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HomeMy WebLinkAbout09/04/1990, C-7 - ASBESTOS ABATEMENT CONTRACT FOR THE RECREATION CENTER REHABILITATION MEETING DATE: jIIIIIII city Of San LUIS OBISPO - 9-4-90 COUNCIL AGENDA REPORT �EM NUMBER: FROM: J' St Recreation & Parks Prepared by: Kathy Koop SUBJECT: Asbe s Abatement Contract for the Recreation Center Rehabilitation CAO RECOMMENDATION: By motion, authorize the CAO to execute a contract with REMTECH Restoration Corporation in the amount of $58,000.00, (fifty-eight thousand dollars), for the abatement of asbestos at the Recreation Center. DISCUSSION: In April of 1990 staff received City Council approval to proceed with the comprehensive rehabilitation of the San Luis Obispo Recreation Center. It had previously been determined that asbestos was present in the building and abatement of the asbestos was a necessary part of the rehabilitation project. With approval of the comprehensive rehabilitation, staff prepared and advertised a Request.for Proposal for complete asbestos abatement of the Center. At the closing date for submittal of RFPs, July 27, 1990, five (5) proposals were received and logged by the office of the City Clerk. As prescribed by City Purchasing Policy, the firms submitting proposals were interviewed to develop a priority list for negotiating a contract to perform the work. Interviews were held on August 3, 1990 and the following priority list of firms was developed from their responses during the interview and from review of their submittals to the Request For Proposal. 1. REMTECH Restoration Corp. 2. Precision Works Inc, 3. APC Contractors, Inc. 4. Walsh & Sons 5. Scientific.Asbestos Control Staff began negotiations with the firm listed No. 1 on the priority list, REMTECH Restoration Corp. Negotiations were concluded on August 17, 1990, and the tentative agreement is hereto attached. It was the finding of the negotiation panel that the proposed agreement was fair and equitable to both the City and the proposed asbestos abatement firm, and therefore, the negotiation process was ended. Staff recommends the approval of the agreement with REMTECH Restoration Corp. to perform services as indicated for the asbestos abatement at the Recreation Center. a - Al City of san tins oBIspo MaGe COUNCIL AGENDA REPORT CONCURRENCES: The Recreation Center Rehabilitation project has been reviewed and approved by the Departments of Public Works, Finance and Fire as well as receiving the endorsement of the Parks and Recreation Commission. FISCAL IMPACT: At the City Council meeting of April 11, 1990, Council approved to fund the Recreation Center Rehabilitation by a combination of Park-In-Lieu Fees and Debt Financing. This along with the State Grant of $296,000 will be used to finance the entire Rehabilitation Project. The negotiated amount of $58,000 for asbestos abatement is below the April 11, 1990 engineers estimate of $65,000. ATTACHMENTS A. Form of Agreement B. Unit Prices C. Proposal (Available for review in Council Office) D. Staff Report of April 11, 1990 i ` ATTACHMENT "A" CITY OF SAN LUIS OBISPO. CALIFORNIA FORM OF AGREEMENT THIS AGREEMENT, made on this 4 day of September , 19 90 by and between the City of San Luiika�M San Luis Obispo County, California, hereinafter called the Owner, and hereinafter called the Contractor. WITNESSETH: That the Owner and the Contractor for the consideration stated herein agree as follows: ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of in strict accordance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated. It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives. ARTICLE II, CONTRACT PRICE: The owner shall pay the Contractor as full consideration for the faithful performance of this Contract, subject toany additions or deductions as provided in the Contract Documents, the contract prices as follows: Approximate Items with Unit Price Written Unit Total Item Ouantity in Words - Price (in Figures) Asbestos Abatement Asbestos Abatement of San Fifty-eight $589000. Luis Obispo Recreation thousand Center as described in dollars e attached proposal The following unit prices shall apply to any additional asbestos containing materials not identified in REMTECH's proposal. Transite Ceiling Panels Three dollars $3.50/. and fifty cents SQ/FT per square foot Pipe Insulation Twelve dollars $1.2.00/ per square foot SQ/FT wf 1 C'A Item Approximate Items with Unit Price Written Unit Price Tot-1 Quantity in Words J HVAC Vibration Collar One hundred $100/ea dollars per each HVAC Duct Insulation Ten dollars $10.00/ per square SQ. FT foot Contaminated Dirt Two dollars $2.00 per square foot II �i .,- payments are to be made to the Contractor in accordance with and subject' to the provisions embodied in the documents made a part of this Contract: Should any dispute arise respecting the true value of any work omitted or of any extra work which the Contractor may be required to do, or respecting the size of any payment to the Contractor, during the performance of this Contract, said dispute shall be decided by the Contractor.