Title
Receive a report on the status of the Aquatics Center.
Body
BACKGROUND:
Significant aquatics center project milestones:
- December 6, 2011 - City Council approved, by acclimation, going forward with hiring a consultant to complete an aquatics center master plan.
- Numerous public meetings were held to gather information and refine the master plan.
- The Parks and Recreation Board and Senior Advisory Board passed motions to approve the aquatics center master plan and to forward to City Council for final approval.
- August 21, 2012 - completed master plan was presented to City Council at Study Session meeting.
- November 6, 2012 - the master plan was adopted by City Council.
- May 7, 2013 - City Council authorized the sale of Certificates of Obligation totaling $7,148,755, including the cost of issuance, for the purpose of constructing a new aquatics center. The budget for the project was set at $7,000,000.
- May 7, 2013 - authorized agreements with consultants for aquatics center.
- August 6, 2013 - contract awarded for demolition of pool and skate park.
- August 9, 2013 - groundbreaking for new project.
- September 17, 2013 - contracts awarded for excavation and site utilities.
The project was fast tracked with the intent of having the new outdoor facility open by Memorial Day 2014.
DISCUSSION:
On September 27, 2013 the remaining bid packages were opened. The total amount of low bids meeting specifications for the entire project plus consultants, contingencies, landscape and irrigation, and other related matters is $9,422,206. This amount is $2,422,206 over budget.
With the $2.4 million overage staff completed considerable research of the project & bid documents and found that the 2012 master plan, completed by The Brannon Corporation, contained a mathematical error. The error resulted in an incorrect total and that total was the basis for the bond sale and the project budget. Based on the bids received, the master plan estimates for various portions of the project were very close but the total estimate for the project was wrong. This unfortunate situation has brought about a need to evaluate all options concerning moving forward with the project.
Following the bid opening of September 27, Gallagher Construction Management, the construction manager, began working on means to value engineer the project and found savings of $642,300. These savings reduce the project cost to $8,779,906 or $1,779,906 over budget. The cost saving measures do not materially affect the project. Savings that were found include:
· Reconfigured playground piece.
· Moving items within bid packages from one contractor to another, such as putting all the concrete under the concrete contractor instead of having the pool contractor responsible for part of the concrete. This will require more coordination between contractors and that is one of the functions served by the construction manager.
· Eliminating the indoor splash area.
· Reducing the work week requirement from a six day week to a five day week. This will relieve much of the overtime pay burden from contractors, but it will also mean delaying project completion.
· Changing floor tile, certain fixtures, and the finish on the walls of the adult pool. The changes will not negatively affect the finished project.
The aforementioned changes do not materially change the project.
After reviewing several options and desiring to move the project forward there appear to be two viable options:
Option #1 Scale back the project to funding available.
This option requires redesigning the indoor element and removing both indoor pools and one locker room/restroom. The outdoor element would be completed as designed and the building would be redesigned to include an office, ticket area, guard room, party/training room, concession area, restroom/locker room, and mechanical area.
The building could be redesigned in a manner to allow the future possibility of adding the indoor pools. Eliminating the entire building should save approximately $3,500,000. Redesigning and then constructing the modified building is estimated to cost approximately $1,500,000, resulting in a savings of approximately $2,000,000. These changes result in a project that would cost approximately $6.8 million, which is within budget.
This option would postpone the project until approximately 2015, because of redesigning and rebidding.
Option #2 Award the bids and proceed as planned
This option would include combined savings from the value engineering process along with re-allocated funds from the Non-Bond CIP Utility Fund. Funds used from the Non-Bond CIP Utility Fund could then be replaced over the next five years. The amount of funds needed from the Non-Bond CIP Utility Fund is approximately $1.8 million.
If the City Council finds Option #2 to be desirable, Resolution No. 2013-060 is on tonight's agenda for consideration so the project could move forward.
After reviewing the options, the Parks and Recreation Board and the Senior Advisory Board unanimously recommend completing the project with all the intended major elements, and the value engineering savings, and re-allocating funding from the Non-Bond CIP Utility Fund to cover the budget shortfall.
Charles Cox, Finance Director, and the City Attorney advise that reallocating funding from the Non-Bond CIP Utility Fund for the aquatics center is not in conflict with Texas State law nor in conflict with the City's Charter.
ATTACHMENT:
1. Aquatics Center Update