SUBJECT: SEE BELOW DATE: October 27, 2016
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1 COUNCIL AGENDA: 11/15/16 ITEM: <5.\ CITY OF, SAN JOSE CAPITAL OF SILICON VALLEY Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Angel Rios, Jr. Barry Ng Jennifer A. Maguire SUBJECT: SEE BELOW DATE: Approved \ % f Date /l/z//c. COUNCIL DISTRICTS: 3 & 8 SUBJECT: ADOPTION OF A RESOLUTION AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO AWARD A CONSTRUCTION CONTRACT FOR THE ARCADIA SOFTBALL FACILITY AND ADOPTION OF APPROPRIATION ORDINANCE AMENDMENTS RELATED TO THE ARCADIA SOFTBALL FACILITY AND THE GUADALUPE GARDENS SOCCER FACILITY PROJECTS RECOMMENDATION (a) Adopt a Resolution authorizing the Director of Public Works to: (1) Award the construction contract for the Arcadia Softball Facility Project to the low bidder in an amount not to exceed $15,000,000 and approve a five percent of the contract amount construction contingency; (2) Decide any timely bid protest(s), make the City's final determination as to the lowest responsive bidder that is responsible, or reject all bids and re-bid the project; and (3) Execute change orders in excess of $100,000 within the contingency amount. (b) Adopt the following Appropriation Ordinance amendments in the Parks and Recreation Bond Projects Fund: (1) Increase the Arcadia Softball Facility project by $11,645,000; (2) Decrease the Arcadia Softball Facility Reserve by $9,005,000, (3) Establish a new appropriation to the Parks, Recreation and Neighborhood Services Department for the Guadalupe Gardens Soccer Facility in the amount of $2,000,000; (4) Establish a new appropriation to the Parks, Recreation and Neighborhood Services Department for the Guadalupe Gardens Soccer Facility Reserve in the amount of $14,616,000; and (5) Decrease the Parks and Recreation Bond Projects Contingency Reserve by $19,256,000.
2 October 27,2016 Page 2 (c) Adopt the following Appropriation Ordinance amendments in the Construction and Conveyance Tax Fund: City-wide Parks Purposes: (1) Establish a new appropriation to Parks, Recreation and Neighborhood Services Department for the Arcadia Softball Facility in the amount of $5,100,000; (2) Decrease the Arcadia Softball Facility Reserve by $5,100,000; (3) Establish a new appropriation to the Parks, Recreation and Neighborhood Services Department for the Guadalupe Gardens Soccer Facility Reserve in the amount of $4,184,000; (4) Establish a new appropriation to the Parks, Recreation and Neighborhood Services Department for the Guadalupe Gardens Soccer Facility Fixtures, Furnishings and Equipment Reserve for $91,000; (5) Decrease the Soccer Complex Fixtures, Furnishings and Equipment by $91,000; (6) Decrease the Airport West (Coleman) Debt Payment Service Reserve by $2,339,000; and. (7) Decrease the Infrastructure Backlog Reserve by $1,845,000. (d) Adopt the following Appropriation Ordinance amendments in the Construction Tax and Property Conveyance Tax Fund: Parks Maintenance Yards Purposes: (1) Establish a new appropriation to the Parks, Recreation and Neighborhood Services Department for the Arcadia Softball Facility Maintenance Yard in the amount of $1,097,000; and (2) Decrease the Park Yards Future Projects Reserve by $1,097,000. OUTCOME Approval of the recommendations in this memorandum will provide funding to allow staff to continue moving forward with development, design, and construction of the remaining two bond-funded projects; a softball facility and a soccer facility. Authorizing the Director of Public Works to award a construction contract for the Arcadia Softball Facility will allow the City to proceed with awarding the construction contract for the softball facility without having to return to the City Council. The Arcadia Softball Facility will provide opportunities for youth baseball; and softball opportunities for youth, adult and senior players,.as well as tournament, league, and permitted play. Approval of recommendations for the Guadalupe Gardens Soccer Facility project will allow for the project to continue moving forward with development in the current year, and additional funding recommended to be allocated in a reserve will allow for the future design and construction of the facility. EXECUTIVE SUMMARY In November 2000 voters approved bond Measure P, which calls for the construction of new recreational sports facilities in San Jose. Approval of appropriation ordinance amendments will