- its decision shall be final, and ' conclusive. ARTICLE III. COMPONENT PARTS OF THIS CONTRACT: The , Contract consists of the following documents, all of which are fully a part thereof as if herein set out in full, if not attached, as if hereto attached. 1. Notice to Contractors. 2. Proposal requirements and information for bidders. 3. General conditions, specifications and Special Provisions. 4. Accepted Proposal. 5. Plans. 6. A6_eement and Bonds �. ARTICLE Iv. It is further expressly agreed by and between the parties hereto that should there be any conflict between the. terms of this instrument and the bid or psoposal of said Contractor, then this instrument shall 'control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written. r CITY OF SAN LUIS OBISPO 1 ' MAYOR CONTRACTOR ATTEST: CITY CLERK . g i SECTION 1. PROPOSAL REOUIREMENTS AND AWARD OF CONTRACT J City may request any and all information it deems appropriate from an apparent low bidder in order to determine whether or not the bidder is competent and responsible, and it shall be the duty of said bidder to respond 'to all such inquiries in a full, frank and timely manner. R. Award of Contract. The City of San Luis Obispo reserves the right to reject any and all proposals. The award of the contract, if it is awarded, will be to the lowest responsible bidder whose proposal complies with the requirements prescribed. Such award, if made, will be made within thirty (30) days after the opening of the proposals. / L. Contract Bonds. The contractor shall furnish two (2) good and sufficient bonds to the City of San Luis Obispo, California. One (1) bond shall be in the amount equal to fifty percent (50%) of the total contract price for payment of claims for labor and other materials, and the other bond in the amount equal ,to one hundred percent (100%) of the total contract price for faithful performance. M. Execution of Contract. The Contract shall be signed by the successful bidder and returned, together with the contract bonds and proof of insurance coverage, within ten (10) days, not including Sundays: or legal holidays, after the bidder has received notice that the Contract has been awarded. No proposal shall be considered binding upon the City until the execution of the Contract. N. Failure to Execute the Contract. The failure of the successful bidder to execute the contract and file acceptable contract bonds and the proof of insurance coverage within ten (10) days, not including Sundays and legal holidays, after the bidder has received notice that the Contract has been awarded to him shall be just cause for the annulment of the award and the forfeiture of the. proposal guaranty. O. Withholding of Bidderts security. The bidder's security of the second and third lowest responsible bidders may be withheld until the contract has been finally executed. The cash, cashier's checks and certified checks submitted by all other ,unsuccessful bidders shall be returned to them within 10 days after the contract is awarded, and their bidders' bonds shall be of no further effect. 1-3 cell-7'6 SECTION 2. SCOPE OF WORK i A. General Scope. The scope of the work shall conform to the I applicable provisions of Section 4 of the Standard Specifications and as hereinafter specified. The work to be done, in general, consists Of furnishing all labor, materials, tools, equipment, processes, and incidentals unless otherwise specified, to construct and complete the contract in a satisfactory and workmanlike manner. B Specifications. The work embraced herein shall be done in I accordance with the appropriate provisions of the construction details of the Standard Specifications entitled, "State of California, Business and Transportation Agency, Department of I Transportation Standard Specifications, January 1988, " insofar as the same may apply, which specifications are hereinafter referred to as the Standard Specifications, and ' in accordance with the following special provisions. I Whenever in the Standard Specifications the following terms are used, they shall be understood to mean and refer to the following: I DEPARTMENT OF TRANSPORTATION, DEPARTMENT, STATE: Shall mean City of San Luis Obispo. I STATE ENGINEER, ENGINEER: Shall mean the City Engineer of the City of San Luis Obispo, acting either directly or through properly authorized agents, such agents acting within the scope I of the particular duties entrusted to them. TRANSPORTATION LABORATORY, LABORATORY: The designated I laboratory authorized by the City of San Luis Obispo to test materials and work involved in this contract. CONTRACTOR: The person or persons., copartnership, or I corporation, who have entered into a contract with the City of San Luis Obispo, as a party or parties of the second part or his or their legal representatives. I HIGHWAY: Shall