Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  05-002393

 

MEETING DATE:

03/07/06

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

5

SUBMITTING Agency/Department:

Resources and Development Management Department   (Approved)

Department contact person(s):

Clark Shen   (714) 567-6568 

 

 

Ed Robb  (714) 567-6566

 

 

Subject:  Amend #2 to A-E Agmt with GKK Corp - New So Court

 

      ceo Concur

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost: $2,243,818

Annual Cost: N/A

 

 

 

    Staffing Impact: No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

    Funding Source: General Fund (036):100%

 

    Prior Board Action: Minute Order dated May 5, 2004 approved Facility Program and Master Plan. Minute Order dated Sept. 21, 2004 approved Amendment No. 1.

 

RECOMMENDED ACTION(S)

 

1.       Find that the proposed project is statutorily exempt pursuant to Section 15262 of the CEQA Guidelines.

 

2.       Approve Amendment No. 2 in the amount of $2,243,818 to Architect-Engineer Services Agreement with GKK Corporation and authorize performance of Phase IV and Phase V for the South County Courthouse (100-036-P405-4200) for a new total amount of $3,864,478, which includes $605,000 in Special Services, $30,000 in Reimbursable Items, and previously completed Phase I, II, and III work.

 

3.       Authorize the execution of Amendment No. 2 of Agreement between GKK and the County.

 

4.      Authorize staff to enter into negotiations with the various parties involved in the New South Court project, including the Judicial Council of California, Administrative Office of the Courts (AOC), the Orange County Superior Court (Court), and the City of Laguna Niguel for the purposes of developing agreements to implement project financing, project oversight and construction management, transfer and sale of assets and establishment of requirements for operation and maintenance of the facility when completed; and return such agreements to the Board for approval.

 

5.      Authorize RDMD staff to contract for or prepare surveys and legal descriptions and appraisals as required in preparation for the planned sale of a parcel to the City of Laguna Niguel for its City Hall.

 

6.      Authorize RDMD staff to negotiate an amendment with GKK to assist in development and documentation of design-build project guidelines and protocols and return to the Board for approval.

 

 

 

SUMMARY:

 

Approve Amendment No. 2 to the Architect-Engineer Services Agreement with GKK Corporation and authorize Phases IV and V for design work of the South County Courthouse (100-036-P405-4200) with the new total amount of $3,864,478, which includes $605,000 in Special Services and $30,000 in Reimbursable Items. Authorize staff to negotiate agreements for funding and project implementation needs for Board approval.

 

 

BACKGROUND INFORMATION:

 

Previous Actions

On May 21, 2002, your Board authorized RDMD to issue a Request for Qualifications for architect-engineer (A-E) firms to perform a programming study for a new South County Courthouse and create a master plan for the entire South County Civic Center. On February 11, 2003, your Board selected GKK Corporation as the A-E firm for the programming study and master plan. On May 20, 2003, your Board awarded an A-E Agreement to GKK Corporation.

 

On May 4, 2004, the final South Court Facility Program and South Court Facility Master Plan Report were presented to your Board. Recommended was a programming option for a new courthouse with 14 courtrooms and reuse of the existing 4 courtrooms for 18 total courtrooms. The estimated project costs for this option are $118 million. This project costs estimate does not include moving and temporary relocation costs or construction cost escalations beyond the previously projected January 2007 bid date. Due to delays in securing funding, the projected bid date will likely be pushed back to September 2007 and will result in a higher total project cost due to escalations in construction costs. Revised total project costs will be calculated and presented to your Board for approval.

 

As part of the May 4, 2004 ASR presenting the Facility Program Study and Master Plan, your Board authorized RDMD to negotiate an amendment to GKK’s agreement for the provision of design services to create architectural design documents and performance specifications to be used in the pursuit of a new facility. The negotiated amendment will provide for various services from the A-E throughout the project, including support during the construction period.

 

Proposed A/E Contract Amendment

As of June 2005, GKK has completed Phases I, II and the Design Guidelines and Schematic Design portions of Phase III of the scope of work under the original A-E Agreement, Change Order Nos. 1 and 2, and Amendment No. 1 for a total encumbered cost of $1,620,660. With the approval of this Amendment No. 2, GKK will complete the remainder of Phase III (CEQA/EIR), Phase IV (Design Development work) and Phase V (Construction Document oversight and review/bidding period services/construction period services) at an additional fee of $2,243,818 for a total new contract amount of $3,864,478.

