Meeting_Body
CONSTRUCTION COMMITTEE
NOVEMBER 20, 2024
Subject
SUBJECT: NORTH HOLLYWOOD TO PASADENA BUS RAPID TRANSIT PROJECT - CONSTRUCTION MANAGER/GENERAL CONTRACTOR
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer or designee to:
A. AWARD Contract No. PS118736000 to Myers-Shimmick, a Joint Venture, for the North Hollywood to Pasadena Bus Rapid Transit Project (Project) Construction Manager/General Contractor (CM/GC) Phase 1 in the amount of $8,260,253 for Preconstruction Services, subject to the resolution of protest(s), if any;
B. ESTABLISH a Preconstruction Budget for the Project in an amount of $135,183,738; and
C. NEGOTIATE and EXECUTE all project-related agreements and modifications within the authorized Preconstruction Budget.
Issue
ISSUE
Staff is seeking the Board’s approval for two items: (1) to award CM/GC contract; and (2) to establish a Preconstruction Budget. The Preconstruction Budget is inclusive of this and all previously awarded contracts, incurred expenses to date, and anticipated additional preconstruction activities performed by the CM/GC and existing architectural and engineering (A&E) and professional services contracts for the Project, all as summarized in the expenditure and funding plan for the Preconstruction Budget as shown in Attachment A.
Background
BACKGROUND
The Project is a 19-mile Bus Rapid Transit (BRT) corridor with 22 stations. The Project serves as a key regional connection between the San Fernando and San Gabriel Valleys and traverses the communities of North Hollywood, Burbank, Glendale, Eagle Rock, and Pasadena. Each community has dense residential populations and many cultural, entertainment, shopping, and employment areas throughout, including the NoHo Arts District, Burbank Media District, Glendale Galleria, Americana at Brand, Eagle Rock Plaza, and Old Pasadena.
The Project goals are to:
• Advance a premium transit service that is more competitive with private automobile travel;
• Improve accessibility for disadvantaged communities;
• Improve transit access to major activity and employment centers;
• Enhance connectivity to Metro and other regional transit services;
• Provide improved passenger comfort and convenience; and
• Support community plans and transit-oriented community goals
Following the completion of the environmental phase in April 2022, the Board certified the Final Environmental Impact Report (FEIR) and approved the Project. The approved Project entered Advanced Preliminary Engineering (APE), which includes advancing design work and continued coordination with the cities and communities along the corridor, and the Preliminary Engineering (PE) phase was completed in December of 2023.
A Program Management Support Services Contract was awarded in March 2024 and the Contract for final design services was awarded in May 2024. Development of 30% design packages for the Project is ongoing.
The CM/GC approach will be used to deliver and construct the Project. Utilizing CM/GC provides the benefit of construction contractor input during the design phase before the start of construction.
In order to move into this phase of preconstruction services, the Project will utilize the CM/GC contract that is the subject of this action and will continue to utilize support from Metro staff and previously awarded and existing contracts and agreements, as listed below and reflected in Attachment A.
• Program Management Support Services provided by Ramos CS (Contract No. AE107697000);
• Final design services provided by HDR Engineering, Inc. (Contract No. AE112357000)
• Project Controls Support Services from KTJV (Contract No. PS89856000).
Discussion
DISCUSSION
Staff selected CM/GC for the Project’s Phase 1 as it enables Metro to engage a General Contractor to act as the “Construction Manager” consultant and collaborate with Metro and the design consultant. The CM/GC process provides the ability to effectively integrate benefits from the early engagement of construction experts that will enable Metro to make informed decisions during the design process and provide substantive benefits to the project. Further, the CM/GC delivery method for this project will also improve construction quality, encourage value engineering, provide higher certainty on the final construction cost and delivery schedule, and minimize risks related to construction change orders, disputes, and third-party delays during construction.
The CM/GC will deliver the Project in two distinct contract phases. The Preconstruction Budget establishes Phase 1, the Preconstruction Phase (Design), which allows the contractor to work with the design contractor and Metro to identify risks, provide cost estimates, and refine the project schedule. During Phase 1, Metro will work with the CM/GC Contractor to explore opportunities to accelerate the delivery schedule, as well as leverage their expertise to drive the completed design in a direction that remains within approved project budgets. As the design approaches completion, the CM/GC contractor and Metro negotiate the contract price for Phase 2, the Construction Phase.
