HomeMy WebLinkAboutSS3 - Central Library Lecture Hall - PowerPoint (Staff)November 14, 2023
Item No. SS3
CENTRAL LIBRARY LECTURE HALL
PROJECT FUNDING DISCUSSION
CITY OF
NEWPORT BEACH
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Approved Library Lecture Hall Concept
EXISTING LIBRARY
Floor Plan
9j814 SF
Seating for up to 299
- ENTRY
DRIVE
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CITY OF
NEWPORT BEACH
Approved Library Lecture Hall Concept
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CITY OF
NEWPORT BEACH
Approved Library Lecture Hall Concept
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CITY OF
NEWPORT BEACH
Approved Library Lecture Hall Concept
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4d, i
CITY OF
NEWPORT BEACH
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Project Background
$70,000 included in 2018-19 CIP to initiate exploratory effort
3/19/2019 - City Council CIP Study Session - Central Library Lecture Hall
discussion leads to $500K added to 2019-20 CIP for Concept Plan
Development and Cost Estimate
7/9/2019 - City Council forms 5 member "Library Lecture Hall Design
Committee" (LLHDC) including former Councilmember Dixon as Council
Representative
11/19/2019 - LLHDC recommends, and Council approves project Design
Architect Consultant team. Total Overall Project Cost identified as
$8,000,000 with proposed 50-50 split for 7,000 sf building
w/275 seats. Projected completion was Fall 2022
4d, �11
CITY OF
NEWPORT BEACH
Project Background
February 2020 — Covid 19 Pandemic Begins
9/28/2021- City Council Study Session - Council Reviews/Tentatively
Approves LLHDC recommended Concept Design with a Total Projected
Project Cost of $12,777,670, and 50-50 Split of cost up to $13 million
11/30/2021- Council Approves 9,500 sf Concept Plan, with a Total
Projected Project Cost of $12,812,000. CIP budget set at $13 million w/
$6.5 M in Contributions from Library Foundation
2/28/2023 - City receives five bids for project. Low bid was $17,135,000
by AMG & Associates, 22% higher than Estimate of $14,000,000
3/28/2023 - Council Rejects Bids and directs staff to rebid
around September 2023
CITY OF
NEWPORT BEACH
Current Project Status
L
Funding MOU in place with Library Foundation - 50/50 Split up to $13
Million ($6.5 M each)
Final Plans Completed & Building Permits Secured (9,814 SF 299 seats)
(Engineers Estimate of $18,500,000)
City Cost to Date $758,700 + staff time
Three bids received on October 12t", with Lowest Qualified Bid from
AMG & Associates for a base bid of $19,068,000.
Deductive Bid item for Pollution Liability Insurance of $9,000
Additive Bid item for enhanced Digital Acoustics System of $409,000
4J, j Total all -in Project Cost projected at $23,438,935 Million
CITY OF (Cost per SF `v $Z 388)
NEWPORT BEACH
Total Project Cost Summery
TASK DESCRIPTION
ESTIMATE &
BUDGET
TOTAL(11121)
PROJECTED
TOTAL COST
(as of 101231
COMMENTS
CONCEPTUAL DESIGNIPERMITTING RCA
$ 215,635
$
215,635
Design, Inspection, Utility
SOFT COSTS
$ 1,302,035
$
2,173,500
Connections, Construction
Management, MateriallSoil
Testing, Permits
HARD COSTS
$ 11,239,800
$
20,974,800
Building Construction & 10%
Contingency
FIXTURES, FURNISHINGS, & EQUIPMENT (FF&E)
$ 55,000
$
75,000
PROJECT TOTAL
$ 12,812,470
$
23,438,935
AMOUNT OVER MOU & PROJECT BUDGET > $ (10,438,935)
FY23-24 Approved Budget
Foundation Contributions $ 6,500,000
City FFP $ 6,500,000
Total $ 13,000,000
Projected Annual Operational Cost
Annual Janitorial starting at N $30,000
Annual Repair & Maintenance $315,000/yr (+CPI) over life of building
(-1.5% of Construction Cost)
Annual Utilities (usage dependent) — $76,500 (N$.651sf/month for low use)
Additional Staffing Needs to be determined
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CITY OF
NEWPORT BEACH
a NB Library Foundation — Funding Contributions
➢ Current MOU requires $6.5 million deposited into escrow prior to Award
of Construction Contract for Facility
➢ As of October 25t", the Library Foundation advised staff they have
$8,200,000 in hard commitments available now
$7,000,000 to
be
placed in
escrow account
prior to contract award
$1,200,000 to
be
collected
over next three
years
i Foundation identified they have another N$1,000,000 in soft pledges that
should be available after contract award bringing total to N$9,200,000
Foundation also may have an interest in further fundraising beyond the
$9.2 million identified to date but that would need to be discussed and
approved by the entire board first.
CITY OF
NEWPORT BEACH
Shortfall Funding
If City commits to funding 50% of total project costs, additional $5.2 million is
required, for a total contribution of $11.7 million
The City has $29
million in
capital reserves,
for projects outlined in City's
long-term capital
planning
documents
(FFP,
HEMP, CIP)
Over next several years, $20 million from the reserves are for projects
such as Balboa Island Drainage System and Balboa Library & Fire Station
Significant projects are in
the
long-term
horizon (ten plus years) including
the Newport Pier, Balboa
Pier
& Balboa
Island Seawall projects
General Fund operating surpluses, pay off of long-term liabilities will be
some of the strategies to provide funding to support the City's long-term
capital needs in the future
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CITY OF
NEWPORT BEACH
Temporary Gap Funding
The Library Foundation proposed contribution would be structured with
$7 million placed in escrow prior to contract award and $4.7 million
funded from donations over next three years
➢ Depending on the timing of the donations and construction, the City
would need to temporarily allocate up to $4.7 million for the portion of
the project to be repaid by the Foundation over the next three years, in
addition to the City's contribution
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CITY OF
NEWPORT BEACH
Next Steps
Decide whether to Accept Bid and Award Construction Contract
If proceeding - Determine how to fund gap over current $13 million
Agreement with the Library Foundation
❑ If funding share/amounts modifications acceptable, amend current MOU
with Library Foundation prior to contract award
Award Construction Contract and start project
Estimated 21 month Construction Timeframe
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CITY OF
NEWPORT BEACH
Questions
Comments
Discussion
Need direction whether Council would like to proceed with
this bid and award a construction contract for the Project?
And if so, how should we plan to fund it?