HomeMy WebLinkAboutItem 11 - Authorization to Increase Funds for Palm-Nipomo Garage Project
Department Name: Public Works
Cost Center: 5002
For Agenda of: February 18, 2020
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager, Community Services
Prepared By: Richard Burde, Engineer III
SUBJECT: AUTHORIZATION TO INCREASE FUNDS FOR PALM-NIPOMO GARAGE
PROJECT, SPECIFICATION NO. 90435
RECOMMENDATION
1. Approve a contract amendment (Attachment A) with Watry Design, Inc. for the continued
design of the Palm-Nipomo Garage Project; and
2. Adopt a Resolution (Attachment B) which will appropriate $75,000 from the unappropriated
Parking Fund balance to fund a consultant firm to develop and implement a
Communication’s Plan prior to and throughout construction of the Project, and appropriate
an additional $250,000 from the unappropriated Parking Fund balance for final design
services with Watry to complete construction documents for the Project; and
3. Authorize the City Manager, or his/her designee, to approve future contract amendments for
the Project if within available and approved funding.
DISCUSSION
Background
On July 19, 2010, the City Council approved a contract with Watry Design Inc. (“Watry”) to
complete conceptual architectural design and environmental review services for the Palm-
Nipomo Garage Project (“Project”).
On February 5, 2019, the City Council approved a request to authorize the execution of a sole
source contract with Watry for final project design of the Project. The scope of this contract was
for the Architectural, Engineering, and Landscape services required to complete the Project’s
entitlements, as well as complete the Project’s necessary design work (Exhibit A of Attachment
A). The following is a list of services that were not originally included in Watry’s scope of
services from February 2019 proposal, but have either been performed as additional services
and/or need to be added in order to deliver a completed Project.
Additional Services (AS) Include (Exhibit B of Attachment A)
1. AS 01 – Extended scope for Geotechnical Investigations and Reporting: The original
proposal for geotechnical services was limited to the existing surface parking lot, which is
the area that the garage will be built. In order to fulfill the City’s obligation of providing a
finished lot to the SLO REP Theater per the Exclusive Negotiating Agreement, the
geotechnical services scope of work must be expanded to include the entire site.
Packet Page 95
Item 11
2. AS 02 – Additional Design and Architectural Review Committee Meeting – On August
19, 2019 City staff and the Project’s design team presented the Project to the Architectural
Review Committee (ARC). Due to the close proximity between the parking structure and the
proposed SLO REP Theatre, the two projects were presented together. This approach was
taken to illustrate the compatibility of the two structures on the same site. During the
presentation members of the ARC articulated concern regarding the two distinct architectural
styles existing in such close proximity and asked that additional renderings of the site be
produced to better illustrate design intent. On September 16, 2019, a second presentation was
given to the ARC which included several additional renderings produced by Watry. The
additional meeting and renderings are not included Watry’s base fee.
3. AS 03 - Liner Building Evaluation: In an effort to provide affordable housing in the
Downtown Core, the City would like to attract a private developer to construct and manage
the Liner Building to complement the proposed parking structure. Warty was asked to
provide conceptual sketches illustrating the site’s potential to accept a residential structure.
These sketches included elevations and floor plans, along with a code analysis addressing the
constructability of the structure. This information will be used further to determine the
economic feasibility of moving forward with a residential “Liner Building”. The additional
conceptual sketches were also not included in Watry’s base fee.
4. AS 04 - PG&E rerouting: PG&E currently has overhead power lines through Nipomo Street
on both sides of the street. In addition, several power poles are located on the Project site and
will need to be rerouted. They will also need to be relocated outside the proposed building
footprint and undergrounded along Nipomo Street. This additional service will fund Watry’s
and PG&E’s design service.
