DATE: April 15, 2024
City of Piedmont
COUNCIL AGENDA REPORT
TO: Mayor and Council
FROM: Patricia Leicher, Chair of Bond Oversight Committee SUBJECT: BOND OVERSIGHT COMMITTEE'S ANNUAL REPORT
BACKGROUND:
The formation of a Bond Oversight Committee ("Committee") was approved by the Piedmont City Council on October 4, 2021. Per Bond Measure UU (Ordinance 754 N.S.) and Ordinance 762 N.S., which was the formal authorization to issue bonds to fund the rebuilding of the Piedmont Community Pool, the formation of a Bond Oversight Committee was required. The Committee's focus is on reviewing and reporting on the expenditure of the proceeds of the bonds, specifically:
1. To inform the public how the City is expending the bond proceeds.
2. To review expenditure reports produced by the City to verify that bond proceeds were expended only for the purposes set forth in Measure UU.
3. To produce an annual report which includes the following information:
a. A statement indicating whether the bond proceeds used by the City have been expended only for the purposes set forth in Measure UU; and b. A summary of the Committee's proceedings and activities for the preceding year.
While the Committee serves in an advisory role and is not responsible for managing or directing project activities, it will leverage the experience, expertise, and insight of its members to ensure the bond proceeds are spent in accordance with Measure UU and Ordinance 762 N.S. Meetings of the Bond Oversight Committee are open to the public and will serve to educate the community on how bond funds are being expended.
The members of the Bond Oversight Committee are:
• Patricia Leicher, Chair
• John Chiang
• Dirk ten Grotenhuis
• Margaret Hiller
• Al Lee
Agenda Report Page 2
Agenda Report Page 3
Bond Oversight
Committee
February 2024 Update
1 Exhibit A Agenda Report Page 4
Amount
Total Proceeds $ 25,329,463.85
Fund Deposits
Project Fund Deposit $ 24,418,576.55
Debt Service Fund - Capitalized Interest 712,291.67
25,130,868.22
Delivery Date Expenses
Cost of Issuance $ 146,950.00
Underwriter's Discount 51,645.63
198,595.63
Exhibit A Agenda Report Page 5
Community Pool Project – Current Status
The project is approximately 58% complete.
Building steel has been erected, building footings and pad are completed. The final buried fuel tank was removed and contaminated soil to be offhauled. Two major retaining walls completed.
Utility installation on Magnolia has been completed.
Commencement of masonry walls within the pool building. Construction will start to focus on the building structure, utilities, and pool deck in the Spring.
3 Exhibit A Agenda Report Page 6
Commitments
• As of February 29, 2024 the City has made the following commitments with the Community Pool Project funds:
4 Contract Original Revised Spent
Vendor Date Description Contract Amendments Maximum thru 2/29/24 Remaining Forensic Analytical March 2021 Environmental Health Services $ 9,475 9,475$ $ 9,475 -$ June 2021 Environmental Health Services $ 4,845 4,845$ $ 4,845 -$ Griffin Structures June 2021 Project Management (A) $ 612,700 601,315$ 1,214,015$ $ 882,752 331,263$ . ELS Architecture & Urban Design October 2021 Architecture and Engineering Design Services (B) $ 2,475,554 75,140$ 2,475,554$ $ 2,248,413 227,141$ Isaac Sports Group December 2021 Community Pool Operational Analysis (C) $ 35,000 1,990$ 36,990$ $ 36,990 -$ Rincon Consultants Inc. December 2021 California Environmental Quality Act (CEQA) Report $ 16,956 -$ 16,956$ $ 15,628 1,328$ Wickman Construction December 2022 Construction Contract (D) $ 23,870,000 800,000$ 24,670,000$ $ 9,924,731 14,745,269$ Coastland Civil Engineering April 2023 Construction Inspection Services $ 259,250 -$ 259,250$ $ 114,402 144,848$ Total $ 27,269,460 1,478,445$ 28,672,765$ $ 13,222,916 15,449,849$ (A) Revised contract to include construction management and Geotechnical testing and inspection. (B) Amendment to include Frontage and Right of Way Improvements - to be paid out of the Facilities Capital Fund. (C) Revised contract to include travel costs for consultant to present analysis at City Council meeting in person. (D) Contingency increased by $800,000.
Exhibit A Agenda Report Page 7
5 PROJECT FUND HISTORY
Fund: 116
Name: AQUATICS PROJECT FUND
Account # Description FY 20-21 FY 21-22 FY 22-23 FY 23-24 TOTAL Major Vendors Revenue
116-0320-003-000 BOND PROCEEDS - 24,418,577 - - 24,418,577 116-0305-001-001 INTEREST - 80,908 180,222 129,490 390,620 TOTAL REVENUE -$ 24,499,485 $ 180,222$ 129,490$ 24,809,197$ Expenses
116-0417-010-002 PART-TIME SALARIES 17,493 41,338 1,104 - 59,935 116-0417-013-005 MEDICARE 254 599 16 - 869
116-0417-013-009 FICA 1,085 2,563 68 - 3,716
TOTAL PAYROLL 18,831 44,500 1,188 - 64,519 Project Manager - Benoit 116-0433-117-000 PROJECT MANAGEMENT: DESIGN 14,320 1,415,117 598,767 174,698 2,202,902 ELS 116-0433-117-001 PROJECT MANAGEMENT 48,242 129,549 422,281 43,436 643,508 Griffin Structures 116-0433-117-002 CONSTRUCTION COSTS - - 3,649,154 6,521,107 10,170,261 Wickman Contruction 116-0433-117-003 CONSTRUCTION MANAGEMENT - - 10,309 361,281 371,590 Griffin Structures 116-0433-117-004 ENVIRONMENTAL - 32,708 15,489 3,582 51,779 Rincon 116-0433-117-008 PLAN CHECK\PERMIT\INSPECT - 75,295 114,202 189,497 Coastland Engineering 116-0433-117-005 OTHER - 14,000 27,954 11,778 53,732 Isaac Sports Group \ Other TOTAL OPERATING 62,562 1,591,374 4,799,249 7,230,084 13,683,269 TOTAL EXPENSES 81,393$ $ 1,635,874 4,800,437$ 7,230,084$ 13,747,788$ Exhibit A Agenda Report Page 8
Funding Sources
• Measure UU > $24.4 m bond proceeds + $520,000 interest. • Contributions > Only contributions received are included in funding sources:
• Loan/Grant > Received $750,000 EBCE (AVA Energy) loan at 0% interest with 15 year payback. $82,800 grant from CEDA; • Facilities Capital > Will fund Frontage and ROW improvements and contingency as needed.
