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SR-850-005-01 (20) F:CMGR:Staff Reports:Main Library 1-28-03.doc City Council Meeting: January 28, 2003 Santa Monica, CA TO: Mayor and City Council Chairperson and Redevelopment Agency FROM: City and Redevelopment Agency Staff SUBJECT: City approval of a Guaranteed Maximum Price in the Amount of $56,063,066 for the Demolition and Construction of the Santa Monica Main Library Expansion Project and Award of Contract to Morley Builders. City Council and Redevelopment Agency Adopt a Resolution Determining and Finding that the Santa Monica Supplemental Public Parking Project component of the project is of Benefit to the Earthquake Recovery Redevelopment Project Area; and the City Council and Redevelopment Agency Authorize the City Manager and Executive Director (Respectively) to Execute a Reimbursement Agreement between the City and Redevelopment Agency for the Project, and approval of various budget changes and financing sources. Introduction This report recommends that the City Council and Redevelopment Agency (Agency) take a series of actions that will implement the construction of the new Main Library including subterranean parking (the Santa Monica Supplemental Public Parking Project) to further the Agency?s efforts to seismically up-grade parking structures in the Downtown. Recommended Council and Agency actions include: 1) Council activation of phase II of the design-build contract with Morley Builders, in the amount of $43,103,066 for construction of the main library project improvements, 2) Agency authorization to expend $12,959,719 for construction of a portion of the subterranean public parking structure, for a total Guaranteed Maximum Price contract of $56,063,066; 3) authorize $2,883,518 in contingency funds; 4) authorization for the City Engineer to issue any necessary change orders; 5) adoption of a Resolution determining and finding that the Santa Monica 1 Supplemental Public Parking Project (Supplemental Public Parking) is of benefit to the Earthquake Recovery Redevelopment Project Area; and 4) authorize the City Manager to execute a Reimbursement Agreement between the City and Redevelopment Agency for the Santa Monica Supplemental Public Parking Project. The Agency is requested to take the appropriate corresponding actions necessary with respect the construction of the Supplemental Public Parking. The report also addresses the design issues raised by Council during the last review of the design, as well as design issues recently raised by the Planning Commission. Finally, the report discusses the merits for proceeding with these actions at this time in order obligate Agency funds for the Supplemental Public Parking prior to any actions by the State that would render the project infeasible. Background Community interest in expanded library resources and facilities has been expressed since the mid-1980s. In November 1998, voters approved a ballot measure authorizing the City to sell general obligation bonds in an amount up to $25,000,000 in support of library construction and renovation. Since that time, the City has proceeded with conceptual development and selected the architectural firm of Moore Ruble Yudell (MRY) for design services, Bovis Lend Lease for project management and Morley Builders for design-build services. The public parking component of the project was proposed as a means of alleviating the ever-increasing demand upon existing public 2 parking facilities located in the downtown area, as well as providing parking for the downtown area while seismic retrofit work takes place at the downtown parking structures, both preserving existing economic investment and stimulating future growth within the Earthquake Recovery Redevelopment Project Area. Staff presented the conceptual plan of the Main Library reconstruction project to the City Council on December 18, 2001 and has since made three presentations to Council on the building design?s progress. At the last update on October 22, 2002, Council: asked staff to explore the feasibility of including of an escalator in the project; ? expressed concern about the pedestrian experience along the façade of the ? th building along the 6 Street elevation and the treatment of the column at the th library entrance at 6 and Santa Monica; th suggested the introduction of additional landscaping along the 6 Street ? elevation of the building; and, expressed concerns about the stage of completion of the design documents ? in relation to the design-build process. On December 10, 22002 Council voted unanimously to name the auditorium in the new main library project in honor of Reverend Dr. Martin Luther King, Jr. In addition, Council asked staff to explore with the family of Russell Hart, for whom the auditorium in the existing main library is named, keeping the Russell Hart bronze plaque to be located in an appropriate location in the new main library. Mr. Hart?s family has indicated that they would be pleased if the plaque could be incorporated in the new library. 