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HomeMy WebLinkAboutCOW 2019-03-25 Item 4C - Public Safety Plan - Contract Amendment #4 for Justice Center with BNBuilders to Establish Maximum Allowable Construction Cost Not to Exceed $10,894,458COUNCIL AGENDA Siwosis Meeting Date Prepared lg Mayor's review Council review 03/25/19 RB 1 ITEM INFORMATION ITEM No. 4.0 & Spec 3.B. STAFF SPONSOR: RACHEL B ANCHI ORIGINAL AGENDA DATE: 03/25/19 AGENDA ITEM TI'ITE Contract Center associated Amendment No. 4 to contract #18-049 with BNBuilders for the Justice Mini MACC (Maximum Allowable Construction Cost for initial phase) and costs 3/25/19 Motion Date 03/25/19 El Resolution .A1 t,g Date ili Ordinance AN Date El Bid Award Al Is Date Ei Public Hearing It Date 0 Other 114g Date CATEGORY E Discussion K tuts Date illtg SPONSOR Council DMZ EDCD LIjlae EITS DP&R Police PIE a"' n Mayor UFzna,ze SP oNS0R.' s The Council is being asked to (1) Approve contract amendment #4 to Contract #18-049 SUMMARY with BNBuilders for the initial construction phase of the Justice Center to establish a MACC with a total contract cost not to exceed $10,894,458; (2) Approve sales tax of $1,089,446 associated with this contract; and (3) If needed, approve use of the project's contingency for change orders, budgeted at 10% of the total construction cost or up to 1,089,446. RI \ 'll',V;71.!;I I3Y ij c,o.W. Mtg. E Trans &Infrastructure DATE: 03/04/19 0 CDN Comm El Finance Comm. 0 Parks Comm. COMMITTEE CHAIR: ROBERTSON Public Safety Comm. II Planning Comm. Arts Comm. & 03/18/19 RECOMMENDATIONS: SPONSOR/ADMIN. CommITTEF; Mayor's Office Forward to Committee of the Whole/Special tg. COST IMPACT / FUND SOURCE ExpENDITum,. REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $10,894,458 for contract $ $0 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 03/25/19 MTG. DATE ATTACHMENTS 03/2 / 9 Informational Memorandum updated 19 Draft Contract Public Safety Plan budget Minutes from the Public Safety Committee meetings of 3/4 & 3/18 Powerpoint Updated after PS Corn. and 6-Year Plan updated after PS 61 62 Allan Ekberg, Mayor Administrative Services Department- Rachel Bianchi, Deputy CityAdministrator INFOR ATIONAL E ORA DU TO: Public Safety Committee CC: Mayor Allan Ekberg FROM: Rachel Bianchi, Deputy City Administrator DATE: January 11, 2018 — Updated March 13, 2019 SUBJECT: Justice Center "Mini-MACC" ISSUE The Council is being asked to allow the Mayor to execute a contract amendment with BNBuilders to increase it by $10,894,458 for the initial construction phase of the Justice Center. This amount is within the existing budget and does not require additional appropriation. BACKGROUND As a part of the Public Safety Plan, the City has been working on the construction of a new Justice Center to house the Police Department, Municipal Court and Emergency Operations Center. Early on, the City chose to use the General Contractor/Construction Management (GCCM), which allows the contractor to join the project early in the design process and inform the City and architects of cost impacts associated with design. City staff have found this to be a very productive delivery model, which has resulted in multiple steps of estimating and checking the budget in real time as decisions are made. The City has an existing contract with BNBuilders for $563,671, which includes pre -construction services and demolition/abatement of the former Saraha restaurant and Travelodge buildings. As a part of the GCCM process, projects develop a MACC, or Maximum Allowable Construction Cost. In the case of the Justice Center, the project is being split into two MACCs to maximize efficiencies and maintain the project schedule. This is common in similar projects and allows the early work to be completed while other project tasks are finishing up. The "mini-MACC" for the Justice Center includes demolition and abatement of the remaining buildings on the Justice Center site, foundations/structure and waterproofing, and earthwork and utilities. BNBuilders developed bid packages on these three services for competitive bidding per State law. Bid packages were advertised and BNBuilders worked to promote the packages to encourage a high number of bidders, which usually results in a better price for the owner. The project team is pleased to share that this mini- MACC is under budget by $843,003. In addition, from the time of the original memo, staff realized there is another $147,525 in soft cost savings associated with the subcontractor savings found in the mini-MACC. The total mini-MACC savings is $990,528, It should be noted that there are some significant bid packages coming in Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 63 the final MACC scheduled to go before Council later this Spring that could eat into these savings, but the City is in a good position at this time with the Justice Center's budget. An allowance is being added for shoring and contaminated groundwater, which will only be utilized if needed. This will allow the GCCM to move quickly should there be an unforeseen event requiring shoring or groundwater abatement; without this allowance work would have to stop and the team would need to negotiate a Change Order prior to addressing the issue, which could be more costly. An additional allowance is set aside for elevator, fire protection, mechanical and electrical Shop Drawings and Engineering services that are needed in advance of the Council's review of the final MACC, which the rest of the construction cost. This is common practice so that shop drawings can be developed prior to additional subcontractor contracts are issued, saving the project schedule over a month by having some limited scope of early work occur. Below is a table of the project estimate, final bid amounts and variance for this mini-MACC. The lightly shaded items indicate items that are already a part of the existing GCCM contract and are formula -driven and tied to the overall construction costs. Negotiated Support Services includes services