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Home My WebLink AboutCC 12-16-2025 Item No. 11 City Hall Improvement Project_Staff PresentationCC 12-16-2025 #11 City Hall Improvements Project Presentation City Hall Improvements Project City Council Meeting December 16, 2025 Subject: Determine City Hall Improvements project scope and resources, approve budget modification in the amount of $54,000,000 and authorize design-build delivery method. Recommended Action: For the Capital Improvement Programs (CIP) City Hall Improvements project (Project), 1.Approve the proposed scope of the Project: a.Risk Category IV Renovation of Structural System b.Maintain Current Footprint: Reconfigure Interior, no vertical or horizontal expansion c.No Parking Expansion d.Upgrades to Infrastructure and Accessibility 2.Adopt Resolution No. 25-XXX approving Budget Modification No. 2425-425, increasing appropriations by $54,000,000 in the Capital Improvement Fund for the Project (420-99- 250); 3.Authorize the City Manager to undertake a design-build project delivery method for the Project; 4.Adopt Resolution No. 25-XXX approving the procurement of a design-build contract for the Project. Tonight’s Subject & Recommended Action Resources: City Hall Project webpage •Address seismic deficiencies of 1965/1986 facility •Modernize building systems at the end-of-service life •Ensure continuity of day-to-day operations and public services Project Purpose •Seismic issues identified in 2005 •Multiple studies: 2011–2021 structural analyses •Prior Council direction in 2022 (renovation) and 2023 (new facility exploration) •Project reinstated in FY25–27 City Work Program Background 2022-2025 Council Directions •November 2022: Proceed with full renovation of City Hall, including “essential services” facility (Risk Category IV) structural retrofit, and move EOC to City Hall Annex. •February 2023: Suspend all work on City Hall project to allow for consideration of alternate facility options. •March 2025: City Work Program directs staff to “implement the previously approved 2022 Council plan with EOC migration” for the City Hall Improvements project. •April 2025: CIP proposal for FY25-26, direction to proceed with City Hall Annex project including EOC and return to Council with City Hall item in November 2025. Scope Overview •Risk Category IV seismic retrofit •Essential Services level seismic performance •Allows facility to operate during emergencies •Approx. $2.5M cost differential vs. lower standard •Maintain existing footprint; reconfigure interior •24,000 sq. ft. facility; 120 employees •Reconfiguration supports ~15% staffing growth •No vertical or horizontal expansion •No parking expansion •Infrastructure & accessibility upgrades Total Project Estimate: $54.4M •Construction: $40M •$29M Construction •$3M Contingency •$8M Escalation •Soft Costs: $14.4M, for consultants, testing, FF&E, relocation, permitting, etc. 2025 Cost Estimate Previous cost estimates did not include many soft costs such as moving/storage costs, HazMat remediation, FF&E, and other items. The October 2025 Cost Estimate for the Full Renovation at Risk Category IV includes: •Construction cost •Soft costs •Estimated Schedule •Cash flow projections for the 5-year project duration 2025 Cost Analysis “Apples to Apples” 2025 Cost Analysis - Comparison FY25-26: Bridging Architect contract ($760K), Soil testing, Surveying. FY26-27: Construction Management contract ($2.2M), Interim Workplace solutions ($1.5M) and other due diligence work. FY27-28: Permits, HazMat Abatement, Design-Build contract ($32M+) FY28-29: FF&E, Inspections, Commissioning Projected Expenditures = Cash Flow; Projected Encumbrances = Executed Contracts that “encumber” funds within the project fun d. 2025 Cost Analysis - Cashflow Funding •Option A: $2.5M - Commit to schematic design only, for the full renovation scope. Design and Construction Management teams will be contracted to more fully explore cost and scope alternatives before commitment to the design-build process. •Option B: $46.3M - Reduction of scope to eliminate spatial reconfigurations and interior improvements that are tenant improvements not otherwise required by seismic work, HVAC/infrastructure upgrades and accessibility upgrades required by building codes. •Option C: $54.5M - Full Renovation scope commitment. Upcoming touchpoints with Council will allow for review of cost- saving opportunities before final documentation and execution of Design-Build contract. 2025 Options •Option D: ~$57M - Full Renovation + Surface Parking Expansion. Commitment to the full renovation scope and the design and construction of a stand-alone parking garage, to address constricted parking availability at Civic Center. •Option E: ~$110M - New facility with underground parking. In 2015, a new facility with new underground parking was conceptually developed after a multi-year public engagement process and extensive analysis. This option has not been effectively explored since that time but is included here to conceptually represent the range of options available. 2025 Options (continued) •Bridging design: 2025–2027 •Design-Build procurement: 2027 •Design, permitting & procurement: 2027–2029 •Construction: 2029–2030 •Move-in: Summer 2030 Schedule •Projected expenditures: $54.4M over five years •One dedicated FTE needed starting FY26–27 •“For Future Use” Committed Reserve funding available: $64.5M Budget and Staffing resources •Faster project delivery •Lower administrative burden •Integrated design & construction team •Best-value procurement options Design-Build Delivery Benefits 1.Award Bridging Architect Contract – April/May 2026 2.Council Presentation of Bridging Documents: •Update and Initial Design Review – December 2026 •Presentation of Bridging Documents: Final Design Review – July 2027 3.Award of Construction Management Contract – January 2027 4.Award of Design-Build Entity Contract – July 2027 Next Steps Subject: Determine City Hall Improvements project scope and resources, approve budget modification in the amount of $54,000,000 and authorize design-build delivery method. Recommended Action: For the Capital Improvement Programs (CIP) City Hall Improvements project (Project), 1.Approve the proposed scope of the Project: a.Risk Category IV Renovation of Structural System b.Maintain Current Footprint: Reconfigure Interior, no vertical or horizontal expansion c.No Parking Expansion d.Upgrades to Infrastructure and Accessibility 2.Adopt Resolution No. 25-XXX approving Budget Modification No. 2425-425, increasing appropriations by $54,000,000 in the Capital Improvement Fund for the Project (420-99- 250); 3.Authorize the City Manager to undertake a design-build project delivery method for the Project; 4.Adopt Resolution No. 25-XXX approving the procurement of a design-build contract for the Project. Tonight’s Subject & Recommended Action Thank You!