Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Deborah Bazan, Director of the Project Development Unit
Subject: County Office Building 3 and Parking Structure 2 Construction Manager at Risk Agreement
RECOMMENDATION:
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Adopt a resolution authorizing the Director of the Project Development Unit or his/her designee to execute:
A) An amendment to the agreement with Truebeck Construction, Inc. for the management of the construction for County Office Building 3 and Parking Structure 2 increasing the agreement by $151,650,337 for a new not-to-exceed amount of $171,000,000; and
B) Contract amendments and change orders which will modify the County’s maximum fiscal obligation by no more than $17,100,000 or 10% in aggregate of the total contract amount and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.
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BACKGROUND:
In January 2017, the County Manager’s Office formed the Project Development Unit (PDU) to oversee and manage County ground-up construction projects.
In March of 2017, the Board held a study session to consider various potential capital projects. The projects under consideration were recommended in County feasibility and master plan studies as efficient long-term solutions to address: (1) the County’s over-use of lease space; (2) the County’s reliance on aging and outdated facilities; (3) upcoming costly mandatory seismic compliance work; (4) public accessibility and navigation challenges; (5) employee and public parking shortages at multiple facilities; (6) rising environmental standards; (7) staff growth; and (8) a need to update and modernize County work spaces. At the end of the study session PDU staff were directed to further pursue several projects, including the new County Office Building 3 (COB 3), Parking Structure 2 (PS 2), and related improvements to the campus promenade and plaza.
On November 21, 2017, the Board authorized an agreement with Studio Gang, founded by MacArthur Fellow Jeanne Gang, for architectural services for COB3. On the same date, the Board authorized an agreement with Watry Design, specialists in parking structure design, for architectural services for PS 2. Since that time Studio Gang and Watry have worked collaboratively with County departments, officials, and PDU staff to develop, advance, and refine the design of COB 3 and PS 2.
Based on current design, COB3 will be an elevated structure, approximately 186,000 to 200,000 square feet in size, and contain four levels of offices and shared amenities. The ground level will consist of outdoor public space with a multi-function board chambers for public meetings and events. Consistent with the County Municipal Green Building Policy, COB3 will be designed to operate at ZNE in collaboration with Parking Structure 2 and to achieve certification in LEED. The building will be occupied by approximately 612 County employees, approximately 300 of whom will be relocating from the Health System Campus. The project includes construction of a public promenade and plaza along Hamilton Street.
Based on current design, PS2 will contain approximately 1020 spaces. PS2 will be designed to operate at ZNE in collaboration with COB3 and to address a potential future decrease in demand for parking so that a portion of the space will be suitable for conversion to other uses.
On August 7, 2018, your Board approved updated Project Budgets for COB 3 ($152,000,000) and PS 2 ($47,200,000).
DISCUSSION:
As the concept, design, programming, phasing, and scheduling for the County Office Building 3 and Parking Structure 2 Projects have developed, PDU has been able to update the Project Budget and estimated the construction cost to be approximately $133 million and $38 million respectively.
This amendment to the Truebeck Construction, Inc. agreement of $19,349,663 is required for Truebeck to conduct sub-contractor bidding and to enter into agreements with the sub-contractors for the construction of the project. Once sub-contractor bidding is complete, a Final Guaranteed Maximum Price will be determined and brought back to the Board for approval. Upon Board approval, the Director of PDU will execute a change order for the Guaranteed Maximum Price and true up the total contract value.
County Counsel has reviewed and approved the Resolution as to form.
Approval of these actions will contribute to the Shared Vision 2025 outcome of Collaborative and Safe Community by advancing this project that will provide regional benefits to San Mateo County residents.
FISCAL IMPACT:
The total cost of this agreement is included in the Project Budgets for County Office Building 3 ($152 million) and Parking Structure 2 ($47.2 million). Not all of the funds for the aforementioned Project Budgets are included in the FY 2018-19 Adopted Budget.