6 Received Pledged
PRFO $ 1,912,464 $ 250,000
PBF $ 25,000 $ 214,000
Kroger Estate 800,000 $ -$
Total $ 2,737,464 $ 464,000
Exhibit A Agenda Report Page 9
7 COMMUNITY POOL BUDGET Measure UU Contributions Loan\Grant Fac. Capital Total CONSTRUCTION & OTHER HARD COSTS $ 18,833,777 $ 2,587,464 $ 823,770 $ 362,019 $ 22,607,030 CONTINGENCY $ 2,135,000 -$ $ 835,000 - $ $ 2,970,000
SUB-TOTAL > HARD COSTS $ 20,968,777 $ 2,587,464 $ 823,770 $ 1,197,019 $ 25,577,030 PROJ MGMT, A&E, OTHER SOFT COSTS $ 3,464,645 $ 150,000 $ 9,030 $ 62,140 $ 3,685,815 CONTINGENCY $ 505,155 -$ $ 200,000 - $ $ 705,155
SUB-TOTAL > SOFT COSTS $ 3,969,800 $ 150,000 $ 9,030 $ 262,140 $ 4,390,970 TOTAL PROJECT BUDGET $ 24,938,577 $ 2,737,464 $ 832,800 $ 1,459,159 $ 29,968,000 ACTUAL EXPENDITURES THROUGH DECEMBER 31, 2023
CONSTRUCTION & OTHER HARD COSTS $ 10,731,348 $ 144,664 $ 400,713 $ 11,321,396 44,671 $ CONTINGENCY $ - -$ $ - -$ -$
SUB-TOTAL > HARD COSTS $ 10,731,348 $ 144,664 $ 400,713 $ 11,321,396 44,671 $ PROJ MGMT, A&E, OTHER SOFT COSTS $ 3,016,440 -$ $ 4,830 $ 72,562 $ 3,093,832 CONTINGENCY $ - -$ $ - -$ -$
SUB-TOTAL > SOFT COSTS $ 3,016,440 -$ $ 4,830 $ 72,562 $ 3,093,832 % OF TOTAL (A) 22%
TOTAL PROJECT BUDGET $ 13,747,788 $ 144,664 $ 405,543 $ 117,233 $ 14,415,228
UNSPENT / (OVER BUDGET)
CONSTRUCTION & OTHER HARD COSTS $ 8,102,429 $ 2,442,800 $ 423,057 $ 317,348 $ 11,285,634 CONTINGENCY $ 2,135,000 -$ $ 835,000 - $ $ 2,970,000
SUB-TOTAL > HARD COSTS $ 10,237,429 $ 2,442,800 $ 423,057 $ 1,152,348 $ 14,255,634 PROJ MGMT, A&E, OTHER SOFT COSTS $ 448,205 $ 150,000 $ 4,200 $ (10,422) $ 591,983 CONTINGENCY $ 505,155 -$ $ 200,000 - $ $ 705,155
SUB-TOTAL > SOFT COSTS $ 953,360 $ 150,000 $ 4,200 $ 189,578 $ 1,297,138 % OF TOTAL
TOTAL PROJECT BUDGET REMAINING $ 11,190,789 $ 2,592,800 $ 427,257 $ 1,341,926 $ 15,552,772
FUNDING SOURCE
Exhibit A Agenda Report Page 10
Community Pool Project – Contingency Analysis 2/29/24
Construction Contingency – Utilities trench and removal of oil tanks and contaminated soil.
Other Contingency – Primarily Inspection fees and additional design & engineering costs not specified in original budget.
8 Construction Other Total
INCLUDED IN ORIGINAL BUDGET $ 2,170,000 $ 505,155 $ 2,675,155 Additional approved by City Council - 12/18/23 800,000 200,000 1,000,000 TOTAL CONTINGENCY $ 2,970,000 $ 705,155 $ 3,675,155
Change Orders \ Other $ (2,030,002) $ (339,253) $ (2,369,255) Remaining Contingency $ 939,998 $ 365,902 $ 1,305,900
% Remaining 32% 52% 36%
CONTINGENCY
Exhibit A Agenda Report Page 11
Fund Recap
9 MEASURE UU
FUND
ACTIVITY
Balance @ 6/30/2020 $ - Revenues 24,809,197
Expenditures (13,747,788)
Balance @ 2/29/2024 11,061,409
Exhibit A Agenda Report Page 12
QUESTIONS ?
10 Exhibit A Agenda Report Page 13