REPORT TO COUNCIL
SUBJECT
Title
Approve Budget Modification No. 25 to Appropriate $300,000 to Capital Project 830560 Fremont Pool House Infrastructure Improvements, Approve "Fourth Amendment to Use Agreement Between City of Sunnyvale and Fremont Union High School District for the Development and Operation of a 50 Meter Swimming Pool and Related Facilities at Fremont High School"
Report
BACKGROUND
Fremont Union High School District (FUHSD) and the City entered into an agreement for maintenance of the Fremont High School Pool House ("Pool House") in 2000, which was amended in 2002 (first amendment), 2004 (second amendment), and 2013 (third amendment) (Attachment 1). This project only relates to the locker room/shower facilities (Pool House) dedicated to community use.
This amendment is to increase the budget for Capital Improvement Project 830560, Fremont Pool House Infrastructure Improvements (Attachment 2), which funds the City's share for major infrastructure improvements to the Pool House that are more extensive than normal routine maintenance. The City is responsible for half of the costs for the project. Work being completed at this time includes repairs to deficient shower drains, inadequate air flow inside the two locker rooms, and damage to building infrastructure as a result of these deficiencies.
A contract was awarded by FUHSD to Blach Construction on May 20, 2014, in the amount of $1,674,561.00 to make the repairs based upon specifications prepared by Noll and Tam, the architect representing FUHSD. Work began in June 2014 and some revisions and increase in expense have occurred, requiring an increase in the budget for the project.
EXISTING POLICY
The agreement to provide facilities, and share resources and costs is in accordance with Sunnyvale General Plan, Chapter 4 Community Character:
Policy CC-10.6 Leverage available resources by pursuing co-funded and/or cooperative agreements for provision and maintenance of programs, facilities, and services, in order to maximize benefits to the community. Partners may include, but are not limited to, school districts, non-profit groups, governmental agencies and businesses.
ENVIRONMENTAL REVIEW
RTC 13-309, approved December 17, 2013, made a finding that the work being performed is maintenance and repair of existing facilities. Therefore, the project, and budget modification are categorically exempt under CEQA pursuant to Guideline section 15301.
DISCUSSION
RTC 13-309 described the scope of work anticipated to be completed under the current project. Bids were received approximately 5.5% higher than the architect's estimate and approved for award to Blach Construction. Construction work began in June 2014 with demolition of the existing floor and wall surfacing.
During construction some deficiencies in the original construction were found, and public users of the facility requested some material upgrades to the project, specifically the installation of a different flooring system. Changes were negotiated and approved for installation. Review by the state, correction of deficiencies, demolition and construction required for a different flooring treatment all contributed to an increase in the cost of the project.
Amendment Three anticipated the possibility of additional expenses, which would be discussed between the parties as they arose. This occurred at various stages throughout construction. Final costs, or estimates, of all work, including the construction work, architectural design, pre-bid and pre-construction investigations into materials environmental conditions, and charges by the Department of the State Architect for review and permitting, are all included in the total costs identified for this project. (Attachment 3)
Amendment Four to the Development and Operation Agreement of the Pool House has been prepared to formalize the understanding of the final budget of the maintenance and repair project identified in Amendment Three.
Project costs included in the current capital project were based on a facility assessment report which was completed prior to the third amendment. Total project costs for repairs identified in the assessment report were estimated at $1,586,889, including design costs and contingencies. The City share was estimated at a maximum of $793,445 and was capped by the third amendment, with the understanding that if construction bids came in higher than expected, the City and FUHSD would meet and confer about potential solutions before proceeding with a contract award. The amended amount approved and budgeted for Capital Project 830560 was $800,000, $240,000 of which was spent in FY 2013/14. In addition to approval of the Fourth Amendment to the agreement, staff is recommending an increase of an additional $300,000 to the remaining budgeted amount, to bring the total project budget to $1,100,000.
Design and construction of the project was led by the District with the involvement of City project management staff. The project was scheduled to be completed in the summer of 2014, but various conditions, changes in materials, and state approvals delayed completion until November 2014.
FISCAL IMPACT
Park Dedication Funds have been budgeted for the renovation of the Fremont Pool House. Budget Modification No. 25 has been prepared to appropriate Park Dedication funds in the amount of $300,000 for increasing the City share of the costs for maintenance and repair of the Fremont Pool House.
Budget Modification No. 25
FY 2014/15
|
Current |
Increase/ (Decrease) |
Revised |
Expenditures |
|
|
|
Infrastructure Renovation and Replacement Fund |
|
|
|
Project 830560 - Fremont Pool House |
$559,912 |
$300,000 |
$859,912 |
Reserves |
|
|
|
Park Dedication Fund |
|
|
|
Park Dedication Fund Capital Projects Reserve |
$7,962,316 |
($300,000) |
$7,662,316 |
FY 2013/14 Park Dedication Fee revenue was higher than expected by approximately $4.6 million. Therefore, appropriating additional funding to this project will not significantly affect the fund's Capital Projects Reserve.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Approve Budget Modification No. 25 to appropriate $300,000 to Capital Project 830560 Fremont Pool House Infrastructure Improvements; and, approve the Fourth Amendment to Use Agreement Between City of Sunnyvale and Fremont Union High School District for the Development and Operation of a 50 Meter Swimming Pool and Related Facilities at Fremont High School.
2. Do not approve the proposed amendment to the agreement with Fremont Union High School District and provide further direction to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Approve Budget Modification No. 25 to appropriate $300,000 to Capital Project 830560 Fremont Pool House Infrastructure Improvements; and, approve the Fourth Amendment to Use Agreement Between City of Sunnyvale and Fremont Union High School District for the Development and Operation of a 50 Meter Swimming Pool and Related Facilities at Fremont High School.
Staff
Prepared by: Jim Craig, Superintendent of Public Works Operations
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Lisa Rosenblum. Director, Library and Community Services
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement Between City of Sunnyvale and Fremont Union High School District for the Development and Operation of a 50 Meter Swimming Pool and Related Facilities at Fremont High School, including Amendments One, Two and Three.
2. Proposed Amendment Four to Use Agreement Between City of Sunnyvale and Fremont Union High School District for the Development and Operation of a 50 Meter Swimming Pool and Related Facilities at Fremont High School.
3. Fremont Pool House Repairs and Modifications 2013-2014 Summary of Costs.