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HomeMy WebLinkAboutExplanationAttachment No. 1 Explanation The Westside InfiII — Transit Oriented Development (WI-TOD), also known as the Paradise Creek Affordable Housing Project, is a 201-unit affordable housing development on the east side of Paradise Creek, and the expansion of Paradise Creek Educational Park on the west side of the creek. After adoption of the Westside Specific Plan, a request for proposals was issued, and a Developer was selected to develop the site. Paradise Creek Housing Partners, L.P., a California [iited partnership ("Developer") and the Community Development Commission of the City of National City ("CDC") entered into a Disposition and Development Agreement titled Transit Oriented infill Affordable Housing and Paradise Creek Enhancement Project and dated June 21, 2011 ("DDA"). Per the DDA, National City is required to deliver the WI-TOD project site clean and free of contaminants. The DDA is an enforceable obligation of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency. On February 4, 2014, through Resolution No. 2014-16, City council awarded a contract in the amount of $858,609 to Clauss Construction for the 2020 and 2100 Hoover Avenue Site Remediation and Demolition Project in order to deliver a clean site for the WI-TOD project, consistent with the DDA. City Council also authorized a 25% contingency for unforeseen conditions. This contract provides for excavation and disposal of all contaminated soils on the WI-TOD site as identified in the Property Mitigation Plan (PMP), which was approved by City Council an March 23, 2012. In accordance with the PMP, the City's Environmental Consultant, E2 ManageTech, Inc. (E2), conducted site investigations of the WI-TOD site for review and approval by the California Department of Toxic Substances Control (DTSC) both prior to and subsequent to the date of bid and commencement of work under the contract with Clauss Construction. An addendum to the PMP that incorporated the supplemental information obtained from the site investigations was approved by City Council on April 1, 2014. After approval of the PMP addendum and commencement of work under the contract with Clauss Construction, the DTSC determined) that the data obtained from additional site investigations and confirmation sampling of the excavated locations required the City to excavate, characterize, and dispose of additional soils on the GQjtsiLe of Paradise Creek I7VI GI to obtain regulatory. closure. Based on testing and characterization of soils recently excavated from the west side of Paradise Creek, additional excavation) and disposal will be required to obtain regulatory closure. The approved contract amounts, including contingencies, under the current contract with Clauss Construction are insufficient to complete these remaining Attachment No. 1 items of work, which are required to obtain regulatory closure. Since the quantities for specific items of work will exceed the bid quantities by more than twenty-five percent (25%), the Contractor and City are currently re -negotiating lower bid prices for these items as afforded by Section 3-2.2.2 of the Greenbook for Public Works Construction. In an effort to continue site remediation efforts in a timely manner in order to obtain regulatory closure of the WI-TOD site prior to turnover of the site to the Developer, staff requests that City Council approve an increase to the contract with Clauss Construction in a not to exceed amount of $845,000 (see attached Engineers' Estimate), and authorize the Mayor to execute any and ali change orders in excess of $50,000 up to the not to exceed limit. The new contract amount, which includes the original 25% contingency, would be $1,918,261.25. Funding for the contract increase is available by transferring $445,000 previously appropriated through the WI-TOD Site Infrastructure Agreement to the relocation of Public Works under account no. 001-409-500-598-1595 and $400,000 in EPA grant funds granted to the Housing Authority for site remediation. Competitive bidding for the additional work described above is not required because the improvements are of the same nature and character as the work performed under the original contract and because bidding would not be in the public interest and would not produce an advantage for the following reasons: A competitive bidding process for the change order improvements would result in increases in consultant costs and staff time for the City to administer an additional bidding process and manage a new construction contract; The City and Contractor are negotiating unit prices equal to or lower than those obtained during the prior public bidding process for specific items of work; and A competitive bidding process would result in significant delay and compromise the City's ability to complete the improvements and obtain regulatory compliance in a timely manner in order to turnover the WI-TOD site to the Developer.