Loading...
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