3 The project was reviewed by the Planning Commission on January 8, 2003. The Commission considered the environmental review which was undertaken for the project and approved it. However, the Commission continued its consideration of the project design until February 12 to allow the architect to respond to the following concerns expressed by Commission members: th the 6 Street elevation shows blank concrete walls, which might benefit from ? landscaping at the street level and/or more openings; th pedestrian interest should be enhanced along the 7 Street elevation by ? landscaping and other means; th visual interest at the corner of 7 Street and Santa Monica Boulevard to ? provided a gateway to the Downtown; the surface parking and landscaping at the northern portion of the project ? th along 6 Street should be reconfigured into a parking/park or as a pocket park; and, th more landscaping should be added at the base of the building along 6 and ? th 7 Street to support the changing residential nature of the surrounding area, and the types of trees that would be appropriate to the site should be reviewed. The Planning Commission also expressed concern with the size and scale of the new building as appearing too large for the small town character of Santa Monica, that the 4 building needed to be more inviting, and that the interior courtyard could be more connected to the outside of the exterior of the building providing enhanced access to the café from the street. Discussion Given the economic recovery and the seriousness the City?s financial situation, it is appropriate to review the benefits the new main library will provide to the community. A priority for the community was to build a new main library with greater access to services and collections. The current main library is approximately 76,000 square feet. The proposed new main library will be over 109,000 and has been designed to allow for growth of the community and library services beyond the next two decades. Currently, the main library provides seating (reader, meeting room, computer and other) of approximately 522 as compared to the new library which will provide seating in excess of 1,023. Space for growth of the current collection of some 302,000 to over 390,000 is provided in the design. The new main library will include wiring to serve the changing information requirements of the public. However, the Library is not only its square footage, seats, books and computer terminals ? but much more. The planning team for the new library listened closely to the community about their needs. Access in the new main library will be enhanced with lower shelves, wider aisles, comfortable seating, and more open spaces. The community?s expressed desire for meeting space and a children?s learning center is accommodated, with meeting space increased by 96% and the children?s space increased by 100%. The new library 5 includes improved and enhanced service and space for children and families with a Children?s Activity room, a Parenting center, a dedicated Young Adult center, and a variety of meeting spaces (group, individual, quiet study rooms, and community meeting rooms), including the new 150 seat Reverend Dr. Martin Luther King, Jr. Auditorium. The community asked that the building be open, light and comfortable with gardens, water features and other amenities. The new main library has over 17,000 square feet plus of gardens and green space, including a water curtain and café located an open central courtyard. Early in the conceptual design process, Council expressed a desire that the new main library be home to the Stanton Macdonald Wright murals and the Santa Monica Historical Museum. The design of the new mail library accomplishes both, becoming a city cultural attraction The Council asked that the structure accommodate the Santa Monica Historical Society?s collections and programs. 5,000 square feet of space has been provided for that purpose. The building has been planned as a model for sustainability, incorporating natural lighting, improved indoor air quality, easy maintenance, ergonomics, cisterns for water harvesting, and photo voltaics where possible. 6 It will be a ?smart? building with state of the art technology supported by a backbone of fiber and wireless technology to support a Network infrastructure, Express check out, public access computers, and 24/7 Reference online. The building was planned with enhanced security and built-in adaptability to meet changing community needs. Response to Design Concerns Expressed by Council and the Planning Commission Incorporation of an Escalator Adding an escalator in the building was suggested to aid the elderly and others with ambulatory difficulty and generally provide easy access from the first to the second floor. In the development of the Library program, staff and program consultants discussed and rejected the possibility of an escalator. The building design provides access by way of four elevators: two public elevators for access to the Library from the parking structure, with after-hours service to the exterior second floor terrace of the library and meeting rooms; one public elevator within the Library building that travels from the first to the second floor; and one elevator for freight deliveries. The current design also features a central staircase, serving vertical circulation, designed to enhance the visible connection of the interior