TO: Mayor and Members of City Council
THRU: Doug Hewett, ICMA-CM, City Manager
Telly Whitfield, Ph.D., Assistant City Manager
Michael Gibson, Park and Recreation Director
FROM: Cliff Isaac, PE, Construction Management Department Director
Jay Toland, Chief Financial Officer / Interim Assistant City Manager
DATE: January 11, 2021
RE:
Title
Senior Center West Project Update
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4 - The City of Fayetteville will be a highly desirable place to live, work and recreate with thriving neighborhoods and a high quality of life for its citizens.
Executive Summary:
City Council is asked to provide direction regarding an additional allocation of funds for the construction of Senior Center West located adjacent to Lake Rim and Old Raeford Road in Fayetteville, NC. Based upon a completed bid process, an additional project appropriation of $1,300,338 will be needed to move forward with the construction of the facility as currently designed.
Background:
In 2015, a package of Parks & Recreation bond projects was developed for voter consideration. The package included several new projects as well as renovations to certain existing parks/facilities. Voters approved the package and work has been completed for a number of projects to date.
As originally planned, Senior Center West was to be delivered through a Construction Manager at Risk (CMAR) contract. In a letter to the City on April 23, 2020, the previously selected CMAR provided a cost update for the project which was substantially more than the appropriated funds. The architect, CMAR and City staff took action identifying items that could be value engineered. A more optimal site plan and layout as well as interior elements were considered and modified accordingly. Through careful consideration on September 30, 2020, the City terminated the CMAR's contract for the construction of Senior Center West because the City determined that it is unable and unwilling to move forward on the project.
The City made the decision to traditionally bid the project out to licensed general contractors to seek more favorable pricing. The project was advertised to the general public consistent with North Carolina Law, and a voluntary pre-bid meeting took place on site December 1, 2020. On December 22, 2020, the City opened bids from licensed general contractors for the construction of Senior Center West, and accepted five general contractor's bids. All bids included a 5% bid bond, acknowledgement of the City’s SDBE Program and three Addenda, as well as the appropriate signatures required.
The base bids ranged from $5,950,000 to $6,420,195, with the average bid being approximately $6.2M. The low base bid of $5,950,000 was submitted by Cooper Tacia General Contracting Company, License #65299. Accepting alternates 1, 4, 5, and 9 together will increase the base bid by $21,530. These alternates add value in creating an artistically pleasing, yet highly functional community based center for the citizens.
Follow are descriptions of the accepted alternates:
• Alternate 1: Operable Partition. Provide deduct alternate to omit (3) operable wall partitions. Contractor to provide structural framing as required for future installation.
• Alternate 4: Dance Studio Ceiling. Provide add alternate for ceiling design in Dance Studio as shown on detail 02/A-102.
• Alternate 5: Exercise Equipment Room Ceiling. Provide add alternate to include open grid (WPS-1) in Exercise Equipment Room. Revise lighting layout as shown on 03/A-102.
• Alternate 9: Cement Board Siding. Provide add alternate of cement board and brick veneer on exterior walls in lieu of metal panels as shown on sheets A101A, A201A, A302A, A408A, A409A, A601A, A602A, and A603A.
In addition, the following preferred alternates are at no cost to the project:
• Preferred Alternate A: Owner-Preferred Door Hardware
• Preferred Alternate B: Owner-Preferred Pool System
The City has separately obtained pricing on kitchen and exercise equipment, and furniture for the center. The total cost for the kitchen equipment, exercise equipment and furniture for the project is $281,237.
The project will have additional items which will be provided by the City, to include: mulch trail, service yard with ABC/decorative stone, landscaping lighting (no path lighting), sod, irrigation, irrigation meter, irrigation sleeves, bioretention plantings, landscaping, entrance sign, parking lot lighting, road lighting, communication/data equipment, wiring, security system, Special Inspections, material testing, commissioning, dumpster screening, trash cans, dumpster, building permit, survey benchmark, (3) operating partitions and project management through the Construction Management Department. These costs are included in the contingency below.