refer to City street. STANDARD SPECIFICATIONS: Shall mean the "Standard I Specifications" of the State of California, Department of. Transportation, January 1988, as covered in the first paragraph of this item (B. Specifications) . Whenever in these specifications the above terms are used they shall have the same meanings as described above and whenever the I following terms are used, they shall be understood to mean and refer to the following: OWNER: Shall mean the City of San Luis Obispo. I 2-1 Rev. 1/88 I C-"7-7 SECTION S. LEGAL RELATIONS AND RESPONSIBILITIES TO THE PUBLIC Contractor's Insurance: The Contractor shall not commence work under this contract until he shall have obtained all insurance required under this Section and such insurance shall have been approved by the City as to form, amount and carrier, nor shall Contractor . allow any subcontractor to commence work on his subcontract until similar insurance required of the subcontractor shall have been so obtained and approved. (a) Compensation. Insurance: The Contractorshall take out and maintain, during the life of this contract, worker's compen- sation insurance for all his employees employed at the site of improvement, and in case any, work is sublet, Contractor shall require subcontractor similarly to provide worker's compensation insurance for all of the latter's employees, I unless such employees are covered by the protection afforded by Contractor. Contractor indemnifies City for any damage resulting to it from failure of either the Contractor or the subcontractor to take out or maintain such insurance. (b) Public Liability and Property Damage Insurance:. The Contractor shall take out and maintain during the life of this Contract, such public liability and property damage insurance as shall. protect the City, its elective and appointive boards, officers, agents, and employees, Contractor and any A subcontractor performing work covered by this Contract from r claims for damage for personal injury including death, as well as from claims for property damage which may arise from Con .ractor's or subcontractor's operations under this con* ract, whether such operations be by the Contractor, or by any subcontractor, or by anyone directly or indirectly employed by either Contractor or subcontractor, and the minimum amounts of such insurance shall be as follows: 1. Bodily Injury Liability , $500,000. 00 $1,000,000. 00 I each person each occurrence Property Damage Liability . . . $250, 000. 00 $ 500,000. 00 each person each occurrence 2 . A single limit for Bodily Injury Liability and Property Damage $500,000. 00 $ 5001000. 00 Liability combined of . . . . . each occurrence aggregate PROOF OF CARRIAGE OF INSURANCE: CONTRACTOR SHALL FURNISH THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CONCURRENTLY WITH THE EXECUTION HEREOF, WITH A CERTIFICATE OF INSURANCE REQUIRED, WHICH SHALL CONTAIN THE FOLLOWING: 5-11 r • r, r SECTION S. LEGAL RELATIONS AND RESPONSIBILITIES TO THE PUBLIC.. F-.F. Indemnification and Hold .Harmless Agreement. The Contractor agrees to defend, indemnify, protect and hold City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise. from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that. Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. i 1 I 1 1 5-10 '. C lopq SECTION S. LEGAL RELATIONS AND RESPONSIBILITIES TO THE PUBLIC. "NAME AS ADDITIONAL INSURED PARTIES: THE CITY OF SAN LUIS OBISPO, ITS ELECTIVE AND APPOINTIVE BOARDS, OFFICERS, AGENTS AND ANY SUBCONTRACTORS IN THE PERFORMANCE OF WORK FOR THE CITY OF SAN LUIS OBISPO. " THIRTY (30) DAYS PRIOR NOTICE SHALL BE GIVEN TO THE CITY OF SAN LUIS OBISPO OF ANY REDUCTION IN INSURANCE OR OF CANCELLATION OF INSURANCE. i i i i i i i i i 5-12 i C-7-1c CSECTION 6. PROSECUTION AND PROGRESS. 11 A. Subcontracting. Attention is directed to the Provisions of ' Section 8-1. 01, Subcontracting, of the Standard Specifications and these Special Provisions. t The Contractor shall give his personal attention to the fulfillment of the contract and shall keep the work under his control. i�No subcontractor will be recognized as such, and all persons ' engaged in the work of construction will be considered as employees of the Contractor and he will be held responsible for their work, which s',all be subject to the provisions of the contract and specifier tions. When a portion of the work which has been subcontracted by the it Contractrr is not being prosecuted in a manner satisfactory to the City Eng:.neer, the subcontractor shall be removed immediately on the request of the Engineer and shall not again be employed on the !I work. B. Ass-_ynment. The performance of the Contract may not be j assigned, except upon the consent of the. City of San Luis Obispo. i Consent will not be given to any proposed assignment which would U relieve theoriginal Contractor or his surety of their responsibilities under the Contract nor will the City consent to any assignment of a part of the work under the contract. The Cor ractor may assign monies due or to become due him under the =or. _act and sach assignment will be recognized by the City if given F _ oper notice thereof, to the extent permitted by law, but any ass -. 