of the library with the courtyard and to satisfy certain building code requirements. After a Councilmember raised the issue, the project team (consisting of staff, Moore Rubell and Yudell architects, Morley Builders, and Bovis Lend Lease construction managers) again researched this request and received information from Lerch Bates & Associates, a prominent escalator consulting firm. Based on this information and past 7 direction from Council on the Library?s design and energy efficiency goals, the project team recommends that an escalator not be included in the project for the following reasons: ? It would be very difficult to accommodate an escalator within the existing floor area without significantly altering the building program. Escalators require large amounts of space. The building footprint would have to be extended into the courtyard, diminishing the size of that space. The escalator mechanism would require depth below floor level, which would impact the underground parking structure. The additional load of the escalator would also require significant and costly structural enhancements to the floor and underground parking structure design. An operating escalator could disrupt the quiet environment of the library. It therefore needs to be separated from the quiet areas of the library and in its own atrium (similar to Downtown Los Angeles? Central Library). Constructing a similar space for the Santa Monica Main Library would remove programming space or interior courtyard space. ? An escalator would be an unmitigatable energy user. ? The cost of an escalator is approximately $150,000, excluding costs required to enhance the structure, or change the design of the existing plans to accommodate it. The ongoing monthly maintenance costs are estimated at $450 8 ? An escalator would assist patrons who can walk; those in wheelchairs or walkers would still need to use the elevator ? Escalators are usually associated with facilities serving high volume foot traffic, with the intent of moving people at a constant pace. Typically, these are retail settings, where the movement is tied to the purchase of materials on multiple floors. According to Lerch Bates, the nominal (rather than maximum) capacity of smaller escalators (those that accommodate 1-person per step) is 3,060 to 4,080 persons per hour. Libraries with escalators tend to be the main libraries in major metropolitan areas serving over 3,000 people per day. The Santa Monica Main, at 2,000 visitors per day would not make optimal use of a costly feature and a questionable feature in regard to sustainability. ? Finally, incorporating the escalator at this stage of the project would result in delay of the project schedule, parking structure construction documents and start of construction. Pedestrian experience and Enhanced Landscaping The Architect has revised all four façades of the building to enhance the pedestrian experience. The use of materials to add texture and interest at the human scale has been added. Color and material changes soften the building as well as accentuate the facade undulation. Landscaping of private courtyards on the perimeter of the building thth enhance 6 and 7 Streets. th The architect has revised the design at the corner of 7 Street and Santa Monica Boulevard by setting back the first floor at the corner, creating a pedestrian-friendly 9 glazed entry to the parking garage stair and adding glazing that extends the Santa th Monica Boulevard design of the building around the corner on to 7 Street at the second floor. This strengthens the corner as a visual gateway to the Downtown. A projecting bay has been added over the seventh street paseo entry, emphasizing and sheltering this entry. th Canopies have been added over some of the windows and over the bookdrop along 6 th Street. Along 6 Street, in the north garden, some surface parking was eliminated to enlarge the landscaped area, and the building walls were revised to open the view into the interior courtyard and enhance the building?s connection with the site. This wall revision created the opportunity to create a stage effect with an outdoor stair near the entrance to the auditorium. On all elevations, a ?ribbon? of contrasting texture in the precast concrete, offset between first and second floors, has been provided. This will serve to accentuate the thth rhythm of the fenestration and wall and add interest to the façade. On 6 and 7 streets, landscape has been added in 5?