PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.C
SUBJECT/TITLE:
CONSIDERATION OF OPTIONS FOR PROFESSIONAL SERVICES RELATED TO
CHAPMAN ESTATE ACCESSIBILITY AND WATERPROOFING IMPROVEMENTS
RECOMMENDATION:
Consider options and provide direction on the Chapman Estate accessibility and waterproofing improvements.
BACKGROUND:
The Chapman Estate is a unique property in the city, consisting of a large public site with ocean frontage and expansive grounds. Since the City Council accepted the Estate in 2013, efforts have been ongoing to respectfully use the grounds in accordance with the wishes of the late owner, Clifford Chapman. On April 20, 2021, City Council approved Amendment #3 to the Conditional Use Permit (CUP) for the Chapman Estate to modify the limit on the number of events, hours of operation, and other similar operational items for use of the Chapman Estate as a cultural center. As the City has moved forward with making the Estate available for use, it was determined that two items needed to be addressed in order to have the Estate available for event rentals by the Fall of 2022. The Estate would need to have waterproofing work done on the roof and windows, and an accessible restroom would need to be constructed. The City Council desired such improvements to be made and allocated $600,000 from the General Fund.
In July 2021, the City entered into a Professional Services Agreement with CRSA Architecture to perform design and development work for various improvements at the Chapman Estate, including the roof replacement, ADA restrooms and window replacements. This contract was executed under the City Manager’s authority in line with the City’s Purchasing Policy. Due to a corporate reorganization, CRSA Architecture became Hunter Smith & Associates, Inc. This change was documented in a Novation to the original contract on October 13, 2021. Hunter Smith has continued to work on the project and has submitted a proposal for additional services based on requirements that were identified during the City’s review of plans. The proposed contract Amendment #1 (Attachment 1.A) includes additional work on each of the three projects, detailed below.
Roof Replacement
The Estate has been sustaining water damage and the roof replacement was prioritized due to its condition and the time of year for construction. As is typical for a reroofing project, a building permit was required prior to moving forward with construction. During the permitting process, the City’s Building Division required additional on-site structural inspections due to the age and condition of the building. The construction of the roof is currently in progress and is expected to be completed around the end of the month. The additional on-site structural inspections are included in the proposed Amendment #1.
Council Agenda 2-15-2022 12.C-1
Due to the fact that Hunter Smith has been working on the project up to this point, staff has determined that it is most efficient to continue to use their services rather than select another firm to start the process over and get up to speed, and as such Hunter Smith is considered a sole-source vendor with their prior work on the project. Alternatively, staff could issue an RFP to select a vendor to do this work. That process would entail an additional two to three months for the selection process and delay the overall project timeline, which could mean the estate grounds would not be able to be opened when the events season comes in April. In addition, additional costs would be incurred to bring a new consultant up to speed.
The proposed contract Amendment #1 (Attachment 1.A) with Hunter Smith includes the roof project in an amount not to exceed $36,850 related to on-site structural observation of existing roof sheathing based on inspection requirements from the City’s Building Division. The full amount of the roof portion of the amendment may not be fully expended, but that will not be determined until project nears completion.
ADA Restrooms
The second priority for opening the Estate to open fully to the public by the fall is construction of an accessible (ADA) restroom. Initially the architect, Steven Puglisi Architects, Inc. donated his time to prepare drawings of the ADA restroom. Those drawings were produced, and it was then determined that more detailed construction drawings were needed to be able to submit for a building permit. In July 2021, a contract was executed with Steven Puglisi to prepare those more detailed drawings. In order to keep the project on the timeframe Council requested, staff requested that Hunter Smith assist in reviewing those drawings.
The proposed contract Amendment #1 (Attachment 1.A) with Hunter Smith includes the ADA restroom project in an amount not to exceed $5,400 to continue to assist staff with reviewing the plans and keeping the project on track to have the Estate opened with completed ADA restrooms by the fall. Staff believes it is most efficient to continue to utilize Hunter Smith for this work, however a formal RFP could be issued. That process would entail an additional two to three months for the selection process and push the overall project timeline, which would mean the estate would not be able to be opened by the fall.
In addition, additional costs would be incurred to bring a new consultant up to speed.
Window Replacement
The third project needed to make the Estate both accessible and waterproof, is replacing windows that are leaking and causing water damage to the building. Staff has been working with Pella Window Company, which has indicated that it is willing to donate at least half of the windows, if not all of the windows, approximately a $200,000 value. Pella had concerns that there were not adequate construction documents for installation of the windows. Staff, along with Hunter Smith, have met with Pella on site and discussed the replacements. These meetings, along with Hunter Smith’s expertise and work to date, has given Pella a level of comfort to move forward with the project and donation.
Council Agenda 2-15-2022 12.C-2
The proposed contract Amendment #1 (Attachment 1.A) with Hunter Smith includes the window replacement project in an amount not to exceed $21,500 to prepare construction documents for the window replacement and keeping the project on track to have the Estate opened with completed waterproofing by the next rainy season in the late fall.
