City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
That the City Council approve a budget amendment to appropriate $400,000 from
the General Fund Fund Balance to Capital Improvement and Acquisition Fund
#42000850.720100 and $20,000 from Proposition 12 Per Capita Funds to the
Grants Account #42300850.720100 for the Plunge Building Reconstruction Project.
A 4/5ths vote is required to approve the budget amendment.
BACKGROUND:
The City Council in conjunction with the City’s Redevelopment Agency approved
rehabilitation of the Culver City Plunge (Plunge Building Reconstruction Project) and
allocated $1.25 million of redevelopment funds towards the project on February 17,
2003. The Plunge Building was built in 1949 and the reconstruction project was
considered necessary to deal with the current Health and Safety Code requirements,
Americans with Disabilities Act requirements, increasing energy costs and
operational needs.
On May 3, 2004 the City applied for a Land and Water Conservation Fund (LWCF)
Grant in the amount of $400,000 for the Plunge Building Reconstruction Project.
The City received notification in October 2004 that it was awarded the grant in the
amount of $405,960.
Meeting Date: 08/08/05 Item Number: A-5
AGENDA ITEM: Approval of a Budget Amendment to Appropriate $400,000 From
the General Fund Fund Balance to Capital Improvement and Acquisition Fund
#42000850.720100 and $20,000 From Proposition 12 Per Capita Funds to the
Grants Account #42300850.720100 for the Plunge Building Reconstruction
Project.
Contact Person/Dept.: Andy O'Connell,
Public Works and Marty Nicholson, PRCS
Phone Number: (310) 253-5606
(310) 253-6662
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Parks and Recreation Commission (8/2/05), Pool User Groups
(8/2/05), Master Notification List (8/3/05)
Department Approval:
Charles Herbertson, PW Director
Bill LaPointe, PRCS Director 7/18/05
CAO Approval:
Jerry Fulwood 8/3/05
City Controller Approval:
Marlee Chang 8/3/05City of Culver City, California
City Council Agenda Item Report
Subsequently, the City entered into a project management contract with RTI
Consulting, Inc. to oversee the reconstruction project. On November 8, 2004 the
City approved a design/build contract with RM Lane Company General Contractors.
Total anticipated cost of the project was estimated at $1,655,960 which included
both the redevelopment and grant funds. Attachment 1 is a copy of that report.
DISCUSSION:
The Plunge Building Reconstruction Project has been under construction since
November 2004 and it is anticipated the project will be near completion or completed
by the July 25, 2005 City Council meeting. There are two allocations of funds that
need to be considered by City Council in order to be able to process necessary
payments. They are: 1) LWCF Grant replacement funds and 2) Proposition 12 Per
Capita Funds.
Land and Water Conservation Fund Grant Replacement Funds
Due to the age of the Plunge Building additional historical documents have been
requested by the State which was not required of previous grant applications in
order to process the LWCF Grant contract. Under standard operating procedures
the grant contract is signed and then, the Budget & Finance staff appropriates the
funds for use. Since the contract had not been signed, the funds have not been
appropriated from the LWCF. Staff has been working on producing the historical
information needed to process the grant contract.
In the meantime, the City must allocate funds in the amount of $400,000 in order to
pay the construction costs that have already accrued. Staff is requesting that the
City Council authorize funds in the amount of $400,000 from the City’s General Fund
Fund Balance. There is a small possibility that the State of California will not accept
the historical review findings and if that were to happen, then the City could either
not accept the grant or make some revisions to the building in order to be eligible for
the $405,960 in Land and Water Conservation Grant funds. In the unlikely event
that was to occur the City’s General Fund would be the funding source.
Proposition 12 Per Capita Funds
The design/build timeline for the Plunge Building Reconstruction Project was an
extremely ambitious schedule for several reasons including using the new
design/build process and weather unknowns.
The Design/Build process is being used by the City for the first time with the Plunge
Building Reconstruction Project. The Design/Build process can be a very effective
process. However, our project bids were higher than the funds allocated therefore,
staff spent additional time with RM Lane Company findings solutions to reconcile City of Culver City, California
City Council Agenda Item Report
those differences. As a result, the final project plans were completed later than
originally anticipated. Also, during the Spring 2005, our region experienced above
normal rainfall which had an impact on the project.
