AGENDA TITLE:
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Approve Plans and Specifications and Authorize Advertisement for Bids for the Access Center Project and Adopt a Resolution to Appropriate $444,549 in Reallocated American Rescue Plan Act Funds from Closed Projects (CD)
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MEETING DATE:
September 4, 2024
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
recommendation
RECOMMENDED ACTION: Approve plans and specifications and authorize advertisement for bids for the Access Center Project and adopt a resolution to appropriate $444,549 in reallocated American Rescue Plan Act (ARPA) funds from closed projects.
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INTRODUCTION:
Staff worked diligently to redesign the permanent Access Center and identify key functions to operate at necessary service levels. Cost estimates for current design plan is $13 million (attachment 1), which exceeds the planned capital budget of $10.2 million.
There are two programs previously funded by the American Rescue Plan Act (ARPA), that did not expend the full appropriation. The programs were below budget by $444,549 as shown below:
• Small Business Economic Assistance Grants and Administration: $144,631.31
• Revenue Replacement: $299,917.65
Staff recommends reappropriation of the $444,549 in ARPA funds from other closed projects noted above to bring capital budget total to $10.6 million.
Advertising for and receiving bids for the Access Center Project will provide the projected cost information necessary to make final decisions regarding the project. The City has the option to redirect funding from operations, if necessary, or to change the project design to reduce costs. Potential bid deductions were identified approximately $1.6 million in bid deduction line items, outlined in more detail later in this report to
reduce project cost. The identified bid reductions total $1.6 million, would alter planned operations, and do not resolve the estimated budget shortfall.
Staff requests approval of plans and specifications and authorization to release the advertisement of bids for the Access Center project at current design, with identified bid deducts. Once bids are received, a recommendation will be presented at a future City Council meeting regarding award of the contract to the lowest responsible and responsive bidder. At that time, it will be possible to determine whether it is necessary to redirect funds from operational reserve to complete the project to its current design and specifications.
SUMMARY OF AVAILABLE RESOURCES:
A detailed funding table is available as attachment 2 to this staff report. Additionally, all funding outside of the request for the $444,549 is already appropriated under the Capital Improvement Program account for the Access Center and Emergency Shelter (attachment 3).
Summary Funding Table:
BACKGROUND INFORMATION:
On November 4, 2020, the City Council adopted the San Joaquin Community Response to Homelessness - 2020 San Joaquin Strategic Plan (“Strategic Plan”).
The Strategic Plan includes goals and strategies developed from community feedback, which includes increasing access and reducing barriers to homeless crisis response services.
On April 7, 2021, City Council accepted the Permanent Local Housing Allocation (PLHA) grant of approximately $2 million, allocated primarily towards the Access Center. On May 5, 2021, Council approved allocating $5.5 million of American Plan Act federal funds to the development of a Navigation Center, now known as the Access Center. On May 5, 2021, City Council also approved the Lodi Access Center Community Engagement Plan, which was the first step in order to move forward with several of the goals identified in the Strategic Plan. On July 13, 2021, the County Board of Supervisors approved $2 million towards our Access Center project development and $800,000 towards our temporary emergency shelter site development from the San Joaquin County (County) capital-outlay fund. On October 6, 2021, City Council approved the Access Center location at 710 N. Sacramento Street in Lodi. On December 13, 2024 City Staff, Council Members, and Lodi Committee on Homelessness Members presented to the BOS who then awarded the City an additional $8.2 million to complete the Lodi Access Center Project and the Learning Center (AKA Workforce Education Center).
On January 16, 2024, a new design proposal was presented to City Council for their consideration. City Council recommended going forth with the re-design and redirected approximately one year of operations funding from capital to operate the permanent Access Center through September 2026. Plan modifications began February 2024 and concluded in June of 2024 and have been submitted for permitting and are currently pending final approvals. Throughout the re-design process, various cost estimates and ideas connected to value engineering occurred to bring the project in line with available resources.
