City Council Meeting: June 28, 2011

Agenda Item: 8-B


To: Mayor and City Council

From: Martin Pastucha, Director of Public Works

Subject: Design-Build Contract for Palisades Garden Walk and Town Square


Recommended Action

Staff recommends that the City Council:

1.     Authorize the City Manager to negotiate and execute a phased contract with W.E. O誰eil Construction Company, a California-based company, for preconstruction and construction services of the Palisades Garden Walk and Town Square Project in an amount not to exceed $39,000,000.

2.     Authorize the Director of Public Works to issue any necessary change orders to complete the work within budget authority.


Executive Summary

This contract will provide preconstruction and construction services that are required in order to build the park and town square as well as to provide construction services for the grading and compaction of imported soils from the Village site (September/October 2011) and minor preliminary utility work in advance of construction scheduled for spring 2012. A Request for Bids was issued in March 2011, and upon evaluating three bids, City staff recommends W.E. O誰eil Construction Company with a pre-construction fee of $75,750, including a 10% contingency. Additionally, their bid includes locking in their mark-up percentage for profit and overhead for both the remaining preconstruction and construction phases at 2.5%. This is a phased agreement with the final contract amount, which will not exceed $39,000,000, being modified by a Guaranteed Maximum Price amendment.




On June 28, 2005, Council adopted an update to the 1993 Civic Center Specific Plan (CCSP), setting forth planning policies and land use and development regulations for a 67-acre area bounded by Pico Boulevard on the south, Fourth Street on the east, Ocean Avenue on the west, and Colorado Avenue on the north.


An important element of the CCSP is the creation of new parks and open space. This includes creating Palisades Garden Walk, a new six-acre park north of Olympic Drive, west of Main Street, south of the Interstate-10 Freeway, and east of Ocean Avenue, with an additional one-acre Town Square in front of City Hall that is oriented to civic and community activities. Additionally, improvements to the surrounding streetscapes and freeway capping are an integral part of the CCSP. During the CCSP community input process, participants articulated their vision for Palisades Garden Walk, seeing this project as possibly the last opportunity to create a new public open space in Santa Monica that rivaled other renowned gathering places nationally and internationally.


On June 9, 2009, Council approved a list of Redevelopment Agency funding priorities that included a partial allocation of $25,000,000 specifically for design and construction of Palisades Garden Walk and Town Square and their surrounding streetscapes. In addition, $2,000,000 for capping the I-10 Freeway at the adjacent McClure Tunnel was approved. Subsequently, on June 23, 2009, Council adopted the FY2009-10 Budget including these capital improvement projects. On May 24, 2011, Council amended their funding priorities and allocated the full development cost for the project.


On April 13, 2010, Council awarded a design contract to James Corner Field Operations (JCFO) to design the park and town square described in the CCSP. A key factor in the selection of James Corner Field Operations was its creative design approach and commitment to engaging the public in the planning and design of public open spaces.


During the last 12 months, the community and City staff, along with numerous Boards and Commissions and the City Council, have been involved in a hands-on design process for the Palisades Garden Walk and Town Square Project with JCFO. JCFO and its sub-consultants have included and welcomed everyone who wished to have a say in the shaping of this great park through a series of five community workshops. The design process has progressed to 100% design development and the process is ready to include the expertise and knowledge of a builder to begin the task of assisting in the successful execution of the project痴 vision and the managing of costs and schedule for the construction of the park, set to begin with preliminary site work in August 2011.



A Notice Inviting Bids for design-build services was issued on April 6, 2011, and published in the Santa Monica Daily Press and posted on the City痴 website. The City Clerk痴 office received four sealed bids that were publicly opened by the Deputy City Clerk on March 25, 2011. The bid results are as follows:



Preconstruction Fee

Design Mark-up

Construction Mark-up

W.E. O誰eil

$ 68,864







Matt Construction

$ 62,000



Morley Builders

$ 38,500




Staff from Public Works and Community and Cultural Services Departments evaluated the bids based on qualifications, fees, direct experience on similar projects, record performing public sector work, and understanding of the project痴 scope, approach to the work, qualifications of proposed staff and scheduling of project activities. After a thorough review and interview process, staff recommends W.E. O誰eil Construction Company (W.E. O誰eil) as the best bidder.


W.E.O誰eil has a clear understanding of the project, a good track record of projects of a similar size and scope, the most competitive bid and excellent references. Projects completed by W.E.O誰eil include upgrades to Santa Monica Parking Structures 7 and 8, Cal Poly Pomona Residential Suites, Beverly Canon retail development, Archstone Warner Center, Belmont Village in Thousand Oaks, and the West Hollywood Library. Staff checked references and all reported that W.E.O誰eil performed very well on their projects. Furthermore, the Contractors State License Board of California verified that their license is current, active, and in good standing.


This contract is for a modified design-build delivery system, where the previously retained designer, JCFO, is assigned to the design-builder.  The design-builder proposed a preconstruction fee for an initial expedited preconstruction phase which includes assessing the relevant programming documents, tests, reports, preliminary concepts in order to give the City a concise, accurate Guaranteed Maximum Price (GMP) for the remaining design and preconstruction phase.  W.E. O誰eil痴 bid also locked in a percentage mark-up for this design and preconstruction GMP and for the construction GMP amendment, thereby providing a fixed profit margin for the project duration.


The not-to-exceed contract amount of $39,000,000 will be modified by the GMP amendment for construction, which is obtained through a transparent, competitive bid process to subcontractors.  The GMP amendment for construction will be coming to Council for approval in spring 2012.


Staff will return to Council with requests for authorization for additional third party contracts which will include, but not be limited to, inspection and testing services and construction management services, in an amount not to exceed $7,000,000.


California Environmental Quality Act (CEQA) Review

Pursuant to CEQA, environmental impacts associated with Palisades Garden Walk and Town Square were addressed in the CCSP Environmental Impact Report (EIR) [SCH #2003011074], certified by Council on June 28, 2005. On June 14, 2011, the City Council found that the Civic Center Specific Plan EIR was adequate to inform its design development direction in compliance with CEQA. No changes have occurred since the June 14, 2011, Council action that require additional environmental review pursuant to CEQA Guideline section 15162.





Financial Impacts and Budget Actions

The contract amount to be awarded to W.E.O誰eil Construction Company is $39,000,000. Funds for completion of the work shall be paid exclusively by the Redevelopment Agency from the stream of payments set forth in Implementing Agreement No. 9318 to Cooperation Agreement No. 9267 between the Redevelopment Agency and the City. Funds in the amount of $1,000,000 have been included in the Adopted Budget for FY2010-11 at account C172071.589000, Civic Center Palisades Garden Walk, and the remaining $38,000,000 have been included in FY2011-12 budget under the same account.


Prepared by: Jean Bellman, Architect





Forwarded to Council:







Martin Pastucha

Director of Public Works


Rod Gould

City Manager