SR 05-14-2019 3C
City Council
Report
City Council Meeting: May 14, 2019
Agenda Item: 3.C
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Subject: First Contract Modification with Gilman Builders, Inc. for the City Hall Third
Floor Building System Improvement Project
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a first modification to agreement #10758 (CCS) in the amount of $280,000 with
Gilman Builders, Inc., a California-based company, for design-build services for the City
Hall Third Floor Building System Improvement Project for the Public Works Department.
This will result in a one-year amended agreement with a new total amount not to exceed
$1,944,769 with future year funding contingent on City Council budget approval.
Summary
Undertaking periodic preventative maintenance and upgrades to building systems and
interior workspaces is a necessary part of operating an historic 1939 City Hall. A
portion of the third floor of City Hall is under construction to replace and upgrade the
mechanical and electrical systems, replace the roof, and modify the staff work space as
part of the City Hall Third Floor Building System Improvement Project. A first
modification to the agreement with Gilman Builders, Inc. (Gilman) is required to add
$280,000 to cover fees for additional construction services. The original scope of work
included staff relocation services to move City staff from City Hall to the city-owned
building at 1632 5th St. (5th Street building) and back. That scope included minor
tenant improvements to the 5th Street building in preparation for staff’s temporary
relocation. Prior to the relocation, the 5th Street building required more extensive
improvements to its infrastructure than staff originally anticipated.
Discussion
The roof, electrical panels, and heating, ventilation and air conditioning (HVAC)
equipment at City Hall is more than 20 years old and past its useful life. The third floor
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of City Hall, primarily the City Attorney’s Office (CAO), is most affected by the project.
The CAO has been temporarily relocated to the 5th Street building during construction.
In the original budget estimate for the project, an initial visual inspection of the 5th
Street building space indicated that it was likely in adequate shape to house CAO staff
without significant improvements. However, several unforeseen deficiencies were
identified upon commencing the work to prepare the building for staff’s temporary stay.
Vandalism had damaged the HVAC equipment and garage doors, the lighting in the
space proved inadequate for office uses, City fiber was inoperable in the building, and
there were no security measures in place. Due to these circumstances, additional work
to the building was necessary and thus increased the scope of work for the contractor
Gilman.
City staff identified the budget shortfall and requested that additional funds be
appropriated during the FY 2018-19 year-end budget adjustment process. The funding
was approved on November 27, 2018, adding $350,000 to the project account. Staff is
now requesting authority to expend $180,000 of the $350,000 to cover these additional
requirements. The remaining $170,000 in funds would be used for miscellaneous costs
such as inspections and unforeseen conditions, utilizing existing contracts within the
City. Staff will return to City Council for any additional contracts if necessary.
Additionally, $100,000 from the Citywide Facilities Renewal Program has been made
available to cover some additional HVAC and electrical upgrades in areas that were not
included in the original project. This increase in scope, which is included in this
modification, allows these adjacent facility upgrades to be completed by Gilman while
construction on the roof of City Hall is underway.
The 5th Street building will serve as swing space for City staff as they transition from
leased space to City Hall 2020. The cost of this construction project may be recouped if
the City leases or sells the building in the future.
Staff recommends a first contract modification to the Gilman contract in the total amount
of $280,000, of which $180,000 is accounted for in the project budget and $100,000 is
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available in the Citywide Facilities Renewal Program budget approved as part of the FY
2018-19 CIP budget.
Past Council Actions
October 9, 2018
(Attachment A)
Award of Design-Build Services Agreement for the City
Hall Third Floor Building System Improvement Project
November 27, 2018
(Attachment B)
FY 2017-18 Year-End Budget Changes and FY 2018-19
Budget, Position and Compensation Changes
Financial Impacts and Budget Actions
Staff seeks authority to increase the amount of the agreement with Gilman Builders, Inc.
for additional construction scope for the City Hall Third Floor Building System
Improvement CIP Project.
Contract Modification Request
Agreement # Current
Authorized
Amount
Modified
Request
Amount
FY 2018-19 Budget
CIP Account #
Total Revised
Authorization Amount
10758 $1,664,769 $180,000 C0107450.689000 $1,844,769
$100,000 C0104580.689000 $100,000
$280,000 Total $1,944,769
Prepared By: Alex Parry, Senior Architect
Approved
Forwarded to Council
Attachments:
A. October 9, 2018 Staff Report (Web Link)
B. November 27, 2018 Staff Report (Web Link)
C. Gilman Builders Oaks Initiative Disclosure Form
REFERENCE:
Modified
Agreement No. 10758 (CCS)