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HomeMy WebLinkAboutMINUTES - 03312015 - D.3RECOMMENDATION(S): ACCEPT report on Managing our County Infrastructure and direct the Public Works Director to: 1) Prepare a program of projects and a schedule for the funding allocated from prior Fiscal Years and proposed Fiscal Year 2015-16 for Facilities Life-Cycle Investment Program projects to address deferred maintenance for approval by the Board of Supervisors in May; 2) Implement Job Order Contracting as a project delivery tool; 3) Develop alternatives to address the deferred maintenance backlog, including bonding; 4) Implement a Preventative Maintenance Program; 5) Continue efforts underway on the joint occupancy agreements with the courts and the Oak Park properties to eliminate costs and realize a return on investment; 6) Evaluate properties identified as potential for surplus per the Real Estate Asset Management Program Policy and develop recommendations for consideration by the Board of Supervisors; APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 03/31/2015 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Julie Bueren (925) 313-2201 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: March 31, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: Lisa Driscoll, County Finance Director, Robert Campbell, County Auditor-Controller D.3 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:March 31, 2015 Contra Costa County Subject:County Building Infrastructure Workshop RECOMMENDATION(S): (CONT'D) > 7) Work with the County Administrator and County Departments to develop priorities and funding strategies for future facility needs and capital improvements; and 8) Report to the Finance Committee a minimum of every 6 months, or as needed for decision making, on the status of deferred maintenance project delivery, capital projects delivery, recommendations for addressing the deferred maintenance backlog, disposing of surplus properties and priorities for capital projects. FISCAL IMPACT: Funding to manage County facilities comes from department funds and various building funds. Specific funding has been allocated toward the Facility Life-Cycle Investment Program projects. Costs for real estate, environmental, legal staff, title reports and recording fees will be funded through proceeds of sales of surplus properties. BACKGROUND: The County has a large deferred maintenance backlog on county facilities. In 2007, an assessment of some county buildings was done that estimated the 10 year need at that time to be $270 million. The report recommended project priorities and funding amounts to address these needs. Unfortunately no funds were allocated to the Facilities Life-Cycle Investment Program (FLIP) until Fiscal Year 2012-13 when $5 million was allocated for three projects: a sewer replacement at the Byron Boys Ranch, Chillers at the Martinez Detention Facility and repairs to the Finance Building. The sewer replacement and chillers projects were completed. The Finance Building is a complex project because it is a historic structure. It is scheduled to start construction in June of this year. An additional $10 million was allocated towards FLIP in Fiscal Years 2013-14 and 2014-15, and $10 million is proposed in the Fiscal Year 2015-16 budget. To date $3.4 million has been spent and $9.5 million has been encumbered. Including the proposed $10 million in next year's budget, this leaves a balance of $22 million to program towards FLIP projects. We have just completed and updated the assessment of 81 buildings at 48 sites in 2014. Staff is reviewing the draft report. The report estimates a total ten year need of $321,285,649 of this $164,401,883 is obligated with FLIP funds. Projects and Facilities Maintenance staff are reviewing the recommended priority projects from the assessment and developing a $22 million program of projects to be funded with Facilities Life-Cycle Investment Program and a schedule for delivery for approval by the Board of Supervisors. In order to be efficient in delivering projects we need to employ a variety of project delivery methods. We do some work with our own staff, but many projects are bid out through using both informal and formal bidding processes. More complex projects are managed by project managers. We currently do not use