POINT ARENA CITY COUNCIL
AGENDA ITEM SUMMARY
AGENDA ITEM: X C
MEETING DATE: 4/26/2022
TITLE
Veterans Hall CDBG Planning & Technical Assistance Grant Update
RECOMMENDED ACTION
1) Receive Staff Progress Report and recommendation on the Vets Hall Renovation Planning
2) Receive City Ad Hoc Committee Member Comments
3) Discuss moving forward with the Vets Hall renovation design process 4) Direct Staff
ANALYSIS
At your March 23rd City Council meeting the Vets Building Ad Hoc Committee and Staff were directed to continue to work with Coastal Seniors Inc. (CSI) until April 15 and report at the April 26th Council Meeting the results regarding the possibility of Coastal Seniors financial participation to support their requested enhanced renovation designs.
The project discussions with CSI about the community center renovation and the space and their facility needs began in early August 2021. Much of that process was discussed at your last Council Meeting.
Background:
The stated outcome of The City’s Community Development Block Grant for the “Community/Senior/Recreation/Veterans Center” Project is “completed architectural construction drawings and bid documents allowing the project to go to bid within 90 days of approval of construction funding in a future round of CDBG funding.” The amount of grant is $250,000. This amount was intended to cover:
• Special studies
• Public outreach
• Analyzing different scenarios, such as new building on the current site, renovation of the current building or new building on a new site
• Developing different project layouts
• Cost estimating
• Permitting
• Producing two alternative projects for which the Council determines the final design perimeters.
• A final facility design ready to go out to bid within 90 days of funding approval.
The City’s Technical assistance grant application was submitted to HCD almost two years ago. At that time, it was estimated that the designed project similar to what was proposed in 2007 would cost around $3 million dollars to construct.
Since the submission date, current cost of construction estimates have drastically surpassed the earliest estimates of project cost. Construction industry estimates hover around a 30% increase since early 2020.
City Staff and your Vets Building Ad Hoc Committee have been working with Coastal Seniors Staff and a committee from their board since early August 2021. These meetings were being scheduled for twice a month. The focus of the committee work was to get a design schematic that suited the operational needs of CSI and re-established community use of the facility within the perimeters of the grant funding. The committee was also working to come to tenancy agreements on utilization of the facility after the renovation.
Most of the renovation work initially proposed included updated electrical service, connection to City sewer, HVAC upgrades, appropriately sized ADA bathrooms, energy efficient windows, new exterior, parking lot improvements, landscaping, a modest office wing for CSI (approx. 930 sq. ft.) and improvements to the existing kitchen area. These very basic improvement ranged from $3.1 million to $3.7 million in construction costs.
These figures were presented to the Council in September and to the Ad Hoc Committee.
It became quickly obvious that the most basic design would not be the optimum design to fulfill the current and future needs of CSI as they saw it. They submitted a schematic in August 2021 that had an approximate construction value of $3.8 - $4.5 million. That layout was reconfigured by the architect to have less impact on south side parking. That new configuration was rejected. CSI wanted to do further work on clarifying what they wanted.
At that time, Staff has looked at the components of the grant and determined that a project with a construction cost of range of $3.3 million to $3.5 million could be covered by the available grant funds. That would cover the most basic project.
In November CSI Committee submitted a design schematic that costed out at nearly $6 million. The design cost of that project would have been around $185,000 over the grant budget. These costs are due to significant new square footage and numerous kitchen upgrades. The City stated that it was willing to design outside the grant budget if Coastal
Seniors was willing to participate in the design costs of their amenities that are above the basic components of the initial renovation plan.
In March, CSI submitted a pared down design schematic resulting in an estimated construction cost of $4.7 to $5 million. This lower construction value estimate would reduce the additional architect fees to approximately $100,000 down from $185,000, a 40% reduction. It was made clear those extra costs
Since March 23rd:
There have been three face to face meetings of the City & CSI committee members.
Financial considerations, facility utilization and tenancy terms were discussed based on written documents furnished prior to the meetings. Outside of those meetings, there has been much back and forth by phone and emails with each side expressing their interests and wants. Numerous items seemed to gain agreement and understanding but by the deadline of April 15, all conditions were not satisfactorily agreed to. The board of Coastal Seniors Inc. declined to participate financially in the enhanced designs that they had developed and brought forward.
Going Forward:
The City is at the point in the Vets Hall renovation process that a decision needs to be made about the budget to complete the design task.
The information gathered and the work that has been done through public comment process, community surveys, work with the County, the Sheriff and with CSI on facility design will be valuable to the final design. It points out that the Community access to the building that meets the needs of many users over the long term is paramount and not every use imagined or desired may be able to be accommodated.
In the end having a facility designed that fulfills our original grant application will have the best opportunity for funding when an application is made for construction funds.
Task 5 (Design Development) in the architectural services contract calls for providing a cost benefit analysis of two alternatives when they have been developed sufficiently that includes construction costs, permitting costs, and NEPA compliance costs.
Those two alternatives will be reviewed and the Council in a public meeting at which they select the preferred alternative. Then Tasks #6-#9 will be completed for the preferred alternative only.