Due to the desire to complete the project before the summer, the Pool Locker Room
Subcommittee agreed to authorize the contractor to provide weekend work. Funds
to cover the additional costs for overtime related to weekend work has been
identified in Proposition 12 Per Capita funds. Attachment 2 shows a breakdown in
the Proposition 12 Per Capita funds and the remaining balance. Staff is requesting
that the City Council allocate $20,000 from the Proposition 12 Per Capita funds
towards the Plunge Building Reconstruction Project to fund the additional
expenditures.
FISCAL ANALYSIS:
Approval of a budget amendment to appropriate $400,000 from the General Fund
Fund Balance to the Capital Improvement and Acquisition Fund Account
#42000850.720100 may result in the General Fund decreasing by $400,000 on a
permanent basis should the State of California reject the historical review and
process a finding that the City does not comply with the requirements of the LWCF
grant application. Staff believes the State is working with the City to process the
grant contract and the chances of the City being found ineligible is extremely slim.
In addition, if the City did not comply with the historical requirements of the grant, the
City could make alterations to the building in order to comply. Any alterations may
have additional costs associated with it.
Allocating $20,000 of the Proposition 12 Per Capita Funds will reduce the amount of
funds available for other projects in the Proposition 12 Per Capita Funds. The
additional funds may not be required depending on the final accounting of all
invoices as the project does have a contingency fund. At this point, staff is
requesting approval of the allocation so the project and payments are not stalled. If
the funds are not required, the City can reallocate the funds to other City park
projects at a later date. Allocating $20,000 from the Proposition 12 Per Capita
Funds will not affect any other current park projects. Staff will be bringing back a
recommendation for allocating the remaining $60,650 of Proposition 12 Per Capita
Funds for other park improvements.City of Culver City, California
City Council Agenda Item Report
ATTACHMENTS:
1. Agenda Item dated November 8, 2004, entitled “Public Hearing and
Consideration to Award a Design-Build Contract to RM Lane Company General
Contractors for the Plunge Building Reconstruction Project”.
2. Summary of Proposition 12 Per Capita Funds
MOTION:
That the City Council:
1. Authorize an allocation of $20,000 from Proposition 12 Per Capita Funds to
Grants Expenditure Account #42300850.720100 and Grants Revenue Account
#42300850.340860 for the Plunge Building Reconstruction Project, P-850; and
2. Authorize a budget amendment to appropriate $400,000 from the General Fund
Fund Balance to the Capital Improvement & Acquisition Fund for Expenditure
Account #42000850.720100 for the Plunge Building Reconstruction Project, P-850;
and
3. Upon receipt of grant monies from the Land and Water Conservation Fund grant,
authorize staff to make journal entries to record the grant receipt and project
expenditures.
A 4/5ths vote is required to approve the budget amendment.
