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HomeMy WebLinkAboutResolutions - 2014.04.30 - 21316MISCELLANEOUS RESOLUTION #14099 April 30, 2014 BY: PLANNING & BUILDING COMMITTEE, JIM RUNESTAD, CHAIRPERSON IN RE: WATER RESOURCES COMMISSIONER - OAKLAND COUNTY BUILDING RENOVATIONS AT 2636 DIXIE HWY., WATERFORD TOWNSHIP, MI To The Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Water Resources Commissioner (WRC) has determined that consolidating its billing and payment offices into one location will improve operational efficiencies; and WHEREAS pursuant to authorization by way of MR #13311, a building was purchased at 2636 Dixie Highway, Waterford Township, MI with renovation costs estimated at $254,000; and WHEREAS closing for the building was completed on February 4, 2014; and WHEREAS the building is larger than needed for billing services and at the time of the initial purchase WRC had not determined how the additional space would be used; and WHEREAS WRC has decided that a portion of the Water Maintenance department will move to this new location; and WHEREAS WRC has requested assistance from Facilities Management to manage renovations at the 2636 Dixie Highway, Waterford Township, MI, location; and WHEREAS architectural and electrical drawings were completed and bid documents were released on March 12, 2014; and WHEREAS Facilities Managements annual (competitively bid) construction manager, George W. Auch Company, was selected to manage the project and sub-contract all trades; and, WHEREAS bids were opened on March 26, 2014 and low bids were tabulated. WHEREAS additional monies are needed in the amount of $231,942 and includes $5,436 in closing cost and prorated taxes, $111,415 for construction renovation, $8,408 network adjustment to fiber, $41,945 in network cabling and phone system equipment, $7,000 for property sign, $3,000 for parking lot adjustments, $8,000 for roof leak, $30,238 for project contingency to cover unknown variables and $16,500 for Water Maintenance staff furniture and WHEREAS funding is available from the water and sewer trust funds in the amount of $115,971 and the Pontiac water and sewer funds in the amount of $115,971, NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes additional project costs in the amount of $231,942 associated with the cost of renovations of the building at 2636 Dixie Highway, Waterford, MI. Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the foregoing resolution. PLANNING & BUILDING COMMITTEE ,.-79;er> PLANNING & BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote. Motion for Rule IX.E. Direct Referral to Finance carried on a voice vote. Form DC-001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Commissioner Runestad FROM: Phil Sanzica and Sherri Gee SUBJECT: WRC Billing Center Building DATE: April 15, 2014 Summary: The purpose of this memorandum is to update the Budget Task Force regarding the acquisition and renovation of the new Billing Center building for WRC authorized per MR#13311 that was adopted December 12, 2013. As the project has moved forward and bids have been received for the renovation WRC finds it will need to transfer an additional $231,942 from the water and sewer reserves, as well as the Pontiac water and sewer funds. History: In December 2013, WRC brought to the Budget Task Force and the Board of Commissioners a resolution to purchase a building located at 2636 Dixie Highway in Waterford. The purchase agreement was signed by the Board of Commissioners and the closing was completed on February 4, 2014. The intended purpose of the building is to consolidate billing services operations for all WRC customers, including Pontiac. The building is larger than is needed for billing services alone. WRC had not finalized plans on how it might utilize the remainder of the building when the request to purchase was brought to the Board of Commissioners. The original Fiscal Note for MR#13311 totaled $569,475, which included the purchase price of the building, at $315,000 and estimated one-time renovation and moving costs at $254,475. At the time the Fiscal Note was drawn up, architectural plans had not been developed for the building and the project had not been fully scoped out. The project budget was developed utilizing estimates provided in part by the Auch Company, an FM&O contracted construction manager, OCIT, and Facilities Management. WRC was working under time constraints imposed by the purchase agreement and sought to provide as complete and accurate project estimate as possible. Developments: After securing approval for the purchase of the building and the one-time project costs as estimated, WRC determined it would be appropriate to also move the portion of the Water