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Home My WebLink About03/17/1992, C-15 - PERFORMING ARTS CENTER DESIGN SERVICES �q� ��i►�Vl��j�� f MEETING DATE: ►iu�ui► u city o san tw s OBISPO 3-17- Z COUNCIL AGENDA REPORT ITEM NUMBERO../G PIFSTo: aJJ C3` Action ❑ FYI FROM: John Dunn, City Administrative Offic Prepared by: William C. Statler, Dir or of Finance o CDD DIX FN.DIR. ACAO RFMCMF SUBJECT: PERFORMING ARTS CENTER DESIGN SERVIC � � � potl&a D MCMT.TEAM ❑ Mr-DIR. CAO RECOMMENDATION �cr ADFILE ❑� DUL JeAk- 1. Approve disbursement of funds in the amount of$115,000 for design services for e Performing Arts Center which will enable the execution of a contract with Wamecke/DMJK the successor architect for this project. 2. Approve funding in the amount of $118,600 for remaining architectural services for this project, and authorize the CAO to approve progress payments as appropriate up to this limit. 3. Approve advancing up to $95,000 for Cal Poly's share of architectural services which will be subsequently reimbursed by them through an offsetting increase in their share of construction costs, and authorize the CAO to approve subsequent disbursements up to this limit. This is consistent with the cost sharing approach approved by the Council in April of 1991. DISCUSSION Background As the Council is aware, the recent history of the Performing Arts Center includes the bankruptcy of Arthur Erickson, the originally retained architect for this project. After extensive negotiations by a team composed of representatives from Cal Poly, the City, and i the Foundation for the Performing Arts Center, the firm of Warnecke/DMJM has been selected as the successor architect for this project. The key principal from the previous firm is now associated with Warnecke/DMJM, which will result in a high level of continuity in the design and management of this project. Financial Status Under the cost sharing formula of the Performing Arts Center agreement approved in November of 1989, Cal Poly is responsible for two-thirds of project costs with the City and the Foundation each responsible for one-sixth of project costs. Excluded from this cost sharing formula is the cost for classrooms, which is the sole responsibility of Cal Poly. Further, pursuant to an amendment to the agreement approved by Council in July of 1990, there is a cost ceiling on the State's share of the project of $15,643,000 which is adjusted by changes in the Engineering News Record (ENR) construction cost index. The City funded $450,000 in its 1987-89 Financial Plan (page E-14) for study and design costs related to this project. To date, $106,700 has been expended by the City for this project. RF.CrIIED 4pDp.m. 3192 CITY CLERK SAN LUIS 051SPO,CA ��►►��►�u►��Illllllllllui ��`�I city of San Luis OBISPO COUNCIL AGENDA REPORT However, in April of 1991, the Council authorized funding in the amount of $263,000 for working drawings. This included $88,000 for the City's one-sixth share as well as an advance for Cal Poly's share of design costs of $175,000. Cal Poly's share of design costs was to be reimbursed by them through an offsetting increase in their share of construction costs. Because of the subsequent bankruptcy of Arthur Erickson, these funds have never been disbursed. Key Issues There are three key issues associated with going forward with architectural services at this time: M Contract Execution. Before the California State University system (which is the lead agency in managing this project) will execute contract documents with Warnecke/DMJM, they are requiring $115,000 from both the City of San Luis Obispo and the Foundation. Because preliminary design services are included in this amount which the Council has not previously approved, Council authorization is required in order to process this disbursement. The Foundation has recently authorized their share and payment has been forwarded to Cal Poly. ■ Remaining Architectural Services. The original budget for architectural services was $1,361,000. Additionally, $170,000 was required for theatrical and accoustician consulting services. Due to the bankruptcy of Arthur Erickson combined with the need for redesign to keep the project within the State's cost ceiling, additional costs of approximately $247,000 will be incurred. Thus, the total cost for architectural services is expected to be $1,778,000. To date, approximately $665,000 has been expended for design related services. A summary of the remaining architectural costs for this project ($1,113,000) is provided in Attachment A. From the initial $1,361,000, this leaves $417,000 remaining to be funded. Based on negotiations between Cal Poly, the City, and the Foundation, it is recommended that total architectural costs be funded as follows: Formula Increment Sharing Sharing Total Cal Poly 9079400 1909000 190979400 City 226,800 1132500 340,300 Foundation 226.800 113,500340.300 TOTAL $1,361,000 $4179000 $1,778,000 As reflected above, cost sharing of the $417,000 increment is not based on the standard formula provided in the agreement, but rather, reflects the recommended sharing by the Steering Committee. ■ Advancing Cal Poly's Share. Although Cal Poly will contribute an additional $190,000 towards architectural services, their funds will not be available until their construction financing is approved, which is contingent upon approval by the State 0-/5-a, �►►►��n►ill�lilllll�i1° ��U City of San IDIS OBISp0 COUNCIL AGENDA REPORT Legislature and the Governor. Since this is now proposed to be a revenue bond project, voter approval will not be required for the State's share. Unanimous approval by the Education Sub-Committee of the Assembly Ways and Means Committee has recently been received, which is viewed as a major milestone in receiving funding for this project. Similar to the concept that the Council approved in April of 1991, it is recommended that the City advance one-half of Cal Poly's share ($95,000) with the other half funded by the Foundation. FISCAL IMPACT Sufficient resources are available to fund this request summarized as follows: Budget (1987-89 Financial Plan) $4509000 Architectural Services Disbursed to-date 106,700 Recommend for disbursement at this time 115,000 Remaining balance 118.600 Total City Share 340,300 Advance for Cal Poly 95,000 Balance Remaining 14 7 The next major step in this project will be the construction phase. If the State Legislature and the Governor approve revenue bond funding for the State's share of this project during the current legislative session as currently anticipated, construction can begin by February of 1993. As reflected in the 1991-93 Financial Plan (page E-12), it is anticipated that the City's share of construction costs (approximately $3.9 million) will be funded through long- term financing. ATTACHMENT A Summary of remaining architectural service costs PA\DESGNSRV.WP CALIFORNIA POLYTECHNIC STATE UNIVERSITY, SAN LUIS OBISPO PERFORMING ARTS CENTER PAYMENT SCHEDULE Attachment I. Preliminary Phases Ltunp Sum ($229, 942.00) Easic Services $ 170,758.00 Landscape 4,734.00 Theater 33, 880.00 Acoustica _ 2D4570.0 S 229, 942.00 Payment at end of Preliminary Phases S 229:942.00. Ii. Construction Development Phase Lump Sum ($883,076.00) . Basic $ 678,980.00 Landscape 11,046.00 Theater 120,120.00 Acoustical 72.930.00 $ 883,076.00 Payments at completion of 50% working Drawings t 282,564.00 at completion of 300% Working Drawings 282,584.00 at award of Construction Contract 521985.00 Construction Administration (♦ of completed Construction $ 264,923.00 jb10915I