MEETING DATE 8/8/05
AGENDA ITEM
Approval of Budget Amendment to Appropriate $400,000
From the General Fund Fund Balance and $20,000 From
Proposition 12 Per Capita Funds in the Grants Account
#42300850 for the Plunge Building Reconstruction Project
ATTACHMENTS
Pages
1 Agenda Item dated November 8, 2004, entitled
1-5
Public Hearing and Consideration to Award a
Design-Build Contract to RM Lane Company
General Contractors for the Plunge Building
Reconstruction Project
2 Summary of Proposition 12 Per Capita Funding 6City of Culver City, California
ATTACHMENT 'I
City Council Agenda Item Report
Meeting Date 11/08/04 Item Number G-1
AGENDA ITEM Public Hearing and Consideration to Award a Design-Build
Contract to RM Lane Company General Contractors for the Plunge Building
Reconstruction Project
Contact Persons/Dept Phone Number
Andy O'ConnelVPW 1310) 253-5606
Fiscal Impact Yes [X] No [ ] General Fund Yes [X] No [1
Public Hearing [X] Action Item [ ] Attachments [X]
Public Notification
Master Notification List on November 3, 2004
All affected businesses and residents within a 500-foot radius of the Plunge, Culver City
Homeowners' Association, East Culver City Neighborhood Alliance, and Stakeholders
(pool users & interested parties) (426 total) were mailed on October 21st via First
Class Postcard Public Notification Advertisement in the Los Angeles Times, California
Section, on October 29, 2004 and in the Culver City News on November 4, 2004
Department Approval
Charles D Herbertson 10/28/04
CAO Approval
Jerry Fulwood 11/3/04
City Controller Approval
Eric Shapiro 11/2/04
RECOMMENDATION
staff to negotiate and enter into a
Company General Contractors for the
located at 4175 Overland Avenue,
of $1,300,000
and enter into a Design-Build Services
of Intent will be issued requiring the
final construction drawings for the Plunge
final construction drawings by the City's
received by RM Lane Company, a formal
construction for a GMP that may be less
the affidavit and notice of publication and
and calls upon the public for comment
Hearing
arrives at its decision|1010|Staff recommends that the City Council authorize
Design-Build agreement with RM Lane
reconstruction of the Municipal Plunge Building
for a Guaranteed Maximum Price (GPM)
If Council authorizes staff tonight to negotiate
agreement with RM Lane Company, a Notice
RM Lane Company to proceed with the
Building renovation Upon approval of the
Project Team and firm bids have been
agreement will be executed for the project
than, but will not exceed $1,300,000
PROCEDURE|109| Mayor seeks motion to receive and file
mailing|109| Mayor calls on staff for a brief report|109| Mayor declares the Public Hearing open,|109| Mayor seeks a motion to close the Public|109| City Council discusses the matter andCity of Culver City, California
City Council Agenda Item Report
BACKGROUND/DISCUSSION
On October 11, 2004 Council authorized staff to negotiate with RM Lane Company
in order to reach an agreement for the reconstruction of the Plunge Building for a
Guaranteed Maximum Price (GMP) that will not exceed $1,300,000 and authorized
the maximum payment of $20,000 in design fees for design services to determine
more accurate construction cost If Council approves the contract tonight, this
design fee will not increase the budget and will be incorporated into the GMP
Since the October 11, 2004 Council meeting, RM Lane Company hired additional
consultants to prepare a more detailed conceptual design of the proposed
renovation, which has generated more accurate estimated construction costs In the
past six months, the cost of construction materials have dramatically increased and
this has created a challenge for the design-build team to design the renovations
within the approved budget The RM Lane Company has submitted a 'Conceptual
Design Program Update' letter that summarizes the major construction renovations
that will definitely be covered under the GMP and those renovations that are still
under design review having estimated costs that would exceed the GMP These
items are briefly listed below (See attachment)
Items Within Budget
Seismic upgrade of roof structure
New building fire sprinklers
Chlorine room upgrade
New solar pool heating
New locker rooms with lockers
New shower rooms
Energy efficient fixtures
New offices for cashier, pool manager,
and aquatic coordinator
New staff break room
New life guard changing room
New conference room
Reconfigured storage rooms
Upgrade of entry area
New wall finishes
Items Exceeding Budget
Removal and reconstruction of roof
Radiant floor heating
Recycled plastic lockers
Separate room for acid storage
Air conditioning of entire building
New restroom by conference room
Plumbing of staff break room
Finish of new conference room
Exterior shower
Tile floor coverings
If Council authorizes tonight that staff negotiate and enter into a Design-Build