Alternative 1: As stated earlier in the report, Staff believes that a project with an estimated construction value of approximately $3.5 million can be accomplished with the available grant funding. That design will be very basic, mostly an updating of what we have and a small wing on the south side of the building. It will also cover seriously needed items such as ADA compliance, restroom upgrades, closed storage, utility upgrades, insulation, HVAC, Sewage disposal, parking lot repair, drainage, landscaping, and some kitchen upgrades.
Alternative 2: It may be a good long-term investment to look carefully at some of the amenities that have been put forward for incorporation by Coastal Seniors particularly for kitchen reconfiguration. This could be the basis for developing the 2 nd alternative design
schematic for Council’s consideration.
Any design work over the $3.5 million amount will require another source of funding be utilized outside the grant. Design work up to $4 million would cost up to $37,500 more.
Staff Recommendation:
It is Staff’s suggestion that the Council request a design alternative that has an estimated construction cost of up to $3.5 million and a design alternative of up to $4 million in estimated construction costs.
To accomplish those two alternatives, Staff recommends he City Ad Hoc Committee members and the Special Projects Manager work with the architect to complete the two design schematics that can be priced and brought back to the Council for consideration.
To further the design budget discussion Staff is preparing a set of spreadsheets describing the likely costs to different design alternatives.
FISCAL IMPACT
None at this time.
ATTACHMENTS
Square Foot design cost alternatives spreadsheet
CITY MANAGER SIGNATURE
_________________________________ _________________________________ Richard Shoemaker, Special Projects Manager Paul Andersen, City Manager Description Sq. Ft. Cost Sq Ft Description Sq. Ft. Cost Sq Ft City Hall extension
0 $0 $750 City Hall extension 0 $0 $750
Dry goods & walk‐in fridge and freezer
0 $0 $749 Dry goods & walk‐in fridge and freezer 640 $479,360 $749 Seniors’ office space 600 $450,000 $750 Seniors’ office space 500 $375,000 $750Renovation Cost Renovation CostHall and support facilities 4,900 $3,013,500 $615 Hall and support facilities 4,225 $2,598,375 $615Kitchen and Meals on Wheels prep area 0 $0 $750 Kitchen and Meals on Wheels prep area 795 $596,250 $750 TOTAL CONSTRUCTION ONLY COST 600 $3,463,500 $685 NEW SPACE TOTAL CONSTRUCTION ONLY COST 1,140 $4,048,985 $685 NEW SPACE Description Sq. Ft. Cost Sq Ft Description Sq. Ft. Cost Sq Ft City Hall extension
0 $0 $750 City Hall extension 0 $0 $750
Dry goods, walk‐in fridge/freezers (pop out)
0 $0 $749 Seniors’ office space 920 $690,000 $750
Seniors’ office space 920 $690,000 $750 Renovation Cost Renovation Costs Dry goods & walk‐in fridge and freezer 640 $479,360 $749 Hall and support facilities 4,900 $3,013,500 $615 Hall and support facilities 3,600 $2,214,000 $615Kitchen and Meals on Wheels prep area 0 $0 $750 Kitchen and Meals on Wheels prep area 795 $596,250 $750 TOTAL CONSTRUCTION ONLY COST 920 $3,703,500 $685 NEW SPACE TOTAL CONSTRUCTION ONLY COST 920 $3,979,610 $685 NEW SPACE New Construction Costs Option 3 Sq. Ft. Cost Sq Ft Description Sq. Ft. Cost Sq Ft City Hall extension
0 $0 $750 City Hall extension 452 $339,000 $750
Dry goods, walk‐in fridge/freezers (pop out)
0 $0 $749 Seniors’ office space 920 $690,000 $750
Seniors’ office space 920 $690,000 $750 Renovation Cost Renovation Costs Dry goods & walk‐in fridge and freezer 640 $479,360 $749 Hall and support facilities 4,200 $2,583,000 $615 Hall and support facilities 4,300 $2,644,500 $615Kitchen and Meals on Wheels prep area 795 $596,250 $750 Kitchen and Meals on Wheels prep area 0 $0 $750TOTAL CONSTRUCTION ONLY COST 920 $3,869,250 $685 NEW SPACE TOTAL CONSTRUCTION ONLY COST 1,372 $4,152,860 $685 NEW SPACE Description Sq. Ft. Cost Sq Ft Description Sq. Ft. Cost Sq Ft City Hall extension
0 $0 $750 City Hall extension 452 $339,000 $750
Seniors’ office space 920 $690,000 $750 Dry goods & walk‐in fridge and freezer 640 $479,360 $749Renovation Cost Seniors’ office space 1200 $900,000 $750Dry goods & walk‐in fridge and freezer 640 $479,360 $749 Renovation Cost Hall and support facilities 4,300 $2,644,500 $615 Hall and support facilities 3,600 $2,214,000 $615 Kitchen and Meals on Wheels prep area
0 $0 $750 Kitchen and Meals on Wheels prep area 795 $596,250 $750 TOTAL CONSTRUCTION ONLY COST 920 $3,813,860 $685 NEW SPACE TOTAL CONSTRUCTION ONLY COST 2,292 $4,528,610 $685 NEW SPACE Design Scenario Options with Estimated Construction Costs Construction Cost Estimates Option 4aConstruction Cost Estimates Option 1 (4/22/22)Construction Cost Estimates Option 2Construction Cost Estimates Option 3 Construction Cost Estimates Option 4bConstruction Cost Estimates Option 4cConstruction Cost estimates Option 5New Construction Costs Option 6 (march)