-6? wide landscaped parkways, continuing the pattern found in the surrounding neighborhood. These revisions to the façades presents a softened and more engaging experience to the person on the street. The Landscape Architect has enhanced the street landscaping by adding more trees to the existing plan. MRY and the Landscape Architect have developed the concept that continues the landscaping from the street into the building. By creating this connection 10 of foliage, there is a flow between the street, the surface parking lot, and the interior courtyard. As you walk through the paseo, you can see the foliage both inside the courtyard and in the parking area and street. This creates a parking/park treatment th along 6 Street that can be better maintained. There is an architectural cladding treatment to the column with articulated joints and th lighting at the grand entrance at 6 Street and Santa Monica Boulevard that complements the building design. State of Design Documents in relation to the Design-Build Process It was originally contemplated that the Santa Monica Main Library Expansion Project would be implemented using a traditional design-bid-build approach. In an effort to limit anticipated costs, expedite the construction schedule and build a cohesive team, the City Council, at its March 26, 2002 meeting, approved a two-phased, Design-Build Agreement with Morley Construction. Staff was to return to Council to activate Phase II at the commencement of construction with a Guaranteed Maximum Price (GMP). Phase One- Pre-construction services included design-builder involvement with ? the project team during the development of the design, participation in budgeting and scheduling, and value engineering options; and 11 Phase Two- Presentation of the Guaranteed Maximum Price for the project to ? Council and activation of the second phase development of construction documents and construction services. At this time, 100% construction documents for the subterranean parking structure have been submitted for plan check and 100% Design Development documents have been prepared for the building. Unlike the design-bid-build approach where the bids for the subcontracting work are known only by the bid-winning contractor, under the traditional design-build approach all costs are known, including those of the subcontractors. Staff can insure that the best bid is always obtained for the work. In addition, savings that might be created by the contractor receiving lower bids for the work and working more efficiently will be split with the City. Therefore, staff recommends that Council approve the GMP at this time, recognizing that the costs for the project may change if the Planning Commission and the Architectural Review Board require additional design considerations. Redevelopment Considerations The Santa Monica Main Library is located within the Earthquake Recovery Redevelopment Area. The Supplemental Public Parking Project will consist of the construction of two additional levels to the subterranean public parking facility under the new main library. The Agency?s funding of the Supplemental Public Parking provide will help provide parking for the Downtown area while seismic retrofit repairs are being 12 performed at other publicly-owned downtown parking structures, and remain as additional public parking after the retrofits are completed. The City Council and the Redevelopment Agency must make the appropriate determinations and findings. In order to authorize the use of redevelopment funds, the attached Resolution (Attachment A) determines and finds that the project is of benefit to the Earthquake Recovery Redevelopment Project Area, no other reasonable means of financing the improvements are available, the payment of funds for the improvements will assist the recovery from, and the elimination of one or more of the conditions resulting from, the 1994 Northridge Earthquake disaster, the payment of funds for the improvements will assist in elimination of one or more blighting conditions inside the Project Area by assisting in the elimination of one or more of the conditions resulting from the 1994 Northridge Earthquake disaster, and the project is consistent with the Agency?s Five-Year Implementation Plan in that it helps achieve both the Commercial and Community Revitalization goals set forth in the plan by contributing to the economic restoration of the city?s primary commercial area through development of public improvements. The Agency?s $12.9 million contribution will be accomplished by the lending of funds by the City to the Redevelopment Agency, which will be repaid by the Agency to the City from available tax increment revenues. The approval of a Reimbursement Agreement will formalize the loan between the City and Agency for this Project, as well as the Agency?s obligation to reimburse the City for the Agency?s $12.9 million contribution to the public parking facility. 13 Finally, staff recommends that the Council and Agency approve proceeding with this action at this time because there have been several indications that the State may consider legislation that would limit the use of redevelopment funds that are not encumbered in a manner that creates an Agency debt obligation. Budget/Financial Impact Total Project Costs ? Cost of the main library project in total are $74,069,788 and includes $2,040,000 for branch library improvements, $1,290,000 for the Historical Society space and $12,960,000 for the supplemental parking that benefits downtown, leaving the actual cost for the library facility and site improvements at $57,797,788. Per square foot basis the main library portion will cost approximately $344. This compares favorable with the more complex Public Safety Facility at approximately $374/sq.ft. Because the special features of the Library project, the Council?s interest in a distinguished design and the City?s lengthy and somewhat unpredictable approval process bring total project costs well above the funds previously