Based on the fact that Hunter Smith, Pella, and members of the Chapman Foundation have been working together and are invested in the project, it would be most cost- and time-effective to continue to have Hunter Smith work on this portion of the project. A formal RFP could be issued, but that process would add an additional two to three months for the selection process and would mean the Estate would likely not be waterproof by the expected rains in the fall. In addition, additional costs would be incurred to bring a new consultant up to speed.
It is also possible that a delay in preparing construction documents may cause Pella to no longer be interested in the donation potentially increasing the project cost significantly.
If the windows are not replaced at this time, there will continue to be water damage to the facility and ongoing maintenance and costs for the leaking windows. If Council does not move forward with the window replacement at this time, it would need to be done in the future and would likely cost more based on additional damage that will occur over time.
Conclusion and Recommendation
Staff recommends the Council review the three current projects, consider options for moving forward with making the Estate accessible and waterproof and provide direction to staff. Should the Council determine to authorize the City Manager to execute Amendment #1 with Hunter Smith & Associates, a resolution (Attachment 1) has been prepared for that purpose.
FISCAL IMPACT:
When the original budget for the Chapman roof, ADA restroom, and windows were considered, Council appropriated all $382,600 of the Chapman Trust funds and $600,000 from the General Fund to support this project. At that time, staff only had costs for the roof repair, but did not have clear estimates on what the ADA restroom and windows would cost without further work. With some of the Hunter Smith work and further work by City staff, staff has a preliminary estimate on the ADA restroom and window work. Staff currently estimates that all three projects could cost $1,488,963, leaving a projected budget shortfall of $506,363. However, this cost will not be firmed up until staff goes out to bid for these projects and returns to Council.
Staff has identified the three options shown below for proceeding with the Chapman Estate project.
Option 1 – Roof, ADA Restrooms and Window Replacement
The City Council could adopt a Resolution (Attachment 1) authorizing the proposed amendment in its entirety. The fiscal impact of approving the attached Resolution is an additional $63,750 of additional expenditures, including $36,850 for the Chapman roof project and $26,900 for the Chapman ADA restroom and windows project. These funds are already included in the Chapman roof project budgeted in the Capital Projects Fund Council Agenda 2-15-2022 12.C-3
(supported by the Chapman Estate Fund) and the Chapman Improvements project budget (supported by the General Fund).
If Council moves forward with Option 1, the roof project would be completed, and the ADA restrooms and window replacement would be moved into the construction bid phase. Staff has estimated a construction cost for both the ADA restroom and the window replacement, which could require approximately $506,363 from the General Fund to complete. This amount would be determined by the actual bids received and staff would return to Council to award a construction contract and appropriate the funds at that time.
Option 2 – Roof and ADA Restrooms
The City Council could move forward with only the roof ($36,850) and ADA restroom ($5,400) portion of the project. This would bring the total Hunter Smith amendment cost to $42,250. Based on the current budget, staff estimates an additional $69,863 from the General Fund would be required to complete the construction of the ADA restrooms. That amount would be based on actual bids received, and staff would return to Council to award a contract and appropriate funds at that time. The window replacement would not move forward. There has already been a significant amount of work done on the windows, as the windows and roof are closely related. The windows that need to be replaced would continue to leak and require ongoing maintenance, the cost of which is unknown at this time.
Option 3 – Roof Only
The City Council could move forward with only the roof ($36,850) portion of the project.
The total cost of the Hunter Smith amendment would be $36,850, and this would allow the roof project to be completed. These funds are already included in the Chapman roof project budgeted in the Capital Projects Fund (supported by the Chapman Estate Fund) and would require no additional budget. However, stopping work on the design of the ADA restrooms would mean that the City would not be able to hold events at the Estate that do not want to use portable toilets. The expected revenues from those rentals would not be realized. In addition, as outlined in Option 2, stopping work on the window replacement may mean that Pella Window Company no longer donates the windows and the windows in poor condition will continue to leak, requiring ongoing maintenance due to ongoing water damage to the building.
The following table illustrates the costs for each option.
Council Agenda 2-15-2022 12.C-4
Proposed Budget Adjustments
If the Council directs staff to move forward with Option 1, then staff recommends that Council appropriate a $506,363 General Fund transfer to the Chapman Estate Fund and appropriate an additional $506,363 in expenditures for the ADA restroom and windows project in the Chapman Estate Fund in fiscal year (FY) 2022, including any related transfers between funds.
If the Council directs staff to move forward with Option 2, then staff recommends that Council appropriate a $69,863 General Fund transfer to the Chapman Estate Fund and appropriate an additional $69,863 in expenditures for the ADA restroom project in the Chapman Estate Fund in FY 2022, including any related transfers between funds.
If Council directs staff to move forward with Option 3, then staff will come back to Council at a later date to determine how to best use some of those funds for maintenance on the leaking windows and to support operations of the Estate without the ability to generate private event revenues.
