Item 21 - Amendment to the Agreement with Bernards Bros, Inc.

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Construction Management at Risk Services for the State Building and Plaza Demolition Project and Property Transfer of Plaza of the Fountains Parcel from County of Orange May 5, 2026 Page 2 DISCUSSION Executive Summary On May 2, 2023, the City of Santa Ana received a $9 million grant from the State of California to support modernization of the Civic Center area, including acquisition and demolition of the former State Building located at 28 Civic Center Plaza. The City subsequently acquired the property on December 28, 2023 with the intent to demolish the building and prepare the site for future development opportunities. On August 20, 2024, at the conclusion of a competitive procurement process, the City Council approved a Construction Manager at Risk (CMAR) service contract to Bernards Bros., Inc. (Bernards). The CMAR delivery method allows the construction manager to serve as a consultant during the design phase and subsequently transition into the role of general contractor during construction. The Scope of work included the preparation of engineering plans to remove portions of the surrounding Plaza of the Fountains affected by the demolition of the former State Building. As described in the August 2024 staff report, the scope of work would progress in phases allowing staff to control costs and City Council to approve subsequent work efforts. During pre-construction planning for the project, it was determined from a structural analysis that the entirety of the Plaza of the Fountains must be demolished due to loss of structural integrity and safety concerns if only partial demolition occurs. The demolition work would impact all portions of the Plaza including County of Orange owned lands and would necessitate modifications to access routes serving the County's Law Library and coordination with County property interests. To complete the pre-demolition scope of work and associated engineering and construction planning requirements, staff recommends approval of a contract amendment with Bernards to provide Phase 2 CMAR services. The amendment increases the contract amount by $923,076, for a total contract value of$1,773,076, to support preparation of detailed construction documents, development of a Guaranteed Maximum Price (GMP), and construction planning associated with the complex demolition of the elevated Plaza of the Fountains and required site improvements. These services will be fully funded by the State grant. As the project scope will now include the full demolition of the Plaza of the Fountains and access modifications to the Law Library, the project now requires development of plans and supporting materials to address the revised scope. The contract amount requires a corresponding increase to perform this work and complete construction/demolition plans. Additionally, staff recommends approval of a Land Transfer Agreement with the County of Orange to transfer approximately 0.7 acres of County-owned land within the Plaza to the City and an access easement to the County of Orange for ingress and egress to the modified Law Library. The transfer will allow the City to complete the demolition and facilitate long-term redevelopment opportunities within the Civic Center.