AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 21-000286
MEETING DATE:	06/22/21
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	1
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	James Treadaway (714) 667-9700
	Thomas A. Miller (714) 834-6019

Subject: Approve Guarantee Maximum Price Increase for County Administration North

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

No Legal Objection

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $750,000

Annual Cost: FY 2021-22 $4,137,801

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: Fund 15D: 100%	County Audit in last 3 years: No

Prior Board Action: 9/25/2018 #40, 6/26/2018 #75, 4/25/2017 #40, 4/23/2013 #37

RECOMMENDED ACTION(S):

Approve an increase to Master Development Budget Guarantee Maximum Price of the Development Agreement between Capital Facilities Development Corporation and Griffin Structures, Inc. to provide County of Orange Financed Components additional Corporation Contingency funds in the amount of $4,887,801, for a revised total cumulative amount not to exceed $9,211,830, upon Board of Supervisors approval and direct Auditor-Controller or designee to make related payments.

Authorize the Chair of the Board of Directors of the Capital Facilities Development Corporation or designee to execute all documents necessary to implement and accomplish the contemplated increase to the Master Development Budget Guarantee Maximum Price.

SUMMARY:

Approval to increase Master Development Budget Guarantee Maximum Price of the Development Agreement between Capital Facilities Development Corporation and Griffin Structures, Inc. to provide additional design and construction services will support the completion of the County Administration North Project, including components necessary for public access, tenant welfare and overall safety and security.

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). 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 new 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.

The CAN building will be a six-story, approximately 254,000-square-foot office building located on Ross Street north of Santa Ana Boulevard. The building will include a new Board hearing room, as well as offices for the County Executive Office, Clerk of the Board, County Counsel and the Board, among others. Completion of the building is slated for July 2022 and public use surface parking P4 completion in late 2022. The building is being constructed by the Developer pursuant to a Development Agreement (DA) with the Capital Facilities Development Corporation (Corporation).

The Approved Project Phase 2B also includes the design and construction of office spaces in the new building with various tenants, including the Board. Throughout the progression of the extensive floorspace planning, including the development and refinement of test fit plans for furniture, fixtures and equipment, tenant needs caused increases to the scope of the project. In addition, the ideology of lessons-learned from Phase 1B construction comprehension after Board-approved Master Development Budget Guarantee Maximum Price (GMP) was established yielded further enhancements that will greatly benefit the visiting public's convenience and tenant efficiencies. Attachment A shows the original breakdown of the GMP for the CAN building found in the DA between the Corporation and the Developer. Attachment B outlines the requested changes and compliance related to costs to be added to the project GMP, including, among other things, automatic sliding doors, window film, audio-visual systems in conference rooms, outdoor canopies and cell phone distributed antenna systems. Included are cost impacts for construction compliance in accordance with Governor’s Executive Order N-33-20 related to COVID-19 mitigation safety protocols, starting at the beginning of the pandemic, and are in place per County, state and Center for Disease Control Guidelines.

OC Public Works is recommending the Board approve an increase to the GMP of the DA between the Corporation and the Developer to provide County Financed Components additional Corporation Contingency funds in the amount of $4,887,801, for a revised total cumulative amount not to exceed $9,211,830.

Compliance with CEQA: The project is a necessarily included element of the project considered in Final EIR No. 626, 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. 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 was certified have become known; therefore, no further environmental review is required.

FINANCIAL IMPACT:

Appropriations for the increased GMP are included in Countywide Capital Projects Non-General Fund, Fund 15D, FY 2020-21 Budget and will be included in the budgeting process for future years.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Development Agreement Budget
Attachment B - Requested Addition to Scope GMP