 

The proposed Amendment No. 2 to the A-E Services Agreement is required to address refinement of the project scope and the planned design-build construction delivery method. Phase IV will include the necessary work required to finalize the design and produce “bridging” documents that a design-build contractor will be provided for use in project bidding and implementation. Phase V will include oversight and review of construction document compliance, bidding period services, and construction period services. Since approval of Amendment No. 1, the project scope has been refined to accommodate current courtroom and support area size requirements, current technology/telecom needs, increased security for judges parking, an increase in square footage, and the elimination of the proposed parking structure.

 

Financing and Project Implementation Agreements

In order for the project to go forward, the County has been requested to fund the project through a financing that will be repaid jointly by the County and the Orange County Superior Court/AOC. Before this can occur, however, a multi-year funding source must be identified. A written assurance has been received from the AOC that it will support the Court’s share of funding be provided through an equitable adjustment in the amount of Maintenance of Effort (MOE) payments that the County is obligated to pay to the State under the provisions of AB 139. With this assurance, it is now possible for the County to develop a funding and financing strategy for the project. Authority is now requested for staff to enter into negotiations with all parties to determine the terms and conditions under which the County will provide financing for the project. Agreement with the Superior Courts, and the AOC regarding construction financing, on-going maintenance and operational costs, and occupancy allocations and other defining details regarding joint occupancy of the facility is needed before County financing can ultimately occur. Implementation of the financing will not only require that the details covering the above issues be worked out among the parties, but also an agreement must be developed that specifies each parties’ obligations under the proposed financing. Legal descriptions and documents that set forth the ultimate ownership of the land and building assets and the conditions under which they will be transferred must be developed, including terms for the sale of land for the proposed Laguna Niguel City Hall included in the Site Master Plan approved by the Board.

 

Other Actions

GKK has significant experience in providing project management for design-build projects. At a future time, staff will recommend that their scope of work be increased to provide assistance and expertise in developing, implementing and documenting a project management protocol that will be utilized to guide the management of the design and construction of this and subsequent design-build projects. RDMD will return to your Board at a future date with proposed Amendment No. 3, which will include such additional expert services to be provided by GKK related to formalizing procedures for oversight and coordination of Design-Build projects.

 

 

FINANCIAL IMPACT:

 

Prior to legislative approval for the County to utilize the design-build process, funds were budgeted during this fiscal year only for the completion of phases III and IV of the design. Authorization for Phase V (Construction Document Oversight and Review/ Bidding Period Services/Construction Period Services) has been included in this amendment so that the project can proceed through construction bidding.  In order to provide sufficient funding for this amendment, CEO will prepare a budget transfer for $700,000 from the Capital Projects Contingency/Unallocated account, 100-036-P000-1400 to the South County Courthouse Design project account, 100-036-P405-4200. The funding source of the additional $700,000 is General Funds resulting from approval of the FY 2005-06 1st Quarter Budget Report recommended actions which allocated $6.8 million of additional June 30, 2005 General Fund Balance Available for capital project contingencies to Agency 036 – Capital Projects.

 

The 1999 Strategic Financial Plan identified $29.4 million in funding to be committed to the project.  Currently, the CEO has tentatively planned for those funds to be financed over 30 years, although this decision is subject to the results of the funding analysis and future Board authorization.  Additionally, County-owned land is to be provided for the proposed new courthouse facility.  All County costs associated with the project, including programming, design, CEQA compliance, geotechnical and County staff costs will come from and be counted toward the $29.4 million commitment. This includes the costs for the attached amendment.

 

The balance of the current estimated $118 million project cost (plus escalations and temporary relocation/moving costs) will be provided by the Superior Court/AOC. At this time it is planned that the County will finance the project.

 

 

STAFFING IMPACT:

 

N/A

 

REVIEWING AGENCIES:

 

RDMD/Planning
Superior Court

 

ATTACHMENT(S):

 

A - Amendment No. 2
B - Scope of Work