CC 2015-05-12_10a Budget Reallocation_Police Building ProjectMEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
STEVEN ANNIBALI, POLICE CHIEF
BY: MIKE LINN, CAPITAL PROJECTS ENGINEER
SUBJECT: CONSIDERATION OF BUDGET REALLOCATION FOR THE POLICE
STATION ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-
08 AND APPROVAL OF A THIRD AMENDMENT TO THE AGREEMENT
WITH IBI GROUP ARCHITECTURE PLANNING, INC.
DATE: MAY 12, 2015
RECOMMENDATION:
It is recommended the City Council;
a. reallocate savings from the Police Department operating budget to the Police
Station Addition I Tenant Improvements Project for previously approved services
and project closing costs
b. authorize the Mayor to execute Amendment No. 3, reviving and extending the
term of the Consultant Services Agreement with 181 Group Architecture Planning
Inc., to cover additional construction administration services resulting from
project delays and providing additional compensation for such services.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
On May 27, 2014, the Council authorized a revised budget of $2,015,900 for the Police
Building renovation project. On October 14, 2014, the Council further approved
contracts for an additional $213, 115.66 for Furnishings, Fixtures and Equipment (FF &
E), anticipating the use of existing contingency funds to cover a portion of this contract
cost. Such contingency funds have subsequently been used for necessary and
unanticipated project needs, therefore requiring an alternate funding source. The use of
savings in the Police Department operating budget is recommended.
Item 10.a. - Page 1
CITY COUNCIL
CONSIDERATION OF BUDGET REALLOCATION FOR THE POLICE STATION
ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-08 AND APPROVAL
OF A THIRD AMENDMENT TO THE AGREEMENT WITH IBI GROUP
ARCHITECTURE PLANNING, INC.
MAY 12, 2015
PAGE2
The following is a summary of the original budget projections and the estimated final
costs:
Category May2014 May 2015 (projected)
Revenue
Available Funding $2,015,900 $2,015,900
FY 2014-15 Appropriation $50,000
Expenditures
Construction Bid $1,676,342 $1,676,342
Construction Contingency $167,634 $134,928
Separate Contract work $0 $70,080
Furniture, Fixtures &Equipment (FFE) $100,000 $222,434
Construction Admin. $51,018 $74,123
Relocation Costs $7,500 $2,002,494 $0 $2,177,907
Remaining Funds $13,406 ($112,007)
BACKGROUND:
On February 12, 2013, the City Council approved Final Tract Map 3018, subdividing 5
acres of vacant land at the northwest corner of West Branch Street and Old Ranch
Road into four (4) Single Family Residential Lots and one (1) Public Facility Lot. The
revenue derived from selling the lots was targeted to finance improvements for a future
Police Station project.
On April 11, 2014, the City Council authorized the City Manager to sign Amendment No.
2 with IBI Group Architecture Planning, Inc, which in-part extended the Agreement term
date to February 28, 2015. Due to project delays, the term of the agreement with IBI
Group expired; however additional construction administration services were necessary
for project completion.
On May 27, 2014, the City Council awarded a construction contract to GLR
Construction Inc. in the amount of $1,676,342 to remodel the existing Police Station at
200 North Halcyon Road and authorized the City Manager to approve change orders up
to 10% of the contract amount, or $167,342 (total authorized construction costs =
$1,676,342 + $167,634 = $1,843,976). Council further accepted staff's recommendation
to increase the total project budget (construction, FF & E, administration, etc.) to
$2,015,000. Staff issued a Notice to Proceed to GLR Construction, Inc. on June 23,
2014.
On October 14, 2014, the City Council awarded bids for the purchase of FF & E for the
remodeled police facility, in the amount of $213,115.66 (Attachment 2). At that time,
staff identified that the original FF & E project budget was estimated $100,000 based on
preliminary cost estimates. However, once the final needs assessment and design was
complete, it was anticipated to cost $213, 115.66, or an additional $113, 115.66. Staff
Item 10.a. - Page 2
CITY COUNCIL
CONSIDERATION OF BUDGET REALLOCATION FOR THE POLICE STATION
ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-08 AND APPROVAL
OF A THIRD AMENDMENT TO THE AGREEMENT WITH 181 GROUP
ARCHITECTURE PLANNING, INC.
