Title
a. Receive a Status Report on the New Juvenile Hall, Project 8811.
b. Support a recommendation to add $725,560 to the Project budget in Fiscal Year 2019/20 for change orders approved through January 7, 2020.
c. Support a recommendation to increase the project budget in Fiscal Year 2020/21 by approximately $1,625,933 to cover additional projected soft costs.
Report
RECOMMENDATION:
It is recommended that the Capital Improvement Committee:
a. Receive a status report on the New Juvenile Hall, Project 8811;
b. Support a recommendation to add $725,560 to the Project budget in Fiscal Year 2019/20 for change orders approved through January 7, 2020
c. Support a recommendation to increase the project budget in Fiscal Year 2020/21 by approximately $1,625,933 to cover additional projected soft costs.
SUMMARY:
The New Juvenile Hall, Project 8811 (Project) consists of replacing the Juvenile Hall campus at 1420 Natividad (38,949 s.f., three [3] buildings) with a new campus consisting of six (6) new buildings plus one (1) remodeled existing building (78,441 s.f) in two (2) construction phases.
The original completion date was scheduled as July 3, 2019 with Phase I being completed by July 11, 2018. To date, the contractor has submitted claims totaling 539 delay days of which 153 days have been accepted as compensable (excusable). The other 386 days are under review, and further claims could be submitted by the contractor. Due to several critical time impact issues related to changes from the State Fire Marshall, corrections from State (BSCC) inspectors, and construction issues, the Phase I completion date is now estimated as March 31, 2020. The project team is working to resolve issues that could further impact the completion of Phase I. The overall project completion date for both phases has been extended from August 31, 2020 to June 30, 2021. A summary of critical issues impacting the Project schedule and budget is included with this report as Attachment A.
The original Project budget of $58,671,291 included $43,175,000 in construction costs, $4,317,500 construction contingency and 11,178,791 in soft costs. To date, the Board of Supervisors has approved an additional $1,701,119 in construction costs and $1,788,105 in soft costs for a current approved budget of $62,160,515.
The current approved budget will need to be increased by approximately $2,351,493 for construction change orders approved as of January 7, 2020 and increased projected soft costs in Fiscal Year (FY) 2020/21. A summary of the Project budget and funding increases by FY is included with this report as Attachment B.
In addition, the project team is assessing the validity and need of approximately $360,000 in change order requests which if accepted, would be presented to the CIC and BC in a future request. The change order and soft costs indicated above do not include critical impact issues that may affect budget and schedule (summarized in Attachment A), future change orders related to the construction of Phase II, soft costs due to further extending the schedule, or contingency for the remainder of the Project.
DISCUSSION:
Phase I Schedule
Phase I buildings include five (5) Buildings. Buildings 1A and 1 B are standard 30 bed housing units. Building 4 is the Administration Building for staff, youth processing, visitation and medical services. Building 6 is a school building with a gym, classrooms and staff support offices. Building 7 is the renovation of an existing 30 bed dormitory unit.
The items/issues that have not been completed on Phase I buildings include: approval from California State Fire Marshall (CSFM) and Board of State and Community Corrections (BSCC) inspectors, Heating Ventilation and Air Conditioning (HVAC) system commissioning and addressing excessive HVAC system noise throughout the buildings, water intrusion into multiple buildings identified during rain events in December 2019 and Building 7 HVAC and roof replacement construction (separate JOC project). As each issue is resolved, any change order, schedule or soft cost impact that results in additional funding needs will be submitted to the Budget Committee (BC) and Capital Improvement Committee (CIC) for approval.
Phase II Schedule
Phase II is anticipated to start in April 2020 after Phase I is completed and Probation transitions into the new buildings that would change the completion date, which is now estimated as June 30, 2021. This projection includes time for demolition of two (2) original buildings, construction of two (2) new buildings (Buildings 2 and 5) and transition to full operations. Building 2 is a 30 bed maximum security housing unit. Building 5 is a support services building including a kitchen and laundry services.
