Loading...
HomeMy WebLinkAboutItem 26 Funding for Justice Center Ancillary Building AGENDA ITEM SUMMARY SPRINGFIELD Meetiog Date: Meetiog Type: Departmeot: Staff Cootact: StaffPhooe No: Estimated Time: January 22, 2008 , Regular Meeting Finance Bob Duey E.~ 726-3740 10 Minutes CITY COUNCIL ITEM TITLE: FUNDING FOR JUSTICE CENTER ANCILLARY BUILDING ACTION REQUESTED: After review; provide staff with the necessary direction to proceed with the Justice Center project by either; 1) Direct staff to continue to .include the ancillary building on the list of potential additions to the justice center project; or 2) Direct staffto proceed with the construction design of the full ancillary building by asking the architects to develop a new price for its inclusion. ISSUE STATEMENT: In order to keep the construction of the Justice Ceoter within the identified budget, on January 22,2007 the City Council directed staff to reduce the then current scope of the Justice Center facility by four specific projects in order to reduce the projected expenditures by $510,000. Recent discussions by the Citizen's Advisory Comniittee, the Police Planning Task Force and project staff has confirmed that all 4 projects are still considered high priority items for eventual inclusion in the Justice Center facility. For the project management staff, ofthe four tabled projects a particular interest at this time is the ancillary building and a final determination of the number of square feet that are to be constructed. If the additional square footage for ancillary building is to remain on the contingency project list through this phase of the construction, then no additional action Deeds to be taken by Couocil at this time. If a decision were to be made to advance the timing of the ancillary building additional square footage so that the enlarged facility would be included in this phase of the construction, then Council would need to at this time direct staff to begin the process of re-design and cost estimates. ATTACHMENTS: A Council Briefmg Memorandum DISCUSSION: See Council Briefing Memorandum CITY OF SPRINGFIELDIfINANCE DEPARTMENT MEMORANDUM Date: To: From: January 15,2008 Gino Grimaldi, City Manager Bob Duey, Finance Director ED Subject:. Funding for Justice Center Ancillary Building Issue: In order to keep the coostruction of the Justice Center within the identified budget, on January 22, 2007 the City Couocil direct.ed staff to reduce the then current scope of the Justice Center facility by four specific projects in order to reduce the projected expenditures by $510,000. Receot discussions by the Citizen's Advisory Committee, the'Police Planning Task Force and project staff has confirmed that all 4 projects are still considered high priority items for eventual inclusion in the Justice Center, facility. For the project managemeot staff, of the four tabled projects a particular interest at this time is the ancillary building and a fmal determination of the number of square feet that are to be coostructed. If the additional square footage for ancillary building is to remain on the contingency project list through this phase of the construction, then no additional action needs to be taken by Council at this time. If a decision were to be made to advance the timing of the ancillary building additional square footage so that the enlarged facility would be included in this phase of the construction, then Council would need to at this time direct staff to begin the process of re-design and cost estimates. Backgrouod: At the time of the general obligation bond issue for the construction of the Justice Center, a combined project management and construction budget for the project was $28.25 million. ' Since that time the City has been able to identifY additional resources that could be made available for the project and have adjusted the scope of the project in an attempt to provide the best possible facility within the resources available. The curreot project budget is approximately $30.67 million including contingencies funds totaling about $1.25 million. These oumbers include both the administration section of the building scheduled to be completed late 2008 and the qlUnicipaljail section of the building scheduled to be completed in early 2010. In order to keep the existing design and construction cost of the facility within the available resources on January 22 the Council adopted a construction plan for the facility that eliminated four (4) specific projects from the scope. These items were deemed important to the facility and were selected only ,because of their ability to be removed from the project at this time but could be added back into the project at a later time if additional resources would become available. The four projects were: Secure Parking Decorative Fencing Material Covered Walkway to Ancillary Building Ancillary Building Square Footage Reduction Police Vehicle Sally Port $ 35,000 $ 34,000 $ 378,000 $ 63,000 To date, none of the four items described above have been added back to within the scope of the project although there have been several small change orders issued on the project that have been either necessary or desired changes to the basic structure of the facility. Attachment A-I Fuodiog for Justice Ceoter Aocillary Building Current Discussion: In January of2007 when the decision was made to reduce the scope of the project by the four projects totaling $510,000, there was not a specific timeline established as to when discussions would occur about the possibilities of add-backs to the project. The understanding was that the add-backs would be budget driven and as resources became available, consideration could be given to these items. The functional need for any of the four tabled items has not changed. Each of the four tabled projects has their own timing issues for when it would be best to consider their status. Currently we have reached an appropriate discussion point in respect to the timing of construction with any restoring of square footage to the ancillary building. The current net square footage for the ancillary building is approximately 2,560 and is being constructed as part of phase I. If it was determined that all (approximately 1,300 sq ft) or part ofthe deleted square footage should be completed at the same time as the current 2,560 square feet, it would be necessary