such as security and fencing, which are the contractor's responsibility, and the MACC contingency is set at 2.5% of the total construction cost. Both the Contractor's fee and the Specified General Conditions, which covers the contractor's personnel costs, were a part of the original RFP process when the City selected the GCCM for the Justice Center. Justice Center Mini-MACC Overview Service Estimate Final Bids Variance Demolition & Abatement $910,582 $192,995 ($717,587) Foundation/Structure/Waterproofing $4,301,047 $4,288,300 ($12,747) Earthwork and Utilities $5,057,079 $4,874,410 ($182,669) Allowance - Shoring $50,000 $50,000 Allowance — Contaminated Ground Water $20,000 $20,000 Allowance — Elevator, Fire Protection, Mechanical, Electrical Shop Drawings $250,000 Negotiated Support Services $221,283 MACC Contingency $241,893 GCCM Fee $506,944 Specified General Conditions $248,633 Total Mini-MACC $10,894,458 This total does not include Washington State Sales Tax, typically not included in such a contract, which would be an additional $1,089,446, making the Total Construction Cost (TCC), $11,983,904 for this first Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 64 phase of work. The City has budgeted $38,727,363 for the construction only portion of the Justice Center; this mini-MACC is within the existing budget approved by the Council and is less than expected by more than $990,000. RECOMMENDATION The Council is being asked to provide the Mayor the authority for the following: •To sign a contract with BNBuilders for $10,894,458 for the initial construction phase of the Justice Center. 'To spend $1,089,446 in sales tax associated with the contract discussed above. 'To spend, if needed, the project's contingency for change orders, budgeted at 10`)/0 of the total construction cost, or up to $1,089,446. Steve Goldblatt, the Council's Project Management Quality Assurance consultant has reviewed the project status and agrees with this recommendation. ATTACHMENTS ALA Contract between the City and BNBuilders Public Safety Plan Budget Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • VVebsite: TukwilaWA.gov 65 66 Init. cu nt A Guaranteed Maximum Price Amendment for the following PROJECT: (Name and address or location) Tukwila Justice Center Tukwila WA This Amendment is for the following bid package scopes only: 02.41 Demolition & Abatement; 03.00 Foundations/Structures/Waterproofing; 31.00 Earthwork & Utilities THE OWNER: (Name, legal status and address) City of Tukwila 6200 Southcenter Boulevard Tukwila WA 98188 THE CONSTRUCTION MANAGER: (Name, legal status and address) BNBuilders, 2601 Fourth Ave Suite 350 Seattle, WA 98121 TM ARTICLE A.1 § A.1.1 Total Contract Cost Pursuant to Section 2.2 of the Agreement, the Owner and Construction Manager hereby amend the Agreement to establish a Maximum Allowable Construction Cost (MACC), Total Contract Cost (TCC) and terms governing a specified scope of work related to (a) the following bid packages at the Justice Center: 02.41 Demo & Abatement; 03.00 Foundations/Structures/Waterproofing; 31.00 Earthwork & Utilities; (b) a limited notice to proceed for engineering and submittals and shop drawings for long lead items including elevators, fire protection, mechanical, and electrical; and (c) providing an allowance for shoring work in areas of contaminated soils excavation and disposal of contaminated groundwater (collectively, the "'Fourth Amendment Scope"). The Work required by the Fourth Amendment Scope is further described in the BNBuilders Bid Packages, which are identified in Exhibit A and incorporated herein by this reference. As agreed by the Owner and Construction Manager, the Total Contract Cost is an amount that the Contract Sum shall not exceed. The Total Contract Cost consists of the MACC (including the Construction Cost, Negotiated Support Services, and MACC Contingency); the Fixed Fee; the Fixed Amount for Specified General Conditions work; and applicable Washington State sales tax (although the TCC for this Fourth Amendment does not include WSST). § A.1.1.1 The Total Contract Cost for the Fourth Amendment Scope, excluding Washington State Sales Tax, is guaranteed by the Construction Manager not to exceed Ten Million Eight Hundred Ninety -Four Thousand Four Hundred Fifty -Eight Dollars ($ 10,894,458 ), t A ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the author has added to or deleted from the original AIA text. This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. AIA Document A201 TM-2 007, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. AIA Document Al 331m — 2009 Exhibit A. Copyright © 1991, 2003 and 2009 by The American Institute of Architects. All rights reserved. WARNING: This AIA') Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA' Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 17:42:55 ET on 02/25/2019 under Order No.2264341377 which expires on 08/30/2019, and is not for resale. User Notes: (961234549) 1 67 Init. subject to additions and deductions by Change Order as provided in the Contract Documents. § A.1.1.2 Itemized Statement of the Total Contract Cost. Provided below is an itemized statement of the Fourth Amendment Scope organized by its component parts: (Paragrap Specified General Conditions $248,633 Maximum Allowable Construction Contract (MACC) Construction Total* $9,675,705 Negotiated Support Services (NSS) $221,283 MACC Contingency @ 2.5% $241,893 GC/CM Fixed Fee @ 5% (Fee is not allowed on the Specified General Conditions, or Preconstruction Allowance) $506,944 TOTAL CONTRACT COST (Excluding WSST) $10,894,458 *Breakdown of Construction Total 02.41 Demo & Abatement $192,995 03.00 Foundations/Structures/Waterproofing $4,288,300 31.00 Earthwork & Utilities $4,874,410 Authorization for Limited NTPs for Submittals/Engineering $250,000 Allowance for Shoring and Contaminated Groundwater $70,000 Direct Construction Cost Total $9,675,705 § A.1.1.2.1 The Preconstruction Services NTE Limit, as previously agreed to by the parties, is: To be stated in the