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ADOPT A RESOLUTION TO AUTHORIZE CONTRACT AMENDMENT NO. 1 TO CONTRACT No 425000353 WITH HAGGERTY CONSTRUCTION INC. AND CONTRACT No 424000062 WITH PENDULUM STUDIOS, LLC FOR REQUIRED ADDITIONAL SERVICES FOR RENOVATIONS AT BANNER ISLAND BALLPARK
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize Amendment No. 1 to Standard Agreement 425000353 with Haggerty Construction Inc. in the amount of $1,322,862.00 for the Banner Island Ballpark Renovation, Project No. EV23607 (Exhibit 1 to Resolution).
2. Authorize Amendment No. 1 to Standard Agreement 424000062 with Pendulum Studios, LLC. in the amount of $110,254.00 for the Banner Island Ballpark Renovation, Project No. EV23607 (Exhibit 2 to Resolution).
3. Authorize a budget amendment to appropriate $1,433,116.00 from the Venues Fund balance to CIP Project No EV23607 for the Banner Island Ballpark Renovation Project.
4. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of the resolution.
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Summary
Council awarded contract No. 425000353 (Attachment A) to Haggerty Construction INC. (Haggerty) on December 3, 2024, to complete the renovations needed at the Banner Island Ballpark. On June 13, 2023, Council awarded contract No. 424000062 (Attachment B) to Pendulum Studios LLC (Pendulum) through Resolution No. 2023-06-13-1204. Both contracts were in response to the City’s requirement to maintain the Banner Island Ballpark within Major League Baseball (MLB) standards.
MLB completed an audit of all affiliate ballpark facilities in 2022 and required the Stockton facility to complete upgrades to come into compliance with the new league standards. The Ballpark has been under construction since fall of 2025, with much of the work completed, however there were unknown variances in past plans as well as unexpected system failures that have caused additional design and construction service needs. The City has an obligation to the Ports baseball organization to deliver a playable field and supporting amenities for each season. With the requirement that the team be able to use the facility by the start of their current season in late March 2026, construction progress had to continue to meet the City’s obligations. The renovated clubhouse is completed and in use, while there are two temporary areas supporting the current season during the remaining construction. The construction areas include a new batting/pitching tunnel, commissary, and support space; expected to be completed in the fall of 2026.
The attached action approves the required cost increases and allows funding to be moved from the Venues Fund balance to the CIP project No. EV23607 to allow the completion of the project.
DISCUSSION
Background
The City entered a 25-year lease with Seventh Inning Stretch, INC., owner of the Stockton Ports, to provide a baseball facility that meets the standards of MLB. Failure to meet MLB standards could cause the team to lose their accreditation with MLB, potentially jeopardizing the team and subjecting the City to financial repercussions. After being informed of the MLB facility audit and areas of concern, the City has worked diligently with the Ports organization to assess the needs and forge a path to compliance. Pendulum, the architectural firm hired to complete renovation plans, began with a conceptual design of the project that reused existing space where possible to minimize the need for new build. Pendulum was also selected through an RFP procurement process (PUR-23-022) to provide full project architectural design services through construction project completion.
After two failed bid solicitations (PUR-24-028 and PUR-25-004), the City reached out to Haggerty, a local company located in Stockton that had experience completing repairs at the Ballpark after storm damage. The City negotiated a contract with Haggerty for the construction services needed. The cost submittal was scrutinized against the architect’s estimated project cost and adjustments were made to arrive at the current contract amount, within the anticipated project budget.
Present Situation
Haggerty began reviewing construction documents designed by Pendulum and found suggested value engineering opportunities as well as discrepancies in drawings to actual on-site elevations. After additional surveying, it was learned that the original plans that the City provided to Pendulum were not accurate and thus revisions to the drawings and, subsequently, sub-contractor bids, were necessary. Unforeseen field conditions, code compliance corrections, utility and electrical coordination, upgrades, and project additions have also contributed to the cost increases.
Based on the cost increase, it is necessary to amend the current construction contract amount, adding $1,322,862.00. The original construction contract amount was not to exceed $6.1 million. With approval of the current amendment, the new contract amount will be $7,422,862. Additionally, the architectural contract with Pendulum requires an increase of $110,254 for additional design and edited plans. The original architectural contract amount was $478,090. The amendment will increase the total not-to-exceed amount to $588,344.
Council approval is required as the amendments exceed administrative authority. Upon Council approval of the recommended amendments, the administrative authority will be reset, providing the City Manager with authority to approve future amendments up to the new calculated limits, provided funding is available.
Also of note, the recommended amendment for the Haggerty contract also includes the deletion of contract Exhibits J and K. The Exhibits being deleted required a Faithful Performance Bond and Labor and Material Bonds. As an administrative oversite, neither bond was pulled nor provided by the contractor. Though the contractor brought this oversight to the City’s attention, the provisions of the bonds are currently not easily possible given that the project is well underway at approximately 75% completion. The contractor remains in good standing with the City and thus the recommended action corrects the contract to match actual actions. There are savings to the project of roughly $40,000 (expected cost of the combined bonds), which have been included in the new recommended contract amount.
ENVIRONMENTAL CLEARANCE
The project conforms with the City’s General Plan, pursuant to California Government Code section 65402. The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA), as specified under California Code of Regulations section 15301, since it involves an existing facility and the modifications to the existing facility will involve negligible expansion of use. The renovation of the Ballpark will continue to support one ballpark as was originally designed.
FINANCIAL SUMMARY
Funding in the amount of $1,433,116.00 to support the recommended amendments to Agreement No. 425000353 with Haggerty and to Agreement No. 424000062 with Pendulum will come from the Venues Fund available balance. The funds will be budgeted in the Banner Island Ballpark Renovation CIP Project #EV23607.
Attachment A - Haggerty Contract 425000353
Attachment B - Pendulum Contract 424000062