3nment of monies shall be subject to all proper set-offs in favor of the City of San Luis obispo and to all deductions 1 provided for in the Contract and particularly all money withheld, whether assigned or not, shall be subject to being used by the City for the completion of the work in the event that the Contractor should be in default therein. C. Beginning of Work. The Contractor shall begin work within 15 days from the date of the notice to proceed, and shall diligently prosecute the same to completion within the time limit provided in the special provisions. The date of execution of the Contract shall be the date that the last signature, eitner the Contractor's or the person authorized to sign for the City, is placed on the Contract. Should the Contractor begin. work in advance of the contract being fully executed, any work performed by him in advance of the said �. ate of execution of contract shall be considered as having been done at his own risk and as volunteer unless said Contract has been fully executed. —7• It I j PROPOSAL REQUIREMENTS AND AWARD OF CONTRACT Contract Bonds. The contractor shall furnish two (2) good and sufficient bonds to the City of San Luis Obispo, California within ten (10) days of contract approval. One .W bond shall be in the amount equal to fifty percent (50%) of the total contract price for payment of claims for labor and other materials. and the other bond in the amount equal to one hundred percent (100%0 of the total contract price for faithful performance. 1 ATTACHMENT R(MTECH Restoration Corporation I. UNIT PRICES FOR ACM REMOVAL & DISPOSAL The following unit prices shall apply to any additional asbestos containing materials not previously identified in REMTECH's proposal. 1. Transite Ceiling Panels $3.50/SF 2. Pipe Insualtion $12.00/LF 3. HVAC Vibration Collar $100.00/each 4 HVAC Duct Insualtion $10.00/SF 5. Contaminated Dirt $2.00/Lb. II. EMERGENCY RESPONSE REMTECH shall mobilize a mimiinum of two (2) men within 24 hours for any emergency during renovations. C C` 4060 Palm St., Suite 602 • Fullerton, CA 9263,5 Phone 714.680-3077 • FAX 714680-3472 License No. 585674 ATTt1C['.1,1N1T "D11 MEETING DATE: i�lh�► �ileil!up�ili��ll'!I city of San tuts OBISPO 0028 COUNCIL AGENDA REPORT ITEM NUMBER: FROM: _Jim Stockton, Recreation & Parks Director BY: Kathy Koop SUBJECT: Recreation Center Rehabilitation CAO RECOMMENDATION: Receive a report from staff and the project architects, West and Doubledee and authorize staff to proceed on the comprehensive rehabilitation of the San Luis Obispo Recreation Center at an estimated cost of $973,900. OVERVIEW: The San Luis Obispo Recreation Center is the city's only multi- use indoor recreational facility. Due to the failing systems of the aging building, meeting program demands has .become increasingly difficult and in some cases impossible to accomplish. Realizing this, staff applied for and received grant funding from the State of California. Continued inspection has revealed that the level of rehabilitation necessary to return the building to a state of usefulness exceeds the original project budget. In an attempt to retain the functionality of the building, and in light of the decision to postpone the community/senior center master plan study, staff with the assistance of the project architects have proposed several options. These are: 1. Comprehensive Rehabilitation 2 . Do Nothing 3. Phased Comprehensive Rehabilitation I 4. Demolish and Rebuild I 5. Partial Demolition 6. Commercial Exchange Project architects from the firm of West and Doubledee will provide a detailed presentation of these alternatives during the April 4, 1990 Council meeting. BACKGROUND: In mid 1986 a grant was received for the rehabilitation of the Santa Rosa Street Recreation Center. After receiving notification of the grant award, staff prepared and distributed Request For Proposals to provide architectural design and interviewed prospective architecture firms. . A contract was awarded to West and Doubledee for design services in Spring, 1987. i C74 I I A 1 city of san tins osIspo MaGe COUNCIL AGENDA REPORT a epo Page 2 It was the intent of staff and the architects to provide a durable, low maintenance facility that was cost effective to rehabilitate. With this in mind, the architects completed a first set of design plans in late 1987 and submitted them for initial review. The first architectural proposal called for a stucco exterior with metal doors and windows to withstand the usage associated with a recreation center and in addition make it easy to maintain. When the proposal reached the Cultural Heritage Committee and Architectural Review Commission, it was determined that even though the