Old Library Re-Use ProjectDATE:
TO:
FROM:
MEETING DATE: 10/07/14
ITEM NO: r1
COUNCIL AGENDA REPORT
OCTOBER 2, 2014
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
SUBJECT: OLD LIBRARY RE -USE PROJECT 411- 821 -2105 AND HVAC UPGRADES —
OLD LIBRARY PROJECT 411- 821 -2103
A. AUTHORIZE THE TOWN MANAGER TO EXECUTE A
CONSTRUCTION CONTRACT WITH CALIFORNIA PLUS
ENGINEERING, INC. IN AN AMOUNT NOT TO EXCEED $1,391,500.
B. AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS TO
THE CONSTRUCTION CONTRACT AS NECESSARY IN AN
AMOUNT NOT TO EXCEED $136,650.
C. AUTHORIZE AN EXPENDITURE BUDGET ADJUSTMENT IN THE
AMOUNT OF $491,039 IN THE OLD LIBRARY RE -USE PROJECT
411- 821 -2105 FUNDED BY A TRANSFER OF $211,039 FROM THE
FACILITIES MAINTENANCE INTERNAL SERVICE FUND 633 AND
A TRANSFER OF $280,000 FROM THE GENERAL FUND NON -
DEPARTMENTAL PROGRAM; AND AUTHORIZE AN
EXPENDITURE BUDGET ADJUSTMENT IN THE AMOUNT OF
$443,379 IN THE HVAC UPGRADES — OLD LIBRARY PROJECT
411- 821 -2103 FUNDED BY A TRANSFER OF $443,379 FROM THE
FACILITIES MAINTENANCE INTERNAL SERVICE FUND 633.
RECOMMENDATION:
1. Authorize the Town Manager to execute a construction contract with California Plus
Engineering, Inc. in an amount not to exceed $1,391,500.
2. Authorize staff to execute future change orders to the construction contract as necessary in an
amount not to exceed $136,650.
3. Authorize an Expenditure Budget Adjustment in the amount of $491,039 in the Old Library
Re -Use Project 411 - 821 -2105 funded by a transfer of $211,039 from the Facilities
Maintenance Internal Service Fund 633 and a transfer of $280,000 from the General Fund
Non - Departmental Program; and authorize an Expenditure Budget Adjustment in the amount
of $443,379 in the HVAC Upgrades — Old Library Project 411- 821 -2103 funded by a
transfer of $443,379 from the Facilities Maintenance Internal Service Fund 633.
PREPARED BY: MATT MORLEY /o
Director of Parks and Public Works
Reviewed by: Assistant Town Manag V own Attorney
&Finance
PAGE
OCTOBER 2, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: OLD LIBRARY RE -USE PROJECT 411- 821 -2105 AND HVAC UPGRADES — OLD
LIBRARY PROJECT 411 -821 -2103
BACKGROUND:
The Town's 2014 -16 Strategic Goals include "Develop plan to enhance the aesthetics and use of
the Civic Center as a community resource." Previously, the Council has approved new leases
with the Friends of the Library and the Museums of Los Gatos for shared re -use of the old library
wing of the Civic Center.
The Town's adopted 2014/15 — 2018/19 Capital Improvement Program includes two long-
standing projects for improvements to the old library space.
The first project, established in 2010/11 at $437,000, is replacement of the 50 year old HVAC
equipment in the old library. That project was put on hold pending relocation of the library and
final determination regarding reuse of the old library. The second project was established in
2013/14 at $1.9 million for what was then planned to be a wide array of Civic Center
improvements including office space, community meeting rooms, one -stop customer service
center, or conference rooms as well as ADA required improvements. Following allocation of the
old library space to the Museums and Friends, both capital projects were substantially reduced in
2012/14 from a combined total of $2.4 million to $700,000 given the State take back of
redevelopment funds previously allocated to this project.
After consideration of multiple design alternatives, more stringent ADA and energy efficiency
requirements, and future tenant needs, the two CIP projects were combined into a single
construction project and the designs and specifications were approved by Council in August
2014.
