The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 02/01/2011 - SECOND READING OF ORDINANCE NO. 006, 2011, APPROPR DATE: February 1, 2011 AGENDA ITEM SUMMARYD STAFF: Jill Stilwell _ T COLLINS CITY COUNCIL Steve Seefeld SUBJECT Second Reading of Ordinance No. 006, 2011, Appropriating Prior Year Reserves in the Cultural Services Fund and Prior Year Reserves in the General Fund for Transfer to the Capital Projects Fund and Appropriating Unanticipated Revenue in the Capital Projects Fund for the Building on Basics Lincoln Center Renovation Project. EXECUTIVE SUMMARY During the Lincoln Center addition and renovation project, an unanticipated structural issue with the 32 year old performance hall walls was identified. The structural problem is significant and the performance hall walls will require additional structural support. This work must be completed before the facility can be reopened. This Ordinance, unanimously adopted on First Reading on January 18, 2011, appropriates an additional $460,000 from prior year reserves in the Cultural Services Fund and the General Fund to implement the additional structural support. BACKGROUND / DISCUSSION At the January 18, 2011 Council meeting, a question was asked concerning JVA engineering second opinion as it relates to the structural repair costs on the Lincoln Center performance hall walls. Staff, the principal architect, and the general contractor explored all of JVA's cost saving suggestions. The:primary cost saving differences between the general contractor's first estimate and the eventual purchase order amount were essentially derived from two main areas: (1) a reduction in the frequency of the structural support members based upon refined detail calculations;and(2)a reduction in general conditions(Division 1)costs negotiated with the general contractor. Both were suggested by JVA ,but also anticipated by staff and the principal project architect. Unfortunately, JVA's suggestion to explore an exterior steel beam support system introduced other difficulties such as erection equipment costs, and the treatment of the exterior steel members to complement the original building design. The recent rapid escalation in the cost of steel (200%), in addition to the aforementioned challenges, eventually proved to render this suggested option cost prohibitive. Concerning JVA's comment in its report relative to the somewhat high costs in Division 15(Mechanical)and Division 16(Electrical),staff submits that significant costs are attributable to"interior"work,such as moving ductwork,conduit, and electrical components to build a number of the structural columns as designed by Martin&Martin. Staff and the principal project architect believe these costs are justified. By adding this work as a change order to the original contract for construction, the general contractor, Bryan Construction, is required to submit all subcontractor and material supplier invoices to the City for review and it is required to follow the contract documents relative to material and labor mark up. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary-January 18, 2011 (w/o attachments) ATTACHMENT 1 DATE: January 18, 2011 � . STAFF: Jill Stilwell Steve Seefeld - SUBJECT First Reading of Ordinance No.006, 2011,Appropriating Prior Year Reserves in the Cultural Services Fund and Prior Year Reserves in the General Fund for Transfer to the Capital Projects Fund and Appropriating Unanticipated Revenue in the Capital Projects Fund for the Building on Basics Lincoln Center Renovation Project. EXECUTIVE SUMMARY / �f 1 l I.( t.l � 1"( During the Lincoln Center addition and renovation project, an unanticipated structural issue with the 32 year old performance hall walls was identified. TF6 structural=problem-is significantland the performance hall walls will require additional structural support. This work must be completed before the facility can be reopened. This Ordinance appropriates an additional$460,000 from prior year reserves in the Cultural Services Fund and the General Fund to implement the additional structural support. BACKGROUND / DISCUSSION The Building on Basics Lincoln Center renovation project began in July 2010. The project is renovating 55,000 sq. ft. and adding approximately 17,000 sq=ft to the,L=incbin Center withrakfocus�on improving the patron experience, performer amenities, and infusing new life intoIthis community ttreasure.�During construction, an unanticipated structural issue was uncovered in thes32-year old,performanc6�hall-walls. The project structural engineer, Martin and Martin, evaluated and tested the walls�a d deter' iin d,that additional structural support is required(Attachment 1). A second structural engineering firm, JVA-was retained by'the City to provide a second opinion, and agreed with Martin and Martin's findings (Attachment 2). Martin and Martin, in consult with JVA, has developed a series of structural columns consisting of steel, concrete, and concrete masonry unit block, that will line the exterior of the existing performance hall walls at specified intervals that will provide the necessary structural reinforcement. The structural work will be completed by the Lincoln Center renovation general contractor, Bryan Construction, and is estimated to cost$460,000. The structural work will run concurrent with the current Lincoln Center renovation, with the reopening anticipated in July 2011. As this work was unanticipated, and the estimate far exceeds the contingency of the project, this Ordinance appropriates money from prior year reserves from-the Cultural Services and the General Fund. The reserves remaining in the General Fund and Cultural Services-Fund wil, I-st_ill meet thWCity's policy relative to maintaining minimum fund balances. FINANCIAL/ ECONOMIC IMPACTS This Ordinance appropriates additional funding for the Lincoln Center Renovation to complete the additional structural support as follows: Prior Year Reserves (Cultural Services): $150,000 Prior Year Reserves (General Fund): $310,000. ENVIRONMENTAL IMPACTS (r, n \�/ U. U The Lincoln Center renovation and this additional structural work will meet LEED Gold standards. January 18, 2011 -2- ITEM 10 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ATTACHMENTS 1. Martin and Martin report 2. JVA report COP VU IF-D)y Gorr 'ly COM clln�j PY ORDINANCE NO. 006, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE CULTURAL SERVICES.FUND AND PRIOR YEAR RESERVES IN THE GENERAL FUND FOR TRANSFER TO THE CAPITAL PROJECTS FUND AND APPROPRIATING UNANTICIPATED REVENUE IN THE CAPITAL PROJECTS FUND FOR THE BUILDING ON BASICS LINCOLN CENTER RENOVATION PROJECT WHEREAS,.on November 1, 2005, Fort Collins voters passed Ordinance No. 092, 2005 approving the "Building on Basics" ("BOB")tax for certain capital projects including the Lincoln Center Renovation Project; and WHEREAS, the total cost of the renovation project was estimated to be $7.3 million,to be paid for with $5.5 million of BOB funding,$621,855 in funding from the Downtown Development Authority, and the remaining amount from other sources; and WHEREAS, during construction of the Lincoln Center Renovation project,which began in July 2010, an unanticipated structural issue was uncovered in the performance hall walls and it has been determined that additional improvements in the form of structural reinforcement will be necessary; and WHEREAS,these improvements will be completed by the general contractor on the project at an estimated cost of$460,000; and WHEREAS, in order to fund the additional improvements, staff has recommended that $150,000 be appropriated from prior year reserves in the Cultural Services Fund and$310,000 from prior year reserves in the General Fund for transfer to the Lincoln Center Renovation Capital Project; and WHEREAS,Article V,Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, City staff has determined that the appropriation of the revenue as described herein will not cause the total amount appropriated in the Capital Projects Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the Cultural Services Fund the sum of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000) to be transferred to the Capital Projects Fund and appropriated therein for the Building on Basics - Fort Collins Lincoln Center Renovation Project. Section 2. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the sum of THREE HUNDRED TEN THOUSAND DOLLARS ($310,000)to be transferred to the Capital Projects Fund and appropriated therein for the Building on Basics - Fort Collins Lincoln Center Renovation Project. Introduced, considered favorably on first reading, and ordered published this 18th day of January, A.D. 2011, and to be presented for final passage on the t day of February, A.D. 2 Mayor ATTEST: City Clerk Passed and adopted on final reading on the lst day of February, A.D. 2011. Mayor ATTEST: City Clerk