building was not on the list of historical properties, the facility was of historical significance as it is one of the last remaining examples of buildings constructed during World War II for use as a USO center. This determination necessitated a redesign of the exterior to include a more costly wood siding and wood window trim that would recall the original appearance of the building. The project was resubmitted for review to the Architectural Review Commission: In April of 1988 staff was notified by the Project Planner who interpreted the ARC's recommendation, that in addition to making the exterior alterations, a parking and landscape plan would be required before a building permit would be issued. Originally no parking alteration or landscape plan was required because the project was considered a rehabilitation and the existing foot print of the facility was not disturbed. In fullfilling this requirement, staff solicited bids for a landscape architect firm to develop plans and specifications to complete a parking and landscape plan. A more inclusive inspection of the building revealed the presence of extensiveamounts of asbestos. Rehabilitation would disturb the asbestos laden areas and this necessitated asbestos abatement prior to start of project. Aside from contributing to time delays these items additionally escalated the rehabilitation costs. In addition to the asbestos abatement costs, the building has experienced further deterioration rendering major systems and portions of the facility disfunctional. What began as a project with a budget of $373,000, and an initial project estimate of $450,000 is now estimated at a project cost of. $973,900. Realizing that this cost approaches that of new construction staff has intensively investigated alternatives and is providing several options for council review. Outlined below are several options for Council's consideration. These options will be presented in detail by the project architect during the council meeting of April 4, 1990. city of sa. Luis OBISPO COUNCIL AGENDA REPORT Staff Report - Page 3 REHABILITATION OPTIONS: 1. COMPREHENSIVE REHABILITATION: This option addresses the safety, health, structural and aesthetic deficiencies of the building. The scope of this option includes the project, for which the construction documents are already completed and meets details requested by the Cultural Heritage Committee and Architectural Review Commission. The project includes: asbestos abatement, re-roofing; replacement/repair of all exterior materials; replacement of doors and windows; partial reorganization of interior spaces; replacement of electrical, lighting, and mechanical systems; structural stabilization, landscaping and parking reorganization. Cost of the project is approximately $97.3,900 which includes contingencies, landscaping, asbestos abatement, fire sprinklers/alarm system and all conditions. For reasons detailed later in this report, staff recommends this option. In summary, while requiring a substantial investment, this alternative resolves all safety, weatherproofing and system issues as well as addresses many aesthetic and functional issues. Selection of this option requires a long-term commitment to use of this existing facility configuration, organization and location. 2. DO NOTHING: Adoption of this alternative would result in closing the Recreation Center and leaving no long term recreational facilities available to the community. The architect lists the following deficiencies with the facility as it exists presently: asbestos in heating and plumbing; antiquated electrical distribution system; antiquated and inoperative heating and hot water system; inadequate sewer and plumbing systems; major weatherproofing deficiencies, including leaking roof and failing exterior finishes; nonexistant fire alarm system; inadequate fire exit pathways; and limited handicap access. Closing the Recreation Center would greatly reduce the Recreation Department's ability to meet this community's diverse recreational needs. Thus, this option is not recommended. 3. PHASED COMPREHENSIVE REHABILITATION: Adoption of this alternative would restrict renovation to minimum items required in order to maintain use for 5 - 6 years. The amount of work required to meet this criteria could vary considerably, depending upon the level of activity to be maintained and the permanence of renovations instituted. Building modifications would consist of improvements that would provide an improved facility that would meet minimum health, safety and aesthetic requirements_ The first phase would accomplish minimum weatherproofing and safety �( � city Of sal a-GUIs OBISPO COUNCIL AGENDA REPORT Staff Report Page 4 measures required to allow continued use of facility. Again, this is a patching up of those items in the facility that are in disrepair. It would extend to include some painting, patching and caulking for the purpose of weatherizing the facility. Some