MAY 12, 2015
PAGE3
identified several potential funding strategies to cover the additional costs and ultimately
recommended attempting to use the project contingency and other potential savings, as
the project at that point had not used a substantial portion of the contingency funds.
Therefore, no additional funds were requested at that time.
On April 3, 2015, the City granted Substantial Completion to GLR Construction for the
Police Station Tenant Improvements Project and developed a punch-list of remaining
items to be completed prior to Final Acceptance. This allowed the Police Department to
start mobilizing equipment, materials and furnishings into the facility. Public Works
continues to administer the project closeout and anticipates presenting the completed
project to Council for approval in June. Although a final accounting is still forthcoming, it
appears that the construction project expenditures will be within the initial $1,843,976
Council authorization
ANALYSIS OF ISSUES:
The Police Department is currently moving into the rehabilitated Police Station from
their temporary facility at the Woman's Club Center on Vernon Street. There were a
few purchases and minor contracts that not included in the original construction project
design, but later found to be essential to the operation of the department. These
included:
-Replacement Toilets for existing damaged units
-Outdoor employee break area wall
-Repairs to Rena Street side rolling gate
-Door hardware alterations/revisions
-Security screening around employee parking lot
This work was done outside the scope of the original contract and either purchased
separately or performed by another contractor.
Additionally, as is typical with a remodeling project of this size and scope, unexpected
issues arose during the construction phase that were not anticipated during the design
phase. In this case, a 10% contingency was provided for in the budget, which is a
relatively modest amount for a project of this size and complexity. The City worked with
GLR to identify both added-cost items and cost-savings items in order to minimize
change orders and the use of the contingency budget. While this was largely
successful, there were a few items that arose during construction that required use of
contingency funding. Approximately $135,000 of the contingency fund was issued to
the project contractor for items such as termite damage repairs, significant roof repairs,
electrical upgrades, undisclosed mold repairs, and repair and "refloating" of large
concrete floor areas not apparent until demolition was complete. The balance of the
contingency funds was used as noted above by other vendors or contractors, with an
Item 10.a. - Page 3
CITY COUNCIL
CONSIDERATION OF BUDGET REALLOCATION FOR THE POLICE STATION
ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-08 AND APPROVAL
OF A THIRD AMENDMENT TO THE AGREEMENT WITH 181 GROUP
ARCHITECTURE PLANNING, INC.
MAY 12, 2015
PAGE4
additional amount set aside for final construction administration services with 181 noted
below.
Staff is also estimating that there will be some additional costs for construction
administration services. In large part due to construction delays, the project extended
beyond the end date of the Agreement with 181 Group for design and construction
administration services. Staff is recommending that the City Council authorize the
Mayor to execute Amendment No. 3, reviving and extending the Consultant Services
Agreement with 181 Inc. until December 31, 2015 to allow for completion of project
closure tasks and to cover additional construction administration services resulting from
project delays. Additional expenses with 181 Group are anticipated to be approximately
$25,000, to provide for expenses already incurred during the project delay period and
for project closure tasks. These are factored into the existing contingency. Therefore,
Amendment No. 3 also includes funding for the additional services provided by 181
Group as a result of the extension of the term of the Consultant Services Agreement in
an amount not to exceed $25,000. This potential expense has been factored into the
total project cost estimate in this staff report.
The above stated and largely unanticipated project expenses have depleted all
previously allocated project funding, and the funding source recommended in the
October 2014 Council item unfortunately is not available as hoped. As noted, all
contingency funding has been used for additional project improvement purposes, and
there are neither sufficient operational savings in the Animal Control Services budget
nor COPS funds available. Staff contemplated requesting the allocation of additional
proceeds from the Old Ranch Road lots; however, a recent determination in a Workers'
Compensation claim will result in salary savings in the Police Department's operating
budget that will be sufficient to accommodate the project budget needs. Therefore, staff
recommends reallocating these Department operating savings to the project budget, an
action which requires Council approval.
One item not addressed is the lack of rooftop screening on the north side of the building
to hide rooftop heating/ventilation systems and other mechanical equipment as required
by the municipal code. The rooftop screening was overlooked during the design
process due to previous screening provided by a grove of trees. It is estimated to cost
approximately $18,000. However, this roof screening project is not being proposed for
completion at this time as staff is looking at the potential for a creative use of solar
panels on the Police Station roof to additionally act as screening.
