AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 22-000602
MEETING DATE:	08/23/22
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	James Treadaway (714) 667-9700
	Thomas A. Miller (714) 834-6019

Subject: Approve Development Budget Increase and Update for Civic Center FSP

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $16,632,495

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: See Financial Impact Section	County Audit in last 3 years: No

Prior Board Action: 6/22/2021 #60, 9/25/2018 #40, 6/26/2018 #75, 4/25/2017 #40

RECOMMENDED ACTION(S):

1.	Approve an increase to Master Development Budget Guaranteed Maximum Price of the Development Agreement between Capital Facilities Development Corporation and Griffin Structures, Inc. to provide an additional County of Orange Financed Component in the amount of $16,132,495, for a revised total cumulative amount not to exceed $26,594,325 for the demolition of the former Hall of Administration and construction of a surface parking lot, upon Board of Supervisors approval and direct the Auditor-Controller or designee to make related payments.
2.	Authorize the Chair of the Board of Directors of the Capital Facilities Development Corporation or designee to execute an Amendment to the Development Agreement and all documents necessary to implement and accomplish the contemplated increase to the Master Development Budget and the new and separate Guaranteed Maximum Price for this project component.
3.	Adopt the Plans and Specifications as modified by the Amendment to the Development Agreement as set forth in the new basis of design.
4.	Authorize the County Procurement Officer or Deputized designee to execute Agreement MA-017-20011930 with Griffin Structures, Inc., to update the County of Orange Civic Center Facilities Strategic Plan, commencing on August 24, 2022, through August 23, 2023, in an amount not to exceed $500,000.

SUMMARY:

Approval to increase Master Development Budget for a separate Guaranteed Maximum Price of the Development Agreement between Capital Facilities Development Corporation and Griffin Structures, Inc. to provide for the demolition of the former Hall of Administration and the construction of a surface parking lot in its place, will support the completion of the County Administration North Project, including components necessary for public access and overall safety and security and updating the County of Orange Civic Center Facilities Strategic Plan will provide planning and scoping services related to the next phases of the plan.

BACKGROUND INFORMATION:

On April 23, 2013, the County of Orange (County) Board of Supervisors (Board) approved Ordinance 13-003, which authorized a partnership with Related/Griffin, now organized as Griffin Structures, Inc. (Developer), to complete a comprehensive Civic Center Facilities Strategic Plan (Civic Center FSP) and, based upon the recommendations, to develop the Building 16 site County Administration South (CAS), with an option to develop the Building 14 site, County Administration North (CAN). The Civic Center FSP was completed pursuant to Agreement CT-080-13010515, dated April 16, 2013. On April 25, 2017, the Board certified the Final Environmental Impact Report No. 626 (Final EIR No. 626) for the Civic Center FSP and approved actions required for public financing of Phase 1B for the construction of the CAS building and Building 18, County Conference Center. On June 26, 2018, the Board approved an agreement with the Developer for program management and initial design phase services for Phase 2A, which was planning and design of the new CAN building. On September 25, 2018, the Board approved Phase 2B of the Civic Center FSP, as amended, including the demolition of existing Buildings 11, 12 and 14 of the County Civic Center Superblock, construction of the CAN building and certified Addendum No. 1 to Final EIR No. 626. On June 22, 2021, the Board approved and increase to the Master Development Budget for a separate Guaranteed Maximum Price (GMP) of the Development Agreement (DA) between Capital Facilities Development Corporation (Corporation) and Griffin Structures, Inc. (Developer) to provide for the demolition of the former Hall of Administration (HOA) and the construction of a surface parking lot in its place.

The CAN building is a six-story, approximately 254,000-square-foot office building located at 400 West Civic Center Drive, Santa Ana. The building includes a new Board hearing room, as well as offices for the Board, County Executive Office, Clerk of the Board and County Counsel, among others. The CAN building was completed in late July 2022 and move-ins are in progress. Public use surface parking P4 opened to the public in early August 2022. The CAN building was constructed by the Developer pursuant to a DA with the Corporation.