work would be done on the existing electrical system with a general attempt being made to improve the existing systems of the building but not include any new systems. The cost of this alternative approaches $650,000 and includes asbestos abatement, landscaping and sprinkling for fire suppression. This option does not provide permanent solutions for existing facility deficiencies, does not address significant aesthetic or functional issues and may increase long term costs of facility operation. In light of the successful completion of the Senior Citizens Center rehabilitation, it is important to keep in mind the unanticipated expenses that may be encountered as a part of this rehabilitation project and allow for contingency costs. That is included in the above cost estimate. Staff does not select this as a recommended. option as it does not address historical renovation requirements. Additionally it provides a limited life expectancy and useability of the facility. Experience in this and other communities indicates that partial rehabilitation of older structures presents many problems and is not a workable solution. 4. DEMOLISH AND REBUILD: The existing facility is 14,000 square feet. Complete demolition and construction of a new facility could yield a recreation facility of 14,000 to 26,000 square feet constructed over a 350 space parking garage. This option is mentioned conceptually and has not been researched_ in depth. Approximate cost of a 14,000 sq. ft. facility is $1,400,000 to $1,650, 000. Approximate costs for a 26,000 sq. ft. facility is $2,600, 000 to $3,200,000. This alternative requires a large capital expenditure and would waive the historical significance of this facility. Additionally staff would have to rewrite the existing grant and submit it to review by the State of California which may result in the loss of the $296,000 grant funding already received by the City. However, when completed, the new facility might better address existing recreational needs and long term goals for the downtown. 5. PARTIAL DEMOLITION: The gymnasium is the most redeeming feature of the facility. This option would provide for demolition of all of the facility except the gymnasium and reconstruction of the adjacent building. = city of sa_^ lugs osIspo • COUNCIL AGENDA REPORT Staff Report Page 5 The architect's preliminary review indicates that a balance could be achieved between parking and useable recreational space and still retain the quality of the existing gymnasium floor which is the most desirable aspect of the .existing building. The operation of the facility would be greatly reduced due to the space required in order to accommodate parking. Approximate costs for this alternative would fall between options 1 and 3, ($650,000 and $973,900) . Disadvantages of this alternative include the large capital expenditure in relation to the net useable space achieved. Planning restrictions caused by attempting to retain the gymnasium may limit planning flexibility and facility size. 6. COMMERCIAL EXCHANGE: Several inquiries from private businesses have been received by the Recreation Department for the purchase of the facility, with some form of rehabilitation and continued use by the City. Staff has received a preliminary proposal for the rehabilitation/lease of the Recreation Center and will work to acquire a formal proposal for Council review, if Council is interested in this kind of public/private approach to the project. The staff believes it is inappropriate to consider the sale of this property for commercial purposes and believes that rehabilitation of the building under private sponsorship raises more issues than it solves. RECOMMENDED OPTION: In the absence of a community center master plan study to identify alternative recreation center sites, it is assumed that the current location, size and configuration of the existing facility is the best available option for a recreational center. Additionally, considering the failing status of the existing center and the community's demand for and extensive use of the existing facility, the comprehensive rehabilitation option is recommended. Failure to perform any rehabilitation on the facility would negate the Recreation Department's ability to .meet the community's diverse recreational needs. Most of the youth, teen, adult and many senior activities would be discontinued as alternate facilities for these programs are not available for use on a long term basis. Community feedback as well as staff and architect review indicate the Recreation Center is in a state of failing condition. The architect lists the following deficiencies with the facility as it presently exists: extensive asbestos in heating and plumbing, antiquated electrical systems, inadequate sewer, plumbing and handicap access, failing weatherproofing systems including a 'I aFAI city O� Say.. �uIs OBISPO COUNCIL AGENDA REPORT Staff Report Page 6 leaking roof and