Based on revised plans, NJ Associates (NJA) requested a final professionally developed cost estimate from Sierra West Group. The cost estimate was received July 22, 2024 at a total of $13,007,972 (Attachment 1), as the cost estimate received exceeded available resources allocated to construction of the Access Center, additional work needed to be done. Staff and NJA worked to dissect the key requirements for the Access Center to remain functional at the needed levels of services, but with a scaled back construction scope. With the below bid deducts outlined, the cost estimate was able to be reduced to $11,443,796. The primary deducts include a catering kitchen vs a fully functional commercial kitchen, removal of skylights, reduction in glazing, downgraded fencing, open concept administration office space, and removal of temporary power supply. The cost estimate is based on best known factors, but is still just an estimate. Actual costs won’t be known until bids are released and received and may be higher or lower than the estimated cost.
Staff requests reappropriation of $444,549 in City ARPA funds from other closed projects to bring capital budget total to $10.6 million. Additionally, staff recommends approval of the plans and specifications and authorization to release the advertisement of bids for the Access Center project at current design. Based on bid results, a recommendation will be presented at a future City Council meeting about whether to redirect funds from the operating reserve to complete the permanent Access Center project as currently designed, whether to implement bid deductions, or whether other action is necessary.
The City is required to obligate ARPA funds by December 2024 by encumbering funds under contract. This deadline along with grant expenditure deadlines creates the urgency for the City to bid for construction of the Access Center. Long term operations and managerial considerations remain outside of the prescribed deadlines. Considerations for operations will be brought forth in the near future for City Council discussion.
IDENTIFIED POTENTIAL COST/SERVICE REDUCTIONS (Bid Deducts)
• $8,500 Grease Interceptor
• $2,040 Transformer Pad - Site Electrical
• $16,956 Transformer 75 KVA-N3R - Site Electrical
• $24,000 Temp Power Feeder - 100A - Site Electrical
• $2,200 Temp Power Feeder - 200A - Site Electrical
• $117,150 Ornamental Fence
• $90,000 Precast tables
• $20,000 Kennels
• $24,750 raised conc. Planters
• $34,968 Removal of metal roof
• $101,400 Metal stud framing 6"
• $120,780 Metal stud framing 3 5/8"
• $29,125 Batt Insulation
• $111,815 Gyp Board
• $37,500 Skylights
• $4,200 Interior Glazing - Storefront
• $2,280 Interior Glazing - Operable
• $85,500 Interior Glazing - transaction
• $68,000 Walk-in Coolers
• $14,500 metal racks at cooler
• $1,200 Microwave
• $5,000 Refrigerator
• $5,400 Mailboxes
• $39,000 Rough in kitchen
• $3,000 Add Grease Wrap
• $12,500 Intake hood
• $28,500 Transformer - 150 KVA
• $33,912 Transformer - 75 KVA-N3R
• $20,000 HVAC at Kitchen
• $500,000 Open Concept Administration Office Space
Total Projected Deductions $1,564,176
TOTAL HARD COST: $13,007,972 (cost estimate) - $1,564,176 (potential bid deducts) = $11,443,796
STRATEGIC VISION:
4E. Housing: Adopt standards and policies to promote housing for all economic levels.
FISCAL IMPACT:
Capital Project
City Council approved $10.2 million in funding for construction of the Access Center as part of the City Access Center Capital Improvement Project in the FY 2024-25 Budget. The requested reappropriation of $444,549 in ARPA funds from other closed projects would increase capital funding to $10.6 million. Any additional capital costs above this City ARPA reallocation would likely be funded from City ARPA funds currently programmed for future Access Center operations.
Operations
Future operations for the permanent Access Center and Emergency Shelter are estimated at minimum to be $2.8 million dollars annually based on Salvation Army’s bid to operate the Center at the current bed count and contracted inflation. Should the occupancy of the shelter be expanded, which full construction will allow, annual operating costs range up to $4 million. Actual costs for operations will be based on fixed costs and occupancy as defined in the future contract between the City and Salivation Army.
FUNDING AVAILABLE:
ARPA - 22001.Contracts - $10.2 million (Capital), $1.75 million (Temp Operations until facility opens), and $3 million (Permanent Operations - 13 months)
Fund 104 - ARPA Reallocation - $444,549
• Small Business Economic Assistance Grants and Administration: $144,631.31
• Revenue Replacement: $299,917.65
All ARPA funds related to Access Center for both capital and operation are under the umbrella of the ARPA-22001 Capital Improvement Program Account and no budget adjustments are being requested.
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John Della Monica
Community Development Director
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Scott R. Carney
City Manager