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CITY COUNCIL AGENDA ITEM NO. 16


Meeting Date: March 13, 2001

Subject/Title: Review the Brentwood Education and Technology Center (BETC) Proforma. Authorize the City Manager to execute a Construction Management Contract with RGM and Associates. Adopt the Line Item Bid Package Cost Summary and authorize the City Manager to execute all contracts under $25,000 and contracts under $100,000 provided they do not exceed the budget amount by more than 10%.

Submitted by: Howard Sword, Economic Development Manager

Approved by: Jon Elam, City Manager


RECOMMENDATION
Review the Brentwood Education and Technology Center (BETC) Proforma and Authorize the City Manager to execute a Contract for Construction Management Services with RGM and Associates for an amount not to exceed $211,040. Adopt the Line Item Bid Package Cost Summary and authorize the City Manager to execute all contracts under $25,000 and contracts under $100,000 provided they do not exceed the budget amount by more than 10%.

PREVIOUS ACTIONS:
Authorize Staff to add $10,000 to the RGM construction management contract to immediately start redesign of the project and prepare a comprehensive construction management contract to build the BETC for consideration on February 27, 2001 City Council meeting.

 Authorize the City Manager to execute an agreement with RGM and Associates for Construction Management Services to Value Engineer the Contract Documents for the Brentwood Education and Technology Center (BETC) for $22,950; January 9, 2001.

Reject all bids for construction of the Brentwood Education and Technology Center; December 12, 2000. 

Los Medanos College Lease; June 27, 2000. 

Kares Construction Management Contract; November 3, 1999. 

BACKGROUND:
The preliminary redesign and vale engineering is complete and the project can be built within the following parameters with confidence.

Project Cost and Incubator Cash Flow (Attached)

Project Costs: $125,000 of additional tenant improvement costs not reflected in the original construction document were identified during the redesign work. Another $25,000 in General FF&E (Fixtures, Furniture and Equipment) costs were also identified during this work. These costs have been added to bring the total project cost to $3,750,000. These extra costs have added an additional average annual debt service cost of $12,900. 

Incubator Cash Flow: The redesign also created an additional 1,816 square feet of Net Leasable Space. This additional space was taken from Common Area which decreased the tenant load factor from 30% to 20%. The net effect is that the Incubator Revenue increased an annual average of $31,385 and the tenant net monthly cost was reduced by 10%.


BETC Proforma (Attached)

The Proforma shows the annualized effect of the increased debt service and increased revenues. The net 10-year cash flow increase is $218,250.

Cost Estimate / Schedule / RGM Contract (Attached)

Multi-Prime Contract Construction Budget Summary:

o Hard Construction Costs 1,576,773
o Construction Contingency 112,187 (5.5%)
o Tenant Improvement Contingency 125,000
o RGM Construction Management 187,040 (9.2%)
o RGM Redesign / Value Engineering Pass-through 24,000 (1.1%)

o Total Construction Cost $2,025,000

Bid Package Cost Summary: There are 23 bid packages that are necessary to expedite the schedule and control the project cost. This is the schedule of values that the Council is requested to adopt. There will be a contract executed by the City for each of these bid packages. City purchasing policy will be followed except for the requested Council authorization of the City Manager to execute contracts up to $100,000 provided that they do not exceed the budget value by more than 10%.

Project Schedule: The attached schedule shows completion September 11, 2001. This will allow LMC to start the Fall Term in the facility.

RGM and Associates Professional Services Agreement: The City of Brentwood is the proposed General Contractor for this project and RGM will provide the construction management. They will provide on-site supervision and project management / administrative staffing (all of the paperwork necessary for accounting review and public purchasing compliance). The contract amount will be billed on an hourly basis up to $211,040. 

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