Title
Receive a Status Report on the New Juvenile Hall, Project 8811 (Project).
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive a Status Report on the New Juvenile Hall, Project 8811 (Project).
SUMMARY/DISCUSSION:
Zovich Construction, contractor, was issued a Notice to Proceed on April 24, 2017 for construction of the Juvenile Hall at a cost of $43,175,000. The project is being constructed in two phases with Phase I constructing four new buildings : Administration (Bldg. 4), Housing (Bldg. 1A & 1B), Education (Bldg. 6) around the existing Juvenile Hall, and remodeling one existing Dormitory (Bldg. 7). Phase II will commence only after Phase I is complete, the occupants transitioned to the new buildings, and the existing Juvenile Hall building is demolished. Phase II will construct two additional buildings: High Security Housing (Bldg. 2) and the Cafeteria/Service Building (Bldg. 5).
Phase I was anticipated to be completed by July 2018; however, due to unforeseen conditions and issues during construction, the project completion date was extended to November 2019. Phase II is expected to be completed one year following completion of Phase I. In the next 30 days the contractor expects the following:
o Bldgs. #4, 1A, 1B, 4, 6, 7 will complete the Fire Alarm System installation and begin sealing and finishing the concrete floors and installing fixed furniture.
o Bldg. #7 will continue with interior finishes inclusive of taping, sanding and painting new walls. Detention doors will be modified with new hardware. Detention furnishings, beds, storage units and bathroom fixtures will be installed and the existing vestibule will be prepared for the transition from Phase I to Phase II.
As of this date, the Project has all but exceeded the budget as well as the original schedule. Staff is assessing the total funding needed to complete both phases of the Project based on known information at this time and is working with the County Administrative Office on financing sources for anticipated project overrun.
One of the unanticipated cost increases relates to when the County revised the project scope, an assumption was made on Building 7 mechanical equipment that was properly operating at that time. It was assumed that the mechanical equipment would be in good working order and therefore a replacement was not part of the project scope. Subsequently, the systems commissioning process has identified the mechanical equipment has exceeded its useful life, thus incurring an increase of $72,000 to the project using Job Order Contracting (JOC).
The contractor is currently in the process of developing a Time Impact Analysis (TIA), which is due to the project team by the end of the month. This will allow staff to identify a more accurate estimate of costs for the project as well as determine a revised project completion date. The project team continues to work with the Contractor to provide a recovery schedule, and responsibilities for such delays are continuing to be evaluated. The contractor has been put on notice that these delays may result in the assessment of liquidated damages as provided for in the contract.
OTHER AGENCY INVOLVEMENT:
RMA-Facilities and Probation continue to work jointly with Board of State and Community Corrections (BSCC) to meet all State requirements to maintain the conditional award by helping the Project move forward during construction.
Probation staff will be provided transition training prior to occupancy of the new buildings in Phase I. The attached milestone schedule will be updated upon BSCC approval.
State Water Resources Control Board and State Fire Marshal construction phase inspection will continue throughout the construction duration.
RMA presented the updated project budget and additional needs to the Capital Improvement Committee and will present this item to the Board of Supervisors for consideration and direction.
FINANCING:
Total Project cost was budgeted at $58,671,291, of which $23,671,291 was approved by the Board of Supervisors as the County’s match. Expenditures through April 2019 total $41,271,555; Construction costs of $33,224,605 (includes change orders) as well as $8,046,950 for soft costs for construction administration. Change Orders approved to date total $4,313,232, which has reduced the contingency balance to $4,268.
Additional Change Orders totaling approximately $2,754,154 are pending resolution, in addition to potential technical and time claims which are yet to be determined. The project team continues to negotiate contractor submitted change order requests and assess what is critical for project completion. Final negotiated amounts, to the extent any amount is due, are not known at this time.
Based on known information at this time, RMA estimates project additional funding needed for Fiscal Year (FY) 2018/19 is $0.9 million, $3.7 million for FY 2019/20 and $1.1 million for FY 2020/21. This includes the additional out-of-scope costs that will be performed through a separate JOC contracts, but does not include other exposure to costs such as rejected technical change orders or time claims. These estimates are to cover additional hard costs (construction) and soft costs (architecture, construction management, project management) to complete the project. The project team continues to negotiate these costs, so actual final amounts are not fully known at this time.
Prepared by: Neville Pereira, PE, CBO, Chief of Building Services
Approved by: Carl P. Holm, AICP, RMA Director (831) 755-4879
Attachments:
Attachment A - Project Milestone Schedule
cc: Marcia Parsons, Chief Probation Officer