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Home My WebLink AboutAgenda Report - November 19, 2003 I-03CITY OF LOW TM COUNCIL COMMUNICATION AGENDA TITLE: Direct City Manager Regarding Finance Department Office Space and Authorize City Manager to Execute or Reject Necessary Contracts and Agreements MEETING DATE: November 19, 2003 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council direct the City Manager regarding Finance Department office space and authorize the City Manager to execute or reject necessary contracts and agreements. BACKGROUND INFORMATION: The City Council directed staff to relocate the Finance Department, and, after several options were discussed, it was decided the move should be into a portion of the Lodi Station Parking Structure. Plans and specifications for tenant improvements to approximately 4,840 square feet of the Parking Structure were prepared and put out to bid. The City received the following five bids for this project: Bidder Location Bid Engineer's Estimate $ 290,000 McFadden Construction Stockton $ 392,000 Barham, Inc. Ceres $ 394,993 Diede Construction Woodbridge $ 401,000 McDonald Glenn Company Manteca $ 415,989 American River Construction EI Dorado $ 426,000 However, during the bidding process, the City received another alternative to consider for lease space. This alternative is a 8,500 square foot building located at 300 West Pine Street, commonly known as the Acordia Building (based on its current occupant). The owner, Russ Munson, approached the City as to any possible interest and/or use that the City might have in leasing it. Both locations have advantages and disadvantages and these will be presented to the Council at the meeting. From a cost perspective, the move into the Parking Structure requires a larger expenditure of up -front capital, whereas the Acordia Building expense is primarily in monthly lease payments. Lease negotiations and details have been discussed with the City Council in closed session, as allowed by law. The anticipated stay at either location is estimated to be for at least four to five years. Staff is asking for the City Council's direction to either finalize a lease for 300 West Pine Street and reject all bids for the Parking Structure Tenant Improvements or award the project to the low bidder, McFadden Construction, in the amount of $392,000 and proceed with that move. If the direction to move the Finance Department into the Parking Structure is maintained, an additional $226,750 needs to be appropriated, in addition to the project remaining balance of $281,000. This APPROVED: H. Dix4n Flynn -- City Manager CB id DireetionA.doc 11/11/03 Direct City Manager Regarding Finance Department Office Space and Authorize City Manager to Execute or Reject Necessary Contracts and Agreements November 19, 2043 Page 2 covers the additional money needed for construction, contingencies, office systems furniture, moving expense, security system, and voice/data communications. If the option to move to the Acordia Building is selected, the balance of moneys appropriated to the Parking Structure project ($281,000) would be applied to the one-time expenses (moving, etc.) and the balance transferred back to the operating account to be applied to lease payments. As a part of the discussion with the City Council, funding requirements will be reviewed and a recommendation for appropriation will be presented. FUNDING: Capital Outlay/General Fund Richard C. Prima, Jr. Public Works Director Prepared by Dennis J. Callahan, Fleet and Facilities Manager RCPIDJClpmf cc: Finance Director City Attorney Purchasing Officer Wenell Mattheis Bowe, Larry Wenell CSidDiredionA.doc Finance Department Office Space Cost Analysis Item Acardia Bldg Area: 8,500 sf Term: 5 years One-time Costs Tenant Improvements $ 119,400 Voice/Data Communications $ 35,000 Office Systems Fumiture $ 35,000 Moving Expense 33 pens Q $150 $ 4,950 Security System $ 2,500 Contingencies 5% 9,800 Subtotal: $ 206,650 Annual Costs Comments includes owner's 20% markup rough estimate Rent Payments (first year) $1.20 /sf $ 122,400 Additional for amortized TI's $23,880 "Triple Net" - property taxes $ 9,700 $0.10 /sf Subtotal: $ 155,980 Potential Cost Offsets Revenue from retail at Parking Structure $ 16,262 T.I. cost recovery from future lease Parking Structure 4,840 sf 5 years $ 392,000 $ 25,000 $ 37,100 $ 4,550 $ 2,500 10% 46,200 $ 507,750 $0.28 /sf $ 16,262 $ 16,262 Eltem:1-3 Comments low bid received 10/21103 quote for actual layout 30% $ 117,600 see note 3 Net One-time Cost: $ 390,150 Notes: 1) Does not include utility costs which would be slightly higher for the Acordia Bldg. 2) Property taxes on Acordia approximate - need to verify. 