failing doors, windows and exterior surfaces and inadequate fire suppression system. One room is presently closed to use because of asbestos contamination, the heater/boiler system is inoperative and heat is being supplied through the use of space heaters. Security is nearly impossible because of inadequate and failing doors and windows. While requiring a substantial investment this alternative resolves all safety, weatherproofing and system issues as well as addressess all historical, aesthetic and most functional issues. Selection of this option requires a long-term commitment to use of this existing recreation facility. Finally, it should be noted that staff worked for a considerable period of time with the project architect to develop a less costly alternative to a full scale rehabilitation. In the end, staff and the architect believe that an attempted "piecemeal" approach is likely to escalate in cost as the work proceeds, and when completed, the project may prove a disappointment to the City and to our recreation program users. FISCAL IMPACT: Under the contract with the architectural firm of West & Doubledee approved by the Council on April 7, 1987, $80,600 has been committed for this project to-date for schematic design, design development, and construction documents. Based on project concept changes since this contract was originally executed, an additional $3800 in consultant service costs have been incurred. As detailed in the Architect's Estimate (Attachment A) , the projected construction cost for the Comprehensive Rehabilitation Option is $973,900 summarized as follows: Construction Remodeling $ 7188800 Contingencies @ 15$ 107,800 Total Architect's Estimate 826,600 Bidding assistance and project administration 27,300 Acquisitions (equipment and furnishings) 25,000 Asbestos abatement 65,000 Landscaping 30.000 TOTAL PROJECT COST - CONSTRUCTION PHASE $ 973,900 city or sar-.-Luis oBispo - M=I=ZV COUNCIL. AGENDA REPORT Staff Report Page 7 Grant funding in the amount of $296,000 has been awarded from the State of California for this project. Under the terms of the grant agreement executed on April 9, 1986, 80% of these funds ($236,800) will be distributed to,the City upon award of contract, and the balance ($59,200) will be allocated upon completion of the project. Significant progress on this project (such as bid award) must be demonstrated by June 30, 1990 in order to retain the City's eligibility for this funding although an extension can be requested. The 1987-89 Financial Plan (page E-10) designated $373,000 for the construction phase of this project, with $257,000 to be funded from grant sources and the balance ($116,000) to be funded from park-in-lieu fees. As discussed above, the Architect's Estimate is significantly greater (by $600,900) than original budget estimates, which is partially offset by an increase of $39,000 in grant funding. Three alternatives have been identified in funding the additional $561,900 in City resources required to finance the Comprehensive Rehabilitation Option: Park-In-Lieu Fees At the end of Fiscal Year 1990-91, the 1989-91 Financial Plan reflects an ending fund balance for park-in-lieu fees of $828,400 (page G-9) . As indicated above, park-in-lieu fees are currently the designated funding source for the City's share ($116,000) of this project. Accordingly, it might be appropriate to fund the remaining balance required ($561,900) from this source. However, this approach would significantly deplete the accumulated resources available for neighborhood park improvements, resulting in a revised projected ending fund balance of $266,500 at the end of Fiscal 1990-91. Debt Financing - Capital Outlay Fund This project meets all of the criteria established in the 1989- 91 Financial Plan (pages B-7 and B-8) for the use of debt financing in meeting the City's capital improvement needs. At the $561,900 level, annual net debt service over 25 years would be approximately $60,000, which compares favorably with any rental or leaseback alternatives. The primary concern with this approach is whether the debt service period (25 years) is greater than the remaining useful life of the facility in either programming or structural terms. Combined Park-In-Lieu Fees and Debt Financing Under this alternative, the City's total share of the project, ($677,900) would be funded evenly from park-in-lieu fees and debt financing. This option continues the commitment to use park-in- lieu fees for this project ($3381900) compared with original city Of sa• IM S OBISPO ffftMa COUNCIL AGENDA REPORT Staff Report C Page 8 Financial Plan designations of $116,000 but at a level which retains adequate resources ($605,000) for future neighborhood park improvements. With this option, net annual debt service to be supported through the Capital Outlay Fund would be reduced to $35,000; or the annual debt service requirement indicated above could be retained at $60,000, and the term