Maintenance department that works closely with the Billing department to the new building. After WRC took occupancy on February 4, 2014, architectural drawings were developed and the project was further defined with IT and Facilities Management. Bid documents were released on March 12, 2014 and opened on March 26, 2014. Clarifications were completed the week of March 31, 2014, and final costs were reviewed on April 7, 2014. Facilities Management's annual (competitively bid) construction manager, George W. Auch Company, was selected to manage the project and contract all trades. OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 11/05/08 Form DC-001 The issues impacting project costs are summarized below: 1) Closing costs and prorated taxes associated with the purchase were not included in the project estimate. Cost impact: $6,436 2) Building code, life safety, and security issues were identified during development of the renovation plan that have increased the cost of construction. Examples include provision for emergency lighting throughout the building, replacement of doors separating public and staff for security, and associated wall patching and painting. Cost impact: $44,000 3) The electrical capacity for the building needs to be increased to accommodate the loads created by computers for both Billing and Water Maintenance. While this was anticipated in the initial construction estimates, higher than anticipated contractor and DTE costs have been realized as a result of bidding and DTE service requirements. Cost impact: $12,000 estimated. This amount may increase based on DTE actual work. 4) OCIT initially quoted network services for the building at $5,600 for the connection and $650 per month recurring cost. OCIT later determined it is able to move a fiber connection from the old "Anderson Engineering" building east of the Billing Center and eliminate the recurring monthly fee. However, the one-time cost for relocation is higher, at an estimated $14,008. Long term the ability to eliminate the recurring charge makes the ROI roughly 15 months. Cost impact: $8,408 5) The quote for network services did not include network cabling costs within the building. In addition, it was not realized that the phone system in use at 95 Public Works could not be used at the new location, resulting in an unanticipated cost for new phone equipment. Cost impact: $41,945 6) The addition of Water Maintenance staff to the building required the acquisition of additional furniture and millwork for counters. In addition, although originally excluded from the project, it is now necessary to build a ramp to the back door to bring meters into the building on a cart. The quoted ramp is wood with concrete supports. We may need to upgrade to a concrete ramp. Cost impact: $44,500 ($16,500 furniture + $20,000 ramp + $8,000 millwork and blocking) 7) An issue with property limits and easements place the existing building sign on the adjacent property. VVRC was not able to resolve this issue with the property owners prior to closing the sale. While we continue to attempt an equitable solution for both parties, we will need to go before Waterford Township's Zoning Board to gain a variance for installation of new signage or incorporation of the existing sign through agreement with the adjacent property owners. Cost impact: $7,000 8) Site improvements were not included in the project. With the inclusion of Water Maintenance staff to the building it is necessary to reconfigure the lot to provide several additional parking spaces. Removal of a planting bed, subsequent asphalt patching and restriping of the lot are necessary. Cost impact: $3,000 OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 2 of 2 Rev.: 11/05/08 Form DC-001 9) Over the course of the winter the roof membrane was damaged and the roof leaked. Facilities Maintenance had the roof repaired using an annual contractor. Evaluation of the roof indicates several improvements can be executed to improve water management at the parapet. Cost impact: $8,000 10)With increased costs, the contingency for construction costs needs to increase as well. Cost impact $8,400 (10% of items 2, 3, and 6 (less furniture) 11)Construction Management costs/fees and related costs are based on actual renovation costs as bid. The scope of work has been expanded due to the inclusion of Water Maintenance as well as other factors mentioned above; therefore, Auch's fees have increased. Cost impact: $19,000 Conclusion: The items above total $201,689. The items that are estimated and may increase once work begins include electrical costs from DIE, patching and painting, ramp at back entrance, property sign and potential easement, and estimated roof