If both the CM/GC and Metro reach an agreement on the Construction Phase costs, staff will return to the Board with a recommendation to approve the Life of Project (LOP) budget and authorize the Phase 2 Contract Supplement. With Board approval, Metro will execute a Contract Supplement and issue a Notice to Proceed (NTP) for Phase 2 and then the second contract phase (Final Construction Phase) will begin.
At any stage during the Preconstruction design period, Metro can exercise an “off-ramp” and seek another contractor by competitively bidding on the Project’s final design, while still benefitting from the previous work performed by the CM/GC Contractor. The CM/GC Phases are described in more detail below:
• Phase 1 Preconstruction Services expressly sets out the work that the Contractor will perform, such as design review, cost estimating, schedule and Early Works Packages.
• Upon issuance of NTP for Phase 1, the Contractor, design consultant, PMSS, and Metro will work side by side to review constructability, undertake value engineering, conduct site investigations, assess market conditions, and provide current contractor price estimates, risk assessments, and construction schedules at each successive prescribed design interval to finalize the design.
• Throughout Phase 1, the Contractor will provide Metro with Opinion of Probable Costs (OPCs), which are detailed cost estimates that will enable staff to evaluate the projected Project costs against the Project budget and make necessary adjustments to the scope or schedule.
• If both parties agree to a final OPC, staff will seek Board approval to award Phase 2 construction to the Contractor and establish an LOP budget. If not, Metro will have the option to terminate the contract with the Contractor and package the design documents into a separate bid package. This off-ramp will be available for Metro throughout Phase 1 as staff evaluates each OPC.
• Throughout Phase 2 negotiations, Metro will maintain the following parameters to mitigate discrepancies and to increase the likelihood of project success:
• the Contractor’s fee and margin initially proposed will be retained in all OPCs;
• the Phase 1 specification sets out the form and frequency of OPCs to provide for multiple checkpoints for Metro;
• the CM/GC contract sets out the conditions of the price proposal for Phase 2 and the information that the Contractor is required to submit;
• the CM/GC contract sets out a clear governance structure for managing Phase 1, including the establishment of working groups that include members from Metro, the contractor team, and any relevant third parties; and
• the process for establishing all OPCs will employ transparent open-book methods and the use of independent cost estimates to validate pricing.
By utilizing the CM/GC approach to deliver and construct the Project, the construction contractor will provide feedback during the design development phase before the start of construction. The design team will work collaboratively with the CM/GC staff and incorporate input on constructability, Project phasing, and value engineering ideas as the design progresses.
The Project alignment runs through four municipalities and is built entirely within the public right-of-way. The design for the Project will be packaged in five (5) segments (North Hollywood, Burbank, Glendale, Eagle Rock, and Pasadena - both the North Hollywood and Eagle Rock segments are within the City of Los Angeles) to facilitate phasing the design and construction of the project to optimize the schedule while accommodating the different design review and approval processes applicable to each of the four municipalities. Metro anticipates issuing Early Works Package(s) to allow construction to begin prior to design being complete on all segments.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The recommended Board action will have no detrimental impact on safety.
Financial_Impact
FINANCIAL IMPACT
The funds required in FY25 for the Phase 1 Preconstruction Services are included in the adopted budget under Cost Center 8510 Project number 871401, under various accounts, including professional and technical services. Annual budgeting within the approved preconstruction budget for the future fiscal years will be the responsibility of the Project Manager, Cost Center Manager, and the Chief Program Management Officer.
Impact to Budget
The Project has capital funding programmed into the Metro financial forecast based on the cost estimate prepared for the Measure M Expenditure Plan of $267 million with an additional $50 million in SB1 funds, for a total of $317 million.
The source of funds for this action is Measure M 35%, which is not eligible for bus and rail operations.