ALTERNATIVES:
1. Approve a portion of Amendment #1, including the roof and ADA restroom.
2. Approve a portion of Amendment #1, including only the roof.
3. Decline approval of Amendment #1; provide staff with direction on how to proceed.
ATTACHMENTS:
1. Resolution
1.A Exhibit A to Resolution: Proposed Hunter Smith Contract Amendment #1 Prepared by: Meeting Date: February 15, 2022
Erin Olsen, Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:
Option 1 Option 2 Option 3
General Fund Support 600,000$ 600,000$ 600,000$ Chapman Estate Trust 382,600 382,600 382,600 Total Revenues 982,600$ 982,600$ 982,600$
Roof 582,600$ 582,600$ 582,600$
ADA restroom 469,863 469,863
Windows 436,500
Total Projected Expenditures 1,488,963$ 1,052,463$ 582,600$ Projected Budget
(Shortfall)/Surplus (506,363)$ (69,863)$ 400,000$ Council Agenda 2-15-2022 12.C-5
RESOLUTION NO. R-2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1
TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH HUNTER SMITH & ASSOCIATES, INC. FOR DESIGN, DEVELOPMENT AND CONSTRUCTION
ADMINISTRATION FOR CHAPMAN ESTATE IMPROVEMENTS IN THE AMOUNT OF $63,750; AND APPROPRIATING RELATED BUDGET ADJUSTMENTS
WHEREAS, in July 2021, the City entered into a Professional Services Agreement with CRSA Architecture to perform design and development work for various improvements at the Chapman Estate; and
WHEREAS, due to a corporate reorganization, CRSA Architecture became Hunter Smith & Associates, Inc. (Hunter Smith); and
WHEREAS, Hunter Smith has submitted a proposal for additional services based on City plan check comments; and
WHEREAS, the proposed contract Amendment #1 covers additional work related to on- site structural observation of existing roof sheathing, review of architectural plans provided by a separate consultant, and preparing construction documents including addressing requirements for the window replacement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 (Exhibit A) to the existing Professional Services Agreement with Hunter Smith & Associates, Inc. for Design, Development and Construction Administration for Chapman Estate Improvements in the amount of $63,750.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates a $506,363 transfer from the General Fund to the Chapman Estate Fund and appropriates an additional $506,363 in expenditures for the ADA restroom and windows project in the Chapman Estate Fund in fiscal year 2022, including any related transfers between funds.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15th day of February 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 2-15-2022 12.C-6
Attachment 1
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 2-15-2022 12.C-7
Attachment 1
AMENDMENT # 1
to the
JULY 27, 2021 AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND HUNTER SMITH & ASSOCIATES, INC.
Pursuant to the July 27, 2021 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Hunter Smith & Associates, Inc., hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1. Additional services shall be performed as set forth in the proposal dated January 19, 2022, which is attached hereto and by this reference made a part hereof.
2. Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of sixty-three thousand seven hundred fifty dollars ($63,750), without prior written approval of the City.
3. The revised fee under the July 27, 2021 contract, plus this addendum, is ninety-two thousand two hundred fifty dollars ($92,250).
4. All other provisions of the Design/Development Work for Chapman Estate Improvements agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Benjamin A. Fine, P.E.
Title: Director of Public Works/City Engineer
Dated: ________________________________
Signed:
Name: James R. Lewis
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
Hunter Smith & Associates, Inc.
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Scope/Cost Proposal
Council Agenda 2-15-2022 12.C-8
Attachment 1A
VIA E-MAIL
January 19, 2022
City of Pismo Beach
℅ Chad Stoehr
760 Mattie Road
Pismo Beach CA 93449
Re: Request for Additional Funds for the Chapman House Project
PROJECT LOCATION
The Chapman House
1243 Ocean Blvd.
Shell Beach CA 93449
SCOPE OF WORK
Perform Construction Administration required by the City’s plan check comments, requiring the following:
1. On-site structural observation of existing roof sheathing to verify its condition prior to installation of the radiant barrier. Sheathing will be removed and inspected on a phased basis, requiring frequent site visits.
2. Construction Documents for the ADA restroom remodel, including the contractor bidding process.
3. Construction Documents for the window replacements, including the contractor bidding process.
EXCLUSIONS
Construction administration, submittal reviews, and structural observations for the ADA restroom and window replacements after contractor bidding.
COMPENSATION
To accomplish the Scope of Work, the Owner will compensate Hunter Smith & Associates, Inc.
DBA Hunter Smith Architecture on an hourly basis with a total not to exceed sixty-three thousand, seven-hundred fifty dollars ($63,750).
860 Walnut Street, Suite B. San Luis Obispo CA 93401
(O) (805) 544-3380 (F) (805) 544-8625
www.huntersmitharchitecture.comCouncil Agenda 2-15-2022 12.C-9 Attachment 1A
Work will be completed at the following hourly rates:
Principal Architect $225
Associate Architect $187.50
Architectural Designer $175
We appreciate the opportunity to work with the City of Pismo Beach, and look forward to continuing our work together.
Sincerely,
Logan Hunter
860 Walnut Street, Suite B. San Luis Obispo CA 93401
(O) (805) 544-3380 (F) (805) 544-8625
www.huntersmitharchitecture.comCouncil Agenda 2-15-2022 12.C-10 Attachment 1A