have the consultants begin work on this option soon. The reduction in the size of the ancillary building was done before construction documents were begun, so in order to construct the add-back section, Robertson Sherwood (RSA) will need to complete construction drawings. It will take RSA about 30 days to complete their work and then we will need to get a price proposal for construction from Hyland. Because of the significance of the timing of this decision and the functional importance that police management places on the ancillary building, it was decided to ask Council re-visit this decision and provide staff with the direction necessary to either confirm the previous decision that the additional square footage for the ancillary building remains on the potential project list only or that staff be authorized to expend the time and resources to have the architects prepare the construction drawings for the addition. Optioo 1: Direct staff to continue to include the ancillary building on the list of potential additions to the justice center project. Option 2: Direct staff to proceed with the construction design of the full ancillary building by asking the architects to develop a new price for its inclusion. Staff would return to Council upon receipt of the estimate for a subsequent decision to proceed with the construction. The estimated cost at the time of its deletion was $378,000. Financial Discussion The effort in January 2007 to establish a balanced construction budget for the project included appropriate but minimal contingency funds for a project of this size, scope and contracted under a GMGC arrangements. To date minimal change orders have been authorized for contingency fund usage. Project management staff for the Justice Center Project has reviewed the use of additional contingency funds at this time for the ancillary building and have expressed concern about use of significant contingency funds this early in the project as the project still needs to complete this initial phase of the administration building, complete the razing of the exiting building and prepare the site for and construct the municipal jail. Later in the project as more of the unknowns have been identified and addressed it may be possible for the ancillary building expansion to be constructed utilizing resources from within the existing construction budget. If at the conclusion of the construction design effort the Council should opt to change the scope of the project to include the expansion an example it would be necessary to also identify a funding strategy at that time. Staff has looked at this possibility and developed the following preliminary outline for the addition of the ancillary building. Attachment A-2 Fundiog for Justice Center Ancillary Buildiog Identify additional funding from both within the current project and from other resources to reach the $378,000 necessary to complete the ancillary building within phase I of the construction ofthe Justice Center. $150,000 $ 85,000 $103,000 $40,000 Bond Issue Proceeds - The original project budget included $300,000 for property acquisition for the City to consider in acquiring any nearby property it might need to construct the facility, primarily for parking. The City utilized $150,000 to acquire the 1f4 block parking lot that accompanied the purchase of the Carter Building. The additional $150,000 of budget is still appropriated within the project budget and the staff is not anticipating the purchase of any other property at this time. With the vacation ofB Street, the City will be able to site the remaining facility on land currently under City control. Interest Earnings - The project budget has been increased twice already as the project has proceeded and the City has been able to project interest earnings from the investment of the bond proceeds. Currently, interest earning projections of $1.6M have been appropriated to the project to help maintain the current scope. The inclusion of interest earnings as an additional resource was anticipated during the planning phase of the bond program; understanding that our construction cost estimates at the time of commitment were preliminary. It is estimated at this time that interest earnings could be increased by this amount due to the timing of the start of construction and the retention of some funds until the jail construction is completed. Police Drug Forfeiture - The City has already committed $250K of forfeiture resources to the project to assist in the furnishing! fixtures and during the value engineering effort to establish the project final scope. It is possible to justify an additional contribution but there will be some restrictions on the use. As of June 30, 2007 and prior to reserving the $250K, the StatelDEQ amount was $205K; Fed Treasury was $100K; Post 12/06 was $35K; and Post 1/02 was $134K. Other Outside Resources - There are several smaller resources that could be tapped into collectively to acquire the remainder ofthe funds. Proceeds from the sale of the donated Krey property is dedicated to the Justice Center and the purchase ofthe Carter Building.- The first $150K has been committed to date but once the property sells, proceeds over that amount could be utilized for the ancillary building. Existing operation appropriations in the police department or the city manager's office economic development opportunity fund could be re- prioritized for this purpose. The City also has remaining Bancroft reserves that could be utilized. Cooclusioo: The ancillary building is functionally an important element in operation of the police department plans. Its deletion from the current scope of the project was made for budgetary reasons only and was selected as one of the deletions because it was an element of the project that could be easily removed at that point in the project and be added back in at some time in the future. When deleted there was no commitment as to when the ancillary building could be completed. It was always hoped that it would be able to be completed in someway as part of the overall project and available for use by the time the project was completed, but it was also understood that once the decision was made for the deletion it could also be several years before the resources would be found to expand the building to the original size and use. Attachment A-3