Job Order Contracting and recommend move forward to implement this project delivery tool. A job order contract is a contract for a fixed term or maximum dollar value, whichever occurs first, in which a contractor is selected based on a competitive bid to perform various separate job orders in the future, during the life of the contract. Procurement for job order contracts must still follow the requirements of California Public Contract Code sections 10500-10506; it is a contract, not a purchase order. Job order contracts are typically used for well-defined, recurring or repetitive work where quick execution is essential. It is an appropriate delivery method for any type of repetitive work, especially small renovation jobs. It allows for a longer relationship with the selected contractor as various job orders issued under the contract are performed during the contract term. Because the contractor has been selected and the unit price is fixed (by the project task catalog and the contractor’s adjustment factor), a job order contract allows contractor input prior to design, which can expedite the work. Continued funding is needed to address our facility needs. The overall need can be reduced by strategically reducing our inventory through surplus of facilities that are no longer needed for County business. Project delivery tools to improve efficiency are essential. Another option to explore is bundling projects for bonding. This would require a very detailed scope and schedule and project management oversight. The Department will work with the County Administrator's Office to evaluate whether bonding is an appropriate mechanism to address our deferred maintenance needs and make a recommendation to the Finance Committee of the Board of Supervisors. Preventative maintenance is an important component of managing our facilities. We currently have a very limited program that includes fire systems as mandated by the state and some mechanical systems as well. We are recommending a comprehensive preventative maintenance program that includes electrical and plumbing systems as well as exteriors such as roofs, siding and paint. Costs for preventative maintenance will be monitored and tracked by building. An effective preventative maintenance program will reduce the need for emergency repairs and help reduce future deferred maintenance needs. The County has several underutilized facilities and parcels of vacant land. Work is currently underway to position our properties in Pleasant Hill (Oak Park and Beatrice) for sale. Staff is working with the City of Pleasant Hill on a plan for the area that may include a new Pleasant Hill Library. Staff is also working to disengage the County from the Joint Occupancy Agreements with the Courts. In addition to these efforts a streamlined evaluation of potential surplus properties is recommended. This will involve outreach to County Departments to ensure there is not a need for them and developing recommendations to dispose of the properties to maximize the return on investment. Understanding the County's long term needs is essential for planning. Public Works has been working with County Departments in planning for facility needs. We need to develop a facility master plan that defines both near and long term facility needs and sets priorities and includes funding strategies for implementation. CONSEQUENCE OF NEGATIVE ACTION: None. CLERK'S ADDENDUM ACCEPTED the report and APPROVED the recommendations; and DIRECTED that proceeds derived from surplus property disposal be allocated to the capital facilities fund. ATTACHMENTS Infrastructure Workshop PowerPoint Managing our County Facilities Board of Supervisors Workshop March 31, 2015 WORKSHOP AGENDA Introduction Deferred Maintenance Capital Projects Potential Surplus Properties Recommendations 2 COUNTY INFRASTRUCTURE AT A GLANCE 147 County owned sites 200 habitable* County owned buildings 3,266,804 square feet maintained Office Buildings – 1,509,366 square feet Hospital & Clinics – 705,303 square feet Detention Facilities – 649,620 square feet Library Buildings – 113,113 square feet Veterans Buildings – 91,197 square feet Airport Buildings – 198,205 square feet * Building space that is suitable for employees and the public. 