GMP Amendment for the full scope of the Work. § A.1.1.3 The Total Contract Cost for the Fourth Amendment Scope is based on the following alternates, if any, which are described in the Contract Documents and are hereby accepted by the Owner: (State the numbers or other identification of accepted alternates. If the Contract Documents permit the Owner to accept other alternates subsequent to the execution of this ..4niendment, attach a schedule of such other alternates showing the amount for each and the date when the amount expires.) Not applicable. § A.1.1.4 Allowances included in the Total Contract Cost, if any: adentifY allowance and state exclusions, if any, from the allowance price.) As shown in the Bid Documents and Addenda 1 through 2 (if any), and as follows: Item Price ($0.00) Temporary shoring where required by $70,000 contaminated soils excavation and disposal of contaminated groundwater according to applicable government requirements § A,1.1.5 Assumptions, if any, on which the Total Contract Cost is based: Not applicable. § A.1.1.6 The Total Contract Cost is based upon the following General Conditions: AIA Document A133TM — 2009 Exhibit A. Copyright © 1991, 2003 and 2009 by The American Institute of Architects. All rights reserved. WARNING: This AlA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA') Document or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 174255 ET on 02/25/2019 under Order No.2264341377 which expires on 08/30/2019, and is not for resale, User Notes: (961234549) 68 Init. AIA Document A201 — 2007, General Conditions of the Contract for Construction, as modified (Table deleted) § A.1.1.7 The Total Contract Cost is based upon the following Specifications: (Either list the Specifications here, or refer to an exhibit attached to this Agreement.) Volumes 1 through 3 issued by DLR Group dated 1/21/19, plus Addenda 1 through 2. Section See above Title Date Pages § A.1,1.8 The Total Contract Cost is based upon the following Drawings: (Either list the Drawings here, or refer town exhibit attached to this Agreement.) Volumes 1 through 3 issued by DLR Group dated 1/21/19, plus Addenda 1 through 2. Number See above Title Date § A.1,1.9 The Total Contract Cost is based upon the following other documents and information: (List any other documents or information here, or refer to an exhibit attached to this Agreement.) Bid Package 02,41: Demolition & Abatement and Topographical Survey (see Exhibit A) Bid Package 03.00:: Foundations/Structures/Waterproofing (see Exhibit A) Bid Package 31,00: Earthwork & Utilities (see Exhibit A) Addendum #1 dated 2/8/19 Addendum #2 dated 2/19/19 ARTICLE A.2 § A.2.1 Substantial Completion Dates The required date for Substantial Completion of the Fourth Amendment Scope established by this Amendment: Not applicable. The expected completion date for the Fourth Amendment Scope is November 8, 2019, but this is not a trigger date for liquidated damages. The currently anticipated Substantial Completion date for the entire project is September 29, 2020, § A.2.2 Physical Completion Dates The required date for Physical Con Not applicable. § A.2.3 Final Completion Dates The required date fo Not applicable. p etion of he Fourth Amendment Scope established by this Amendment: Final Completion of the Fourth Amendment Scope established by this Amendment: § A.2.4 Construction Schedule See Addendum #2 dated 2/19/19. ARTICLE A3 Key Personnel The following named key personnel shall remain assigned for the duration of the Project unless otherwise agreed to in writing by Owner: Project Manager: Geri Urbas Project Superintendent: Tim Waters AIA Document A133T" - 2009 Exhibit A. Copyright 1991, 2003 and 2009 by The American Institute of Architects. All rights reserved. WARNING: This AIA" Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA" Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 17.42:55 ET on 02/25/2019 under Order No.2264341377 which expires on 08/30/2019, and is not for resale. User Notes: (961234549) 69 Init. Project Engineer: Jeff Clark ARTICLE A.4 Contract Summary Effective Date Document Description Total Contract Cost (excl. WSST) Original Contract Preconstruction Services NTE $240,000 8/7/18 Amend. No. I Revises language in the Agreement at A133 Section 2.3.11.2 and A201 Section 3.90 n/a 8/7/18 Amend. No. 2 Adds .IC-9 Early Abatement and Demolition Scope $122,337 Amend. No. 3 Adds JC-8 Early Abatement and Demolition Scope $150,091 Amend. No. 4 Adds Bid Packages 02.41 Demo & Abatement; 03.00 Foundations/Structures/Waterproofing; 31.00 Earthwork & Utilities; authorizes limited NTP for submittals and engineering and icnludes allowance for shoring and contamninated groundwater $10,894,458 Total Contract Cost Released to date (owl, WSST) $11,406,886 OWNER (Signatitt.e) CONSTRUCTION MANAGER (Signature) (Printed name and title) (Printed name and title) AIA Document A133T5 — 2009 Exhibit A. Copynght (D 1991, 2003 and 2009 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA" Document or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 17A2.55 ET on 02/25/2019 under Order No.2264341377 which expires on 08/30/2019, and is not for resale. User Notes: (961234549) 70 EXHIBIT A Bid Package Description Date Issued 02.41 Demolition & Abatement 1/31/19 02.41 Demolition & Abatement Topographical Survey 12/5/18 (Topo Update) 03.00 Foundations/Structures/Waterproofing 2/1/19 31.00 Earthwork & Utilities 1/31/19 {AET1870044.DOCX4/05720.000002/ ) 71 72 City of Tukwila - Facilities Plan TOTAL PROJECT MONTHLY Budget Report (REVISED Budgets; D-20 Plan Adopted by Council) Life to Date Costs m/acctg lhru Feb 15, 2019 G(J as of February 25, 2019 (Cocos COUNCIL REPORTING SUIL)IART - Originsl R,,dger ttndger Traarboes Carrel" Blake! Comminerl Badger JUSTICE CENTER Lift le Dan' Coos Re,nain A Co,n,ainerl Rerunning Bulger Cost at Completion A E Services (both Design & CA) S 3,278,125 $ 221,875 S 3,500,000 $ 3,141,729 $ 1,990,300 $ 1,151,429 S 358,271 S Permits/Fees S 700,000 $ - S 700,000 $ 111,317 $ 111,317 $ - $ 588,683 $ - Construction (Pre -Con, Coast & Tax) S 38,738,678 $ (11,315) $ 38,727,363 $ 563,671 $ 359,311 $ 204,360 $ 38,163,692 $ Construction Related Costs (incl Bond) PM Services Gael Other Professional Svcs) $ 2,112,639 $ 1,815,875 $ 170,000 $ 296,721 $ 2,282,639 $ 2,112,596 $ 562,398 $ 1,967,303 $ 245,520 $ 907,835 $ 316,878 $ 1,059,468 $ 1,720,241 $ 145,293 $ $ - Contingency (incl Construction & Project) $ 6,507,731 $ (1,646,239) $ 4,861,492 $ - $ - $ - $ 4,861,492 $ - Contingency for Site Contamination (soils,hazmat) $ - $ 750,000 $ 750,000 $ - $ - $ - $ 750,000 $ Land Acquisition $ 14,133,295 $ (81,042) $ 14,052,253 $ 13,708,596 $ 13,679,370 $ 29,227 $ 343,657 $ Contingency for Land Acquisition $ 1,250,000 $ 300,000 $ 1,550,000 $ 898,962 $ 898,962 $ - $ 651,038 $ - „„„„TOTAL ;,; „' S 68,536,343 $ - $ 68,536,343 $ 20,953,976 $ 18,192,614 $ 2,761,361 $ 47,582,367 $ - COUNCIL REPORTING SUMMARY - Origina/Budget Budget Transfers Current Budget Committed Budget FIRE STATION 51 Life n, Date Colo Remain;; Coma ined Remaining Budges Co.r at Completion A/E Services (both Design & CA) Land Acquisition $ 1,070,000 $ - $ 222,781 $ - $ 1,292,781 $ - $ 1,236,572 $ - $ 776,125 $ - $ 460,447 $ - $ 56,209 $ - $ - $ Permits/Fees Construction (Pre -Con, Const & Tax) $ 234,000 $ 9,396,000 $ - $ - $ 234,000 $ 9,396,000 $ 44,557 $ 165,000 $ 34,557 $ 99,273 $ 10,000 $ 65,727 $ 189,443 $ 9,231,000 $ $ - Construction Related Costs (Intl Bond) 5 931,000 $ - $ 931,000 $ 163,241 $ 80,776 $ 82,464 $ 767,759 $ - PM Services (incl Other Professional Svcs) $ 526,000 $ - $ 526,000 $ 344,681 $ 127,981 $ 216,700 $ 181,319 $ Contingency (inclConstniction& Project) $ 1,116,000 $ (222,781) $ 893,219 $ - $ - $ - $ 893,219 $ - ,. 13,273,000 $ - $ 13,273,000 $ 1,954,050 $ 1,118,712 $ 835,338 $ 11,318,950 $ - TIRESCOUNCIL REPORTING SCII)Il)LAR I'- Ori ginal II Blake, Tra„rers Current Badger Commiaed Badger FIRE STATION 52 t a ! ge Lie le Dare Costs r Remain 't Gn,naiued x Reale/ rs. Budget x x Co, at Completion p A/E Services (both Design & CA) Land Acquisition $ 1,415,000 $ 16,000 $ 234,222 $ 9,160 $ 1,649,222 $ 25,160 $ 1,548,449 $ 25,157 S 339,878 $ 17,157 $ 1,208,571 $ 8,000 $ 100,773 $ 3 $ - $ - Permits/Fees $ 353,000 $ - $ 353,000 $ 60,177 $ - $ 60,177 $ 292,823 $ - Construction (Pre -Con, Const & Tax) $ 13,298,000 $ 456,500 $ 13,754,500 $ 137,500 $ - $ 137,500 $ 13,617,000 $ - Construction Related Costs (incl Bond) $ 1,398,000 $ (9,160) $ 1,388,840 $ 393,815 $ 16,258 $ 377,557 $ 995,025 $ - PM Services (Intl Other Professional Svcs) $ 787,000 $ - $ 787,000 $ 532,289 $ 198,348 $ 333,941 $ 254,71 I $ - Contingency (incl Construction & Project) $ 1,343,000 $ (40,722) $ 1,302,278 $ - $ - $ - $ 1,302,278 $ T5T, .." _ $ 18,610,000 $ 650,000 $ 19,260,000 $ 2,697,387 $ 571,640 $ 2,125,746 $ 16,562,613 $ - COUNCIL REPORTING SUMMARY - OriginalBudger Budget Transfers Current Budget Committed Budget FIRE STATION 54 Life n, Dale Cass Remain'g Co,rrn,ined Remaining Badges Co.rar Completion NE Services (both Design & CA) $ 150,000 $ (7,000) $ 143,000 $ 132,995 $ 131,495 $ 1,500 $ 10,005 $ - Land Acquisition $ 902,668 $ 33,596 $ 936,264 $ 936,265 $ 928,165 $ 8,100 $ (1) $ Permits/Fees $ 20,000 $ - $ 20,000 $ 1,517 $ 1,517 $ - $ 18,483 $ - Construction (Pre -Con, Const & Tax) Construction Related Costs (incl Bond) $ 230,000 $ 50,000 $ - $ 1,875 $ 230,000 $ 51,875 $ 106,700 $ 33,802 $ 67,856 $ 22,798 $ 38,844 $ 11,004 $ 123,300 $ 18,073 $ $ - PM Services (incl Other Professional Svcs) $ 107,500 $ - $ 107,500 $ 106,665 $ 86,066 $ 20,599 $ 835 $ Contingency (Intl Construction & Project) $ 41,832 $ (28,471) $ 13,361 $ - $ - $ - $ 13,361 $ TOTAE ""-. $ 1,502,000 $ - $ 1,502,000 $ 1,317,944 $ 1,237,897 $ 80,047 $ 184,056 $ - COUNCIL REPORTING SCO)L)IAR)'- OriginalR,,dger Blake, Tea„Sfee, Current Badger Con,,ninerl Badger PUBLIC WORKS Life le Dare Co,s Remain A C,,n,ainerl Realeining Bridget Co,t at Curapleriurs NE Services (both Design & CA) $ 767,385 $ 15,000 $ 782,385 $ 318,882 $ 65,640 $ 253,241 $ 463,503 $ Land Acquisition $ 22,000,046 $ 3,386,413 $ 25,386,459 $ 25,358,693 $ 25,344,993 $ 13,700 $ 27,766 $ - Permits/Fees Construction (Pre -Con, Coast & Tax) $ 110,000 $ 4,950,000 $ (20,000) $ (1,895,000) $ 90,000 $ 3,055,000 $ - $ - $ - $ - $ - $ - $ 90,000 $ 3,055,000 $ $ - Construction Related Costs (incl Bond) $ 529,036 $ (416,293) $ 112,743 $ 65,643 $ 50,471 $ 15,172 $ 47,100 $ - PM Services ("Intl Other Professional Svcs) $ 668,426 S (348,426) $ 320,000 $ 279,832 $ 135,215 $ 144,617 $ 40,168 $ Contingency (Intl Construction & Project) $ 975,107 $ (721,694) $ 253,413 $ - $ - $ - $ 253,413 $ - �,""' 30,000,000 $ - $ 30,000,000 $ 26,023,050 $ 25,596,319 $ 426,731 $ 3,976,950 $ 74 City of Tukwila City Council Public Safety Committee PUBLIC SAFETY COMMITTEE Meeting Minutes March 4, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Dennis Robertson, Chair; Kate Kruller, Zak Idan Staff: David Cline, Bruce Linton, Jay Wittwer, Peggy McCarthy, Aaron Williams, Rachel Bianchi, Laurel Humphrey Guests: Justine Kim, Shiels Obletz Johnsen; Steve Goldblatt, Public Safety Plan Program Management Quality Assurance Consultant CALL TO ORDER: Chair Robertson called the meeting to order at 5:30 p.m. I. ANNOUNCEMENT II. BUSINESS AGENDA A. Public Safety Plan: Justice Center Mini-MACC and Fire Station 51 MACC Staff briefed the Committee on the bid process status for the Justice Center mini-MACC and Fire Station 51 MACC. Both projects are on schedule and market conditions continue to cause budget stress. Part of the General Contractor/Construction Management (GC/CM) process involves the development of a MACC (Maximum Allowable Construction Cost). The GC/CM manages the MACC bid process and promotes the packages to encourage a high number of bidders, usually resulting in better prices. The Justice Center project is being split into two MACCs to allow for the early work to be completed while other project tasks are finished up. This first "mini-MACC" includes demolition and abatement of the remaining