The project team is limiting changes to the minimum necessary to complete this project (e.g. inspection corrections). As the project team encounters issues with Phase I, the solutions are being applied and change orders are being negotiated for Phase II buildings which have not been built yet. However, the project team anticipates that with construction of two (2) new buildings and the sitework involved, given the history of this project/contractor, there will be additional change orders.
Funding Request
An additional funding request will be presented to the Budget Committee on January 29, 2020. This request includes change orders approved to date, including known Phase II change orders, of approximately $725,560 in FY 2019/20 and additional FY 2020/21 soft costs of approximately $1,625,933, for an approximate total of $2,351,493.
Regarding soft costs, there is not enough budget for County staff time, consultant construction manager, architect and consultant staff augmentation engineers for the remainder of the Project through the estimated completion date of June 30, 2021. The estimated gap in soft costs through the completion date of June 30, 2021 is $1,625,933. Negotiations are ongoing to develop a firm price. The funding request will be updated for the Budget Committee and Board of Supervisors as actual costs are determined.
To date, there have been $5,776,709 in approved and funded change orders. The current funding request includes an additional $725,560 of additional change orders that have been negotiated. This includes State Fire Marshall and Board of State and Community Corrections (BSCC) requirements as well as operational and safety issues identified by the Probation department.
OTHER AGENCY INVOLVEMENT:
Resource Management Agency (RMA) and the Probation Department continue to work jointly with BSCC to meet all State requirements to maintain the conditional award for the grant funding. State Water Resources Control Board and State Fire Marshal construction phase inspections will continue throughout the construction duration. RMA continues to work closely with the County Administrative Office (CAO) on estimating additional project funding needs and financing sources.
FINANCING:
The current Board of Supervisors approved project budget is $62,160,515 which consists of the State lease revenue bond of $35,000,000 and the County match of $27,160,515. Previous approved increases of $320,681, $590,963 and $2,577,580 are included in this budget amount. Total expenditures through November 2019 are $48,157,945, including $38,914,863 in construction costs and $9,243,082 in soft costs. The County match is financed by $26,024,197 from General Capital Assignment and $1,136,318 from the Facility Master Plan Projects, Fund 404.
To date, the County has claimed $34,485,812 of the $35,000,000 State SB81 Local Youthful Offender Rehabilitative Facilities Construction grant. A claim for the remaining $514,188 is being processed for submittal to the State.
A funding request will be presented to the Budget Committee on January 29, 2020 to cover additional change orders costs in FY 2019-20 of approximately $725,560, and consultant soft costs in FY 2020-21 of approximately $1,625,933, for an approximate total of $2,351,493.
Staff recommends the budget increase of $725,560 for FY 2019-20 be funded out of General Fund Contingencies, Fund 001. The current balance of General Fund Contingencies is $3,316,044. There is also a funding request of $1,011,228 for the Lake San Antonio Operations Plan pending Board of Supervisors approval, which would bring the fund balance to $2,124,816. If this request for $725,560 and the Lake San Antonio Operations Plan is approved, the balance would be reduced to $1,406,135
An alternative funding source is Cannabis Assigned Fund Balance. As of January 9, 2020, the projected Cannabis Assignment balance is $27,592,955.50.
Provision of a New Juvenile Hall facility supports the Board of Supervisors Administration, Infrastructure, and Public Safety Strategic Initiatives by enhancing the safety of County staff, facility occupants, and the public.
Prepared by: John Snively, Management Analyst III (831) 759-6617
Thomas Montoya, Project Manager II (831) 759-6433
Florence Kabwasa-Green, Project Manager III (831) 755-4805
Reviewed by: Lindsay Lerable, Chief of Facilities
Leigh Ann Sutton, Deputy Director of Public Works, Parks & Facilities
Shawne E. Ellerbee, Deputy Director of Administrative Services
Approved by: Carl P. Holm, AICP, RMA Director
Attachments:
Attachment A: Project Summary
Attachment B: Project Budget