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~9~~~~~82 STAFFREPORT CITY CLERK
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`~~L~~ `~~ DUBLIN CITY COUNCIL File #^~~0-0 5^
DATE: March 15, 2011
TO: Honorable Mayor and City Councilmembers
FROM: Joni Pattillo, City Manager
SUBJE . ublin Heritage Park and Museums, Phase I(CIP #950001) - Approval of
Additional Appropriation, Authorization for the City Manager to Approve Change
Orders and accept the project.
Prepared By: Herma Lichtenstein, Parks and Facilities Development Manager
EXECUTIVE SUMMARY:
On July 20, 2010 the City Council authorized a contract with Bovis Lend Lease, Inc for the
completion of the Dublin Heritage Park and Museums, Phase I. The project is substantially
complete and costs for change order work have exceeded the City Manager's authorization. In
order to finalize costs and accept the project, Staff recammends authorizing the City Manager to
approve change orders up to the remaining ten percent contingency. In addition, an adjustment
to the project budget is required to reflect funds appropriated in Fiscal Year 2009-2010 that
were not carried over to Fiscal Year 2010-2011 based on the project status at the time the CIP
was adopted.
FINANCIAL IMPACT:
At the time the City Council awarded the agreement to Bovis Lend Lease, Inc the construction
contract contingency was established as $192,000 or 10% of fhe contract cost. The City policy
on change orders only allows the City Manager to execute changes up to 5% without specific
approval.
An additional appropriation of $462,899 is required to account for funds appropriated last fiscal
year, but inadvertently were not carried over. In Fiscal Year 2010 a total of $2.2 million was
budgeted and only $1.2 million was expended. Consequently $553,767 was carried over and
was based on estimated expenses and not the project budget. The budget change approved in
July 2010, before the books were closed, had incorrectly assumed a carry-over of $1,016,466
(2010 Budget $2,215,658 less 2010 Actual Expenses of $1,199,192). The difference between
the $1,016,466 and the actual carry-over of $553,567 is $462,899 which is the recommended
additional appropriation.
RECOMMENDATION:
Staff recommends that the City Council 1) Authorize the City ~ Manager to approve Change
Orders in an amount not to exceed $192,000; and 2) Approve the Budget Change and an
additionai appropriation of $462,899; and 3) Upon approval of remaining Change Orders,
authorize City Manager to accept the project.
Page 1 of 2 ITEM NO. ~• ~
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Submitted by:
Parks and Community
Services Director
DESCRIPTION:
~Gfi~
Reviewed by:
Administrative Services
D i rector
Reviewed by:
Assistant City Manager
The contractor, Bovis Lend Lease, Inc. has reached substantial completion on the Dublin
Heritage Park and Museums project and is currently working on remaining punch list items.
During the course of the project additional substandard work was discovered which required
remediation. The cost for this work is now in excess of the five percent contingency limit which
the City Manager can authorize. As part of the project close out, Staff is required to provide a
final accounting of all costs. The contractor is completing certain negotiations to reduce the
overall change order costs, therefore, Staff is requesting that the Council authorize the City
Manager to execute all remaining change orders up to the total of the contract contingency of
$192,000.
As described in the Financial Section of this report, an additional appropriation of $462,899 is
required to account for funds appropriated last fiscal year, however were not carried over based
on the project status. In Fiscal Year 2010 a total of $2.2 miifion was budgeted and only $1.2
million was expended. Consequently $553,767 was carried over and was based on estimated
expenses and not the project budget. The budget change approved in July before the baoks
were closed had incorrectfy assumed a carry-over of $1,016,466 (2010 Budget $2,215,658 less
2010 Actual Expenses of $1,199,192). The difference between the $1,016,466 and the actual
carry-over of $553,567 is $462,899 which is the recommended additional appropriation.
The Budget Change will address project funding for all components of the project and not
strictly the agreement with Bovis Lend Lease, Inc. The total project includes work performed by
the previous contractor as well as Bovis Lend Lease, project design, project management and
inspection, utility fees, and miscellaneous furnishings and fixtures. The project is funded from
the General Fund and the additional appropriation will be from reserves.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None
ATTACHMENTS:
1
Budget Change.
Page 2 of 2
CITY OF DU~LIf~
BIJDGET CHANGE FOR~li FY 2010 / 201 ~
New Appropriations (City Council Approval Required):
X From Unappropriated Reserves (*)
'` General Fund
_From New Revenues**
Other
CHANGE FORf~I #
I1
~
Budget Transfers: =
__ From Budgeted Contingent Reserve (1001.1901.8110~)
Within Same Department Activity
_, Between Depaitments (City Council Approval Required)
~IlE RE~S~~'BUDG T ACCt7~[JP~41" ` ~Ai A~UPiT~. , ~~~ 1NCREASE~~BURGET~14CCO~UI~T'~~~~. ~`AMO~U~T ~~`; ;~
Name: EXPENSE - Capital
Improvement Project -Heritage Park
& Museums - General Fund
Project Account # $ 462,899
Improvements-Not Bldg
950001.9400.9401.1001
General Ledger Account #
KtHSUN rUK tiUUC~t I C:FIANC~~ ~N I I-ZY:
At its meeting of March 15, 2011 the City Council received a staff report related to the carryover
budget for the Dublin Heritage .Park and Museums project. Based on actual expenditures in Fiscal
Year 2010 being projected to be $1.75 million which was less than the $2.2 million budget, a portion
of the appropriation lapsed which should have been carried over for Fiscal Year 2011 project
expenditures.
Fin Mgr/ASD: G~a~ ~ ,
Signature
City Manag\e~r:~
nature
Date: ~ ~ ~ ~ s
Date: ~/b' ~~
'As Appro~ed at the'Crty Counc~! Meeting on ~~ x~Date^~ 3/~15/2011~~
Mayor: ~
Posted By:
G:IBudger Chmrgesl3_20/0_1l122_3_JS_!I_GP_Neritage Park &Musexms.doc
Signature
Date:
Date:
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