3 COUNTY 10-YEAR DEFERRED MAINTENANCE/CAPITAL RENEWAL COSTS 4 Total 10-Year Deferred Maintenance/Capital Renewal Costs by ISES Corporation $321,285,649 Less Surplus Buildings ($41,689,747) Less Uninhabitable Buildings (218,304 square feet) ($7,373,620) Adjusted Deferred Maintenance Costs $272,222,282 Department Funded Deferred Maintenance Costs $107,820,399 Flip Funded Deferred Maintenance Costs $164,401,883 FLIP FUNDED BUILDINGS DEFERRED MAINTENANCE/CAPITAL RENEWAL COSTS 5 Sheriff Adult Detention Facilities $81,380,594 Sheriff Non-Detention Facilities $7,250,152 Veterans Memorial Buildings $10,497,876 Juvenile Detention Facilities $9,310,687 District Attorney Facilities $3,867,351 Public Defender Facilities $2,029,988 Elections/Recorder $1,026,399 Administration Building – 651 Pine Street $22,238,760 Finance Building – 625 Court Street $12,299,541 Summit Center – 2530 Arnold Drive $10,461,345 Old Crime Lab – 1122 Escobar Street $1,063,435 Animal Services Facilities $386,202 All Other Buildings $2,589,553 Flip Funded 10-Year Deferred Maintenance/Capital Renewal Costs $164,401,883 ADDRESSING MAINTENANCE BACKLOG Status of Funding Allocation Total Funding Received: $25 Million Amount Spent to Date: $3.4 Million Projects Programmed: $9.5 Million Recommendation for $12.1 Million balance and the proposed $10 Million in FY 15/16 Work Order requests Over 3,000 backlogged Work Order Number of Work Orders increases every year 6 ADDRESSING MAINTENANCE BACKLOG Address Resource Needs Adequate staffing to address routine work level Contractors and consultants for peak levels Job Order Contracting o A Job Order Contract is a straightforward contracting process that provides accelerated project delivery, reduces administrative costs, and lowers direct construction costs o Nationally there are over 2000 Job Order Contracts currently in use implemented by major cities, counties, schools, & universities 7 ADDRESSING MAINTENANCE BACKLOG Options to go forward Continue with incremental annual funding towards deferred maintenance Consider bonding Consider shrinking our facilities inventory 8 CAPITAL PROJECTS Large pent-up demand for services for remodels and new facilities Capital Projects Division is currently working on 60 projects ranging from $100,000 to $90 million Two major projects that are underway Antioch Health Clinic West County Reentry and Treatment Facility 9 ANTIOCH HEALTH CENTER UNDER CONSTRUCTION 10 WEST COUNTY RE-ENTRY AND TREATMENT FACILITY PRELIMINARY WORK FOR GRANT APPLICATION SUBMITTAL 11 CAPITAL PROJECTS Potential Future Projects New Emergency Operations Center Demolish the old jail Replace 651 Pine Street/1122 Escobar – new administration building Expansion of West County Health Center 12 OES SITE ALTERNATIVE 13 OLD JAIL/651 PINE STREET 14 PREVENTATIVE MAINTENANCE Preventative Maintenance is a critical component of infrastructure management Recommending a comprehensive Preventative Maintenance Program that includes Inspections Regular maintenance Record keeping 15 POTENTIAL SURPLUS PROPERTIES Improved Sites 16 Address City Size Comments Deferred Mtce 1291 Beaulieu Drive Bay Point 1441 sf Single Family Residence - Sell as surplus, Spring 2015 unknown 1127 Escobar Street Martinez 2000 sf Single Family Residence - Sell, lease or demo.unknown 1139 Escobar Street Martinez 1684 sf Single Family Residence - Sell, lease or demo.unknown 1236 Escobar Street Martinez 3580 sf Single Family Residence - Sell, lease or demo.unknown 650 Pine Street Martinez 17,471 sf Former Jail - Vacated in 1980 unknown 1750 Oak Park Blvd Pleasant Hill 1.34 ac Pleasant Hill Library & Library Administration - Possible sale w/Oak Park and Beatrice Lane. Vacant land sites.10,246,903$ 100 38th Street Richmond 1.93 ac Sell as surplus 26,511,640$ 3939 Bissell Ave.Richmond 15,000 sf 2 lots with modular building unknown 4006 MacDonald Ave Richmond 1,620 sf Office building vacated in 2014 385,000$ 343 Rodeo Avenue Rodeo 6,105 sf Abandoned by Vets. Basement has flooding issues unknown 1111 Ward Street Martinez 20,892 sf Possible equity exchange with Judicial Council of California 4,546,207$ 2020 North Broadway Walnut Creek 17,500 sf Possible equity exchange with Judicial Council of California unknown PROPERTIES IN DOWNTOWN MARTINEZ 17 BUILDINGS SHARED BETWEEN COUNTY AND JUDICIAL COUNCIL OF CALIFORNIA (COURTS) County Buildings with Courts as % occupant 100 38th Street, Richmond (former Richmond Health Center) o Courts occupy 7.53% for file storage o WIC only remaining county service in building Real Estate in process of relocating WIC 1111 Ward Street, Martinez o Courts occupy 25% for file storage o County’s 75% occupancy includes storage, Conservatorship, vacant space 18 BUILDINGS SHARED BETWEEN COUNTY AND COURTS cont’d 2020 North Broadway, Walnut Creek Courts occupy 37.18% for file storage County’s 62.82% occupancy includes 2 tenants and vacant space 202 Glacier Drive, Martinez (Juvenile Court) Courts occupy 2.43% for Juvenile Court operations 1010 Ward Street, Martinez (Court Annex, Martinez Detention Facility) Courts occupy 5.95% 19 COURT BUILDINGS WITH COUNTY AS % OCCUPANT 1020 Ward Street, Martinez (A.F. Bray Courthouse) County occupies 14.48% (Law Library) 100 37th Street, Richmond (George Carroll Courthouse) County occupies 25.01% (Law Library, District Attorney, file storage, Veteran Services) 20 FINANCIAL STATUS OF JOINT OCCUPANCY WITH THE COURTS Estimated share of county costs for notices of correction of deficiency is $717,244.76 for FY 14/15 County share of occupancy costs average $190,000 annually 21 PROPOSED CHANGES TO SHARED BUILDINGS 100 38TH Street, Richmond Continue efforts to relocate WIC o Estimated move Fall 2015 Continue working with Courts to remove/relocate their file storage o Summer 2015 Building vacated o Fall 2015 Sell as surplus o Summer/Fall 2015 22 PROPOSED CHANGES TO SHARED BUILDINGS cont’d 1111 Ward Street, Martinez Begin efforts to relocate Conservatorship, remove/relocate file storage Engage Courts in discussions to exchange equity interests between 1111 Ward & 2020 North Broadway Amend Joint Occupancy Agreement Transfer title to Courts 23 PROPOSED CHANGES TO SHARED BUILDINGS cont’d 2020 North Broadway, Walnut Creek Engage Courts in discussions to exchange equity interests between 2020 North Broadway and 1111 Ward Street Courts to remove/relocate file storage Amend Joint Occupancy Agreement Terminate Lease Agreements Sell as surplus o 2016 24 PROPOSED CHANGES TO SHARED BUILDINGS cont’d 100 37th Street, Richmond Continue efforts to relocate Veterans Services o Spring 2015 Transfer vacated County space to Courts Amend Joint Occupancy Agreement to reduce County’s deficiency obligations 25 VALUE OF PROPOSED CHANGES Receive revenue from sale of 100 38th Street and 2020 North Broadway Estimated revenue $2.5-$3.5 million Eliminate approximately $24 million in deferred maintenance and facility renewals costs Reduce County’s share of deficiency obligation for 100 37th Street, Richmond 26 POTENTIAL SURPLUS PROPERTIES Vacant Land Other Decision making process – Real Estate Asset Management Program Policy Column1 Column2 Column3 Column4 Location Size Comments Bailey Road/Highway 4 Bay Point 7.5 Acres CCC as Successor Agency to RDA Canal Road Bay Point 1.54 Acres CCC as Successor Agency to RDA Wayne Street Martinez 15,206 SF Single Family Lot 1215 Escobar Martinez 8075 SF Single Family Lot Neroly Road Oakley 7 Acres Mixed use development Oak Park Boulevard Pleasant Hill 8 Acres Sell with 1750 Oak Park Beatrice Road Pleasant Hill 6.2 Acres Sell with 1750 Oak Park 27 OAK PARK PROPERTIES PLEASANT HILL AREA 28 RECOMMENDATIONS Finalize a program of projects and a schedule for the funding allocated for Facilities Lifecycle Investment Program (FLIP) projects for approval by the Board of Supervisors in May Implement Job Order Contracting as a project delivery tool Develop alternatives to address the deferred maintenance backlog, including bonding Implement a Preventative Maintenance Program Continue efforts underway on the joint occupancy agreements with the Courts and the Oak Park properties to eliminate costs and realize a return on investment 29 RECOMMENDATIONS Evaluate properties identified as potential for surplus per the Real Estate Asset Management Program Policy and develop recommendations for consideration by the Board of Supervisors Work with the County Administrator and County Departments to develop priorities and funding strategies for future facility needs and capital improvements Make regular reports to the Finance Committee on the status of delivery of FLIP and capital projects, recommendations for addressing the deferred maintenance backlog, disposing of surplus properties and priorities for capital projects 30