3) Parking structure space currently has no floor, HVAC or interior finish of any kind, hence the very low rental amount based on the proposal from a master developer. Future lease rental of this space would be enhanced by some of the tenant improvements proposed. 4) Parking structure rent is paid to the transit fund. Finance Office Space Cost Analysis.xls 11/19/2003 ""I WE fref".. I 11111ii,1110! WHEREAS, in answer.to notice duly published in accordance with law and the carder of this City Council, sealed bids were received grid publicly opened on October 21, 2003, at 11:00 a.m, fpr Parking Structure Tenant: Improvements., described in the specifications therefore approved by the City Council on March 19, 2003; and WHEREAS, .said bids have been compared, checked, and tabulated and a report thereof filed with the City Manager ,as follows: Bidder/Location Bid rr= �c4ersfo > ; tt IYIId�.i'd..ttif �<. V'1.3 V�'Wi+W E. Y.WWbYWEI, .til all Wi�bb!IE y..waa ww, �,rmv•wv Barham, Inc,, Ceres $394,993.00 Riede Construction; Woodbridge $401,000:00 mc.0onald Glenn CoMpany,` Manteca $415,939.00 American' Iver Construction, El Dorado $420,000.00 WHEREAS, during the bidding process, the City of. Lodi received an offer to lease spice at 30.10 Vilest. Pirie Street, commonly known as the Acordia Building, and WHEREAS, the. City Council at its meeting of November 19, 2003, determined. that rejecting the bid s'for the Parking Structure Tenant Improvements and authorizing the City Manager to negotiate any and all necessary contracts acid agreernents for lease of the Acordla Building, located at 300 ;Rest Fine Street, would be in the best interest of the City at this point in time, and WHEREAS, the City. Council further stipulated that final approval of the contracts and agreements would depend on the inclusion of an escape clause therein. NOW,`CHER FORE, RE IT RESOLVED that the Lodi City Council does hereby reject all bids for Tenant Improvements to the Lodi Station Parking Structure,, authorizes and directs the City . Manager to negotiate any and all necessary contracts and agreements far the lease of the Acdrdia Building, located at 3010 West Pine Street, and further stipulates that the final approval of the contracts and agreements would depend on the inclusion of an escape clause therein. Dated: November 19, 2003 I hereby certify that Resolution Flo. 2003-220 was: passed and adopited.by the City Coon it of the City of Lodi in 4 regular meeting held: November 19, 2003, by: the following vote: AYES: COUNCILMEMBERS — Beckman, Hansen, Howard, and Land NOES: COUNCIL MEMBERS ® Mayor Hitchcock SUSAN J, BLACKSTCN City Clerk CITY COUNCIL_ SUSAN HITCHCOCK, Mayor EMILY HOWARD Mayor Pro Ternpore JOHN BECKMAN LARRY D. HANSEN KEITH LAND Mr. Larry Wenell Wenell Mattheis Bowe 246 E. Main Street Stockton, CA 95202 CITY OF LODI PUBLIC WORKS DEPARTMENT CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209)333-6706 FAX (209) 333-6710 EMAIL pwdeptelodi.gov http:llwww.lodi.gov November 13, 2003 H. DIXON FLYNN City Manager SUSAN J. BLACKSTON City Clerk RANDALL A. HAYS City Attorney RICHARD C. PRIMA, JR. Public Works Director SUBJECT: Direct City Manager Regarding Finance Department Office Space and Authorize City Manager to Execute or Reject Necessary Contracts and Agreements Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, November 19, 2003. The meeting will be held at 7 p.m. in the City Council Chamber, Carnegie Forum, 305 West Pine Street. This item is on the regular calendar for Council discussion. You are welcome to attend. If you wish to write to the City Council, please address your letter to City Council, City of Lodi, P. O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the mail. Or, you may hand -deliver the letter to City Hall, 221 West Pine Street. If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's card (available at the Carnegie Forum immediately prior to the start of the meeting) and give it to the City Clerk. If you have any questions about communicating with the Council, please contact Susan Blackston, City Clerk, at 333-6702. If you have any questions about the item itself, please call Dennis Callahan, Fleet and Facilities Manager, at 333-6800, extension 2690. AA�� Richard C. Prima, Jr. �r Public Works Director RCPJpmf Enclosure ec: City Clerk NCBIDDIRECTIONAMOC