3 Page 3 allow staff to continue moving forward with development, design, and construction of the Arcadia Softball Facility and the Guadalupe Gardens Soccer Facility. Approval of a resolution authorizing the Director of Public Works to award a construction contract and establish a contingency for the project will allow staff to move forward efficiently by not requiring further City Council action. It should be noted that, the names of these facilities used in this memorandum are working titles only. The softball/baseball facility is currently going through the naming nomination process and the soccer facility will go through the naming process next calendar year. BACKGROUND In November 2000, San Jose voters approved a $228,000,000 bond (Measure P) that provided funding for "constructing new recreational sports facilities." The City has completed all but two of the projects that were funded under the bond measure, including renovations to Happy Hollow Park & Zoo, renovations to 69 neighborhood parks, construction/renovation of nine community centers, completion of seven regional parks, and six trail projects. Construction of the two sports facilities are the only projects that remain to be completed. Following is the status and funding strategy for the completion of the sports facilities. On December 9, 2014, the City Council adopted a resolution authorizing the City Manager or his designee to negotiate and execute a Purchase and Sale Agreement ("PSA") with the Arcadia Development Co., in the amount not-to-exceed $500,000 for the purchase of approximately gross acres of land bordered by Quimby Road on the north, Capitol Expressway on the east and Chopin Avenue on the west, for the development of the proposed softball facility funded by the Measure P Bond program. On September 2, 2016, the Arcadia Development Co. signed the PSA with the City in the amount of $0 to donate gross acres of land for the proposed softball facility. The City is currently in the process of recording the Grant Deed. ANALYSIS Arcadia Softball Facility City staff has been working on the development and design of the Arcadia Softball Facility. Following the start of the preparation of the construction documents for the project, significant changes were made to the scope of the project. The changes fell into three main areas: a) Expansion of the restroom/concession building to accommodate a small office to house six office staff on site to manage the facility and reservations for all City sports facilities; b) Addition of a playground for the surrounding neighborhood to use as well as the spectators' children; and
4 Page 4 c) Full development of the maintenance yard area, previously left undeveloped, with a maintenance building to support maintenance staff, various maintenance equipment, field storage materials and a staff parking lot. The total cost for the development, design, and construction of the Arcadia Softball Facility (and the associated Park Yard) is estimated to be $18,835,000. Of that amount, the construction cost estimate for base bid work only is $14,354,000. The site is intended to support 300+ days per year of activity. As such, the fields and all ancillary facilities will require daily maintenance to remain playable. For this reason, maintenance staff must be housed at the site and require restrooms, breakroom, and storage for equipment such as mowers, aerators, and other tools and materials required for turf management. Award of a construction contract is expected to occur in the spring of 2017, with a projected completion in the summer of Staff is currently preparing to prequalify potential contractors/bidders for the project. Once completed, the Arcadia Softball Facility will include four softball fields, night use field lighting, parking, buildings to provide concessions, small office space, restroom, storage and maintenance facilities, playground, picnic areas, and other park amenities. In addition to the base bid scope of work, there are eight bid alternate items with construction cost estimates totaling $1,120,000. Bid Alternate Current Engineer's Construction Cost Estimate 1. Two bullpens $71, Additional chairback seating $121, Spectator shade canopy $71, Slit sand drainage system $450, Maintenance yard wash-out area $14, Wireless access point (WAP) & security $40, Light-emitting diode (LED) night use field lighting in lieu of metal halide night use field lighting $338, Bullpen lighting $15,000 This memorandum includes recommendations to appropriate the funds necessary to pay for the entire project (excluding the bid alternates), including project development, design, and award of a construction contract in the spring of 2017 (based on the current engineer's estimate). As previously mentioned, the current estimated project cost is $18,835,000. It is recommended that project funding be allocated from the Parks and Recreation Bond Projects Fund ($12,403,000), Parks City-Wide Construction and Conveyance Tax Fund ($5,335,000), and Park Yards Construction and Conveyance Tax Fund ($1,097,000).