buildings, foundations/structure and waterproofing, earthwork and utilities, certain allowances, and formula -driven fees associated with the GC/CM contract. This mini-MACC came in under budget by $843,003, but many large bid packages remain. The majority of the cost savings were due to high initial estimates because of contamination fears that did not prove to be true. The total under budget to date is $1,184,812. The MACC for Fire Station 51 includes all the construction costs, but there are unknowns associated with electricity delivery and one remaining bid package for earthwork, scheduled to open on March 8, 2019. Fire Station 51 is over budget by $1.1 million with what the City knows to date, although the project team is working on value engineering solutions to reduce the amount. Possible options to address the budget include contingency funds and Justice Center savings. Final numbers will be available by the March 18 Committee meeting. Staff will present a recommendation, and the Committee will be asked to discuss and develop a recommendation on the MACC contract amendments as well as the Fire Station 51 alternatives requested by firefighters, estimated at $990,402. These items will then move forward to the March 25, 2019 Committee of the Whole with a Special Meeting to follow in the event the Council is ready to take action. 75 Public Safety Committee Minutes March 4, 2019 Committee members discussed the bid results and asked clarifying questions. Chair Robertson asked staff to be prepared with an updated 6-year financial plan so that Council can view these decisions in context of the larger budget issues. He asked that the March 18, 2019 agenda be kept free of all other issues so the Committee can fully discuss these MACCs. RETURN TO COMMITTEE. III. MISCELLANEOUS Adjourned 6:18 p.m. Committee Chair Approval Summary by LH 76 City of Tukwila City Council Public Safety Committee PUBLIC SAFETY COMMITTEE Meeting Minutes March 18, 2019 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: Dennis Robertson, Chair; Kate Kruller, Zak Idan Staff: David Cline, Rachel Bianchi, Bruce Linton, Kimberly Walden, Jay Wittwer, Peggy McCarthy, Vicky Carlsen Guests: Justine Kim, Shiels Obletz Johnsen; Steve Goldblatt, Public Safety Plan Program Management Quality Assurance Consultant CALL TO ORDER: Chair Robertson called the meeting to order at 5:30 p.m. I. ANNOUNCEMENT II. BUSINESS AGENDA A. Public Safety Plan: Justice Center Mini-MACC and Fire Station 51 MACC Staff updated the Committee on the Justice Center Mini-MACC and Fire Station 51 MACC. The Justice Center is under the adopted budget by $1,332,337. The increase from the previous meeting is due to an additional $147,525 from project soft costs that was not calculated into the original presentation. All of the bidding is complete for Fire Station 51. The project is over budget by $1,541,632. This includes four alternates that total $312,015, which include: fire hydrant at the rear apron, bi- fold doors, SCBA parts washer rough in and the underground utility work that needs to be done to support a future fuel -filling station. The Administration recommends moving $1,541,632 from the Justice Center budget to the Fire Station 51 project by utilizing the Justice Center savings of $1,332,337, and the remaining from the contaminated soils allowance in the Justice Center budget. When the Justice Center budget was created, the City was not able to have access to the property for necessary tests, so a large allowance was created for contaminated soils in the event of a worst -case scenario. Now that the necessary testing is complete the project team does not believe it will need as much as was originally budgeted for that line item. The Administration recommends moving forward with both projects. Committee members discussed concerns, which included the overall status of the City's budget. Staff indicated that the City is in a better position than what the adopted 2019/2020 budget forecasted and will update the six -year plan for the Committee of the Whole discussion on this issue. 77 Public Safety Committee Minutes March 18, 2019 Councilmember Kruller raised concerns regarding the variance from original budget for the Public Safety Plan and requested a chart showing the difference between the original and amended budgets. She also raised concerns over not having enough information to make a decision at this time and recommended forwarding to full Council without a Committee recommendation. Councilmember Idan asked questions regarding: (1) Is it appropriate to move money between different projects in the Public Safety Program? (Staff and Legal have stated it is) (2) Did the Fire Fighters agree with the Alternates chosen? (staff said the Union President participated in the discussion and agree with the choices) (3) Why wasn't the error in the location of the street power caught sooner? (staff said initial information used was as -built drawing that wasn't correct) Councilmember Idan agreed that it would be better to wait until all of the project were bid so that a decision could be made in total. Chair Robertson was comfortable with the Administration recommendation but cautioned that he believes the full Public Safety Program will be over budget because: (1) Only 30% of the Justice Center (the mini-MACC) has been bid and it is the not the part that FS51 went over on. (2) FS52 is more expensive than FS51 and it has not been bid at all yet so it will likely go over by more than 1.5million. He believes the Finance Committee should begin identifying how to find additional funds. The Committee members and staff discussed the costs/problems associated with waiting on the decisions until sometime in August when the City has full bids (MACCS) for both Fire Stations and the Justice Center. Besides the dollar costs associated with delays, FS51 and the Justice Center would have to be rebid because the bids are only good for 60 days. Also, the dry part of 2019 would be missed. The Committee decided to forward the item to the Committee of