Title
Adoption of Resolution Amending the Capital Budget for Fiscal Year 2020-2021 Using the Fund Balance of the Construction Improvement Fund for Krusi Park Recreation Center Replacement in the Amount of $135,000 for Project Management and Inspection. (Public Works 164)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The construction of the Krusi Park Recreation Center Replacement (Krusi Center) project is underway and anticipated to be completed and occupied for after-school programs and public rentals by fall 2020. The project construction process has been unique with individual contracts for electrical, site work, and building construction. Additional funding, in the amount of $131,000, was approved by the City Council on June 16, 2020, to account for construction changes, furnishings and equipment. Additional funding of $135,000 is now required to cover project management and inspection labor hours, which were not accounted for in the June 16 request.
BACKGROUND
The Krusi Center project is funded by an East Bay Regional Park District’s (EBRPD) Measure WW grant in the amount of $1,365,489. The grant covers both design and construction costs, plus additional funding from Dwelling Unit Taxes (DUT). The Krusi Center was in dire need of replacement and has been unusable to the public, except for the restrooms, for more than eight years. Krusi Center is currently under construction with anticipated completion by September/October 2020.
DISCUSSION
In addition to the unfunded building components (discussed in the June 16 City Council Staff Report - see Exhibit 1), the segmented project approach to construction of various components of the project has required considerably more staff time to design and manage what are effectively three separate projects. In many respects, City staff has functioned as the general contractor, coordinating and scheduling activities between the three independent contractors all working at the site. Lastly, the Covid-19 pandemic has impacted the project by requiring demobilizations and re-mobilizations and extending the project duration by several months. The result is an anticipated budget overrun of $135,000 in staff labor charges. Unfortunately the full magnitude of this budget overrun was not known at the time the June 16 City Council report was prepared.
Funding to cover the budget overrun is recommended to be appropriated from the uncommitted fund balance in the Construction Improvement Fund (Fund 164).
FINANCIAL IMPACT
Funding for the $135,000 in additional staff labor charges is available to be appropriated from the uncommitted fund balance in the Construction Improvement Fund (Fund 164). There is no impact to the General Fund.
ALTERNATIVES
• Direct staff to identify alternate funding to cover the budget overrun.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action does not affect the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
In accordance with the California Environmental Quality Act (CEQA), this project is Categorically Exempt pursuant to CEQA Guidelines Section 15301(c), Existing Facilities, 15302 Replacement or Reconstruction, and 15303 New Construction of Small Structures.
CLIMATE IMPACTS
The Krusi Center is an all-electric building without a natural gas service connection. Natural gas use from buildings is one of the larger emission sources of greenhouse gas emissions (GHG). The Climate Action and Resiliency plan recommends the electrification of buildings to reduce GHG emissions.
RECOMMENDATION
Amend the Capital Improvement Project budget for Krusi Park Recreation Center Replacement for Fiscal Year 2020-21 in the amount of $135,000 for project management and inspection using the fund balance of the Construction Improvement Fund.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval. This represents a transfer from one Fund to another Fund to cover staff project management costs.
Respectfully submitted,
Erin Smith, Interim Public Works Director
By,
Scott Wikstrom, Interim Deputy Public Works Director/City Engineer
Financial Impact section reviewed,
Nancy Bronstein, Interim Finance Director
Exhibit:
1. Budget Amendment Staff Report
cc: Eric Levitt, City Manager