Equity_Platform
EQUITY PLATFORM
The Diversity and Economic Opportunity Department (DEOD) established a 17% Small Business Enterprise (SBE) and 3% Disabled Veteran Business Enterprise (DVBE) goal for the Phase 1 Work. Myers-Shimmick, a Joint Venture, exceeded the SBE and DVBE goals for Phase 1 work by making a 43.26% SBE commitment and a 3.49% DVBE commitment. Myers-Shimmick, a Joint Venture subcontracted at least 30% of its contract value with Local Small Business Enterprise (LSBE) firms, making it eligible to receive the LSBE preference bonus.
The CM/GC proposal evaluation criteria allocated a possible 40 points out of 800 total points to the proposing firm’s demonstration of a well-defined approach to ensure that Cultural Competency is considered and executed in the performance of the Scope of Services. Proposers were instructed to reference policies and practices at the organizational level as well as values and behaviors at the individual level that will establish reciprocal relationships that support trustworthy communication between the Project team and the community.
In performance of the Scope of Services, the CM/GC is required to conduct an assessment focused on economic, social, environmental, racial, and other inequities to inform the overall project approach. The results of the assessment will inform the development of a multi-year Cultural Competency plan to be implemented and maintained by the CM/GC. The CM/GC will also convene a cultural competency working group to meet on a quarterly basis for the purpose of considering issues, potential issues, and proposed solutions and opportunities related to the development and implementation of the Cultural Competency Plan.
The Project area includes several Equity Focus Communities (EFCs) in North Hollywood, Burbank, Glendale and Pasadena and will provide the benefits of enhanced mobility and regional access for transit riders within those communities. The Project will allow people living in EFCs along the corridor to connect with the greater regional transportation network and key destinations, via the 10 planned stations located in EFCs. Improvements to bicycle and pedestrian facilities are also included as part of the Project, which were added in response to feedback received from the community. These project elements improve the safety and convenience of biking and walking which provides a benefit to people living in EFCs who may not have access to an automobile.
Additionally, any potential impacts to existing bicycle and pedestrian facilities along the Project within these communities will be addressed by proposed mitigations during both the construction and operation phases to ensure safe and easily navigable options.
The outreach strategy for the Project (during the completed planning and environmental phase) was designed to engage with historically marginalized groups through the use of multilingual outreach materials (English, Spanish, Armenian, and Tagalog), live-translation during meetings, accessible meeting times and locations, regular updates via a mailing list, and transit-intercept surveys to reach current riders who were otherwise unable to attend meetings. The Project team provided robust stakeholder engagement and focused outreach activities to better engage transit riders and EFCs to inform the planning and environmental review and will continue this robust outreach during design and construction activities.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Recommendation supports:
• Strategic Plan Goal 1: Provide high quality mobility options that enable people to spend less time traveling;
• Strategic Plan Goal 2: Deliver outstanding trip experience for all users of the transportation system; and
• Strategic Plan Goal 3: Enhance communities and lives through mobility and access to opportunity.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to move forward with awarding the contract and establishing the Preconstruction Budget. This is not recommended as Metro will incur undesirable schedule delays and cost increases. If award of the CM/GC contract is not approved. Metro would seek another contractor by competitively bidding on the Project’s final design once design is completed and approved.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute CM/GC Contract No. PS118736000 with Myers-Shimmick, a Joint Venture. Metro staff will engage the CM/GC contractor to initiate Phase 1 Preconstruction Services in coordination with the design consultant and PMSS consultant to advance completion of the final design. Staff will return to the Board to seek approval of the Life of Project (LOP) budget and authorization to advance the corresponding Phase 2 Contract Supplement in FY26.
Attachments
ATTACHMENTS
Attachment A - Expenditure and Funding Plan
Attachment B - Procurement Summary
Attachment C - DEOD Summary
Prepared_by
Prepared by: Anthony DeFrenza, Senior Director, Construction Management (213) 922-7170
Mark Van Gessel, Executive Officer, Project Engineering (310) 431-3354
Michael McKenna, Deputy Chief Program Management Officer (interim), (213) 922-4239
Carolina Coppolo, Deputy Chief Vendor/Contract Management Officer (Interim) (213) 922-4471
Reviewed_By
Reviewed by: Timothy Lindholm, Chief Program Management Officer, (213) 922-7297