Services agreement with RM Lane Company, a Notice of Intent will be issued
requiring the RM Lane Company to proceed with the final construction drawings for
the Plunge Building renovation based on the submitted 'Conceptual Design Program
Update' letter Upon approval of the final construction drawings by the City's Project
2City of Culver City, California
City Council Agenda Item Report
Team and firm bids have been received by RM Lane Company, a formal agreement
with RM Lane Company will be executed for the project construction for a GMP that
may be less than, but will not exceed $1,300,000
Project Schedule
Pool operations at the Plunge have officially ended and Operation and Maintenance
Division staff of the Public Works Department are currently removing fixtures and
other building assets that are worth salvaging as replacement parts for use in other
PR & CS Department buildings Winzler and & Kelly Consulting Engineers have
completed the lead and asbestos survey of the Plunge Building and prepared a
scope of work for the abatement work Five contractors have submitted proposals
for the abatement work If Council authorizes staff to enter into an agreement with
the selected abatement contractor, it is anticipated that this work can be completed
by the middle of December Where possible, the abatement work and required
demolition by the RM Lane Company will be done concurrently Construction is
scheduled to be completed by June 1, 2005
Public Notification
All businesses and residents within a 500-foot radius of the Plunge Building, all
stakeholders involved in the design of the Plunge Building Improvement Project,
Culver City Homeowner's Association, and the East Culver City Neighborhood
Alliance were notified on October 21, 2004 via postcard totaling 426 at a cost of
$97 98 RM Lane Company General Contractors were personally notified on
October 25, 2004 A Notice of Public Hearing was placed in the Public Notice
Section of the October 28 th and November 4th , 2004, issue of CC News at a cost of
$150
FISCAL ANALYSIS
The amount budgeted in Fiscal Year 2004-2005 by the Redevelopment Agency for
the City's Plunge Building Reconstruction Project is $1,250,000 A federal grant in
the amount of $405,960 has been awarded from the Land & Water Conservation
Fund (Proposition 40) The project is also included in the adopted Capital
Improvement Budget for Fiscal Year 2004-2005 A total construction budget will be
comprised of $1,000,000 from the Agency Funds and $300,000 from the Land &
Water Conservation Funds The remaining funds will be used for soft costs and
additional construction costs The total project budget is depicted below
3City of Culver City, California
City Council Agenda Item Report
Budget
Redevelopment Agency Funds $1,250,000
Land & Water Conservation Fund $ 405,960
Total $1,655,960
Estimated Cost Summary
RTI, Construction Management $ 131,650
KBB, Legal Counsel $ 21,350
RFP Stipend $ 16,000
Design-Build (Including 10% contingency) $1,000,000
Energy Efficient Elements to Design- $ 405,960
Build
Environmental Mitigation $ 50,000
Arts in Public Places Program $ 10,000
Furniture & Equipment (allowance) $ 21,000
Total $1,655,960
The estimated savings to the City's General
Operations of keeping the pool closed during
It is anticipated that the renovation of the Plunge
to the City in the form of reduced energy and
have been completely identified staff will
appropriating funds from the Innovation
savings to provide for additional construction
ATTACHMENTS
Fund for the cost of Maintenance and
construction is about $ 100,000
Locker Room will generate savings
staff costs After these future savings
be requesting that Council approve
Fund of up to three years of the future
items, if necessary
Program Update Letter
October 21, 2004
2004 without attachments|109| RM Lane Company's Conceptual Design|109| Public Notification Advertisement and Postcard,|109| Council Agenda Report dated October 11,
4City of Culver City, California
City Council Agenda Item Report
MOTIONS
That the City Council
1 Authorize staff to negotiate and enter into a Design-Build Contract Agreement
with RM Lane Company General Contractors for the Plunge Building
Improvement Protect for a Guaranteed Maximum Price not to exceed
$1,300,000
2 Direct the City Attorney to prepare the appropriate agreement, and authorize the
Chief Administrative Officer to execute the agreement on behalf of the City,
3 Authorize the Public Works Director and City_ Engineer to increase the agreement
by an amount not to exceed 10%, if necessary, and within the available budget
5ATTACHMENT 2
Summary of Proposition 12 Per Capita Funds
TOTAL PROP 12 ALLOCATION
Project Name
Tellefson Park Irrigation [Turf Replacement
El Marino Playground Rehabilitation
Blair Hills Playground Rehabilitation
Carlson Park Im rovement
$388,000
37,020
30,110
28,468
88 674
Project No
P-790
P-791
P-803
P-814
Remaining Prop 12 funds as of 7111/05
1Th|1013|