Title
a. Approve an increase in the New Juvenile Hall project in the amount $320,681 for FY 2018/19 from Facilities Master Plan Projects Fund 404-3000-8174-RMA015 where the total project cost increases to $58,991,972 comprised of $35,000,000 in SB81 Lease Revenue Bonds and $23,991,972 in matching County funds, where the financing source is unused discretionary funds from the tenant improvement project for East/West Wing in FY 2018/19. (MOVED VIA SUPPLEMENTAL to Consent Calendar - Public Works and Facilities as newly renumbered to Item 89.2)
Report
RECOMMENDATION:
Phase I is anticipated to be completed by November 2019, and then Phase II will begin. Contingency balance has been reduced to $4,268, so staff is requesting an increase of funding in the amount $320,681 to address FY 2018/19 costs that were already in the pipeline however were not able to be executed because lack of funds. Project savings from residual discretionary funds not utilized on the tenant improvement projects for Schilling and East/West Wing is identified as the financing source.
There is funding that was reserved for Phase II. However, staff is in the process of assessing additional funding needs for FY 2019/20 and FY 2020/21 to complete the Project. Staff will return to the Board of Supervisors through the Committees once funding needs are better defined and a funding course is identified.
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.
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 estimated project budget and additional needs to the Capital Improvement Committee and Budget Committee.
RMA is working closely with the County Administrative Office on estimating additional project funding needs and financing sources.
FINANCING:
The current New Juvenile Hall Project budget is $58,671,291, of which $23,671,291 was approved by the Board of Supervisors as the County’s match and SB81 Lease Revenue Bonds of $35,000,000 from BSCC. 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 project contingency balance to $4,268.
RMA estimates additional funding in the amount of $320,681 is needed for Fiscal Year (FY) 2018/19. This estimate covers additional hard costs (construction in the amount of $147,062) and soft costs (architecture, construction management, project management in the amount of $173,619). There are sufficient appropriations within the FY 2018/19 Facilities Master Plan Projects Fund 404-3000-8174-RMA015 resulting from East/West Wing coming under budget in FY 2018/19. The project savings from residual discretionary funds budgeted in FY 2018/19 but not utilized towards the tenant improvement project for East/West Wing as the financing source.
The revised total project budget for the New Juvenile Hall increases by $320,681 to $58,991,972 where the financing sources comprise of $35,000,000 in SB81 Lease Revenue Bonds and $23,991,972 in matching discretionary County funds.
Prepared by: Neville Pereira, PE, CBO, Chief of Building Services
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A - Project Milestone Schedule (Please note the completion dates will be updated once approved by BSCC)
Attachment B - Listing of Additional Hard and Soft Costs
cc: Marcia Parsons, Chief Probation Officer