Item 10.a. - Page 4
CITY COUNCIL
CONSIDERATION OF BUDGET REALLOCATION FOR THE POLICE STATION
ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-08 AND APPROVAL
OF A THIRD AMENDMENT TO THE AGREEMENT WITH IBI GROUP
ARCHITECTURE PLANNING, INC.
MAY 12, 2015
PAGES
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve staff's recommendations to reallocate savings in the Police Department
operating budget towards the Police Station Addition I Tenant Improvements
Project;
2. Approve Amendment No. 3 with 181 Group;
3. Do not authorize reallocation of operating savings towards the project;
4. Do not amend the Agreement with 181 Group; or
5. Provide direction to staff.
ADVANTAGES:
The primary advantage to the proposed recommendations is to provide the necessary
funding to complete and close out the Police Station Renovation project and to bring the
project to completion.
DISADVANTAGES:
The savings from the Police Department operating budget could be used for another
purpose, however all expenses for the Police Station Renovation project were
necessary to provide a suitable facility for the Police Department to adequately provide
services.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Section 15301 (c).
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted at City Hall on Thursday, May 7, 2015. The agenda and staff
report was posted on the City's website on Friday, May 8, 2015. No public comments
were received as of the time of preparation of this report.
Attachment:
1. Amendment No. 3 to Consultant Services Agreement with 181 Group
2. Council Memorandum-October 14, 2014
Item 10.a. - Page 5
CONSUL TANT SERVICES AGREEMENT
AMENDMENT NO. 3
ATTACHMENT 1
This Third Amendment ("Third Amendment") to Consultant Services Agreement
("CSA") by and between the CITY OF ARROYO GRANDE ("City") and 181
GROUP ARCHITECTURE PLANNING ("Consultant"), is made and entered into
this day of May, 2015, based on the following facts:
WHEREAS, the parties entered into a CSA dated May 1, 2013, whereby
Consultant agreed to perform schematic design, design development, and
construction support; and
WHEREAS, a First Amendment was approved on November 26, 2013 to include
additional services, compensation and extending the Term; and
WHEREAS, a Second Amendment was approved on April 11, 2014 to increase
the scope of work and to further extend the Term of the CSA; and
WHEREAS, the CSA Agreement terminated on February 28, 2015; and
WHEREAS, the parties have continued to perform under the terms and
conditions of the CSA; and
WHEREAS, the parties desire to revive and further amend the CSA as set forth
herein.
NOW, THEREFORE, for valuable consideration the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follow:
1. That the CSA Term is extended to , 2015. -------
2. That the CSA is amended to include additional compensation for
the additional services provided as a result of the extension of the
CSA Term in an amount not to exceed $20,000 based on time and
materials and the Standard Hourly Rate Schedule contained in
Exhibit B to the CSA.
3. Except as modified herein, all other terms and conditions set forth
in the CSA, as amended, shall remain in full force and effect.
Item 10.a. - Page 6
IN WITNESS WHEREOF, CITY and CONSULTANT have executed this Third
Amendment the day and year first above written.
CITY OF ARROYO GRANDE
PLANNING
By: ________ _
Jim Hill, Mayor
Attest:
181 GROUP ARCHITECTURE
By: ____________ _
Dave Cartnal, Director
By: ____________ _
Alistair Baillie, Operating Director
Kelly Wetmore, City Clerk By: ____________ _
Approved as to form:
Heather K. Whitham,
City Attorney
Craig Atkinson, Principal Architect
Item 10.a. - Page 7
ATTACHMENT 2
MEMORANDUM
TO: CITY COUNCIL
• J
FROM:, STEVEN N. ANNIBALI, CHIEF OF POLICE
SUBJECT: CONSIDERATION TO AUTHORIZE AN AWARD OF BID FOR
PURCHASE OF FURNITURE, FIXTURES AND EQUIPMENT FOR THE
REMODELED POLICE FACILITY
DATE: OCTOBER 14, 2014
RECOMMENDATION:
It is recommended that the City Council: 1) award a bid for the purchase of
furniture, fixtures and_ equipment from McMurray-Stern of Santa Fe Springs, CA in
the amount of $194,527.66; and 2) award a bid for the purchase of office chairs
and file cabinets from California Prison Industry Authority of· Folsom, CA in the
amount of $18,588.00.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The Police Station Remodel Project estimated $100,000 for furniture, fixtures and
equipment (FFE) based on preliminary cost estimates. Following design and final
identification of FFE, it is now anticipated to cost $213, 115.66. Staff has identified
several potential funding strategies to cover a portion of the additional cost,
including_ savings in the Police Department operating budget from the animal
ser_l!ic~s contract and possible use of COPS funds for eligible expenses. It his
hoped the remainder can be paid from the project contingency At this time
however, given the status of the construction phase of the project and identified
cost-savings measures, staff recommends funding the additional FFE costs from
'the project budget. Should an additional appropriation be required, staff will return
to Council to reqommend implementatio!1 of the identified funding strategies.
