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Home My WebLink About03/28/1995, C-1 - INVITATION TO BID: HEADQUARTERS FIRE STATION, 2160 SANTA BARBARA STREET city of $an-_als OBISPO Meeting' e: March 28, 1995 = COUNCIL AGENDA REPORT *6C_1 FROM: Bob Neumann, Fire Chief PREPARED BY: Viv R. Dilts SUBJECT: Invitation to Bid: Headquarters Fire Station, 2160 Santa Barbara Street CAO RECOMMENDATIONS 1) Approve plans and specifications for "Headquarters Fire Station, Specification No. 95-19B" 2) Authorize staff to advertise for bids on a construction contract 3) Authorize the CAO to award the construction contract if the lowest responsive, responsible bid is within the cost estimate DISCUSSION Background In late 1992, escrow closed and title was received for the Emerson School site. In early 1993, the architectural firm of Ross Levin MacIntyre and Varner (RLMV) was selected to design the facility on this site. Shortly after this contract was signed, the Southern Pacific Gas Company site at 2160 Santa Barbara Street became available. As this was the more desirable location, based upon its location and existing maintenance facility, negotiations were begun to acquire it. This site was purchased in June of 1993, and the project design phase began. After approximately one year of design work, in August of 1994, RLMV notified Council that it would not be able to complete the project due to financial bankruptcy. Upon the receipt of this information, the architectural firm of Richmond Rossi and Montgomery was selected and the City entered into a renegotiated contract. The architect and staff on February 28, 1994 provided the City Council with a detailed briefing concerning design and project. Proposed Nest Steps The plans and specifications for the Headquarters Fire Station, to be located at 2160 Santa Barbara Street, are complete and ready to advertise for construction bids. This project encompasses a 16,000 sq. ft. main story building designed with administrative offices, crews' living quarters, and four drive-through apparatus bays. An existing on-site 1,600 sq. ft. maintenance facility, which comes equipped with hydraulic lifts and associated vehicle-servicing equipment, will be rehabilitated to meet currant code and seismic standards. In addition, a three-story block training tower will be built for the northeast corner of the lot. If Council approves the staff recommendation, the CAO may award the contract approximately one month later, but no later than May 159 1995. It should be noted that the City has applied for partial funding for this project, from the State Earthquake Retro Fit Bond Act of 1992. The City will be awarded $611,000 for this project, if the contract is awarded by May 15, 1995. Construction is expected to begin in June or July. ��i ►�IIIII��►A►��N city of San Luis OBISp0 COUNCIL AGENDA REPORT CONCURRENCES In September of 1994, the Planning Commission approved a use permit for this project. The following month, the project received the Architectural Review Commission's approval for schematic design and a mitigate negative declaration of environmental impacts. FISCAL DIPACT On February 28, 1994 the Council was given a status report outlining the current project scope and budget estimation. As the fiscal analysis for this project has not changed since this information was presented, "The Summary of Headquarters Fire Station Costs% should be referred to for further information. Additionally, it should again be emphasized that the true cost of this project will be established only upon bid opening. While no specific financing plan is recommended at this time, there are several options available to us which we will be further evaluated over the next several months as we prepare the 1995-97 Financial Plan. These include sale of existing Headquarters Fire Station site, debt financing, and the use of general fund balances. ATTACHMENT Excerpt from February 28, 1995 Council Agenda Report discussing project costs and fiscal impacts. On file in Council Office - Plans and Specifications for Headquarters Fire Station, No. 95-19B. city of San tui S OBISPO COUNCIL AGENDA REPORT A 10 ■ Staff is recommending that a 59antingency fund of$ 2,100 be established or misc us omissions and change orders a ,ythey develop in cons ction. Staff has scaled the project bacVand reduced costs to hat we consider the 'mumacre le range for a project of this scpPe. Changing locatio s, delays and the associ rise in struction costs over six years, the bankruptcy of the origin architectural firm, the mplexity of a new site, changing the City's le in design and con ction management; ha a all facto missing the original budget Mr. In summary, the project is now estimated be some $672,900 over a estimated udget of 1989 and some $444, over the amount rted to Council in June, 94. This inc des approximately $3 0,000 that was nev factored in for the tower, misc sous furnishings/eq ' ment, and 5% con ' gency. Staff recom ends and the projec consultant, (VAIVIR Cons ction) and rh project architect (RRM Design G up), concur that Co cil should move forward ith the project establishing the suggested budget. t is important to no that these figures are only est estimates. The true costs will be estabh/hed only when the bi are received. FISCAL IMPACT If the recommended project scope and design is approved by the