5. AS 05 - PV Structure and Panel Coordination: At the time Watry’s most recent scope of
work was approved, the desired photo voltaic (PV) coverage on the parking structure’s top
deck and the number of electric vehicle (EV) charging stations had not been confirmed. For
this reason, PV design was not included in the February 2019 proposal. This added service
will fulfill design requirements associated with the PV coverage and EV charging count that
was presented to the Planning Commission and City Council.
6. AS 06 - Site Preparation Plan Set: The parking structure is expected to be completed
approximately two years before the theater. The services associated with this task address the
preparation and coordination of the necessary temporary improvements between the time
when the parking structure becomes operational and before the SLO REP Theatre is
complete.
7. AS 07 – Planning Conditions and Site Phasing: Some of the Conditions of Approval
provided by the City will require additional work not originally included in Watry’s scope.
These items include the addition of pedestrian level lighting, pedestrian protection at
uncontrolled crosswalks, and enhanced landscaping and street furnishings.
Packet Page 96
Item 11
8. AS 08 – Design of Upper Deck Amenity Space: The Project’s description includes an
amenity space for gatherings on the top deck of the structure. This requires designing the top
deck of the structure to accommodate additional loading per building code as well as provide
American Disability Act (“ADA”) paths of travel to the amenity space.
Project Communication Efforts
The construction of the Project and disruption of the current parking trends in the area will
require a contract for dynamic communications to support the ongoing education of the public
and key stakeholders about the impacts of the Project and the alternative parking locations and
modes of travel to Downtown. Major construction projects produced by the City generally
include in the project communication plans: project schedule and status updates, alternative
modes of travel and available parking and access options, and construction updates. This
information can help reduce project related impacts to the community and the impacted area. To
date, no direct funds have been allocated to begin this work. Staff has used the City’s existing
on-call media consultant to help begin the process of creating a communication’s plan, but
implementation of the communication plan is outside the current on-call media consultant’s
scope of work. As such, staff is recommending that City Council approve an allocation of
$75,000 in unappropriated Parking Fund working capital to begin these services and to identify
through a request for proposal process the added consultant resource to perform this work.
Previous Council or Advisory Body Action
1. On December 9, 2009, City Council approved solicitation of request for proposals for the
Project as part of Specification No. 90435.
2. On July 19, 2010, after a full proposal review and approval process, Watry and the City
executed a design services contract pursuant to the specification.
3. On September 9, 2016, City Council approved a contract with Watry for the preparation
of an EIR for the Project and additional design services (Attachment C).
4. On July 17, 2018, the City Council adopted and certified the Environmental Impact
Report (EIR) for the Project.
5. On December 4, 2018, City Council authorized the Mayor to sign an Exclusive
Negotiating Agreement (ENA) with the SLO REP Theatre in a final form acceptable to
the City Attorney for long-term use of a portion of the Project site to construct and
operate a new theatre, based on parameters set forth by City Council.
6. On February 5, 2019, City Council authorized City Staff to execute a sole source contract
amendment with Watry to complete the preparation of construction documents for the
parking structure.
7. Initial Project designs and environmental review have been reviewed by various City
advisory bodies.
8. On November 12, 2019, City Council approved the Architectural Design of the new
parking garage.
Packet Page 97
Item 11
Policy Context
Per the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual,
Council approval is required for Consulting Services over $100,000. In addition, per policy page
255-2, Council approval is also required for amendments to existing agreement exceeding
$50,000.
Public Engagement
The Project has been the subject of years of public engagement including a public workshop,
numerous meetings with area stakeholders and property owners, and the Chamber and
Downtown SLO staff and others.
Most recently City Staff received project approval and authorization from City Council to
complete design of the Project on November 12, 2019.
CONCURRENCE
The Administration, Public Works, and Community Development Departments are all in support
of the recommendation to amend the existing contract with Watry and increase funds allocated to
complete design.
ENVIRONMENTAL REVIEW
Environmental review for the project is complete. A Final Environmental Impact Report (FEIR)
for the Project was approved and certified by the City Council on July 17, 2018 and furnished to
the State Clearinghouse. The additional services that design consultant will provide comply with
the Project as described in the FEIR.
FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: Parking Fund
– Unappropriated
Fund Balance
$325,000
$325,000
Total $1,798,950.00
Packet Page 98
Item 11
Staff is recommending that funding for this work be secured from the Parking Fund undesignated
fund balance. $75,000 is proposed to be used to fund a media consultant to inform the
community about current parking availability prior to and throughout the construction of the
Project. $250,000 is proposed to be used to fund additional design services. The total of these
Project needs is $325,000 and the Parking Fund undesignated fund balance currently has a
balance of approximately $15 million based on unaudited 2018-19 financials to support this
request of $325,000. The existing design service contract with Watry value is $1,473,950.00 and
the additional services requested by the City value is $191,949.50 bring the total value to
$1,665,899.50.
In order to support timely delivery of the project, Staff requests that Council authorize the City
Manager to execute future amendments, if required, and within available project funding.
Additionally, staff is also requesting that project contingency funding be provided that will allow
for project resources to address future unknown conditions or needs in the amount of $58,050.50.
ALTERNATIVES
City Council could choose not to authorize the contract amendment or increased funds required
to complete these additional tasks; however, this would restrict City Staff’s ability to deliver the
project as previously approved by City Council.
Attachments:
a - COUNCIL READING FILE - Amendment No. 1 to Agreement with Watry Design Inc.
b - Draft Resolution
c - COUNCIL READING FILE - Watry Design Inc. Agreement dated September 15, 2016
Design Services Cost Overview
Watry Design Contract
Current Cost $1,473,950.00
Additional Services $191,949.50
Design Contingencies $58,050.50
Design Services Total $1,723,950.00
Separate Media Contract
Media Consultant $75,000
Packet Page 99
Item 11
R _______
RESOLUTION NO. ________ (2020 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE PALM
– NIPOMO GARAGE PROJECT AND RELATED BUDGETARY
APPROPRIATIONS
WHEREAS, the City’s 2003-04 Financial and Capital Improvement Plan Supplement
designated $450,000 toward the Palm-Nipomo Garage project (“Project”); and
WHEREAS, the City’s 2006-07 Financial and Capital Improvement Plan Supplement
designated $1,200,000 toward the Palm-Nipomo Garage Project; and
WHEREAS, the approved 2017-19 Financial and Capital Improvement Plan designated
an additional $250,000 to the Project; and
WHEREAS, on February 5, 2019, the Council authorized City staff to execute a sole
source contract with Watry Design Inc. for final project design architectural and engineering
services for the Project in an amount not to exceed $1,473,950.00; and
WHEREAS, City staff has requested additional services from Watry Design Inc.
increasing design costs by $191,949.50; and
WHEREAS, City staff are also seeking $75,000 for a media consultant to develop and
implement a public outreach campaign aimed at mitigating the construction impacts to downtown
residents and businesses; and
WHEREAS, City staff are also seeking an additional 58,050.50 in funds to restore Project
contingency; and
WHEREAS, City staff is requesting $325,000 for the following: (1) additional services
from Watry Design Inc., (2) retaining a media consultant and (3) restoring the Project’s
contingency; and
WHEREAS, City staff identified the Parking Fund’s Unappropriated Working Capital to
fund the requested funds increase; and
WHEREAS, the Project is a high priority project, warranting the use of funding from the
Unappropriated Working Capital to fund the requested increase; and
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
Packet Page 100
Item 11
Resolution No. ______ (2020 Series) Page 2
R _______
SECTION 1. The budget increase of $325,000 will be transferred from the Parking Fund’s
Unappropriated Working Capital to the Project.
Upon motion of ___________________, seconded by _______________________, and
on the following roll call vote:
AYES:
NOTE:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ____________ day of __________________________, 2020.
____________________________________
Teresa Purrington
City Clerk
Packet Page 101
Item 11
Page intentionally left
blank.
Packet Page 102
Item 11