Contingency is also used to cover unpredictable changes and unknown conditions. For the Senior Center West, it is recommended that a contingency of 10% of the construction cost (base bid plus accepted alternates of $5,971,530) be used to cover both the unknown and the owner provided items above. The cost of the Owner's Project Contingency is $597,200. The City Manager or his designee will approve all contingency changes/expenditures.
The cost to finish the project is $5,950,000 + $21,530 + $281,237 + $597,200 = $6,849,967. The current unspent project appropriation balance is $5,549,629, which results in an additional funding need of $1,300,338 with a 10% owner's project contingency. Any contingency not spent by the City would be reported to the City Manager and Council for reallocation.
The cost to finish the project (construction, owner provided equipment and furniture, owner provided items listed above with contingency) is $6,849,967 which calculates at $349 per square foot. Changing from the CMAR project delivery method to bidding out the project traditionally will save the City a substantial amount of approximately $2.0 M.
Issues/Analysis:
Delaying approval of additional funds for the construction of Senior Center West will create a delay to the project timeline and result in increased construction costs due to material and labor prices.
At the November 23, 2020 Council meeting, Council adopted Capital Project Ordinances to allocate/align the planned bond proceeds among the full complement of projects, as follows:
|
Bond Program Implementation |
345,000 |
|
Brentwood School Park |
100,000 |
|
Clark Park Improvements |
175,000 |
|
Mazarick Park Improvements |
50,000 |
|
Jordan Soccer Complex |
1,835,241 |
|
Seabrook Park Improvements (complete) |
85,538 |
|
D. Gilmore Therapeutic Rec |
400,000 |
|
Massey Hill Recreation Center (complete) |
352,940 |
|
Kiwanis Splash Pad (complete) |
428,087 |
|
Massey Hill Splash Pad (complete) |
428,125 |
|
Western Senior Center |
7,000,000 |
|
Downtown Skate Park (complete) |
981,766 |
|
Gilmore Rec Splash Pad (complete) |
335,902 |
|
Myers Rec Splash Pad (complete) |
427,281 |
|
Downtown Play Space/Plaza Fountain |
380,000 |
|
Senior/Wellness Feasibility Study (complete) |
55,800 |
|
Senior Center East |
6,197,900 |
|
McArthur Road Sports Field Complex |
3,677,663 |
|
Tennis Center |
6,000,000 |
|
Park Improvements East of the River* |
1,513,320 |
|
Cape Fear River Park |
3,681,153 |
|
Martin Luther King, Jr. Park Imps. |
100,000 |
|
Honeycutt Elementary Playground & Splash Pad |
450,000 |
|
Montclair Elementary Park Playground |
300,000 |
|
Lake Rim Elementary Splash Pad |
455,448 |
|
P&R Bond Fund Contingency |
131,736 |
|
Total. |
35,887,900 |
Note: Per Council action on November 23, 2020, appropriations for the Cape Fear River Park, Park Improvements East of the River, Lake Rim Elementary Splash Pad, and Parks and Recreation Bond Fund Contingency may not be implemented until further direction provided by Council.
Budget Impact:
As discussed above, the current capital project appropriation for this project as funded through the Parks & Recreation bond proceeds is $7.0 million. The additional funds needed total $1,300,338, bringing the total project budget to $8,300,338.
Options:
1. Staff’s initial recommendation to Council for reallocation of bond proceeds to provide the $1.3 M needed to complete Senior Center West is to reduce the funding allocated for the Cape Fear River Park. The remaining appropriation for the River Park would be reduced to $2,380,815.
2. Council may choose to reallocate funding from any of the other bond projects that are not currently underway, or may choose to appropriate additional funding sources received through bond premiums or investment income earned on bond funds received to date.
Recommended Action:
Staff recommends that Council provide direction to reallocate the needed funds for the construction of Senior Center West from the Cape Fear River Park Project. With consensus direction to do so, staff will prepare Capital Project Ordinance Amendments and actions for award of the construction contract for Council adoption at the January 25, 2021 regular meeting.
Attachments:
17-019 Fayetteville Senior Center West Certified Bid tab 2020-12-22.pdf
Cost Spreadsheet - 01052021 on Senior Center West Update