the Whole without a recommendation so that the entire Council could discuss and ultimately make a recommendation. FORWARD TO MARCH 25, 2019 COMMITTEE OF THE WHOLE. III. MISCELLANEOUS Adjourned 6:35 p.m. Committee Chair Approval Summary by RB 78 General Fund 2016 Actuals 2017 Actuals 2018 Projected YE 2018 Actuals * (preliminary) 2018 Budget 2019 Budget 2020 Budget 2021 Projected 2022 Projected 2023 Projected 2024 Projected 2018- 19 Percent Change (Budgetary Comparison) 2019- 2020- 2021- 2022- 20 21 22 23 2023- 24 Revenues Revenues Taxes Sales Tax 18,262,544 18,164,227 19,600,000 19,894,509 19,932,102 19,894,000 20,192,410 20,596,258 21,008,183 21,428,347 21,856,914 -0.2% 1.5% 2.0% 2.0% 2.0% 2.0% Use Tax 645,646 642,974 644,389 709,109 675,000 650,000 690,000 703,800 717,876 732,234 746,878 -3.7% 6.2% 2.0% 2.0% 2.0% 2.0% Total Sales Tax 18,908,190 18,807,201 20,244,389 20,603,617 20,607,102 20,544,000 20,882,410 21,300,058 21,726,059 22,160,581 22,603,792 -0.3% 1.6% 2.0% 2.0% 2.0% 2.0% Property Tax 14,494,747 14,857,787 15,197,455 15,177,011 15,279,302 15,923,442 16,241,911 16,647,959 17,064,158 17,405,441 17,753,550 4.2% 2.0% 2.5% 2.5% 2.0% 2.0% Business Tax 10,674,315 11,151,949 11,300,368 11,136,835 11,229,927 10,663,200 12,058,610 12,418,002 12,764,156 13,095,732 13,463,270 -5.0% 13.1% 3.0% 2.8% 2.6% 2.8% Total Taxes 44,077,252 44,816,937 46,742,212 46,917,463 47,116,331 47,130,642 49,182,931 50,366,019 51,554,373 52,661,754 53,820,612 0.0% 4.4% 2.4% 2.4% 2.1% 2.2% Charges for Services 3,249,784 3,012,296 2,834,061 3,150,617 2,850,080 3,207,207 3,269,207 3,561,939 3,622,852 3,684,871 3,748,018 12.5% 1.9% 9.0% 1.7% 1.7% 1.7% Other Income 586,017 608,671 666,527 759,113 1,043,084 1,050,723 1,080,722 936,727 944,932 840,206 848,813 0.7% 2.9% -13.3% 0.9% -11.1% 1.0% Licenses & Permits 3,938,710 4,506,790 4,800,224 4,875,454 4,304,090 6,488,894 6,808,894 6,920,373 7,011,922 7,104,834 7,199,131 50.8% 4.9% 1.6% 1.3% 1.3% 1.3% Transfers In 2,233,476 2,279,058 2,325,643 2,325,643 2,325,643 2,545,645 2,637,288 2,778,611 2,848,076 2,919,278 2,992,260 9.5% 3.6% 5.4% 2.5% 2.5% 2.5% Intergovernmental Revenue 4,632,424 4,720,198 4,422,687 4,702,354 4,377,985 4,604,600 3,646,567 3,810,329 3,869,810 3,930,481 3,992,366 5.2% -20.8% 4.5% 1.6% 1.6% 1.6% Fines & Penalties 252,792 270,866 212,102 232,054 254,129 270,218 291,718 294,635 297,582 300,557 303,563 6.3% 8.0% 1.0% 1.0% 1.0% 1.0% Total Revenues 58,970,455 60,214,816 62,003,456 62,962,698 62,271,342 65,297,929 66,917,327 68,668,633 70,149,547 71,441,981 72,904,763 4.9% 2.5% 2.6% 2.2% 1.8% 2.0% Expenditures Expenditures Salaries & Benefits 39,154,831 40,228,812 40,956,743 40,729,874 42,943,061 43,158,448 44,434,369 45,669,129 46,946,204 48,263,871 49,623,572 0.5% 3.0% 2.8% 2.8% 2.8% 2.8% Operations 13,820,491 14,625,214 16,184,309 16,522,284 16,051,952 16,042,232 15,577,770 15,779,301 15,978,600 16,184,865 16,398,357 -0.1% -2.9% 1.3% 1.3% 1.3% 1.3% Transfers Out Debt Service Transfer Out - Fund 209 0 87,448 556,850 556,850 672,000 557,700 558,250 553,500 553,600 558,400 557,750 -17.0% 0.1% -0.9% 0.0% 0.9% -0.1% Transfer Out - Fund 208 0 0 119,513 119,513 246,000 402,100 402,100 402,100 767,100 766,350 767,225 63.5% 0.0% 0.0% 90.8% -0.1% 0.1% Transfer Out - Fund 217 548,675 552,300 549,251 549,250 549,250 548,700 545,300 546,300 551,500 545,900 0 -0.1% -0.6% 0.2% 1.0% -1.0% -100.0% Transfer Out - Fund 214 523,593 519,524 519,100 575,152 519,100 517,500 515,069 516,637 515,814 514,462 517,583 -0.3% -0.5% 0.3% -0.2% -0.3% 0.6% Transfer Out - Fund 219 0 0 0 0 0 371,875 743,750 1,981,791 2,346,791 2,346,041 2,346,916 0.0% 100.0% 166.5% 18.4% 0.0% 0.0% Transfer Out - Fund 211 811,100 809,900 809,100 809,100 809,100 810,900 0 0 0 0 0 0.2% -100.0% 0.0% 0.0% 0.0% 0.0% TransferOut-Fund218 113,130 113,130 113,131 113,130 113,130 113,130 113,130 113,130 113,130 0 0 0.0% 0.0% 0.0% 0.0% -100.0% 0.0% Transfer Out - Fund 200 878,333 691,150 711,970 711,971 2,940,000 711,956 709,591 711,577 2,995,144 652,634 649,246 -75.8% -0.3% 0.3% 320.9% -78.2% -0.5% Total Debt Service 2,874,831 2,773,452 3,378,915 3,434,966 5,848,580 4,033,861 3,587,190 4,825,035 7,843,079 5,383,787 4,838,720 -31.0% -11.1% 34.5% 62.5% -31.4% -10.1% Other Transfer to Contingency Fund 433,682 180,715 92,672 164,877 0 58,568 210,000 0 0 0 0 0.0% 258.6% -100.0% 0.0% 0.0% 0.0% Transfer to Firemen's Pension 0 0 0 0 69,041 0 0 0 0 0 0 -100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfer to Golf Course 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Other 733,682 480,715 392,672 464,877 369,041 358,568 510,000 300,000 300,000 300,000 300,000 -2.8% 42.2% -41.2% 0.0% 0.0% 0.0% Total Transfers 3,608,513 3,254,167 3,771,587 3,899,843 6,217,621 4,392,429 4,097,190 5,125,035 8,143,079 5,683,787 5,138,720 -29.4% -6.7% 25.1% 58.9% -30.2% -9.6% Total Expenditures 56,583,834 58,108,193 60,912,639 61,152,001 65,212,634 63,593,109 64,109,329 66,573,465 71,067,883 70,132,523 71,160,649 -2.5% 0.8% 3.8% 6.8% -1.3% 1.5% Operating Results Net Operating Result 2,386,621 2,106,623 1,090,817 1,810,697 (2,941,292) 1,704,820 2,807,998 2,095,168 (918,336) 1,309,458 1,744,114 Capital 798,601 117,679 76,589 59,892 30,000 270,000 240,000 0 0 0 0 800.0% -11.1% -100.0% 0.0% 0.0% 0.0% Transfers Transfer In Transfer from PSP 0 0 1,000,000 0 0 0 0 970,791 1,956,951 2,346,041 2,346,916 0.0% 0.0% 0.0% 101.6% 19.9% 0.0% Transfer from Land Acq. Park 0 300,000 0 0 6,050,000 200,000 200,000 0 2,250,000 0 0 -96.7% 0.0% -100.0% 0.0% -100.0% 0.0% Total Transfer In 0 300,000 1,000,000 0 6,050,000 200,000 200,000 970,791 4,206,951 2,346,041 2,346,916 -96.7% 0.0% 385.4% 333.4% -44.2% 0.0% Transfer Out Transfer to Land Acq. Park 0 122,190 88,190 88,190 122,000 19,600 21,950 0 0 0 0 -83.9% 12.0% -100.0% 0.0% 0.0% 0.0% Transfer to City Facilities 0 141,854 1,000,000 0 0 0 0 0 0 0 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Transfer to Arterial Street 751,000 1,800,000 0 0 3,000,000 450,000 1,000,000 2,500,000 2,000,000 5,000,000 1,500,000 -85.0% 122.2% 150.0% -20.0% 150.0% -70.0% Transfer