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