TO: Mayor and Members of City Council
THRU: Kristoff Bauer, Deputy City Manager
FROM: Michael Gibson, Parks, Recreation and Maintenance Director
Tracey Broyles, Budget and Evaluation Director
DATE: June 25, 2018
RE:
Title
Contract with Metcon for Western Senior Center Construction and Adoption of Capital Project Ordinance Amendment 2018-70
end
COUNCIL DISTRICT(S):
Council District(s)
District 7
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
The construction contract with Metcon to construct the Senior Center West project supported by Park Bonds is ready for Council consideration.
Council is asked to adopt Capital Project Ordinance Amendment 2018-70 to appropriate an additional $2,000,000 of general obligation bond proceeds for the Western Senior Center project.
Background:
The City entered into a contract with HH Architecture in July 2017 to design the Senior Center West. Metcon, the recommended Construction Manager at Risk (“CM@R”), firm was added to the design team in December 2017 through a “pre-construction” contract executed at that time. That contract is included as an exhibit to the proposed contract and provides for design consultation and cost estimation services.
HH Architecture and Metcon were both selected through a qualifications based selection processes. Metcon’s response to the City’s RFQ is attached for reference.
The Council reviewed and approved the proposed Schematic Design (“SD”) for the Senior Center West during the Work Session on May 7, 2018. It was discussed at that time that the total development cost of the design presented was estimated at just under $7 million. The Council’s Park Bond Subcommittee recommended the proposed SD and the increased funding. Draft revisions to the funding plan for Park Bond projects were also on the Council’s May 7 agenda for discussion, but that item was tabled.
Issues/Analysis:
The attached proposed CM@R contract with Metcon is a refined version of that executed with Barton Malow for the construction of the stadium project. There is a memorandum on the proposed contract attached that describes the organization of that contract and key terms.
As with that previous contract, this contract sets a construction cost target of $5.5 mil. The actual cost will be established through future Guaranteed Maximum Price (“GMP”) amendments based on public bidding processes conducted consistent with state law. Each GMP amendment will come back to Council for approval. The current budget is based on a cost estimate developed by Metcon based on the preliminary design information developed during the SD process.
The $1.5 million difference between the $5.5 million for construction and the total estimate of just under $7 million consists of design, engineering, equipment, special inspections and other costs often referred to as “soft costs.”
While Council approved the SD and is being asked to confirm the additional funding allocation, Council also made it clear that efforts to reduce the cost of the project should be ongoing. The design team and Metcon will continue to develop value engineering options as site conditions and design elements are clarified.
Budget Impact:
On February 27, 2017, Council appropriated $620,000 for design services for the Western Senior Center project. On August 14, 2017, Council appropriated $4,380,000 for estimated construction costs. At this time, estimated total project costs have increased to a total of $7,000,000, requiring an additional appropriation of $2,000,000. The full costs of the project are to be funded through the Parks and Recreation General Obligation bond issuance.
The City is authorized to issue up to $35,000,000 in general obligation bonds for Parks and Recreation. With this and other changes to the initial spending plan for these projects, the capital funding plan does need to be updated. Staff has presented a revised draft plan to the Council’s Parks & Recreation Subcommittee. The feedback of that Committee is being incorporated into that draft so that a revised capital funding plan can be developed.
Options:
Adopt Capital Project Ordinance Amendment 2018-70 and authorize the City Manager to execute the proposed contract with Metcon to construct the Senior Center West project.
Do not adopt Capital Project Ordinance Amendment 2018-70 or authorize the City Manager to execute the proposed contract with Metcon to construct the Senior Center West project and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt Capital Project Ordinance Amendment 2018-70 as presented and authorize the City Manager to execute the proposed contract with Metcon to construct the Senior Center West project
Attachments:
Metcon RFQ Response
Contract with Metcon for the construction of Senior Center West project
Capital Project Ordinance Amendment 2018-70