to Gen Gov't Imp. 200,000 200,000 200,000 200,000 200,000 200,000 200,000 300,000 300,000 300,000 300,000 0.0% 0.0% 50.0% 0.0% 0.0% 0.0% Transfer to Residential Street 200,000 0 0 0 0 1,300,000 100,000 300,000 300,000 400,000 400,000 0.0% -92.3% 200.0% 0.0% 33.3% 0.0% Total Transfer Out 1,151,000 2,264,044 1,288,190 288,190 3,322,000 1,969,600 1,321,950 3,100,000 2,600,000 5,700,000 2,200,000 -40.7% -32.9% 134.5% -16.1% 119.2% -61.4% Net Transfers Out (In) 1,151,000 1,964,044 288,190 288,190 (2,728,000) 1,769,600 1,121,950 2,129,209 (1,606,951) 3,353,959 (146,916) -164.9% -36.6% 89.8% -175.5% -308.7% -104.4% Total Capital Outflows (Inflows) 1,949,601 2,081,723 364,779 34.8,082 (2,698,000) 2,039,600 1,361,950 2,129,209 (1,606,951) 3,353,959 (146,916) -175.6% -33.2% 56.3% -175.5% -308.7% -104.4% Fund Balance Starting Fund Balance 11,402,617 11,845,854 11,864,536 11,864,536 11,864,536 13,327,151 12,992,371 14,438,419 14,404,377 15,092,992 13,048,491 12.3% -2.5% 11.1% -0.2% 4.8% -13.5% Surplus/Deficit 437,020 24,900 726,038 1,462,615 (243,292) (334,780) 1,446,048 (34,041) 688,615 (2,044,501) 1,891,030 37.6% -531.9% -102.4% -2122.9% -396.9% -192.5% Ending Fund Balance 11,839,636 11,864,536 12,590,574 13,327,151 11,621,244 12,992,371 14,438,419 14,404,377 15,092,992 13,048,491 14,939,521 11.8% 11.1% -0.2% 4.8% -13.5% 14.5% Reserve Policy (18% of prior year ongoing revenue): 10,614,682 10,838,667 * Year end Actuals for 2018 are preliminary as of 03/20/2019 and are subject to change. 11,160,622 11,753,627 12,045, 9 12,360,354 12,626,918 12,859,557 80 Justice Center and Fire Station 51 Mini-MACC and MACC Council Consideration Bottom Line • Both projects are on schedule • Market conditions continue to be an issue; Sound Transit and WSDOT alone currently working on $5.6+ Billion on current projects • Justice Center mini-MACC under budget; many large bid packages remain • Fire Station 51 over budget • The City has opportunities to address the overage at Fire Station 51 • The Administration recommends achieving the Fire Station 51 budget delta with Justice Center savings, as well as funding key alternates GCCM Process • City had an RFP process for GCCM services for Fire Stations and Justice Center • GCCM joins the process early to inform team on cost impacts associated with design • Once design is complete, GCCM creates specific bid packages for competitive bidding, per state law • GCCM promotes bid packages to encourage a high number of bidders • Bid packages opened at a specific time; lowest responsive bidder must be chosen Justice Center Mini-MACC • Presenting the "mini-MACC" today, which includes: • Demolition and abatement • Foundations, structure and waterproofing • Earthwork and utilities • Allowance for shoring • Allowance for contaminated groundwater • Allowance for shop drawings and engineering for elevator, fire protection, mechanical and electrical • Formula -driven fees associated with the GCCM contract for negotiated support services, MACC contingency, GCCM fee and Specified General Conditions City of Tukwila Justice Center Mini-MACC PUBLIC SAFETY PLAN Demolition & Abatement Foundation/Structure/Waterproofing Earthwork and Utilities Allowance — shoring Allowance — contaminated groundwater Allowance - Shop drawings and engineering Negotiated Support Services MACC Contingency (2.5%) GCCM Fee (5%) Specified General Conditions co Total Mini-MACC Contract $910,582 $4,301,047 $5,057,079 $192,995 $4,288,300 $4,874,410 $50,000 $20,000 $250,000 $221,283 $241,893 $506,944 $248,633 $10,984,458 ($717,587) ($12,747) ($182,669) ($843,003) PUPDATED City of Tuk Justice Center M I n I - M A C C P Bpi J sice Center Contract total Washington State Sales Tax Total mini-MACC Mini-MACC under budget by: Soft cost savings due to savings above: Land acquisition under budget by: Total under budget to date: $10,894,458 $1,089,446 $11,983,903 $843,003 $147,525 $341,809 $1,332,337 Remaining Services to be Bid City of Tuk is Architectural casework Exterior siding Mechanical Electrical Insulation/GWB Assemblies Miscellaneous specialties and equipment Irrigation and landscaping TOTAL Bid packages remaining (does not include formula -driven fees) $18,940,632 Justice Center Budget City of Tuk LI A/E Services Permits/Fees Construction, including sales tax Construction related costs PM Services, including other professional services Contingency, including construction and project Contingency for potential contamination Land Acquisition Contingency for land acquisition TOTAL $3,500,000 S700.000 $38,727,363 $2,282,639 $2,112,596 $4,861,492 $750,000 $14,052,253 $1,550,000 $68,536,343 $3,141,729 S111.317 $563,671 $562,398 $1,967,303 $13,679,370 $898,962 $20,953,976 $358,271 S588.683 $38,163,692 $1,720,241 $145,293 $4,861,492 $750,000 $343,657 $651,038 $47,582,367 Fire Station 51 MACC • MACC includes all of the construction costs • MACC includes $312,015 in priority alternates • As discussed previously, the project requires an additional $200,000 outside of the contract to address an unforeseen issue with electricity due to PSE's inadequate as-builts • With tax, electrical allowance, MACC and priority alternates, Fire Station 51 is over budget by $1,541,632 • Market conditions exacerbated by relatively small budget °UPDATED Fire Station MACC Earthwork/Utilities/Asphalt Site Concrete Concrete and Steel Structure, and Enclosure City of Tukwila LI $661,444 $753,900 $92,456 $287,922 $391,500 $103,578 $1,799,575 $1,798,890 ($685) Masonry Glazing Package GWB, Metal Framing and Insulation/Acoustical Ceiling $253,878 $310,097 $56,219 $276,415 $298,628 $22,213 $467,883 $523,500 $55,617 Miscellaneous Package Tile, Resilient Flooring and Traffic Coatings $706,056 $704,500 ($1,556) $35,436 $38,500 $3,064 Fencing and Gate Enclosures $172,553 $299,000 $126,447 Landscaping and Irrigation Electrical Contractor Mechanical Formula -driven costs $237,778 $262,451 $24,673 $1,026,413 $1,235,963 $200,106 $1,398,430 $1,455,361 $56,931 $1,382,509 Value Engineering List ($179,500) Alternates $312,015 