BURBANK REDEVELOPMENT AGENCY

Tuesday, May 25, 2004

AGENDA

CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE

 

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5:00 CLOSED SESSION IN CITY HALL BASEMENT LUNCH ROOM/CONFERENCE ROOM:

 

Conference with Real Property Negotiator:

Pursuant to Govt. Code �54956.8

Agency Negotiator:  Assistant Executive Director/Susan M. Georgino.

Properties:  111-245 East Magnolia Boulevard, 401-761 North First Street, 200 East Cypress, 601-800, 801-805, 851, 875, 877, 891 South San Fernando Boulevard, 228 East Burbank Boulevard.  The 41 acre site (excluding IKEA) generally bounded by Magnolia Boulevard, Third Street, Burbank Boulevard, and Interstate 5 (Media City Center Mall).  Parcels 2460-023-045 through and including 2460-023-062.

Parties With Whom Agency is Negotiating:  Crown Realty and Development Inc.

Name of Contact Person:  Jack Lynch, Senior Redevelopment Project Manager.

Terms Under Negotiation:  Negotiation for the sale of the fee title in regards to the improvements on the above mentioned parcels.

 

When the Agency reconvenes in open session, the Agency may make any required disclosures regarding actions taken in Closed Session or adopt any appropriate resolutions concerning this matter.

 

 

6:30 P.M.

 

                                                                             

INVOCATION:                      

The Courts have concluded that sectarian prayer as part of City Council meetings is not permitted under the Constitution.

 

FLAG SALUTE:

 

ROLL CALL:

 

 

CONSENT CALENDAR: (Item 1)

 

The following item may be enacted by one motion.  There will be no separate discussion on this item unless a Council Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda. A roll call vote is required for the consent calendar.

 

1.      APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH TURNER CONSTRUCTION COMPANY TO DEVELOP A SEPARATE GUARANTEED MAXIMUM PRICE FOR THE ROBERT R. OVROM PARK PROJECT, PHASE I AND THE SOUTH SAN FERNANDO BOULEVARD STREETSCAPE PROJECT; COOPERATION AGREEMENT BETWEEN THE CITY OF BURBANK AND REDEVELOPMENT AGENCY OF THE CITY OF BURBANK FOR THE SOUTH SAN FERNANDO BOULEVARD STREETSCAPE PROJECT; AND, APPROPRIATION OF REDEVELOPMENT AGENCY FUNDS:

 

Staff is requesting Council approval of:  1) a Professional Services Agreement (PSA) with Turner Construction Company (Turner) to develop the Guaranteed Maximum Price (GMP) for the Robert R. Ovrom Park Project, Phase I and the South San Fernando Boulevard Streetscape Project; and, 2) a Cooperation Agreement with the Redevelopment Agency (Agency) for the South San Fernando Boulevard Streetscape Project. 

 

Staff is also requesting Agency Board approval of:  1) a Cooperation Agreement with the City for the South San Fernando Boulevard Streetscape Project; and, 2) an appropriation of Agency funds for the Agency�s portion of the PSA with Turner. 

 

In separate actions, the Council approved a GMP delivery strategy in lieu of the Design Bid Build delivery process for the Robert R. Ovrom Park Project, Phase I and the South San Fernando Streetscape Project.

 

Staff also initiated a pre-qualification procedure in July 2003 to identify qualified general contractors to construct these capital projects using a GMP delivery strategy.  The selection process culminated with the Selection Committee convening in March 2004 to hear oral presentations from three qualified firms:  Turner; Pepper Construction Company; and, KPRS Construction Services, Inc.  Turner was selected based on overall best value and fit with the City and Burbank Unified School District needs, not lowest price.  The proposed staff was most qualified, having the commensurate expertise in completing projects of this type and complexity.  Their hourly rates, fixed fee for the GMP, weekly staff costs, expected construction durations, and costs for insurance and bonding were either the lowest or compared favorably with Pepper Construction Company.  

 

Proposals for GMP services reflected a cost range from a low value of $38,624 for Pepper Construction Company to $99,000 for KPRS Construction Services, Inc.   Based on four project delivery scenarios identified in the Request for Proposal, the cost for Turner�s GMP services ranged from $48,000 to $83,300.   Turner understood that four potential construction scenarios required four pricing options commensurate with the level of service required to complete the GMP.  

 

Separate Project Execution - Staff met with the project stakeholders and Development Oversight Committee and was directed to separately commence construction of the Ovrom Park and Streetscape Projects.  This approach was deemed in the City�s long term best interest.  To prepare for construction commencement of the Streetscape Project by September 2004, the GMP services provider needs to be retained as quickly as possible to properly develop the GMP for Council and Agency Board approval.   Consequently, the decision to first issue a PSA followed by a project specific construction agreement after the GMP is completed for each project was based on time constraints and efficiency.  The PSA enables staff time to develop the project specific construction agreement that will be executed after the GMP has been approved by the Council and Agency Board.  

 

Completion of the GMP services and a subsequent and separate construction contract for the Ovrom Park and Streetscape Projects is summarized below. 

  • Only one PSA encompassing GMP services for both the Ovrom Park and Streetscape Projects will be executed based on the Council�s approval.   GMP services for each project will commence on/or about the same time.

