sr-051110-8dCity Council Meeting: May 11, 2010
Agenda Item: ~'~'~' D
To: Mayor and City Council
From: Lee E. Swain, Director of Public Works
Subject: Preconstruction and Design Guaranteed Maximum Price Contract for Parking
Structure 6
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute adesign-build contract for architectural and engineering design services with
Morley Construction Company for the demolition and rebuilding of Parking Structure 6 for a
Guaranteed Maximum Price (GMP) of $3,694,350 (includes 8% contingency).
Executive Summary
On June. 30, 2009, City Council .approved Morley Construction Company as the design-
builder for Parking Structures 1 and 6; however, on November 10, 2009, City Council
recommended that only Parking Structure 6 be designed at this time. Staff negotiated the
contract terms and a GMP of $3,694,350 (includes 8% contingency) with Morley
Construction Company for preconstruction and design services of Parking Structure 6.
Funds are available in the Capital Improvements Program budget.
Background
On December 19. 2000, City Council established the Downtown Parking Task Force in
response to a Planning Commission suggestion for a public process to assess community
sentiment regarding -the "Downtown Parking Management Program" report released in
April 2000 by Kaku Associates, which recommended public parking modifications in the
downtown area. On April 9, 2002, City Council conceptually approved the strategic plan
recommended by the Downtown Parking Task Force to retrofit, rebuild, and add parking
resources in the downtown area over a 10-year period. On February 28, 2006, City
Council approved the. Downtown Parking Program and authorized staff to proceed with the
next steps in implementing the program:
On June 30. 2009, City Council approved Morley Construction Company as the design
builder for Parking Structures 1 and 6. On November 10, 2009, City Council
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recommended that only Parking Structure 6 be designed at this time as funding for Parking
Structure 1 had not been identified. In addition, City Council recommended that staff
research automated parking systems to determine whether or not an automated parking
garage- is a feasible alternative to a self-park garage for Parking Structure 6. Staff
researched automated parking systems and presented an Information Item to City Council
in April 2010.
Discussion
The Downtown Parking Improvement Program recommended that Parking. Structures 1
and 6 be demolished and rebuilt in the same locations with additional spaces, with the
Environmental Impact Report (EIR) analysis addressing an envelope of three levels below
ground and up to nine levels above ground. The rebuilding of each structure will result in a
net increase of up to 350 spaces per structure. The new structures may include ground
floor retail, solar panels on the roof, bicycle storage facilities, and public restrooms; and,
they will be safe and efficient for users and their vehicles. The EIR for the Downtown
Parking Improvement Program was approved on Mav 9, 2006. In addition, the Walker
Parking Study, which further described the future needs for Downtown parking, was
presented to Council on September 8, 2009.
At the November 10, 2009, study session to discuss concept massing, urban design,
circulation, and cost implications of rebuilding Parking Structures 1 and 6, City Council.
recommended that only Parking Structure 6 be designed at this time. This would allow the
City an opportunity to reassess the parking demands in the Downtown area and identify
funding source before moving forward with the recommendation to rebuild Parking
Structure 1. Following the meeting, staff negotiated the contract terms and a GMP of
$3,694,350 (includes 8% contingency) with Morley Construction Company for the
preconstruction and design services of Parking Structure 6.
Next Steps
During the design process, Public Works, Planning & Community Development, and
Housing & Economic Development staff will work with the design team to develop a series
of alternatives and tradeoffs, and will consider the following issues:
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• Relationship of the structure and its uses to the pedestrian realm at the street.
• Building massing and scale considerations.
• Onsite circulation and number of spaces that can be accommodated.
• Accommodation of programmatic elements such as retail/restaurant.
• Creative capital uses.
• Storage and/br other uses.
Staff will return to the City Council with a review of concept designs and tradeoffs after this
evaluation. This review will address various plans and strategies to create a structure
within the building envelope. With Council input, the design team will work with the
interdepartmental City team to further the design. In a final step, Council will be asked to
review the final schematic design.
Reconstruction of Parking Structure 6 will require the termination of a lease with Willie and
Gloria's Salon, located at 1429 2nd Street. They have been tenants since 1985 and are
now on a month-to-month lease in anticipation of the reconstruction of Parking Structure 6.
The Police Substation is also located in Parking Structure 6 and will be permanently
relocated to an existing retail space in Parking Structure 5, currently occupied by the
Dance Doctor. The owner of the Dance Doctor has indicated that he will look for another
space to lease within the City. The cost to relocate the Police Substation, including design
and construction costs, will be presented as a separate Council action.
Financial Impacts & Budget Actions
Funds in the amount of $3,694,350 are included as part of the FY2010-11 proposed
budget. The entire project of rebuilding Parking Structure 6, including architectural and
design services, is estimated to cost $35 million, which. will be financed with funds from the
Parking Authority and the Special Revenue Fund. Additionally, ongoing revenue sources
have been identified to support both debt financing of this project and other improvements
to parking structures in the Downtown area. A comprehensive parking plan will be
presented to Council in the fall of 2010.
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The financing plan developed by staff assumes the use of $6.1 million in fund balance from
the Parking Authority and $6.6 million in fund balance accumulated in the Special Revenue
Fund from Downtown Parking Developer Fees. Debt proceeds will provide a funding
source for the remainder of the project, using ongoing parking revenues of approximately
$1.1 million per year and ongoing Downtown Parking Developer Fees of approximately
$580,000 per year, until this source expires in 2016. Remaining debt service is expected
to be funded from revenues generated from increased parking structure rates. After debt
service, this tentative financing plan provides a minimum of $1.3 million per year for other
parking improvements.
Prepared by: Karen Domerchie, Architectural Associate
roved:
G ~~~~
Lee E. Swain
Director of Public Works
Forwarded to Council:
Rod Gould
City Manager
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Reference Contract No.
9212 (CCS).