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Approve an agreement for $2,100,000 with American River Construction Inc. of Placerville for the Department of Child Support Services Relocation Project at 675 Texas Street, Fifth Floor, in Fairfield; and Authorize the County Administrator or designee to execute the agreement and any amendments within the approved project budget
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve an agreement for $2,100,000 with American River Construction Inc. of Placerville for the Department of Child Support Services (DCSS) Relocation Project at 675 Texas Street, Fifth Floor, in Fairfield; and
2. Authorize the County Administrator or designee to execute the agreement and any amendments within the approved project budget.
SUMMARY:
The Department of General Services is recommending the Board of Supervisors approve an agreement (Attachment A) for $2,100,000 with American River Construction Inc. as the lowest responsible bidder for the Department of Child Support Services (DCSS) Relocation Project at 675 Texas Street, Fifth Floor, in Fairfield.
FINANCIAL IMPACT:
The total estimated project cost for the DCSS relocation is $4,339,379 (Accumulated Capital Outlay Fund Budget Unit 1665), including construction costs of $2,195,000 for tenant improvements at the County Administration Center and other low voltage work; $508,993 for project management, engineering and design fees, permits and inspections and miscellaneous expenses; $1,017,750 for Furniture, Fixtures, and Equipment (FF&E) and moving expenses; $55,000 in increased rent cost at 435 Executive Court (July-December 2020); and $562,636 in project contingencies.
The Project is funded from multiple sources including $2,000,000 from FY18/19 Accumulated Capital Outlay Funds; $450,000 from General Fund - Capital Renewal Reserve Funds and $1,889,379 from the California State Department of Child Support Services (CA DCSS - from state and federal funding augmentation), incurred over two fiscal years, $1,105,070 in FY19/20 and $784,309 anticipated in FY20/21, for allowable expenses in this project. Attachment B provides a breakdown of the estimated project costs and funding sources for the project. Recently, the State informed the County that there is a possibility that the funding for $784,309 might not be feasible. To offset the anticipated funding gap, the General Fund - Capital Renewal Reserve will fund the project, which will be paid back by DCSS over a period of 30 years with no interest and no prepayment penalty. This is in addition to the estimated tenant improvement for $1.8 million which will be paid back by DCSS after the completion of the project. Staff will make the necessary budget adjustments during the FY2020/21 supplemental budget process.
The costs associated with preparing this agenda item are nominal and absorbed by the department’s FY2019/20 Adopted Budget.
DISCUSSION:
On October 22, 2019, the Board approved the Department of Child Support Services Relocation Project (Project). At that time the Department of General Services provided a total estimated conceptual-level project cost of $4,392,646. Subsequent refinement of the project construction documents allowed the cost estimate to be reduced to $4,339,379.
The Project includes building out existing unfinished fifth floor office space for the relocation of DCSS functions from 435 Executive Court North in Fairfield to the County Administration Center, with corresponding code improvements made to fifth floor restrooms. DCSS will benefit from savings in building occupancy (lease) costs, an enhanced customer service location, an improved workplace environment, and the County will receive occupancy cost recovery revenue associated with the relocation of DCSS.
The Project was advertised as required by Public Contract Code. A total of 388 contractors were notified (56 local); of which 20 contractors (2 local) attended the mandatory pre-bid site walk. A total of eight bids were received (1 local) and American River Construction, Inc., of Placerville was the lowest responsible bidder (Attachment C). The Department of General Services is recommending the Board to approve a contract for $2,100,000 with American River Construction, Inc., of Placerville to construct the Project.
ALTERNATIVES:
The Board could reject, postpone, or direct staff to re-bid the project. These actions are not recommended since the bid process was conducted in conformance with the Public Contract Code. Rejection of all bids would result in termination and loss of the County’s investment in the Project to-date. Re-bidding the Project would increase the overall project cost and delay implementation. DCSS would continue to experience financial pressures from increased operating expenses at the current location, whereas relocation will provide some rent relief. The County would not receive additional anticipated State revenue to offset project costs. The existing unimproved space on the fifth floor of County Administration Center would remain underutilized and the County would not receive occupancy cost recovery revenue associated with the relocation of DCSS.
OTHER AGENCY INVOLVEMENT:
The California Department of Child Support Services, Department of Child Support Services and Department of Information Technology were consulted during preparation of the plans and technical specifications for the Project. The Department of Resource Management reviewed and approved the Project plans. County Counsel reviewed and approved the contract as to form. The Debt Advisory Committee was consulted and concur with the recommended funding plan to offset the funding gap.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION