HomeMy WebLinkAbout15 - 05BA-067 - Mariners Library & Tennis Court FundingCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 15
June 14, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Stephen G. Badum, P.E.
949 - 644 -3311
sbadum@city.newport-beach.ca.us
SUBJECT: DONNA AND JOHN CREAN MARINERS BRANCH LIBRARY AND
TENNIS COURT FUNDING
RECOMMENDATION:
1. Approve a budget amendment appropriating $330,000.00 from Unappropriated
General Fund Reserves to account 7011- C5100661 for additional contingency
funds.
2. Approve a budget amendment appropriating $135,000.00 from Unappropriated
General Fund Reserves to account 7011- C5100661, and $100,000 from Building
Excise Tax Fund Balance, 270 -3605, to account 7271- C5100661 to fund the
Furniture, Fixtures and Equipment (FF &E) for the library.
DISCUSSION:
On January 11, 2005, City Council awarded the $5.49 million construction contract of
the Donna and John Crean Mariners Branch Library and Tennis Courts to Howard S.
Wright Construction Co. Since then, the site has been graded, the foundation laid,
steel beams are being installed, and the project is approximately 30% complete with an
anticipated spring 2006 completion date.
Characteristically, building projects have a very low cost overrun. At the time of the
award, a $125,000.00 contingency was recommended. This contingency amount was
allocated for indirect costs, but did not include a construction contingency. Since then,
the following items have depleted the original contingency amount:
• Soils Issues
• Builder's Risk Insurance
• Geotechnical
• Testing and Inspection
In addition, a code - related correction due to combustible materials in the air - return area
of the building has necessitated a change order with a $50,000 order of magnitude.
Although the number of change orders at this point in the project is traditionally fewer, it
SUBJECT: Donna and John Crean Mariners Branch Library and Tennis Court Funding
June 14, 2005
Page 2
is recommended that we allocate an additional $330,000.00 in contingency funds to
allow the project to move forward in the event that such change orders occur.
The additional $330,000.00 in contingency funds would bring the total contingency
allowance for the project to $455,000, which is 8% of the construction cost.
The second recommended budget amendment pertains to the FF &E costs for the
library, which are estimated to be $485,000. With $250,000 available in current
appropriations, a budget amendment appropriating $100,000 in available BET funds,
and $135,000 from the General Fund Reserves will provide for the necessary funds.
Staff had planned on requesting this amount through the adoption of the annual Capital
Improvement Program, but it has been determined that an earlier appropriation could
save the City $15- 20,000.
The shelving and a portion of the furniture for the library will be ordered through the
State's CMAS program, which allows the City to order from companies that have been
approved through the State's formal bid process. It eliminates the requirement for the
City to conduct a formal bidding process and benefit from the prices the State has
contracted. The contracts for these prices ends this June 30t , and with the increase in
steel prices, it is anticipated that the City may save 10 -15% on a portion of the FF &E by
ordering prior to July 1st, necessitating an earlier appropriation of funds.
Environmental Review:
Under the California Environmental Quality Act Implementing Guidelines (CEQA),
Planning Department Staff has determined a Notice of Exemption is appropriate for this
project. Staff has determined that it qualifies for a categorical exemption pursuant to
Section 15332 (Class 32, In -Fill Development Projects) of the CEQA Guidelines and
recommended Council approval of the Notice of Exemption. Council approved a Notice
of Exemption for this project on June 11, 2002.
Funding Availability:
Upon approval of the recommended budget amendments, sufficient funds for the
project will be available in the following accounts:
Account Description
Mariners Library
Mariners Library
General Fund
BET
Prepared by:
J
Je ica t'ez y
dminist ve Manager
Account Number
7451- C5100661
7451- C5100863
7011- C5100661
7271- C5100661
Amount
$50,000.00
$200,000.00
$465,000.00
$100,000.00
Total $815,000.00
Submitte
e n G. B a d u m
P is Works Director
City of Newport Beach NO. BA- 067
BUDGET AMENDMENT
2004 -05 AMOUNT: 5565,000.00
EFFECT ON BUDGETARY FUND BALANCE:
increase Revenue Estimates Increase in Budgetary Fund Balance
�X Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance
Transfer Budget Appropriations No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from unappropriated fund balance for Mariners Library contingency funds
and for Furniture, Fixtures and Equipment.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE Amount
Fund Account Description Debit Credit
010 3605 General Fund - Fund Balance $465,000.00
270 3605 Building Excise Tax - Fund Balance $100,000.00
REVENUE ESTIMATES (3601)
Fund /Division Account Description
EXPENDITURE APPROPRIATIONS (3603)
Description
Division
Number 7011
General Fund - Facilities
Account
Number C5100661
Mariners Library
$465,000.00
Division
Number 7271
Building Excise Tax Fund
Account
Number C5100661
Mariners Library
$100,000.00
Division
Number
Account
Number
Division
Number
Account
Number
' Automatic System Entry.
Signed:
- % -0S
Financial Approval: Administrativ
ervices Director
Date
Signed:
/
Y �
Administrative Appro
I: City Manager
to
Signed:
City Council Approval:
City Clerk
Date