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Report regarding the Community Civic Campus quarterly update for Quarter 3 Fiscal Year 2018/2019. (Marian Lee, Assistant City Manager)
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RECOMMENDATION
Recommendation
It is recommended that City Council receive the Community Civic Campus quarterly update for Quarter 3 Fiscal Year 2018/2019.
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BACKGROUND/DISCUSSION
This is an information item providing an update on the Community Civic Campus project for Quarter 3 of Fiscal Year 2018/2019, January 1 - March 31, 2019.
Design Update
During Quarter 3, the Master Architect team continued working on project design. The design is now being managed in 3 phases to reflect the construction phasing of the project. Phase I construction will be the police station anticipated to break ground in January 2020, Phase II construction will be the main campus that includes the Library and Parks & Recreation building, Community Theatre/City Council building and the park, and Phase III which will be the Fire station to be built in the future, likely coordinated with development at the Municipal Services Building site.
Phase I: Police Facility (Construction Target January 2020)
Design Development is 50% complete. The plans are with the Planning Department which is being circulated for internal staff review, as well as review by the Design Review Board and Planning Commission. The Police facility contractor prequalification documents have been drafted. The prequalification package will be released in early May and concluded in July 2019. The construction bid package would follow with issuance to the shortlisted general contractors.
Phase II: Main Campus - Library and Parks & Recreation, Community Theater/City Council Chambers, and Park (Construction Target Summer/Fall 2020)
The design team is close to completing 100% Schematic Design. The focused has been fine tuning the building interior programming and developing the exterior architecture of the buildings and landscaping the park. The team is working towards May meetings with the Parks and Recreation Commission, Library Board of Trustees, Design Review Board and Planning Commission as the venues for obtaining input not only from the Board members and Commissioners but also the public. These meetings will be the public venues to receive input from our residents on the building architecture and landscaping. Specific dates and times will be announced and staff will send out meeting information to the public.
Phase III - Fire Facility
Schematic Design is near 100% complete. Design will be progressing to the next phase of design (Design Development) in May. Staff recommends completing Design Development by summer and concluding the design effort at that point. Originally, we had anticipated also completing Construction Design, however, given the unknown timing of construction for this phase of the project, it would not be prudent to proceed beyond Design Development. Design Development will clearly document the needs of the Fire department without producing construction drawings that would most likely need to change due to evolving building code requirements as well as potential siting adjustments associated with likely developer involvement at the site.
Bonding Update
The total project cost (design and construction only is $210 million). Break down of the funding sources are:
• Measure W Cash $71.4 million
(Revenue from inception of tax through project completion available for the project.)
• 2019 Bond Proceeds $115.0 million
(Bonds will be issued for $149 million; $115 million for project construction; remaining for capitalized interest, insurance & surety premium, underwriter’s discount, and costs of issuance.)
• Other Local Sources $23.6 million
(Public safety impact fee, infrastructure reserves, donations, grants and other TBD.)
In addition to the $210 million project cost, the City will be making interest payments totaling $132 million. The interest payments as well as principal payments will be made with the Measure W revenues collected annually.
Last year, a funding gap of $16 million was identified. Staff is continuing to work on addressing the funding gap through evaluating the city’s budget as well as fundraising and grants.
All estimates are preliminary numbers. Staff continues to evaluate Measure W projections and the funding plan will require ongoing updates leading up to Bond issuance.
Key steps in the financing process include the selection of the financing team, drafting of legal and disclosure documents, City Council approval and obtaining credit ratings. Requests for proposals for underwriters and disclosure/bond counsel have been released. The proposals are due April 22, 2019. Staff will be seeking City Council approval for these agreements next month.
Other
Additional project team efforts accomplished during this quarter include the following:
• Ongoing communications with BART regarding an easement agreement to use BART property;
• Ongoing communications with PG&E and SFPUC permits;
• Ongoing coordination with adjacent development projects, utility undergrounding efforts on Antoinette, Oak Avenue extension design, and GBI improvements on El Camino Real;
• Monthly website updates;
• Project newsletter issued;
• Project banner with contact information designed and installed; and
• Presentation to the Measure W Citizens’ Oversight Committee, February 6, 2019.
For the next quarter, the team plans to achieve the following goals:
• Complete the Design Development Phase for the Police and start the pre-qualifications process for general contractor;
• Complete Schematic Design for the Main Campus and Fire Station;
• Continue obtaining necessary permits for project construction; and
• Pursue Third Party arrangement for installation of solar panels for the Police parking.
Budget Update
For Quarter 3, 2018/2019, $1,318,522 was expended for a total Fiscal Year-to-Date of $3,731,942. Attachment 1 table contains information that is more detailed. Numbers were rounded to the nearest dollar and explains minor discrepancies in totals.
STRATEGIC PLAN
This effort meets Strategic Plan Priority #2 Quality of Life and #3, Public Safety. Specifically, this project advances construction of a new Library and Parks and Recreation facility as part of the Community Civic Campus. It also advances construction of new police operations center and design for a new Fire Station.
FISCAL IMPACT
This item is informational and has no impact on the City budget. The project budget for construction will be formally approved by City Council through the regular budget approval process.
CONCLUSION
Staff is targeting presenting to City Council June 2019 for design approval. The next quarterly update to City Council will be presented in July 2019.
Attachment: Budget Report and Contracts