Council, funding the $672,900 gap between the currently adopted budget and the revised cost estimate will be a major issue in developing the 1995-97 Financial Plan. Pending the receipt of bids and development of a final financing plan tailored to actual project costs, no formal action amending the project budget or approving a specific funding plan is recommended at this time. While no specific financing plan is recommended at this time, there are several options available to us which we will be further evaluating over the next several months as we prepare the 1995-97 Financial Plan: ■ Sale of the wdsting Headquarters Fire Station site. Once the new Headquarters Fire Station is built, the current site will become available for another use. Revenue estimates from the sale of this site range from $500,000 to $800,000 depending on market and site conditiona at that time: in the past, sales prices estimates have been significantly higher if it is assumed that the existing structure is demolished and the site is marketed as a vacant property. Pending a comprehensive evaluation of possible City uses in the future and market value of the site, this appears to be a very viable option for funding the supplemental cost of the new station. ■ Debt financing. Under our Financial Plan policies and debt management criteria, the entire cost of this project would be an excellent candidate for debt financing: it has a life in excess of 10 years, limited cash resources are available, it is immediately required to meet capacity needs, and the project securing the financing (in conjunction with the City's fiscal condition and management capabilities) will support an investment grade rating. In fact, when design for this project was initially approved as part of the 1989-91 Financial Plan and construction approved as part of the 1991-93 Financial Plan, funding plans envisioned debt financing all of the tn�" 11 city of San La1S OBISp0 93196 COUNCIL AGENDA REPORT construction costs of this project. However, the budget balancing strategy adopted by the Council in the 1993-95 Financial Plan called for paying for this project (as well as the Performing Arts Center, which was also previously planned to be debt-financed) primarily through existing fund balances - which were about $8 million at that time - rather than debt financing. This strategy effectively used our fund balances in reducing future year debt service costs by about $500,000 annually. While most of the costs of these two projects are now funded on a "pay-as-you-go" basis, the 1993-95 Financial Plan still provides for about $1.7 million of these project costs to be funded through debt financing. This could be increased to cover the funding shortfall, resulting in increased annual debt service costs of about $55,000. Depending our on our projected fiscal condition as we finalize the 1995-97 Financial Plan, this may also be an extremely attractive option. ■ Find balance. At this point, we project ending 1994-95 with General Fund balances of about $4.0 million, which is right on target with our policy of maintaining fund balances that are 20% of operating expenditures. This policy is maintained for a reason: to provide the City with financial strength in addressing important but unforeseen circumstances. In this context, building the Headquarters Fire Station - which is a "one-time" expense - may be an appropriate use of fund balances below this 20% level. Under this approach, all other things being equal, the General Fund balance would fall to about $3.3 million, or 16% of operating expenditures. Before selecting these (or any other options) it is important that we fully identify the cost of going forward with this project - which we will not know until bids are received in mid-May - and are further along in the 1995-97 Financial Plan process. However, it is important to note that because of our past policies and actions, we have the fiscal strength to fund this project under a number of financing options. Summary of Headquarters Fire Station Costs 2116195 Erdades site acquisition costs and iaz2rdous materials abatement Proiect Bud et Variance C urrenfly Estimate at Estimate at June 1994 to Proiect Phase Adonted' June 1994 Februa 1995 February 1995 • The budget for design costs was approved in 1989;The budget fOr=st=tion was approved in 1991 Q Stn anti 276 OQQ: design 1:�: P. Fire station 430,000 269,000 299,000 30,000 Training faciltity 7,000 7,000 0 Off—site improvements L 24,000 24,000 4:1 58,000 02,0061 &tes. A. ta 58;700. 183,500:: 218,500 35,000 On—site inspection 75,000 "':0, Testing 50,000 50,0 00 0 Construction management 58 700 58,5001 58,500 0 (Y. 91,6001L 416001 Signals 40,000 50,000 10,000 Storm drains and sidewalks 10 000 41,60011 31.6001 8001 ..0 2,=51 :ZX8 0 Fire station/maintenance facility 2,218,100 2,136,400 400 , 1 2,324,500 188,100 Training facility 89 87 000 400 VS.Owner.—, Furnishings 60,000 60,000 0 Centrex phone line installation 13,000 13,000 Generator 25,000 25,000 Emergency operations center(EOQ 40,000 40000 106 ........ ...... 132,I00 .M • so cfoffate mprommenM c=Ltuction equipment=Is TOTAL 2,706,8001 2,935,3001 3,379,7001 44=,400 VARIANCES • Adopted Pudge t vs June 1994 estimate 228,SOO 400 • Jun e 1994 estim te vs Fe brua ry 1995 es tima te 4AKgj 00 • Adopted budget vs February 1995 estimate 167jZ900 MCOSM