PDHQ Budget Update
BUDGET, FISCAL AND LEGISLATIVE STANDING COMMITTEE
APRIL 1, 2026
Background
1On February 21, 2023, City Council adopted Resolution 2023-024, awarding the Design-Build contract for the Police Department and Training Facility (“PDHQ”) to C. Overaa & Co. in the amount of $38,491,497 and appropriating $43,608,026 to fund the project. The appropriation amounts were to fund the Overaa design-build contract and other expenses associated with the project like - construction contingency, special testing, furniture, fixtures and equipment, IT equipment, utilities, permits, and miscellaneous costs. On April 21, 2025, City Council adopted Resolution 2025-051, appropriating a net amount of $1,920,325 to the PDHQ project that adjusted the Lease Revenue Bonds Amount and appropriated the interest earned. The new total project budget was $47,981,853.t On July 7, 2025, City Council adopted Resolution 2025-093, appropriating an amount of $728,632 from Fund 130 for a Tier 4 Emergency Generator for the PDHQ project. On September 2, 2025, City Council adopted Resolution 2025-111, authorizing the inclusion of 8% contingency in the amount of $3,079,320 to the Overaa contract and allocating $11,750 of interest earned. to
the City Council to authorize a one-time allocation of $40,748 from FY 2024-25 GFDR (Fund 110) Fund Balance to cover costs with acquisition and repair of City Hall EV Charging Cables due to Unforeseen Vandalism and Theft
PDHQ Funding Sources
Council Adoption Reso No. Budget Funding Source
12/20/2021 2021-166 $18,500 GFDR
1/18/2022 2022-009 $882,925 2022 Lease Revenue Bonds Proceeds 5/16/2022 2022-068 $747,375 2022 Lease Revenue Bonds Proceeds 2/21/2023 2023-024 $28,839,700 2022 Lease Revenue Bonds Proceeds 2/21/2023 2023-017 / 2023-024 $10,414,859 GFDR
2/21/2023 2023-024 $4,353,467 ARPA
7/10/2024 2024-098 $76,070 ARPA
4/21/2025 2025-051 $1,920,325 2022 Lease Revenue Bonds Adjustment & Interest Earned
7/7/2025 2025-093 $728,632 FY 2024-26 Fund 130 Appropriations (BAAQMD Regulatory Compliance
Costs)
9/2/2025 2025-111 $11,750 2022 Lease Revenue Bonds Proceeds Interest Earned
TOTAL BUDGET $47,993,602
PDHQExpenses
Expense Adjusted Spending Budget Expended Balance
Construction Management Services $1,773,803 $1,286,192 $487,611 Bridging Architect $747,375 $651,875 $95,500
Construction $38,491,497 $37,152,550.88 $1,338,946.12
Design-Build Construction Contingency (8%) $3,079,320 $984,326.84 $2,094,993 Special Testing $100,000 $0 $100,000
FF&E $1,600,000 $654,113 $945,887
IT Equipment $350,000 $156,280 $193,720
Miscellaneous Costs $100,000 $52,938.93 $47,061
Permitting/Utilities $450,000 $440,821.23 $9,179
TOTAL: $46,691,995 $41,379,097.71 $5,312,897
*As of 3/23/26
Incoming Expenses
With upcoming change orders, the plaza renovation and recently applied tariffs, an increase in the design-build construction contingency to 10% ($3,849,149) is needed. Sufficient funding exists in the project appropriation; no new appropriation is required.
Recommendation
1. Receive Presentation.
2. Authorize the City Manager to continue to monitor project interest earnings and expenses with City’s design-build contractor (Overaa), and City’s construction management services contractor (Mack 5) until construction completed on PD HQ project.
3. Proceed with a recommendation to the City Council to increase the authorization amount to include a 10% contingency ($3,849,149) in the design-build contract ($38,491,497) for a total construction authorization amount not to exceed $42,340,646.
Questions?