5 Page 5 Due to the delay on signing the PSA, this memorandum includes a recommendation for the City Council to adopt a resolution delegating authority to the Director of Public Works to hear and decide any bid protest, make the City's final determination of the lowest responsive bidder, and award the construction contract, or to reject all bids and re-bid the project. This will allow for the project to proceed most efficiently by not requiring further Council action on this project. This memorandum also includes a recommendation for the Council to adopt a resolution authorizing the Director of Public Works to establish a project contingency of 5% of the construction contract amount. The 5% contingency is consistent with Council policy for these types of projects. Lastly, in order to provide efficiency in managing the construction of the project, a recommendation is included to adopt a resolution delegating authority to the Director of Public Works to execute change orders over $100,000 for this project, should any arise. Guadalupe Gardens Soccer Facility Project The City Council approved a Memorandum of Understanding (MOU) on April 19, 2016, authorizing City staff to pursue the use of the Guadalupe Gardens site for the bond-funded soccer project. The MOU identified the funding sources that were needed to complete the proposed project. The total cost to the City for development, design, and construction of the soccer facility at the Guadalupe Gardens site, including cost for land purchase, is estimated to be $36,529,000. However, other potential funding sources of $15,638,000 have also been previously identified, including San Jose Earthquake lease payments, future sports field revenues and a discount on the land purchase due to past General Fund support to the San Jose Airport. Therefore, it is currently anticipated the City budgetary obligation for the Guadalupe Gardens Soccer Facility will be $20,891,000. This memorandum includes a recommendation to appropriate $2,000,000 in the Parks and Recreation Bond Projects Fund for project development, including, but not limited to: project definition and entitlements; agreements; permits; zoning; and legal approvals. Remaining funding of $18,891,000 is recommended to be allocated in this memorandum to project specific reserves in the Parks and Recreation Bond Projects Fund ($14,616,000) and the Parks City-Wide Construction and Conveyance Tax Fund ($4,275,000). Once the Guadalupe Gardens Soccer Facility is further along in the development process, additional actions to re-allocate the funding from reserves to active appropriations will be recommended. EVALUATION AND FOLLOW-UP If project bids for the Arcadia Softball Facility project exceed $15,000,000, staff will return to Council prior to project award with either a recommendation to increase the project budget or a recommendation to evaluate other alternatives. Staff will also return to Council to recognize any additional grant revenue that may be identified, as needed.
6 Page 6 PUBLIC OUTREACH This memorandum will be posted on the City's Council Agenda website for the November 15, 2016, City Council meeting. COORDINATION This memorandum has been coordinated with the City Attorney's Office, the Airport, and the Planning, Building and Code Enforcement Department. COMMISSION RECOMMENDATION/INPUT This item does not have input from a board or commission. FISCAL/POLICY ALIGNMENT The proposed projects align with the adoption of the Greenprint 2009 Update by City Council, the City's General Plan and the Measure P Bond program. COST SUMMARY/IMPLICATIONS 1. AMOUNT OF RECOMMENDATION/COST OF PROJECT (Arcadia Softball Facility) Project Delivery and Consultant Services $2,378,000 Construction $14,354,000 Contingency $718,000 FICP and Traffic Impact Fees $1,070,000 Title Insurance $80,000 FF&E $235,000 TOTAL PROJECT COST $18,835,000 Prior Years' Expenditures/Encumbrances* ($753,159) REMAINING PROJECT COST $18,081,841 *Prior year expenditures and encumbrances through June 30, 2016.
