DATE: April 19, 2022
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with Mobile Modular (Formerly Design Space Modular) to Extend Rental of Modular Structures by an Additional 9-Months at a Cost of $53,500 for a Not-to-Exceed Amount of $228,500 for the Temporary Fire Station 6
RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the City Manager to execute an amendment to the agreement with Mobile Modular (formerly Design Space Modular) to extend the rental of two modular office structures for an additional nine months at a cost of $53,500, increasing the total contract amount to a not-to-exceed amount of $228,500 for the temporary Fire Station 6 (FS6).
SUMMARY
After the demolition of the old FS6 and Fire Training Center Project (FTC) and for the duration of construction of the new FS6/FTC, the temporary FS6 required housing for station personnel. Modular office structures are utilized for the temporary Fire Station 6 (FS6) needed during the construction of the new FS6 and FTC via a rental agreement with Mobile Modular. The rental agreement amount with Mobile Modular will soon be exhausted. The rental of the modular structures will be needed until the construction of the new FS6 is completed and can be occupied. Staff recommends an amendment with Mobile Modular to increase the agreement amount by $53,500.
BACKGROUND
To keep FS6 operational after the demolition of the old FS6 and for the duration of construction of the new FS6 and FTC, the temporary station located at the northeast corner of West Winton Avenue and Tuskegee Airmen Drive needed to be established. This included rental of two temporary modular structures to house the fire station personnel. On January 22, 2019, Council adopted a resolution authorizing the City Manager to execute a rental agreement with Design Space Modular Buildings in an amount not-to-exceed $175,000 for a 22-month term.
DISCUSSION
The rental agreement for the modular structures was initially with Design Space Modular Buildings. Design Space Modular has since been acquired by Mobile Modular. In March 2019, the modular structures arrived at the FS6 to prepare the temporary station for occupancy. Fire station personnel moved into the temporary station in June 2019 and will continue to use the modular structures until the construction of the new FS6 is completed and ready to be occupied. The current construction schedule estimates substantial completion of the project in December 2022.
The remaining amount in the rental agreement will soon be depleted. An amendment to the agreement with Mobile Modular is needed for the remainder of the rental time, as well as fees for returning the modular structures. Staff recommends an amendment to the agreement with Mobile Modular to increase the agreement amount by $53,500 for a total contract amount of not-to-exceed $228,500.
ECONOMIC IMPACT
Completion of the FS6/FTC project will add classrooms, spaces for training and use by others, which may result in positive economic benefits for businesses around the area.
FISCAL IMPACT
The total estimated project cost is $70.9 million. As of FY 2022, Council has authorized the appropriation of $66.7 million. The remaining $4.2 million will be considered for approval and appropriation as part of the FY 2023 CIP budget process.
The estimated project cost at the time of award are as follows:
Construction Contract $52,397,000
Construction Contingency (ACO) $5,239,700
Consultant Design $5,000,000
Construction Management Administration $4,000,000
Inspector of Record Service & Special Testing $1,500,000 Demolition of old Fire Station and FTC $425,000
Temporary Housing $500,000
Permit & Utility Fees $940,000
Fixture, Furniture & Equipment $600,000
Staff Construction Administration $300,000
Total $70,901,700
The above line item, Temporary Housing, includes the agreement with Design Space Modular/Mobile Modular among other costs related to temporary housing. To date, the temporary housing total is $583,050. Staff recommends funding the new amendment amount of $53,500 through use of Construction Contingency funds. To date, $1,967,346 of the $5,239,700 construction contingency has been expended.
Construction contingency, construction administration, inspector of record service, special testing, permit & utilities fees, fixture, furniture & equipment are estimated amounts and may change. If additional funding will be needed, staff will seek Council approval.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Improve Infrastructure. Specifically, this item relates to the implementation of the following project:
Project 12: Construct the Fire Station and FTC
SUSTAINABILITY FEATURES
This project incorporates sustainability features as they relate to water, energy, and the environment. Additionally, the proposed buildings will be designed to meet Leadership in Energy and Environmental Design (LEED) Silver, or better.
PUBLIC CONTACT
No public contact was made for this item.
NEXT STEPS
If Council approves the resolution, staff will route the agreement amendment to be executed by the City Manager.
Prepared by: Dave Hung, Senior Civil Engineer
Kathy Garcia, Deputy Director of Public Works
Recommended by: Alex Ameri, Director of Public Works
Approved by:
Kelly McAdoo, City Manager