BACKGROUND:
The decision was made during the bidding of the Police Station Remodel Projecfto
remove certain items from the bid documents to be purchased separately ·by-the
City. These included all lockers for both locker rooms and evidence processing,
storage cabinets, ·countertop/work areas, tables and cubicle work stations.
Additionally, the need to replace existing chairs that are damaged or worn, along
with file cabinets to fit the new floor plan was identified.
Item 10.a. - Page 8
CITY COUNCIL
CONSIDERATION TO AUTHORIZE AN AWARD OF BID FOR PURCHASE OF
FURNITURE, FIXTURES AND EQUIPMENT FOR THE REMODELED POLICE
FACILITY
OCTOBER 14, 2014
PAGE 2
ANALYSIS OF ISSUES:
The current lockers, cabinets and workstations were removed during demolition of
the building due to their poor condition or inadequate function. Also, in order to
reduce the cost of construction, office spaces in the remodeled facility were altered
to an open room concept that now requires the purchase of cubicle style work
stations.
This recommended action is limited in scope to FFE necessary to meet
operational/functional needs only -not redecorating. Staff reduced the original
scope significantly and also introduced the use of furniture produced by the
California Prison Industry Authority wherever feasible to reduce costs.
This recommendation is to authorize the award of two bids. The first to McMurray
Stern of Santa Fe Springs, CA per the State of Californi9 CMAS contract holder #4-
14-71-0021 F. The second bid is to California Prison Industry Authority of Folsom,
CA. per Penal Code Section 2807; CDCR Procurement Handbook and CA State
Administrative Manual Section 3505.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
Recommended Alternative: 1) award of bid for the purchase of furniture,
fixtures and equipment for the Police Station Remodel Project to McMurray
Stern of Santa Fe Springs, CA. in the amount of $194,527.66; 2) award of
bid forthe purchase of furniture, fixtures and equipment for the Police Station
Remodel Project to California Prison Industry Authority of Folsum, CA in the
amount of $18,588.00
Do not approve staff's recommendation.
Provide direction to staff.
ADVANTAGES:
The advantage of approving the recommended action is that it will continue to advance the
progress of the Police Station Remodel Project and provide for necessary furniture,
fixtures and equipment as identified in the needs assessment.
Item 10.a. - Page 9
CITY COUNCIL
CONSIDERATION TO AUTHORIZE AN AWARD OF BID FOR PURCHASE OF
FURNITURE, FIXTURES AND EQUIPMENT FOR THE REMODELED POLICE
FACILITY
OCTOBER 14, 2014
PAGE 3
DISADVANTAGES:
The disadvantage of approving the recommended action is that Police Station Remodel
Project contingency funds are being identified for use, which may be needed prior to the
completion of the project. However, sufficient additional revenue has been identified for
use on the project if the need arises.
ENVIRONMENTAL REVIEW:
This project is exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3).
PUBLIC NOTIFICATION AND COMMENTS:
The public impacted by the proposal is the Arroyo Grande Police Department's service
population. The public has been made aware of the proposal before Council by a posting
of the Agenda in the front of City Hall on Thursday, October 9, 2014 and public notice
posted on the City's website on Friday, October 10, 2014. No public input has been
received to date.
Attachments:
1. Proposal from McMurray Stern Inc.
2. Proposal from California Prison Industry Authority
Item 10.a. - Page 10