budgeted ($61,529,115), an additional $12,540,673 must be appropriated by diverting funds from other capital projects, as outlined below. rd The investment is appropriate, with 1/3 of costs borne by future users (the bond proceeds) and the balance paid from one-time revenues realized during the extraordinary economic climate of the 1990?s. 14 Transfer of Funds ? Attachment D lists capital projects that staff recommends be deferred and amounts to be diverted to the main library project. The total amount ($21,449,803) includes the additional funds to be appropriated ($12,540,673) and dollars previously appropriated but anticipated from bond issuance over the next two years ($8,909,130), which is now uncertain. Staff will return to Council in the next month with the appropriate resolutions to allow debt issuance for refinancing of the deferred capital projects in the future when the City?s financial situation is more secure. The appropriation for the deferred capital projects in the General Fund, Beach Fund and Pier Funds must be cancelled and reappropriated to the Main Library Expansion project at account number #C01049103.589000. Funding for projects in the Beach Fund and Pier Fund were originally funded by loans and grants from the General Fund; Council therefore needs to authorize staff to repay the General Fund for these amounts. Funds from the Santa Monica Boulevard project ($6,738,781.98) must be cancelled and appropriated to the Main Library Expansion project account number #C04049103.589000. Morley GMP Contract Price ? The contract with Morley Builders is $56,063,066. The project contingency is $2,883,518. When the Architects contract is assigned to Morley, the amounts already paid by the City to the Architect will be deducted. With the transfer and appropriation of funds described above, funds are available in the following accounts: 15 Source Account Amount Contract Redevelopment Agency C17082203.589000 $12,960,000 Existing Library CIP C01025191.589000 $124,727 Existing Library CIP C01049102.589200 $775,745 Existing Library CIP C01049102.589300 $642,001 Existing Library CIP C01049103.589000 $2,639,770 Existing Library CIP C01049103.589500 $560,850 2002 Library Bonds C01049103.589400 $24,880,000 Diversion of CIP Funds C01049103.589000 $13,479,973 $56,063,066 Contingency Diversion of CIP Funds C04049103.589000 $2,883,518 TOTAL $58,946,584 Recommendations Staff recommends that the City Council: 1) Approve the diversion of funds from existing capital projects, appropriate the funds necessary for the project, and authorize budget changes listed above; 2) Activate phase II of the design-build contract with Morley Builders by approving a GMP in the amount of $56,063,066 for the construction of the library facility, including site improvements and the public parking structure, and approve $2,883,518 in contingency funds for the project; 3) Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority; 4) Adopt the attached Resolution determining and finding that the Santa Monica Supplemental Public Parking Project is of benefit to the Earthquake Recovery Redevelopment Project Area; and 16 REVISION ? ITEM 8A; 1/28/03 STAFF REPORT ? PAGE 17 Formatted 5) Authorize the City Manager to execute the attached Reimbursement Agreement between the City and Redevelopment Agency for the Santa Monica Supplemental Public Parking Project Staff recommends that the Redevelopment Agency: 1) Approve the design-build contract with Morley Builders for the construction of the Supplemental Public Parking Project; 2) Adopt the attached Resolution determining and finding that the Santa Monica Supplemental Public Parking Project is of benefit to the Earthquake Recovery Redevelopment Project Area; and 3) Authorize the Executive Director to execute the attached Reimbursement Agreement between the City and Redevelopment Agency for the Santa Monica Supplemental Public Parking Project It is further recommended that the Agency adopt the attached resolution authorizing the Executive Director to make the findings required by Section 33445 of the Health and Safety Code. Prepared by: Gordon R. Anderson, Assistant City Manager Jeff Mathieu, Director Resource Management Dept. Craig Perkins, Director Environmental & Public Works Management Tina Rodriguez, Redevelopment Administrator Tony Antich, City Engineer Lauren Friedman, City Architect Ryan Moore, Senior Administrative Analyst 17 Attachments: A ? A Resolution of the City Council of the City Of Santa Monica Approving a Reimbursement Agreement, Consenting to the Use of Santa Monica Redevelopment Agency Funds for the Santa Monica Main Library Supplemental Public Parking Project and Making Certain Determinations and Findings Pursuant to Health and Safety Code Section 33445 B ? A Resolution of the Redevelopment Agency of the City Of Santa Monica Approving a Reimbursement Agreement and Making Certain Determinations and Findings Pursuant to Health and Safety Code Section 33445 C ? Reimbursement Agreement for the Santa Monica Main Library Supplemental Public Parking Project by and Between the City Of Santa Monica and the Redevelopment Agency of the of the City Of Santa Monica D ? Table detailing Transfer of Funds from CIP to the Main Library Project 18