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HomeMy WebLinkAbout1989 09-06 CC MINBook 71/Page 179 9/06/89 MINUTES OF AN ADJOURNED MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA WORKSHOP - PROPOSED CIVIC CENTER SEPTEMBER 6, 1989 The meeting was called to order in the Main Conference Room at 4:00 p.m. by Mayor Waters. ROLL CALL Council members present: Dalla, Inzunza, Pruitt, Van Deventer, Waters. Absent: None. Administrative officials present: Bolint, Caloza, Eiser, Kimble, McCabe, Myers, Peterson, Post, Williams. The Mayor called the meeting to order and said that he would abstain from voting as he has a small contract with the Architect. He then turned the meeting over to City Manager McCabe. City Manager McCabe then turned the meeting over to Richard Blackman of Wheeler, Wimer, Blackman & Associates. CITY COUNCIL WORKSHOP REGARDING PROPOSED CIVIC CENTER 1. (a) Presentation by Architect of Completed Drawings, Specifications, General Conditions, and Construction Cost Estimate. Mr. Blackman handed out copies of his presentation to the Mayor, Council and City Staff. A copy is on file in the Office of the City Clerk. He stated that the documents were 95-99% complete. Final comments had been received today from the Code Check Enforcement Consultant which will be annotated on the drawings. The only other outstanding information is from the consultant architect who is in the process of reviewing for "architectural constructability". Completion of this should not take more than a couple of weeks. The bottom line is that the drawings will be 100% complete and biddable in 30 Days. It will then be up to the City to decide the process in the bid market. Mr. Blackman then presented the drawings and stated that his Consulting Engineers were present in case there were questions that pertained to the technical sides of the project. The Specifications and General Conditions are fully bound inclusive of City Council, Engineering and Staffs comments. The book has not gone through the final check but will be processed shortly. Mr. Blackman stated that the big picture here is the Cost Estimate. He then reviewed the Value Engineering Cost Savings and Design Development Cost Estimate (Page 1 in the handout). He reiterated that the Value Engineering process resulted in a $367,572. savings with $65,885. in adds. To this figure a Design Contingency of 5%, Contractor's Profit/Overhead of 12% and a Bid Escalation of 3% was added resulting in a Total Savings of $365,426. and an Adjusted Construction Cost of $9,654,032. This was the point when Council had previously given approval to proceed into the final documents. Mr. Blackman then presented a summarization of the National City Civic Center Cost Estimate Summary (Page 2 in the handout). He noted that each category actually had 10-11 pieces of costing information within it. The summary represents how the project broke out based on the categories in the design development, to come up with $10,019,458. The column labeled 95% Construction Documents used the same procedure but is a more refined set of documents and more comprehensive, with more information and because of this, resulted in a total of $10,382,213. This number, taken and related back to the Design Development, prior to the Value Engineering, results in an increase in the project cost of $362,755. That number taken and added to what was removed from the project through Value Engineering, results in about a $600,000. increase to the project. Mr. Blackman then shared why the project has increased and noted that had the Value Engineering exercise not been done, the project could have increased about $1 million dollars. He stated that he felt the project was about as tight as it could go without sacrificing the quality of the building. An itemization of those areas of significant cost increases outside of the Value Engineering exercise was reviewed (Pages 3 & 4 in the handout). Councilman Van Deventer stated concerns with the Asphalt Concrete Paving costs, use of membrane roofing which the City has had such bad experiences with previously, the increase in costs for the metal support systems which seemed like an awful large error (the numbers do not add up) and the plumbing which was increased one-third and yet was not included in the significant cost increase summary provided. He noted that there appeared to be $60,000. unaccountable for in the plumbing increase. Vice Mayor Pruitt expressed similar concerns with the electrical costs which reflect an error of $173,000. Mr. Blackman explained that he did not consider these to be errors but rather that the information that was developed at the design development phase was schematic in some technical areas intentionally to avoid paying the engineers twice. Book 71/Page 180 9/06/89 Councilman Van Deventer questioned as to whether costs had been obtained from the sub contractors to back-up the presented figures. Mr. Blackman responded that no contractors had been contacted but that the two contingencies applied, 1) design and 2) escalation at bid time should cover costs. Mr. Blackman stated that he would come back to Council with a breakout of all alternate bid items (National City Blvd., parking structure texture to asphalt, park improvements etc.) along with the specifics for the increases in the electrical, plumbing, landscaping etc. He would accomplish this by taking the project in its five cost elements and then pull out from that where the costs occurred. Councilman Van Deventer inquired as to the timing of the project. Mr. Blackman said that the documents are ready and biddable, 100% complete within 30 days from today. The projected time for bid would be 30 days of invitation with a couple weeks of bid analysis and getting back with the Council for a recommendation. Middle to late November if the financing mechanism is in place. Councilman Dalla inquired and Mr. Blackman confirmed that the construction time would be about 18 months. Vice Mayor Pruitt stated that until the plans are submitted for bid, there would be no concrete figures, just estimates. Councilman Dalla inquired as to whether the $9.6 million included consultant fees. Mr. Blackman said that all fees were separate from construction costs, thus they would be in addition to the costs presented. Mr. Nielsen, public observer, inquired as to whether the $14-15 million was the bottom line figure. Councilman Van Deventer answered approximately $14 million. Mr. Nielsen then inquired as to whether Council would consider hiring a consultant for a second opinion. City Manager McCabe informed Mr. Nielsen that a second opinion was obtained through the Value Engineering Consultant and this process would be repeated once more. ADJOURNMENT Motion by Pruitt, seconded by Dalla the meeting be adjourned to the Next Regular Meeting - Tuesday. September 12. 1989 - 7:00 p.m. in the Council Chambers. City Manager McCabe inquired as to when Council wanted to schedule the workshop to discuss the finance part of the Civic Center project. Motion by Van Deventer, seconded by Pruitt, the proposed Civic Center. finance presentation workshop be scheduled for Wednesday September 13. 1989 - 4:00 D.M. - Large Conference Room. Carried by unanimous vote. Original motion carried by unanimous vote. The meeting closed at 4:50 p.m. CZ-,��o-{� �; CITY CLERK The foregoing minutes were approved at the regular meeting of September 12, 1989 MAYOR CITY CITY OF NATIONAL CITY, CA ALL CITY COUNCIL MEETINGS ARE TAPE RECORDED. YOU MAY LISTEN TO THE TAPES IN THE CITY CLERK'S OFFICE.