The construction project now includes upgrades for code compliance including the
reconstruction of the existing restrooms and installation of a new ADA compliant public elevator
and new stairs. Additionally, the project will replace the old HVAC system to improve indoor
air quality and efficiency. Lighting upgrades to the lower level will also improve energy
efficiency and provide proper lighting.
Also included in the design specifications were two bid alternatives for tenant improvements to
be chosen and funded by the Museums of Los Gatos.
DISCUSSION:
On Sept 26, 2014, three bids were received for the combined project (Attachment 1).
Staff reviewed the bids received and has determined that California Plus Engineering, Inc. is a
responsible entity and that its bid is responsive to the Town's formal bid process.
The lowest bid is substantially higher than the reduced current funding levels, requiring
restoration of the combined project to a $1.5 million funding level.
PAGE
OCTOBER 2, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: OLD LIBRARY RE -USE PROJECT 411 - 821 -2105 AND HVAC UPGRADES — OLD
LIBRARY PROJECT 411 - 821 -2103
DISCUSSION (cont'd):
The HVAC related portion of the project will require an additional $443,379, to be funded from
the Building Maintenance Internal Service Fund. The ADA, elevator, lighting and other
improvements will require additional funding of $491,039. The required funding will come from
the approved General Fund Non - Departmental Program, utilizing a portion of the savings
anticipated from the PERS side fund liability reduction also approved by Council in June, in the
amount of $280,000 and additional funding from the Building Maintenance Internal Service
Fund of $211,039. This will leave the Building Maintenance Internal Service Fund balance at
approximately $700,000, sufficient to meet both anticipated and unanticipated needs during the
next several years.
CONCLUSION:
Staff recommends that the Town Council authorize the Town Manager to execute a construction
contract in an amount not to exceed $1,391,500. Additionally, due to the variables associated
with this particular type of construction and to address unforeseen circumstances during the
course of construction, staff further recommends that the Town Council authorize staff to
execute future change orders to the construction contract as necessary, in an amount not to
exceed $136,650 for work beyond that which is identified in the base bid.
Alternatively, the Council could reject all bids and direct staff to re -scope the project to align
with lower funding. Staff has not recommended this option as the project includes very limited
discretionary work. The project scope has already been limited to the basics necessary to move
the Museums into the space by early 2015.
ENVIRONMENTAL ASSESSMENT:
This is a project as defined under CEQA but is Categorically Exempt (Section 15301a). A
Notice of Exemption has been filed.
FISCAL IMPACT:
Sufficient funds are expected to be available in both the Facilities Maintenance Internal Service
Fund and the General Fund Non - Departmental Program to fund the adjustment, as shown in the
fiscal table below.
PAGE 4
OCTOBER 2, 2014
MAYOR AND TOWN COUNCIL
SUBJECT: OLD LIBRARY RE -USE PROJECT 411- 821 -2105 AND HVAC UPGRADES — OLD
LIBRARY PROJECT 411 - 821 -2103
FISCAL IMPACT (cont'd):
OLD LIBRARYRE•USE/ HVAC UPGRADES -OLD LIBRARY r -
PROJECT'S 411 - 821 - 2105/411 -821 -2013 il
Attachment:
1. Bid Summary
Carryforward
Proposed
Available
Expended/
Proposed
igemaining
Amount from
Budget
Budget
Encumbered
Contract
O udget
FY 2014 /15Fiscallmpact
FY13/14
Adjustment
If Approved
To Date
Amount
RApproved
411 -821 -2105
$ 410,023
$ 491,039
$ 901,062
$ 10,062
$ 891,000
$ (0)
411 -821 -2103
200,E
443,379
643,379
6,229
637,150
-
TOTALS
$ 610,023
$ 934,418
$1,544,441
$ 16,291
$1,528,150
$ (0)
}TOTAL EXPENDITURES BY
CATEGORY:
Construction
$ 1,391,500
Contingency
136,650
TOTALS
$1,528,150
Attachment:
1. Bid Summary
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