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HomeMy WebLinkAboutPS 2019-05-20 Item 2A.2 - Public Safety Plan - Fire Station 52 Schematic Design EstimateAllan Ekberg, Mayor Administrative Services Department- Rachel Bianchi, Deputy CityAdministrator INFOR ATIO AL E ORANDU TO: Public Safety Committee CC: Mayor Allan Ekberg FROM: Rachel Bianchi, Deputy City Administrator DATE: May 15, 2019 SUBJECT: Fire Station 52 Schematic Design Estimate ISSUE As a part of our ongoing work to design Fire Station 52, the project team is providing the Council with an update of the design and estimated costs. BACKGROUND The new Fire Station 52 is to be located on the City Hall Campus just north of the 6300 Building in the upper parking lot. With Fire Station 51 moving further south, the FACETS study determined that it would be important for Fire Station 52 to move further south to maximize coverage and response times throughout the City. Fire Station 52 will become the new headquarters station and thus is a larger, more complex building than Fire Station 51. With the Schematic Design phase complete, the project team began estimating the project. In addition, the group used the bids received for the Fire Station 51 project, currently under construction, to inform the estimating process. Fire Station 52 is above the adjusted budget adopted by the Council in July of 2018. The project team spent considerable time and discussion identifying places to value engineer the project in order to ensure the best value for the City. The team identified nearly $670,000 in savings that would not affect the functionality of the building. However, it was determined that no additional savings could be found that would not significantly impact the building's usability and long- term functioning. The construction budget is estimated to be over budget by $4.23 million once construction costs, sales tax and contingency are accounted for. The full build out of the Administration space, which has been carried as an alternate since early on in the project, is expected to cost an additional $1.25 million, which would include construction, sales tax, contingency and furniture, fixtures and equipment (FF&E). While this percentage is higher than the overage on Fire Station 51, this project is significantly more complex. It is a two-story building requiring much more structural support and use of steel and has a significant earthwork component. The most volatile costs on this project is associated with earthwork. Because of the current market, the unknowns about what contractors would potentially bid on this project and the very real escalation in the market, particularly for earthwork services, the project team elected to include a 30% contingency in the budget for earthwork alone, which is over $1 million. Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 63 Due to the significant amount of value engineering work, this most recent estimating phase took longer than normal, and the project is now finished up with the Design Development (DD) phase. Both Robinson, the outside estimators, and Lydig will be doing another round of estimating on the DD plan set to refine these numbers. As with any project, the final numbers will be known once the bid results are received and compiled. RECOMMENDATION The Administration recommends filling the $4.23 million gap largely with unanticipated Streamlined Sales Tax (SST) Mitigation payments the City will receive over the next four years, which total more than $4 million. Previously the State Legislature had ended the SST mitigation payments and the City did not include them moving forward from their sunset date of 2019. However, during this past session, the Legislature restored the payments for another four years. Because these are one-time funds that should not be programmed for ongoing programs or personnel, using this for a one-time cost such as this project makes sense. In addition, if there is interest in fully building out the Administration space at Fire Station 52, the Administration has recommendations on how that could be accomplished. There is an additional $167,00 in Fire Impact Fees collected last year that have not been allocated to the Public Safety Plan. These is also $525,000 in the Council's 10% of one-time revenue contingency account, which could be used for this. Finally, the 2019/2020 exceeds the City's policy of ending fund balance, which could cover the remainder of the cost. Fire Station 52 has been proposed to be a two-part MACC process, similar to what the City did with the Justice Center. The purpose of this is to maximize the construction season and begin this summer while the remaining design and engineering to construct the actual building is finalized. In order to maximize the City's schedule and move as much earth as possible in the summer, the team has developed the following timeline: • Mini-MACC — Public Safety July 1, 2019; COW July 8; Council July 15 Includes earthwork, site utilities, electrical, foundation, structural • Final MACC — Public Safety October 28, 2019; COW November 11; Council November 18 Includes construction of building It has been previously discussed that delay will add additional costs to this project, estimated at more than $1.3 million if the City was to delay construction until spring of 2020. These additional costs include