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HomeMy WebLinkAbout4.06 Heritage Pk & MuseumLNN OF Dp�ff2 � �82 STAFF REPORT CITY CLERK DUBLIN CITY COUNCIL File # ❑®®10]-©K DATE: March 15, 2011 TO: Honorable Mayor and City Councilmembers FROM: &.ublin oni Pattillo, City Manager SUBJE 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 recommends 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 the 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 additional 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. �• 6�/ ~ vw~ 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: ~, ~ ~j° A S 11 ATTACHMEN~'i