7 Page 7 2. COST ELEMENTS OF CONSTRUCTION CONTRACT (Arcadia Softball Facility) Demolition/Site Preparation/Mobilization $2,086,000 Grading/Drainage/Utilities $1,500,000 Electrical $2,863,000 Hardscape $1,453,000 Fencing $56,000 Softball Fields $2,285,000 Spectator Area 214,000 Concession/Restrooms/Office $1,531,000 Playground & Picnic Area $515,000 Maintenance Area & Maintenance Building $711,000 Landscape/Irrigation $810,000 Site Furnishings $330,000 PROJECT CONSTRUCTION COST $14,354, SOURCE OF FUNDING: Parks and Recreation Bond Projects Fund Parks City-Wide Construction and Conveyance Tax Fund Park Yards Construction and Conveyance Tax Fund 4. FISCAL IMPACT: The General Fund Forecast included an estimate that the completed Arcadia Softball Facility will have an operating and maintenance impact of $738,000 annually. As the project is further defined, additional analysis will be completed (including maintenance funding for the new park yard) and will be included in the General Fund Forecast, which will be released in February BUDGET REFERENCE The first table below identifies the fund and appropriations for the development, design and construction of the Arcadia Softball Facility project, as recommended in this memorandum. The second table identifies the fund's and appropriations recommended to fund the development, design, and construction of the Guadalupe Gardens Soccer Facility project.
8 Page 8 Arcadia Softball Facility Fund # Appn. # Appn. Name Total Appn. Remaining Project Costs $18,081,841 Current Fundin g Available Arcadia Softball Facility New Funding to be Appropriated 398 NEW Arcadia Softball Facility Maintenance Yard Park Yards Future Projects Reserve 391 NEW Arcadia Softball Facility Arcadia Softball Facility Reserve Parks and Rec. Bond Projects Contingency Reserve Arcadia Softball Facility Reserve Funding Available in Future Years 391 N/A Arcadia Softball Facility Fixtures, Furnishings and Equipment Total Funding $18,082,000 Recommended Budget Action Adopted Capital Budget Page Last Budget Action (Date, Ord. No.) $5,000 $11,645,000 V /18/2016, $0 $1,097,000 N/A N/A $3,500,000 ($1,097,000) V /21/2016, $0 $5,100,000 N/A N/A $5,100,000 ($5,100,000) V /21/2016, $19,256,689 ($2,640,000) V /21/2016, $9,005,000 ($9,005,000) V /21/2016, $235,000 V-467 N/A
9 October 27,2016 Page 9 Guadalupe Gardens Soccer Facility Fund # Appn. # Appn. Name Total Appn. Recommended Budget Action Adopted Capital Budget Page CityE.udgetary Project Obligation $20,891,000 New Funding to be Appropriated 471 NEW Guadalupe Gardens $0 $2,000,000 N/A N/A Soccer Facility $0 $14,616,000 N/A N/A 471 NEW Guadalupe Gardens Soccer Facility Reserve Parks and Rec Bond Projects Contingency Reserve 391 NEW Guadalupe Gardens Soccer Facility Reserve Airport West Debt Service Payment Reserve Soccer Complex Fixtures, Furnishings and Equipment 391 NEW Guadalupe Gardens Soccer Facility Fixtures, Furnishings and Equipment Last Budget Action (Date, Ord. No.) $16,616,689* ($16,616,000) V /21/2016, $0 $4,184,000 N/A N/A $2,339,000 ($2,339,000) V /21/2016, I $91, Infrastructure Backlog Reserve Total Funding $20,891,000 ($91,000) V /21/2016, $0 $91,000 N/A N/A $2,200,000 ($1,845,000) V /21/2016, *This figure represents the remaining balance in the Parks and Recreation Bond Projects Contingency Reserve after funding of $2,640,000 is allocated to the Arcadia Softball Facility.
10 Page 10 CEOA Arcadia Softball Facility: Addendum to the Evergreen East Hills Vision Strategy and Supplemental Environmental Impact Reports (Resolution Number 74742), File No, PP The addendum is available on the City's website at: Guadalupe Gardens Soccer Facility: Not a Project, File No. PP10-067(b) Appropriation Ordinance. ANGEL RIOS, JR. Director, Parks, Recreation and Neighborhood Services BARRY NG Director, Public Works Department JENNIFER A. MAGUIRE Senior Deputy City Manager / Budget Director For questions please contact Marybeth Harasz, Deputy Director, at (408)
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