more escalation of the market, bidding premiums and the costs associated with retaining the construction team during the delay. Additionally, after the completion of bidding for the Mini-MACC in June, if we do not experience as much bid inflation as expected, the Final MACC pricing may potentially be lower as a result. Staff recommends that the Fire Station 52 project continue to move through the Construction Documents (CD) phase. During this time, staff proposes to work with the Finance Committee to determine the best way to fully -fund the project. The true cost of the project will be known when the bids are opened, and given that the most volatile work is in the mini-MACC, there will be much more clarity on the final budget at that time. Steve Goldblatt, the Council's Project Management Quality Assurance consultant has reviewed the project status and agrees with this recommendation. ATTACHMENTS Public Safety Plan presentation Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 64 Justice Center MACC Fire Station 52 SD Update MACC Consideration & Status update on Fire Station 52 Bottom Line • Justice Center on budget • Fire Station 52 estimate over budget • Team carrying large contingency for earthwork • Actual bids will provide certainty • One-time, unexpected funds are available to make up the delta Justice Center Justice Center • Total MACC on budget after value engineering of more than $1.2M without affect on public or end users • Technology scope of work moved from the Furniture, Fixtures and Equipment (FF&E) budget to construction; associated budget moved as well Justice Center Construction Costs City of Tuk LI Pre -construction Preconstruction services, demolition of former Sahara Restaurant and $ 512,428 Travelodge (with sales tax) Mini-MACC : Demolition and abatement of remaining buildings, foundations/structures and water proofing, and earthwork and utilities Total MACC Masonry, casework, siding, roofing, doors, frames and hardware, aluminum systems, elevator, fire protection, mechanical, electrical, site concrete, insulation, acoustical, floor coverings, painting, specialties and equipment, window coverings, paving and striping, irrigation and landscaping Total Construction Cost Sales Tax Total 0,894,458 $23,155,541 3,446,455 $38,018,670 0) Justice Center Construction Budget A/E Services Permits/Fees Construction (Pre -Con, Const & Tax) City of Tukwila 1 Construction Related Costs (incl. bond & FF&E PM Services (incl other prof services Contingency (incl const and proj $2,082,596 4,795,518 Contingency for site Contamination $550,000 Land Acquisition 13,710,562 Contingency for Land Acquisition $1,550,000 Total $66,994,711 The low -voltage wiring scope of work was moved into the Construction budget, which was originally held in the FF&E budget. The budget amount of $238,075 was also moved from the FF&E budget to Construction. No change in overall project budget. Justice Center Council Consideration: • The Council is being asked to provide the mayor the authority to: • To sign a contract with BNBuilders for $23,155,541 for the remaining construction of the Justice Center • To spend $3,456,244 in sales tax associated with the contract discussed above • To spend, if needed, the full project's contingency for change orders, budgeted at 10% of the total construction cost, or up to $3,446,455 ftwftw,,.,, Fire Station 52 Fire Station 52 • Estimating began after Schematic Design phase; Fire Station 51 bids used to inform estimating • Project team value engineered $668,000 from the total budget • Team determined no additional savings without significant impacts Fire Station 52 Estimate • Estimated at $4.23 million over the revised budget of $19,260,000; includes tax and contingency • Estimate includes over $1 million in contingency for earthwork • Overage due to: • Complexity of building • Continued market escalation • Volatile costs of earthwork • Alternate #1, full build out of the Administration space estimated at $1.25 million; includes tax and contingency Moving forward • Opportunity to fill gap with unanticipated, one-time funds of Streamlined Sales Tax (SST) mitigation funds restored by the Legislature this session. • Other sources of funds to pay for the gap and/or alternate exist, including: • unallocated Fire Impact Fees • one-time contingency funds • ending fund balance in excess of City policy • dedicate project sales tax • issue additional debt • additional options discussed during previous PSP discussions • Recommend staff works with the Finance Committee in June to identify potential additional funding. Fire Station 52 Timeline Project constrained by market escalation. Timeline critical to ensure ability to contain costs. Projected escalation if the City delays until May of 2020 in excess of an additional $1.3 million. • Mini-MACC. Earthwork, site utilities, electrical, structural • July 1: Public Safety Committee • July 8: Committee of the Whole • July 15: Full council consideration • Final MACC. Building construction • October 28: Public Safety Committee • November 11: Committee of the Whole • November 18: Full Council consideration Fire Station 52 Council Consideration: • Move forward the project • Staff to work with Finance Committee to identify potential sources of revenue to fill gap • Resolve delta during mini-MACC discussion and consideration Questions?