, the City of Alameda (City) held community workshops on pool design options and the input was incorporated into the final conceptual design. This design was recommended by the Recreation and Parks Commission on August 13, 2020. The project was paused due to the pandemic, shifting priorities, and lack of funding sources.
On February 15, 2022, City Council heard options to fund aquatic facilities in Alameda, including the rebuild of the Emma Hood Swim Center at Alameda High School and construction of a City Aquatic Center on a City-owned site. City Council provided general direction to staff to further pursue possible funding mechanisms for both facilities.
On October 18, 2022, City Council approved the Center to be constructed on the west side of Sweeney Park. At the same meeting, the City Council also approved funding up to 50% of the Center costs, including design and construction, using the General Fund Unassigned Residual Fund Balance and funding the balance of project costs with a financing mechanism to be determined.
On February 21, 2023, City Council approved funding the Center in the amount up to $30 million with $15 million from the Unassigned Residual General Fund balance and financing the remainder from a Certificate of Participation. This approval included the provision that when staff returns with a final financing plan, information on the cost of funding a 50-meter pool and alternatives for funding the 50-meter pool are to be included.
On July 18, 2023, City Council authorized the City Manager to execute an agreement with Griffin Structures, Inc. for the project management of the Center.
On September 19, 2023 City Council approved the sale of bonds in the amount of $16,000,000 to finance the construction of the Center. A detailed cost analysis comparing 50-meter and 30-meter pools was provided in the staff report.
For the project, City staff issued an RFQ/RFP on December 10, 2023, and proposals were due on February 7, 2024. Four proposals were received by the following teams, Alten/Tam, Blach/ELS, Thompson Builders/Group 4, and Swinerton/LPA. The proposals were reviewed and evaluated by Gary Chubb with Griffin Structures, and Recreation and Parks Director Justin Long and Public Works Project Manager II Jack Dybas.
Design/Build team interviews were held on February 26, 2024. The interview panel included Assistant City Manager Amy Wooldridge, Recreation and Parks Director Justin Long, Aquatics Supervisor Stacy Thomas, Public Works Project Manager Jack Dybas, Gary Chubb of Griffin Structures, and Chelle Putzer, Director of Recreation for the City of Piedmont. Blach/ELS was ranked highest by the review team and demonstrated the most relevant and significant experience for this project with proven local Bay Area municipal aquatic center experience in San Mateo County, Marin Community College District, City of Elk Grove, and the City of Millbrae.
DISCUSSION
To deliver the City Aquatic Center project within a desirable timeframe, it is essential to have a design/build team with multi-disciplinary experience that will collaborate well with City staff and be innovative in their approach to planning and constructing the Center. These characteristics are not typically associated with the traditional design, bid and build method for public facility contracting that is based on selecting the most responsive low-bid. For this reason, as well as creating schedule and cost efficiencies, an alternative method is recommended for this project, referred to as Progressive Design Build (PDB).
PDB is advantageous for this project for the following reasons:
• PDB allows the City to select a design and contractor team based on qualifications such as the demonstration of specific experience with the successful completion of similarly complex projects, in this case, the completion of municipal aquatic centers.
• PDB involves the contractor early and throughout the design process and uses that expertise to identify potential cost and schedule savings such as ways to increase overall project productivity. This includes utilizing the contractor’s expertise to tailor the scheduling and phasing of construction to best meet the needs of stakeholders and the public.
• Throughout design, the contractor helps identify project risks and develop plans to help mitigate those risks.
• Project uncertainty is reduced by having the contractor involved during design which translates into cost savings to the City in the form of reduced contingency.
The Blach Construction is recommended by staff as the most qualified design/build team for the City Aquatic Center project. The agreement is structured in two phases and this action before City Council is to approve the first of the two phases. This first phase is to develop design options, conduct a public input process with the community, Recreation and Parks Commission and City Council, compile that input and incorporate it into a final draft design for City Council approval, complete 100% design documents and secure all required permits as well as establish the project schedule and cost. Once the design is approved, staff will bring a second agreement (Phase II) to City Council with Blach Construction for the construction of the City Aquatic Center. This Phase II agreement will confirm project schedule and the Guaranteed Maximum Price (GMP), which is the total maximum cost for which the City Aquatic Center will be built.
Key deliverables for this Phase I Design/Build agreement with Blach Construction include:
• Pre-construction services and community outreach through a series of workshops, surveys and listening sessions to take place May 2024-June 2024.
• Complete architectural, engineering, and consulting services as required to establish a Guaranteed Maximum Price (GMP) for construction of the project.
• Project schedule during the pre-construction phase representing all tasks necessary to complete the project within a time specific.
• Cost model and evaluation of the estimate against the construction budget and recommendation, if necessary, of actions to avoid potential cost overruns.
• Complete design through 100% design development documents and obtain City approval.
• Upon completion of this scope of work the Design-Builder will then submit a proposed GMP for construction, project schedule, and completion date, all of which will be included in the Phase II agreement for City Council approval.
At this time, the Center project is anticipated to be completed in the first quarter of 2027 with design occurring throughout 2024 and construction in 2025-2026.
ALTERNATIVES
• Approve the agreement with Blach Construction, Inc. in an amount not-to-exceed $3,427,840 for the City Aquatic Center project Phase I design and permitting.
• Direct staff to reconsider other design/build teams that submitted proposals. The other teams did not have the same level of aquatic center design/build experience.
• Direct staff to reconsider traditional project delivery methods, such as low-bid style of contracting.
o High likelihood for significant cost over-runs and schedule delays designing and constructing an aquatic center.
FINANCIAL IMPACT
The cost of the Blach/ELS PDB agreement for Phase I of the City Aquatic Center Project is not-to-exceed $3,427,840, including a 3% contingency in the amount of $99,840. Sufficient funds are available for this Agreement in Capital Improvement Project No. C55400 New City Aquatic Center.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code Section 2-61.8 related to Design-Build. The 2023-2026 Strategic plan identifies the City Aquatic Center under the strategic priority “Enhance community Safety and Services” project CS10. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
The actions involved in this item are exempt from environmental review pursuant to CEQA because they are categorically exempt as an infill project under CEQA Guidelines, section 15332 (the project is consistent with the applicable General Plan designation and all applicable General Plan policies, as well as with applicable zoning designation and regulations; the proposed development occurs within the city limits on a project site of no more than five acres substantially surrounded by urban uses; the project site has no value as habitat for endangered, rare of threatened species; approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and the site can be adequately served by all required utilities and public services). Moreover, none of the exceptions to the exemption apply.
CLIMATE IMPACT
All buildings associated with the Center will meet a minimum LEED Silver certification pursuant to the City’s building ordinance. With additional funding, there are options that will be explored such as full electrification of the systems with solar or wind energy generation or raising the LEED certification to Gold or Platinum that would reduce the climate impacts of this facility.
RECOMMENDATION
Authorize the City Manager to execute an agreement with Blach Construction, Inc. for Phase I Design/Build Services for up to four years, in an amount not-to-exceed $3,427,840, including a 3% contingency, for the design and permitting of the City Aquatic Center.
Respectfully submitted,
Justin Long, Director of Recreation and Parks
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Agreement