title
ADOPT RESOLUTION TO APPROPRIATE FUNDS AND AUTHORIZE CONTRACT CHANGE ORDER NO. 5 FOR THE NORTHEAST STOCKTON LIBRARY AND COMMUNITY CENTER PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Appropriate funds in the amount of $13,500,000 from the Measure M Strong Communities Fund Balance to the Northeast Stockton Library and Community Center, Project No. CL17024.
2. Authorize the City Manager to execute Contract Change Order No. 5 in the amount of $9,717,288.14 with Patriot Contracting, Inc., Resumption Agreement, for the construction of the Northeast Stockton Library and Community Center, Project No. CL17024.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
The Northeast Stockton Library and Community Center project is located at 1461 Morada Lane, at the northwest corner of West Lane and Morada Lane (Attachment A). The project will construct a new library and community center on a 4.83-acre lot adjacent to Ronald E. McNair High School. The project was included in the 2017-22 and 2019-24 Five-Year Capital Improvement Plans (CIPs) and is funded by the Strong Communities Initiative (Measure M) and Public Facility Fees (PFF).
On December 15, 2020, by Resolution No. 2020-12-15-1404, Council awarded a Construction Contract in the amount of $14,450,556 to Patriot Contracting, Inc. (Patriot) of Gardena, CA, for construction of the Northeast Stockton Library and Community Center, Project No. CL17024.
Construction began on March 30, 2021, and four Contract Change Orders (CCOs) have been administratively approved. On April 19, 2023, construction was suspended to assess open construction deficiencies and project scheduling delays. While in suspension, the building was vandalized and set on fire.
In coordination with the City Attorney's Office and outside council, staff engaged Patriot in mediation to help resolve the open issues. Throughout the mediation process Patriot demonstrated a strong commitment to resolving disputes and provided an acceptable schedule for project completion. Patriot also provided a favorable cost estimate to remediate the damaged caused by the fire.
Due to Patriot’s favorable response during the mediation process, their specific knowledge of the project, and their cost-efficient approach to remediate the fire damage, staff believes Patriot to be the most qualified to complete the project.
On September 18, 2024, under the existing contract, Public Works issued a Notice to Proceed. Patriot has returned to the project site and resumed work. The project is scheduled to be completed by fall 2025, weather permitting.
On October 30, 2024, by Resolution No. 2024-10-30-0301, Council approved the reallocation of the American Rescue Plan Act funding in the amount of $500,000 to the Northeast Stockton Library and Community Center, Project No. CL17024.
It is recommended that Council approve an appropriation of Measure M funds in the amount of $13,500,000 to the Northeast Stockton Library and Community Center, Project No. CL17024. It is also recommended that Council approve Contract Change Order (CCO) No. 5 in the amount of $9,717,288.14 with Patriot for the resumption of construction for the Northeast Stockton Library and Community Center, Project No. CL17024.
DISCUSSION
Background
The Northeast Stockton Library and Community Center project site is located at 1461 Morada Lane, at the northwest corner of West Lane and Morada Lane (Attachment A). The project will construct a new library and community center on a 4.83-acre lot adjacent to Ronald E. McNair High School. The design was completed in April 2020. The new facility will be Leadership in Energy and Environmental Design Silver certified and will consist of a library, gymnasium, multipurpose rooms, locker area with changing rooms, staff offices, outdoor fitness areas, minor frontage modifications adjacent to the site, and other on-site improvements. The project was included in the 2017-22 and 2019-24 Five-Year CIPs and is funded by Measure M and PFF.
On December 15, 2020, by Resolution No. 2020-12-15-1404, Council awarded a Construction Contract in the amount of $14,450,556 to Patriot of Gardena, CA, for construction of the Northeast Stockton Library and Community Center, Project No. CL17024.
Project construction began on March 30, 2021. Since then, four CCOs in the total amount of $405,035.67 have been administratively approved, covering a range of modifications and additional work. These include updates for code compliance and structural improvements, such as rebar and roof reinforcement. Changes to mechanical, electrical, and Information Technology (IT) systems have been made, including HVAC revisions, lighting, and IT equipment adjustments. The CCOs also addressed enhancements to both interior and exterior amenities.
On April 19, 2023, construction was suspended to assess open construction deficiencies and project scheduling delays. While in suspension, the building was vandalized and set on fire.
In coordination with the City Attorney's Office and outside council, staff engaged Patriot in mediation to help resolve open issues on the project. Throughout the mediation process Patriot demonstrated a strong commitment to resolving disputes and provided an acceptable schedule for project completion. Patriot also provided a favorable cost estimate to remediate the damaged caused by the fire. Due to Patriot’s favorable response during the mediation process, their specific knowledge of the project, and their cost-efficient approach to remediate the fire damage, staff believes Patriot to be the most qualified to complete the project.
On September 18, 2024, under the existing contract, Public Works issued a Notice to Proceed. Patriot has returned to the project site and resumed work.
On October 30, 2024, by Resolution No. 2024-10-30-0301, Council approved the reallocation of the American Rescue Plan Act funding in the amount of $500,000 to the Northeast Stockton Library and Community Center, Project No. CL17024.
Present Situation
It is recommended that Council approve CCO No. 5 in the amount of $9,717,288.14 with Patriot for the Resumption Agreement for the Northeast Stockton Library and Community Center, Project No. CL17024. The revised contract amount, including previously approved CCOs, will be $24,572,879.81.
The Resumption Agreement allows construction to resume and encompasses all additional work, including the procurement of necessary materials needed to remediate damages sustained from the fire. The Resumption Agreement also establishes a mutual resolution of all current claims and potential claims Patriot and the City have against one another. Additionally, the Resumption Agreement includes measures to ensure effective and efficient completion of the project in accordance with the approved plans, specifications, new budget, and schedule. The project is scheduled to be completed by fall 2025, weather permitting.
With the exception of the provisions outlined in the Resumption Agreement, all other terms and conditions of the contract, including the commitment to the Community Workforce and Training Agreement, remain unchanged and in full force.
It is also recommended that Council adopt a resolution to appropriate funds in the amount of $13,500,000 from Measure M to the Northeast Stockton Library and Community Center, Project No. CL17024, to fund CCO No. 5 and additional costs for Professional Services Agreements for design and construction support, staff, and contingencies.
The two Professional Services Agreements with Architectural Nexus, Inc. (Architect) and Griffin Structures, Inc. (Construction Management), remain in full effect. Contract amendments with these firms will be processed administratively for continued service and support through project completion.
FINANCIAL SUMMARY
Sufficient funding is available to appropriate funds in the amount of $13,500,000 from the Measure M Strong Communities Fund Balance to the Northeast Stockton Library and Community Center, Project No. CL17024.
There is no additional impact to the City's General Fund or any other unrestricted fund as a result of approving the recommended actions.
Attachment A - Vicinity Map