repairs. Because there are still many variables to consider before the project is completed, we are requesting a 15% contingency of $30,253. We are proposing to transfer 50% of the total from the Water & Sewer Trust Fund, for a total of $115,971. Previously, we transferred $113,756 from this fund. The water reserve has a current fund balance of 2.1 million and the sewer reserve has a current fund balance of 2.3 million. We are proposing to transfer 50% of the total from the City of Pontiac Water and Sewer funds into the Drain Equipment Fund, for a total of $115,971. Previously, we transferred $55,990 from these funds. The City of Pontiac did not previously pay into the Water & Sewer Trust Fund. OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 3 of 3 Rev.:11/05/08 Form DC-001 Summary: Item Estimate Actual Difference Comments Building Purchase $315,000 $320,436 ($5,436) Includes pro-rated property taxes and title fee Construction $118,875 $230,290 ($111,415) Safety & Security $0 Electrical Capacity $0 Water Maintenance $0 Cameras $30,000 $30,000 $0 Still an estimate until work completed. Network $5,600 $14,008 ($8,408) Fiber instead of AT&T connection Network Cabling & Phone System $0 $41,945 ($41,945) Not included in original network quote Property Sign $0 $7,000 ($7,000) Still an estimate until work completed. Parking Lot $0 $3,000 ($3,000) Not needed prior to Water Maintenance unit occupying building Roof $0 $8,000 ($8,000) Roof leak Furniture $100,000 $116,500 ($16,500) Water maintenance furniture SUB-TOTAL: $569,475 $771,179 ($201,704) Project Contingency (15%) 0 .._, $30,238 ($30,238) TOTAL: $669,475 $801,417 ($231,942) OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 4 of 4 Rev.: 11/05/08 FISCAL NOTE (MISC. #14099) April 30, 2014 BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON IN RE: WATER RESOURCES COMMISSIONER — OAKLAND COUNTY BUILDING RENOVATIONS AT 2636 DIXIE HWY., WATERFORD TOWNSHIP, MI TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The Resolution authorizes an additional $231,942 in acquisition and renovation cost needed to complete the Water Resources Commissioner's (WRC) new office building at 2636 Dixie Highway in Waterford Township. 2. The new building for WRC was authorized per MR#13311 to allow billing personnel to be located in one location for enhanced operational efficiencies and improved customer service. A portion of the Water Maintenance department that works closely with the Billing department will also move to the new building. 3. Facilities Management construction manager George W. Auch Company was selected to manage the project and sub-contract all trades. 4. The additional cost includes $5,436 in closing cost and prorated taxes, $111,415 for construction renovation, $8,408 network adjustment to fiber, $41,945 in network cabling and phone system equipment, $7,000 for property sign, $3,000 for parking lot adjustments, $8,000 for roof leak, $30,238 for project contingency and $16,500 for Water Maintenance staff furniture. 5. The following budget amendment is recommended for Fiscal Year 2014: Drain Equipment Fund (63900) Revenue 6010101-149750-695500-57010-26486 Transfer In 6010101-149750-695500-57234-26486 Transfer In 6010101-149750-695500-57434-26486 Transfer In Total Revenue Expense 6010101-149750-796500-26486 Budget Equity Adjustment Total Expense Water and Sewer Trust Fund (57010) Revenue 6010101-149290-665882 Planned Use of Balance 6010101-149300-665882 Planned Use of Balance Total Revenue Expense 6010101-149290-788001-63900 Transfer Out 6010101-149300-788001-63900 Transfer Out Total Expense FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Taub and Crawford absent. FY 2014 $115,971 $ 57,986 $ 57,985 $231,942 $231.942 $231,942 $ 57,986 $ 57,985 $115,971 $ 57,986 $ 57,985 $115.971 $ 57,986 $ 57,986 $ 57,986 $ 57 986 $ 57 985 $ 57,985 $ 57,985 $ 57,985 Pontiac Water Fund (57234) Revenue 6010101-149030-665882 Planned Use of Balance Total Revenue Expense 6010101-149030-788001-63900 Transfer Out Total Expense Pontiac Sewer/WWTP FUND (57434) Revenue 6010101-149030-665882 Planned Use of Balance Total Revenue Expense 6010101-149030-788001-63900 Transfer Out Total Expense Resolution #14099 April 30, 2014 Moved by Taub supported by Quarles the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Gershenson, Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Quarles, Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Dwyer. (19) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). HENEBY APPROVE MIS RESOLU11ON CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (7) STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on April 30, 2014, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 30th day of April 2014.