reduced to ten years to better match the "program life" of this facility. Any of these alternatives adequately meet the funding needs for this project as well as the City's overall financing policies and capabilities. At this time, staff recommends the Combined Park- In-Lieu and Debt Financing alternative as the most balanced method of funding this project. NEXT STEP: . With Council approval of the recommended option and financial plan at the April 4 meeting, the next step in the Recreation Center rehabilitation project will be to review the already completed plans and bid specification package. Additionally the department of Finance will begin compiling -the package for debt financing. Due to the City's positive cash flow at this time completion of the debt financing process is not necessary prior to beginning project construction. The project will then return to Council at the May 1, 1990 for approval to advertise to bid. CONCURRENCES: This document has been reviewed by the Department of Finance, Fire, Public Works, Community Development and the comments of these departments have been considered in the development of this report. The City's Building Official concurs that a partial rehabilitation approach will not be cost effective or desirable. The Parks & Recreation Commission has received regular reports on the project and concurs with the recommended action. ATTACHMENTS: Attachment A: Cover letter and project estimate �7� ARCHITECTURE WEST+DOUBLEDEE ARCHITECTS PLANNING � 19 March 1990 City of San Luis Obispo Recreation Department 860 Pacific Street San Luis Obispo, CA 93401 Attn: Kathy Koop Rc: SAN LUIS OBISPO RECREATION CENTER REHABILITATION Construction Cost Estimate for "Option 3, Substantial Rehabilitation" Dear Kathy: In response to your request made at our review meeting on tuesday the 13th H•e have reviewed the cost estimate for "Substantial Renovation" (Option 3). The estimate for this option is based on the completed contract drawings and was last updated to S 716,205.00 in August of 1959. The attached updates the estimate for this option to March 1990. The current estimated construction cost is S 526,6129.00. The following outline briefly describes this option. OPTION 3. SUBSTANTIAL RENOVATION r' This alternative corresponds to the project for which construction documents have been completed. The intent is to correct all structural safety and weatherprooling deficiencies. The scope of work includes: 1. All new Roofing 2. Replacement and/or repair of all exterior materials. ;. Replacement of all doors and windows. 4. Partial reorganization of interior spaces. 5. Replacement and/or repair of interior materials in the front portion of the building. 6. Replacement or most electrical service, distribution and lighting 7. Replacement of mist plumbing including fixtures 8. Replacement and/or repair of all Heating and ventilation systems.. 9 Structural stabilization Also included in the project, but not included in this estimate is: Asbestos abatement Landscaping As we discussed we will be available to present the options to the City Council and answer any questions as ncccss:l n•. Sincereh, _ 7LI)onDI uhlcdcc - 1 II 11 O Q t: I N I ANA ! U 1 1 1 21 • 1t U N R.U B A ,' , f. A I 11 0 K R I A 9 ) I t / • " n / 7 S u O tl n.�.� WEST+DOUOLEDEE ARCHITECTS CSLO REC CENTER 143-A-87 MARCH 1990 _ SAN LUIS OBISPO "RECREATION CENTER' REHABILITATION DIVISION TRADE ESTIMATE TOTAL 1 GENERAL CONDITIONS GENERAL CONDITIONS $45,582.95 OVER $68,374.43 PROFIT $56,978.69 $170,936 2 SITEWORK&DEMOLITION DEMOLITION $7,800.00 SITEWORK $10,400.00 HANDICAP RAMPS $22,880.00 $41,080 3 CONCRETE CAST-IN-PI ACE CONC $0.00 50 4 MASONRY MASONRY $0.00 50 5 METALS MISC.METALS $4,160.00 $4,160 \.'UOD ANO Pl ASTICS ROUGI I CARPL N I RY $27,352.00 FINISI I CARPFNTRY $16,640.00 C MILLWORK&CAI31NIII'S 518;720.00 562,712 11 It RNIAL&MOISTURE SIDING 549,920.00 ROOFING $26,000.00 EIFS (STUCCO) $54,080.00 INSULATION 5151600.00 FLASH ING&SHT.MI.1. 56,240.00 $151,840 n DOORS AND WINDOWS DOORS 58,320.00 WINDOWS 536,400.00 IIARMAVARF 54,160.00 $48,880 IIVltil ll:5. GYPSUM DRYWALL 59,880.00 PIASTER 50.00 SUSPENDED CFILINGS $18,720.00 TILE 518,720.00 CARPET $9,360.00 SHEET VINYL $2,080.00 PAINTING 520,800.00 WALL COVERING $0.00 $79,560 10 ACCESSORIES TOILET PARTITIONS $5,200.00 TOR FT ACCESSORII'% 51,560.00 S6,760 �7�3 HEST+DOUBLE DEE ARCI-11TECTS DIVISION TRADE ESTIMATE TOTAL 11 EQUIPMENT KITCHEN EQUIPMENT $1,560.00 ATI ILETIC EQUIPMENT $520.00 $2,080 12 FURNISHINGS FURNITURE $0.00 ART $0.00 $0 13 SPECIAL CONST SPECIAL CONST 10.00 $0 14 CONVEYING SYSTEMS CONVEYING SYSTEMS $0.00 10 15 MECHANICAL HEATING&VENTING $36,400.00 AIR CONDI IIONIC, $0.00 PLUMBING 110,800.00 FIRE PROTECTION $36,400.00 193,600 16 ELECTRICAL SERVICE $8,320.00 DISI RIOUTION $26,000.00 LICIIIING $15,600.00 COMMUNICA I IONS $2,080.00 AI ARn1S $5,200.00 $57,100 SLJOI OTAL 1718,808 CON IINGIN(YAT 150; $107,811 TOTAL ESTIMATED CONSTRUC1ION COST 5826,429 t I J