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HomeMy WebLinkAboutReg 2018-05-21 Item 7E - Report - Public Safety Plan: Program Management Quality Assurance Monthly ReportMay 15, 2018 TO: Tukwila City Council FROM: Steve Goldblatt PMQA Consultant RE: Public Safety Plan May update The Council now has a better understanding of the Plan's significant budget stress. The Fi- nance Committee and City staff are addressing the challenge by exploring phasing and rev- enue options, while the Project Executive Team and City partners have had another pro- ductive month on all fronts. Timely due diligence, access, and property acquisitions remain key to maintaining the Plan's momentum. FIRE STATIONS Site acquisition The City now owns the majority of the property for Fire Station 54 and is in the process of purchasing a very small portion of the site. Geotechnical exploration will inform site development costs for Fire Station 52. Station 51 design development Per Council consensus 12 February to move forward from schematic design, Weinstein AU is well into Station 51's design development phase. Weekly meetings are ongoing through May, with pricing expected in June/July. Stations 52 and 54 schematic design Weinstein AU will begin the schematic design phase for Stations 52 and 54 in July. Stations' budget With input from GC/CM Lydig Construction, Station 51's schematic design estimate of $12.5 million was the first "real" number presented to Council 12 February. The pro- ject team is working on understanding Station 51's schematic design estimate and its implications on the other two station budgets, specifically adjusted to the final sites. At this point, the overage is expected to total $20.5 million for all three stations. GC/CM pre -construction services Lydig has conducted the process to select an EC/CM electrical contractor and an MC/CM mechanical contractor pursuant to RCW 39.10.385. A Request for Proposals was advertised 9 April, a pre -proposal meeting was held 12 April, five proposals were submitted 24 April, interviews of those firms were held 3 May, and final proposals were submitted 8 May. Valley Electric was selected as EC/CM and Johansen Mechanical as MC/CM. 175 Disadvantaged Business Enterprise and local hiring policies The Council unanimously passed Resolution 1929 on 2 April, adopting DBE and local hiring policies for the Plan's projects. The DBE goal is 17% and the local hiring goal is 20%, complementing the City's 10% apprenticeship requirement of Resolution 1814. Lydig's first opportunity to implement the new policies is reflected in its E/MCCM RFPs and selections. The first metrics that the Council sees can be expected mid -2019. Lydig will be represented at the 23 June open house to talk about project job opportu- nities. JUSTICE CENTER Property acquisition Depending on due diligence and site access, the Council should expect final pricing and closed transactions for some of the Justice Center's properties in June or July. If site ac- quisition is extended, permitting, environmental, and construction starts may be de- layed. Schematic design estimate DLR has completed schematic design. An updated cost estimate with GC/CM input and results of site investigations was presented to Public Safety 7 May, confirming the pro- gram estimate: roughly $38 million over the budget developed for the Plan's bond measure. Due to the lack of access to three parcels in the middle of the site, there re- main unknown risks that haven't been fully estimated. Next phase: design development On 7 May Public Safety recommended continuation into the next phase: design devel- opment. At COW on 14 May, the Council concurred with the recommendation. GC/CM pre -construction services Of the seven firms submitting proposals in January, BNBuilders was selected as the highest -scoring firm in early February. A pre -construction contract with BNBuilders was unanimously approved by Council 19 March. BNB has been working with the pro- ject team, providing regular input on the schematic design and estimate. CONSOLIDATED SHOPS Property acquisition Depending on due diligence and site access, the Council should expect final pricing and closed transactions for the Shop's properties later this year. Site investigations and ne- gotiations are ongoing. OTHER RESOURCES Professional services The Project Executive Team is working through procurement of additional consultant resources for the Fire Stations and Justice Center; e.g., envelope consultant, archeolo- gist, testing, and inspections. Following the envelope consultant 12 February, Council can expect to see more contracts for these services. PMQA update 176 May 15, 2018 page 2 PROPERTY ACQUISITIONS Due diligence On 20 November, Council approved contracts to conduct surveys, environmental re- views, and geotechnical analyses to prepare for property acquisitions. That work has been underway. As expected, soil contamination has been found on the first Justice Center parcel. On 19 March, the Council unanimously approved amendments to all three contracts to allow necessary work to continue and to provide contingencies. These activities continue. PROGRAM SCHEDULE Tight schedule The overall schedule remains very ambitious. With so many activities under way, there is little room for any missteps to meet the Plan's revised milestones. The Project Exec- utive Team, City staff, and Council are doing as well as can be expected given all the new properties' access, due diligence, and acquisition challenges. Fire Station 51 bid- ding and construction are now expected to begin in January 2019. PROGRAM BUDGET Financial gap On 6 February, the Finance Committee began an intensive work plan to develop recom- mendations for full Council discussion in June re the Plan's significant financial gap. On 21 February and 6 March, the Committee discussed staff's financial framework and revenue options in conjunction with the development of the 2019-2020 biennial budget. On 20 March, the Committee discussed potential cost implications of delaying any program element(s). On 3 April, the Committee discussed several options pre- sented by staff on funding and phasing of specific projects. On 17 April, the Committee continued its review of phasing and revenue options; staff recommended option C1 for consideration. On 8 May, staff presented and sought Committee consensus on a sched- ule that will meet the timeline to host an open house on 23 June. On 22 May, staff will present the updated six-year financial plan to the Committee. Market conditions Like the Fire Stations, the Justice Center and Consolidated Shops budgets will need to be sensitive to tight construction market conditions and increasing property values. These external budget pressures will manifest themselves as property is procured and project estimates are refined. LEGEND Meeting target Proceeding as planned. Caution advised Steps needed to meet target. Correction needed Steps needed to attempt recovery. Not meeting target No recovery plan in place. PMQA update May 15, 2018 page 3 177