SR 06:151 - Laserfiche WebLink

BUDGET The Council recently approved the Mid-Term Capital Improvement Program, which includes $427,872 in additional funding for the project. With that action, total funding to date is $3,987,017. Of this amount, $496,630 has been spent, or is encumbered, resulting in a project funding balance of $3,490,387. Assuming a 5% project contingency, the available funding is $524,759 less than required to complete the project. A project budget detailing this information is included as Attachment A. As indicated, staff spent considerable time refining the project specifications to minimize project costs. In addition, staff is not recommending inclusion of the add/alternates. To further reduce costs so that they are consistent with available funding, the project scope could be modified by eliminating installation of the new HV AC system ($350,000), kitchen upgrades ($75,000), and wood restoration ($110,000). These changes would reduce construction costs by a total of $535,000 and eliminate the funding shortfall. Because the addition of an HV AC system (the building does not currently have air conditioning and has only limited heating), kitchen upgrades, and repair of damaged wood molding are fundamental elements of the project, staff is not recommending these modifications. It should be noted that because staff has had an opportunity to fully review project specifications with the contractor, the project contingency has been reduced from the standard 10% to approximately 5% for a savings of $200,000. However, as with all historical renovation projects, the potential for unforeseen modifications remains a possibility. Nevertheless, staff intends to fully monitor project change orders to minimize use of the contingency. FISCAL IMPACT The project budget is detailed in Attachment A. As indicated, staff is recommending a $300,000 transfer from the Facilities Replacement Fund and a $224,759 transfer from the Capital Improvement Program Reserve (CIPR) to address project costs. With the transfer, the reserve will have a FY2006/07 balance of $1,337,925. Any remaining project contingency will be placed in the CIPR. As the Council was informed previously, staff has been working with our local federal legislators in an attempt to secure supplemental grant funding for the Alviso Adobe Community Park, Vineyard Avenue improvements and the Veterans building. If approved, funding for the Veteran's building may be approximately $450,000. The Senate is expected to consider its version of the Transportation-HUD funding bill- which includes the Vineyard Corridor and the Veterans building - sometime later this month. It's unclear when, and if, the Senate will be including earmarks at that time or if it will wait until Conference with the House to include this funding. In any event, a decision is expected late this Fall. If this funding is received, it will be appropriated to the CIPR. SR06:151 Page 4