City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: April 15, 2024
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Community Center Progress Report
RECOMMENDATION
It is recommended that the City Council receive a progress report on the Community Center Complex Project and provide staff with comments and feedback.
BACKGROUND
With the passage of Measure X in the November 2020 election, the city began delivery of the Community Center Complex on city-owned property at Fifth Street/Gabilan Court. Staff issued a Request for Proposals in February 2023 to the three short-listed design/build teams. At the June 5, 2023 Council Meeting the Design/Build contract was awarded to Otto Construction/WRNS Studio. At that meeting, the Council also authorized a Notice to Proceed with Design Services for a not-to-exceed amount of $4,900,446. The DBE Agreement with Otto Construction was executed and the Notice to Proceed with Design Services for Phases 1 and 2 was issued June 16, 2023.
Due to grant funding deadlines, construction of the project will be phased. Phase 1 is the Teen Innovation Center, County Library, meeting rooms, restrooms, courtyard including amphitheater and site improvements (new drive aisle, wet/dry utilities, parking lot and landscaping). Phase 2 is the Community Center including the Community Hall, Fitness Center, commercial kitchen, meeting rooms and restrooms.
AGENDA
ITEM
14 REVIEW AND ANALYSIS
This staff report is comprised of the following sections:
• Design Phase
• April 27 Groundbreaking Event
• Construction Phase 1
• Funding/Financing Updates
DESIGN PHASE
Over the last six months the Design/Build team made the following submittals:
• The 50% Design Development plan set was submitted to city staff on September 9, 2023. • The 100% Design Development plan set was submitted to city staff on October 30, 2023. • The 75% Construction Document was submitted to city staff on January 19, 2024 • The 100% Construction Documents were submitted to city staff on February 28, 2024 (submittal was a plan set with 212 sheets, structural calculations, and technical specifications).
City staff and consultants reviewed each submittal and returned comments to the Design/Build team.
The 100% Construction Documents were submitted for building code review on March 8, 2024. Building Dept review comments were emailed to the Design/Build team on March 22, 2024. The Design/Build team is preparing to resubmit the plan set for the second building code review.
The Design/Build team and the city’s Construction Manager met with a PG&E Service Representative on 2/05/2024 and discussed the project and specifics for submitting for a service application. This early coordination is critical due to the long lead time for electrical gear. On 3/04/2024 the Design/Build team submitted a PG&E new service application for the project. PG&E is currently working on designing the new electrical service for the site which is expected to entail installing a transformer on a power pole for the 2000-amp service.
APRIL 27 GROUNDBREAKING CEREMONY
The City will hold a Groundbreaking Ceremony at the project site on 4/27/2024. It will start at 1:00PM and expected speakers include:
• State Senator Anna Caballero
• Field Representative for Speaker of the Assembly Robert Rivas • Supervisor Luis Alejo
• Mayor Jose Rios
• Cindy Aguilar on behalf of the Gonzales Youth Council • City Manager Carmen Gil
Major donors, elected officials, the Design/Build team, members of the Gonzales Youth Council will take turns with ceremonial shoveling of dirt.
CONSTRUCTION PHASE 1
The Design/Build team is planning to set-up their construction trailers, install construction fencing and perform other preconstruction activities the last two weeks of April. This includes closing the on-site parking lot used by staff with Head Start and the other modular buildings on the Fairview Middle School property.
The contractor’s preliminary baseline schedule is attached and shows completion of Phase 1 in November 2025. Throughout the project, the construction manager will monitor the contractor’s updated schedule to confirm their progress and determine if the project will be completed within the authorized contract time.
FUNDING/FINANCING UPDATES
The Community Center Complex is estimated to cost $34,050,000 for Phases 1 and 2 consisting of the Community Center, Teen Innovation Center, County Library, and all site work. Construction of this significant civic project will be funded by a variety of sources including the following:
• Measure X (local sales tax)
• $5.0M State grant secured by State Senator Anna Caballero • Community Development Block Grant (FY 2022/23 and FY 2023/24) • $1.8M County contribution to relocate existing library from the Gonzales Shopping Center • Grants (Electric Vehicle Charging Station Grant and Building Forward Library Grant) • Capital Campaign with a $10.0M goal with pledges and contributions currently totaling $6.3M As the Council’s aware, the city applied to the US Department of Agriculture (USDA) for a low interest loan secured by City revenue sources, including Measure X. The formal application was submitted to USDA in July 2023 and the City received an approval letter from USDA in September 2023, indicating that a Rural Development Loan in the amount of $9,825,000 was approved for Phase 1 of the Community Center Project. The USDA Loan will become effective upon completion of Phase 1, so staff is obtaining a Construction Loan (“Bridge Loan”).
The USDA’s September 20, 2023 Loan Condition lists the items the city must satisfy for the following project phases:
1. Prior to Construction
2. During Construction
3. After Project Completion
Staff and our consultants are currently addressing the twenty “Prior to Construction” conditions which includes:
• Obtaining a Construction Loan
• Establishment of a Debt Service reserve account
• Insurance and Bonding
• Property ownership certificates
• Copies of various agreements with the Design/Build team, Construction Manager, and other third parties (ie, Lease with the County for the library)
Staff will present Construction Loan documents for City Council approval at the May 6 Council Meeting.
Staff will also recommend issuing a Notice to Proceed with Construction for Phase 1 to Otto Construction at the May 6 Council Meeting.
Current funding for the project is:
1 Teen Innovation Center Grant (State Grant) $5,000,000 2 USDA Loan (paid by Measure X funds and other city funds) $9,825,000 3 Community Development Block Grant through Monterey County (Federal monies) $704,857
4 County Contribution for Library $1,800,000
5 Electric Vehicle Charging Station Grant $400,000
6 Building Forward Library Grant Program $1,067,430
7 Capital Campaign Contribution (private contributions and pledges) $6,316,566 Funding as of 4/01/2024 = $25,113,853
DBE Contract “Stipulated Sum” for Phase 1 = $23,619,838 Estimated Cost for Phase 2 = $10,430,162
Total Estimated Cost for Phases 1 and 2 = $34,050,000
Current hard cost shortfall to construct Phase 2 = $8,936,147 The city has until September 2024 to obtain the additional funding needed to construct Phase 2 as part of the initial construction phase.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Constructing a Community Center will provide residents with a multi-use facility for a wide variety of public and private functions, recreation programs and other activities which will enhance the quality of life of Gonzales residents.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Please see explanation above for the Mission.
City services will be delivered in a cost-effective, respectful and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing Yes X No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
ALTERNATIVES
No alternatives to consider as this is a progress report.
BUDGET IMPACT
There isn’t a budget impact related to this staff report and presentation.
CONCLUSION
It is recommended that the City Council receive a progress report on the Community Center Complex Project and provide staff with comments and feedback.
Attachments:
1. Otto Construction's preliminary baseline schedule