The Civic Center FSP and Final EIR No. 626 contemplate the demolition of the former HOA (also known as Building 10) and the construction of a surface parking lot in its place. At the request of OC Public Works, the Developer has completed demolition plans for Building 10 and plans for the surface parking lot that will replace the building. On December 28, 2020, an independent seismic assessment of HOA was completed by IDS Group. The IDS Group, in conjunction with OC Public Works, considered various options related to Building 10. As an option, IDS Group determined demolition costs could be significant as it may top $18 million. Other considerations for the building included partial seismic upgrades ranging from $1.2 million to $8.8 million depending on its usefulness for its capital planning, but this did not necessarily improve the condition or useful life of the building. Additionally, any future tenant improvement costs, depending on the size and various upgrades, were considered and estimated from $10 million to $19 million. Upon review of the IDS Group assessment and various options, it was determined by OC Public Works and CEO Real Estate that demolition, as originally planned, was the best course of action.

The current HOA has a gross area of 191,879-square-feet and is a six-level, cast-in-place concrete structure with some prestressed/post-tensioned floor joist elements, including underground parking. The underground parking has approximately 420 parking spaces. This phase of the project is part of Phase 2 in the Civic Center FSP and includes the demolition and removal of the existing HOA building as well as the removal of the underground parking. Existing concrete slab on grade, driveway ramp and pile capes will be removed. Special care will be taken in the protection of in-place existing utilities (including steam, chilled water and fiberoptics), which run along the south face of the north retaining wall in the underground parking structure. These utilities serve the Old County Courthouse. Demolition will also include the stair access to the fire pump room below the existing driveway ramp. Considerations to keep the existing underground parking was explored; however, it was determined to be too costly to maintain the underground structural integrity without significant damage from demolition operations of the above ground building. Following demolition and removal, the site will be backfilled with soil and capped with an on-grade approximately 180 stall asphalt parking lot, which will include shade trees, pole top light fixtures, parking equipment, perimeter fencing and a monument sign. The design will provide parking for the disabled and include a variety of options for electric vehicle charging stations.

The attached amendment to the DA provides for the Developer to competitively bid the demolition project, as it did with the prior phases of the Civic Center FSP. The Developer did so and received four bids for the Demolition and Abatement work. The amendment proposes a separate GMP for this project component, which is included as an attachment to the amendment. This will allow for the completion of the first two phases of the Civic Center FSP as originally approved by the Board. Once approved by the Board, the Amendment to the DA will also be approved and executed by the Corporation. The most significant competitive bid package was the Demolition and Abatement with bids ranging from $4.2 million to $4.6 million. Other bid packages were proposed from existing Phase 2 sub-contractors costs relevant to current escalating economic market conditions. OC Public Works staff worked closely with the Developer to verify the scope, materials and quantities to ensure they were in line with the County Project Delivery Manual. OC Public Works reviewed and verified that the bids received were within the reasonable range and believes that the County got the best value out of the process.

OC Public Works is recommending the Board approve this separate GMP for this project component, which will take the form of an amendment to the DA between the Corporation and the Developer to provide an additional County Financed Component in the amount of $16,132,495 for a revised total cumulative amount not to exceed $26,594,325.

In addition, with the demolition of Building 10, the first two phases of the Civic Center FSP will be completed. However, with the passage of time and shifting needs of the County and its workforce, the future phases of the Civic Center FSP need to be revisited and refined. To this end, CEO Real Estate and OC Public Works recommend approval of the attached contract for an update to the Civic Center FSP with the Developer who prepared the original Civic Center FSP. The Developer has the prior experience, knowledge and expertise in the County’s needs and footprint in the Civic Center to complete the update in a streamlined and expedient basis. This will allow the Developer and their subcontractors to rescope the next phases of the plan to meet the need of the County and its departments.

The Contract is coming to the Board less than 30 days before its commencement due to additional negotiation time required with the Contractor.

Compliance with CEQA: This project component is a necessarily included element of the project considered in Final EIR No. 626 for the Civic Center FSP, which was certified by the Board on April 25, 2017, together with Addendum No. 1, certified by the Board on September 25, 2018, adequately addressed the effects of the proposed project component. No substantial changes have been made in the project, no substantial changes have occurred in the circumstances under which the project is being undertaken, and no new information of substantial importance to the project that was not known or could not have been known when the Final EIR No. 626 and Addendum No. 1 was certified have become known; therefore, no further environmental review is required.

FINANCIAL IMPACT:

Appropriations for the increased GMP are included in the Countywide Capital Projects Non-General Fund, Budget Control 15D, and Real Estate Fund 135 for FY 2022-23.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Amendment to Development Agreement with Exhibits 1-5
Attachment B - Civic Center Facilities Strategic Plan
Attachment C - Agreement MA-017-22011930 with Griffin Structures, Inc.
Attachment D - Sole Source Form