  • The GMP for the Streetscape Project will be developed first with an anticipated submittal for Council and Agency Board approval in August 2004.  Staff will also request Council and Agency Board approval of the construction documents and the construction contract at that time. 

  • Based on Council approval of the GMP for the Streetscape Project, a separate construction contract will be executed with construction expected to commence in September 2004.

  • As previously noted, the GMP services for the Ovrom Park Project will commence on or about the same time as the Streetscape Project.  However, since the Ovrom Park Project is currently completing its Design Development Phase, the GMP is expected to be completed in February 2005.

  • Based on Council approval of the GMP for the Ovrom Park Project, a separate construction contract will be executed with construction expected to commence in March 2005.

Professional Services Agreement � The City�s PSA with Turner imposes a high accountability level on its service delivery and overall performance.   The City reserves the right to pursue another general contractor in the event Turner does not meet the expectation and performance levels.   In general, Turner will provide the following GMP services:  document constructability and bidability reviews; developing a comprehensive and fully supported GMP; developing construction milestone schedules; establishing a Subcontractor Pre-Qualifications and Resource Program; attending requisite coordination review meetings; and, providing other required GMP services based on project needs.

 

Cooperation Agreement between the City and Agency � The proposed Cooperation Agreement between the City and Agency serves three purposes.  First, it documents the relationship between the City and Agency and allows the City and its Construction Manager (Turner) to manage an Agency project funded by Redevelopment Tax Allocation Bonds for the South San Fernando Redevelopment Project Area.  It also protects the City from any liability that could occur due to Turner�s use of construction documents created as a result of an Agency contract with David Evans and Associates, Inc. 

 

Second, the proposed Cooperation Agreement allows appropriation of the Agency funds necessary to fund the Agency�s portion of the proposed PSA with Turner to act as Construction Manager for both the Ovrom Park and Streetscape Projects and allows transfer of these funds to the City�s Capital Projects Budget (Fund 370). 

 

Finally, the Cooperation Agreement allows for future transfer of Agency funds to the City�s Capital Projects Budget to pay for Project improvements.  Agency staff will return to the Agency Board to request approval of a resolution appropriating funds to be used for Project improvements at the same time it seeks approval of a construction contract for the Project. 

 

Cost for GMP services - The cost for GMP services was based on the City�s decision to complete the Ovrom Park and Streetscape Projects separately.  Turner�s cost to provide GMP services for this scenario is $48,010 and excludes reimbursable expenses.  However, the maximum cost exposure for GMP services for both projects, excluding any reimbursable expenses, is $81,619, and is based on the timing in completing the Ovrom Park Project GMP and commencing construction.  

 

A concerted GMP services effort for the Streetscape Project will commence after  Council approval of the subject PSA to facilitate the projected September 2004 construction commencement.  This initial effort will also include GMP services to reconcile the Design Development Budget for the Ovrom Park Project.   During the Streetscape Project�s construction period, and when the Ovrom Park Project construction documents are approximately 75 percent to 90 percent complete, a focused GMP development effort for the Ovrom Park Project will begin and will be performed by the same on-site Turner staff working on the Streetscape Project.   

 

In the event the Park Project is delayed in such a manner that Turner�s GMP services cannot be completed while its on-site staff is working on the Streetscape Project, the City�s cost exposure may increase by no more than $33,609 to a total cost of $81,619, for all GMP services, excluding reimbursable expenses.   To ensure each project equitably shares its relevant cost for GMP services, staff offers the following points.

  1. If GMP services are provided for the Streetscape Project without any involvement or existence of the Ovrom Park Project, those costs would be $48,010.

  2. If GMP services are provided for the Ovrom Park Project without any involvement or existence of the Streetscape Project, those costs would be $33,609. 

  3. If the GMP services for the Ovrom Park Project are performed by Turner�s on-site staff during construction efforts on the Streetscape Project, there is no additional cost to the City.   The cost is $48,010, plus any reimbursable expenses.

  4. Under the scenario identified in Point 3 above, the $48,010 cost for GMP services on the Streetscape Project will be reduced by $33,609 (for a net cost of $14,401 to the Streetscape Project) and the $33,609 cost transferred to the Ovrom Park Project�s total cost.  

  5. If the GMP services for the Ovrom Park Project are not performed by Turner�s on-site staff during construction efforts on the Streetscape Project, there will be an additional cost of $33,609 to the City.   Under this scenario, the total combined cost for GMP services for both projects is $81,619, excluding reimbursable expenses.

The manner in which Turner�s GMP services are being provided represents a substantial benefit and value to the City.  Turner is requiring its on-site staff, which is the same staff providing construction management for both the Streetscape and Ovrom Park Projects, to provide these GMP services.  The value Turner obtains is the cost and schedule knowledge base it acquires in preparing for constructing the Ovrom Park Project.

 

Recommendation:

 

Adoption of proposed resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING A COOPERATION AGREEMENT WITH THE CITY OF BURBANK AND AMENDING THE FISCAL YEAR 2003-2004 BUDGET IN THE AMOUNT OF $53,000 FOR THE SOUTH SAN FERNANDO BOULEVARD STREETSCAPE PROJECT.

 

 

RECESS to conclude the City Council meeting.

 

 

ADJOURNMENT. 

 

 
 
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