Total $9,587,314 $1,116,514 Fire Station 51 Budget City of Tuk LI A/E Services Permits/Fees Construction, including sales tax Construction related costs PM Services, including other professional services Contingency, including construction and project Land Acquisition TOTAL $1,292,781 S234.000 $9,396,000 $931,000 $526,000 $893,219 $1,236,572 S44.557 $165,000 $163,241 $344,681 $13,273,000 $1,954,050 $56,209 S189.443 $9,231,000 $767,759 $181,319 $893,219 $1 1,318,950 ;UPDATED Fire Station 51 Alternates City of Tuk P B I I Fire hydrant in NE corner of rear apron Additional paving for trailer parking Four -fold doors Fume hood for the shop Rough in for new SCBA gear washer Underground utilities for fueling station Remainder of fueling station Total alternates: $190,000 $60,642 $84,228 $8,434 $25,128 $180,648 $621,970 (this cost includes the $180,648 above) $990,402 $83,200 $51,350 $81,565 $18,121 $4,438 $142,812 $333,209 $714,695 NEW Fire Station 51 Alternates Administration and City of Tuk LI Fire Department Recommendations Fire hydrant in NE corner of rear apron $83,200 Four -fold doors $81,565 Rough in for new SCBA gear washer $4,438 Underground utilities for fueling $142,812 station $83,200 $164,765 $169,203 $312,015 In addition, there is consensus among the project team that if there are an additional contingency funds available toward the end of the project, the first priority should be to add back the additional paving for trailer parking alternate at $51,350. Fire Station 51 Funding Options • Use contingency funds from Fire Station 51 • Use savings from Justice Center mini-MACC and a transfer from the project's contaminated soils budget • Use the Council's contingency fund generated from 10% set aside of one-time funds • Use General Fund ending fund balance Other Considerations • Fire Station 52 includes $750,000 alternate to build out the Administration space • Fire Station 52 likely to experience a premium similar to Fire Station 51 • Justice Center full MACC will be done this spring; remaining bids not likely to see much savings • Public Works master plan will be done in May • Currently $3M in construction budget (including tax) to retrofit Heiser building; unknown at this time what budget will be needed Recommendation • Proceed with the mini-MACC for the Justice Center, which is under budget. • The Administration recommends utilizing the $1,332,337 savings from the Justice Center and a $200,000 from the Justice Center's contaminated soils budget to achieve Fire Station 51's budget delta. • The project team does not believe that there are any additional value engineering targets on Fire Station 51 that would not affect the functionality of the building or the firefighters who work there. • The four alternates previously discussed totaling $312,015 are important and should be moved into the base budget. • The Council's Project Management Quality Assurance consultant agrees with these recommendations. Justice Center Council Consideration: • The Council is being asked to provide the mayor the authority to: • Sign a contract with BNBuilders for $10,894,458 for initial construction of the Justice Center. • Spend $1,089,446 in sales tax associated with the contract above. • If needed, approve the use of the proportional amount of the project's contingency fee, budgeted at 10% of the total construction cost, or up to $1,089,446. Fire Station 51 Council Consideration: • The Council is being asked to provide the mayor the authority to: • Move $1,541,632 from the Justice Center budget to cover the additional costs due to market conditions and the four priority alternates. • Sign a contract with Lydig Construction for $9,587,314 for the Fire Station MACC. • Spend $968,318 in sales tax associated with the contract above. • If needed, approve the use of the contingency budget of $893,219. Council Review and Actior City ofTUk ARCH APRIL 1 MAY Fire Station #52 us ice Center Public Works Facility UNE DULY AUGUST SEPTEMBER OCTOBER NOVEMBER Taraet dates NEW Six Year Financial Plan Update 2018 Projected YE 11,864,536 726,038 12,590,574 10,838,667 City of Tukwila LIC SAFE General Fund Balance Updated 2018 Actuals (preliminary) NEW Original and Revised Budgets City of Tukwila PUBLIC SAFETY P Justice Center Fire Station 51 Fire Station 52 Fire Station 54 Fire Apparatus and Equipment Total PSP Bond Measure Fire Impact Fee General Fund Total $28.6M $11.4M $5.6M $7.3M $29.9M $82.8M $77.3M $4.7M $900K $82.9M $68.5M $13.3M $19.2M $1.6M $14.9M $142.5M $39.9M $1.9M $13.6M ($5.7M) ($15M) $34.7M AN Funding delta was achieved and adopted by the Council by including additional funds from: • Additional fire impact fees • Land sales • REET oNE Potential Budget Impact of August Delay —Justice Center City of Tuk LI Escalation of the market at 6% per annum in 5 months @ $110,000 Bidding in the middle of busy construction season premium —approx. 5% Retaining the construction team for 5 months Potential rainy season earthwork risk (site water control, import/export, less productive) TOTAL $550,000 $1,750,000 $387,200 $800,000 $3,487,200 A non -budgetary impact of delay would include the inability to continue coordinating construction with the City of SeaTac on their Military Road project. The cities have been collaborating and SeaTac delayed their project to meet Tukwila's construction schedule. NEW Potential Budget Impact of August Delay — Fire Stations City of Tukwila PUBLIC SAFETY PLAN Escalation of the market at 6% per annum in 5 months @ $40,000 Bidding in the middle of busy construction season premium —approx. 5% Retaining the construction team for 5 months at $25,000 per month Potential rainy season earthwork risk (site water control, import/export, less productive) TOTAL Escalation of the market at 6% per annum in 10 months @ 52,500 $200,000 $400,000 $125,000 $400,000 $1,125,000 $525,000 Bidding in March of 2020 after contractors filled their workload premium —approx. $600,000 5% $250,000 $1,375,000 Retaining the construction team for 10 months at $25,000 per month TOTAL