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HomeMy WebLinkAboutItem 3a - Contract for Design and Construction of the Museum Education CenterGgLI F O 3 of STAFF REPORT �o Development Services Department DATE: June 4, 2013 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVCIES AGREEMENT WITH TKE CONSTRUCTION FOR DESIGN /BUILD SERVICES FOR THE DESIGN AND CONSTRUCTION OF THE MUSEUM EDUCATION CENTER IN THE AMOUNT OF $797,581, AND APPROVE A 10% CONTINGENCY Recommendation: Approve SUMMARY The City Council approved, in concept, the design and construction of a proposed Museum Education Center at the January 20, 2009, City Council Meeting. At that time, no additional City funds were committed for the project, and fundraising to pay for the building was the responsibility of Museum support groups. Since that time, $500,000 has been raised and /or pledged toward the construction of this building. In a Study Session on November 6, 2012, the Council evaluated the cost estimates for the building, approved the use of a Design /Build process for the building, and indicated a willingness to consider contributing some funding toward completion of the project. A Request for Proposals was released on March 7, 2013, and an interview panel made up of Staff from various departments, as well as a representative of the Museum Foundation, completed interviews on May 13, 2013. Based on the proposals received, and the subsequent interviews, the interview panel recommends that the City Council authorize and direct the City Manager to execute a Professional Services Agreement with TKE Construction for Design /Build services for the design and construction of the Museum Education Center in the amount of $797,581, and approve a 10% contingency. BACKGROUND The Museum Education Center was first conceived by the Arcadia Historical Museum Commission in 2006 to address a need for additional space due to increased programming at the Museum. An architect was hired to create a conceptual design for a building of approximately 1,000 sq. ft. with one large room of 864 sq. ft. plus a storage area, and an outdoor patio area. The need for a larger and more flexible classroom Museum Education Center Design /Build June 4, 2013 Page 2 space continued to grow as the programs of the Museum developed and attendance increased. In addition to the Museum's needs, the Recreation and Community Services Department also began looking for more conveniently - located classroom space for their popular and well attended programs. In 2009, the staffs of the Department of Library and Museum Services and the Recreation and Community Services Department met and determined that replacing the shuffleboard courts with a multipurpose space addressed the programming interests and demands of the community. It was proposed that the Museum would have first call on the use of the space, and Recreation and Community Services would have use of the space whenever the Museum did not need it. The City Council approved, in concept, the design and construction of a proposed Museum Education Center of approximately 2,600 square feet at the January 20, 2009, City Council Meeting. A fundraising effort has been actively pursued over the past several years by the Museum Foundation, resulting in $500,000 raised toward the construction of this building. The plans originally developed for the Museum Education Center were conceptual, and did not provide the level of detail necessary to pursue a typical plan -based bidding process. Staff obtained the services of Cumming Corporation, a professional estimator, who provided a cost estimate based on these plans of approximately $1.2 million. These findings were presented to the City Council at a Study Session on November 6, 2012. Subsequent to that, a local builder informed the Council it was his belief the building could be built for much less than this. Therefore, at the November 6, 2012, meeting, the City Council authorized the use of the Design /Build process to proceed with moving toward the construction phase for this project, and communicated a willingness to consider increasing the funding levels needed for this building, depending on the ultimate price. On March 5, 2013, the City Council authorized the release of the RFP to interested Design /Build contractors. The RFP contained technical specifications that outlined the key building components desired for the project, the minimum level of construction quality necessary for the building, and the finishes, materials, and furnishings required to make this a building all parties, and the community, will be proud of. The building will include classroom space that is divisible into two distinct rooms, an entry way or hallway, restrooms and utility rooms, an appropriately -sized storage area, a large outdoor patio area, and a small workstation area. DISCUSSION The RFP was released on March 7, 2013, to interested firms. Five (5) proposals were received from Design /Build teams. A review panel made up of representatives of the Development Services Department, Public Works Services Department, Library and Museum Services Department, Recreation and Community Services Department, and Museum Foundation convened to review the submitted proposals and to conduct interviews with all proposing teams. The Design /Build process is not a typical "low -bid" Museum Education Center Design /Build June 4, 2013 Page 3 process; proposers are reacting to a fairly general set of guidelines and building renderings and drawings, and they react to this from both a design and construction point of view. There is risk of unknown conditions and multiple design iterations built into the bidding process. Largely due to the nature of the process, the original range of bids was wide, from two proposals at $759,000 on the low end, to a high proposal price of $1.7 million. The review of submitted proposals and the interview process was completed on May 13, 2013, and, following meetings of the review panel, TKE Construction was selected as the preferred consultant team. TKE spent a great deal of time in their proposal to truly understand the building, the desires of the Museum Foundation, and the place this building will have in the community. Their presentation was thorough, thoughtful, and their team exhibited a great deal of flexibility. TKE has the advantage of being a "one stop shop "; they have design, engineering, and construction services all under the same roof. This adds flexibility to their process, keeps overhead down, and assists in communication by providing a single point of contact. In their proposal and presentation, TKE provided a number of alternative methods and value engineering options that add value to the building but keep the price at what was considered by the panel to be a reasonable range. After meeting with the review panel and better understanding the goals of the project, TKE's final revised bid came in at $797,581. While not the overall low bid, the panel felt that TKE offered the best value for the project for the reasons listed above. FISCAL IMPACT Fundraising for the building is under the direction and oversight of the Museum Foundation and approximately $500,000 has been raised or pledged to date. At the November 12, 2012, meeting, the City Council acknowledged that other City funds would likely be needed to complete the building. It is recommended that the City use Park and Recreation Impact Fees (Impact Fees) to fund the balance of the building. Impact Fees are collected on new residential square footage developed in the City. Each new home, single - family or multi - family, that is developed in the City pays this fee as part of their overall building permit package. The fee is designed to pay for park and recreation capacity enhancements throughout the City to provide the park and recreation facilities to new residents and a growing population. Examples of projects that have been funded in part by these fees are the City Hall Soccer Field and the Dana Gym joint -use project. The Museum Education Center will be used by the Recreation and Community Services Department for the programming of classes and activities, along with the use of the facility by the Museum and Museum Foundation. Clearly, the use of this building makes it eligible for the utilization of Park and Recreation Impact Fees. The current balance of Park and Recreation Impact Fees within City reserves is $2.275 million. In addition, the Development Services Department estimates that over $1.2 Museum Education Center Design /Build June 4, 2013 Page 4 million in Impact Fees will be obtained from new development in the 2013 -14 Fiscal Year. As a result, it is recommended that $297,581 in Impact Fees be used to fully fund the project as shown in the table below. In addition, a standard 10% contingency is requested for the project. This contingency is proposed to cover unforeseen costs or circumstances such as adverse soil conditions, drainage concerns, unknown field conditions, and the like. Staff costs from the various departments to oversee the development will also be directly charged to the project and will come from the contingency. This contingency, if needed, is also recommended to come from the Parks and Recreation Impact Fee fund. The table below shows the recommended breakdown of costs for the building. If this method is utilized, no General Fund monies will be needed for this building. Funding Element Cost Base Cost of Building $797,581 10% Contingency $79,751 Total Anticipated Costs $877,339 Museum Foundation Pledge $500,000 Parks and Recreation Impact Fees $377,332 TOTAL Recommended Authorization $877,339 RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a Professional Services Agreement with TKE Construction for Design /Build Services for the design and construction of the Museum Education Center in the amount of $797,581, and approve a 10% contingency. Approved- Dominic Lazzarett� City Manager