07.03 Fire Station Headquarters ProjectAGENDA ITEM
January 8, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager A
FROM: Christopher Cash, Public Works Director,
Doug Fackiner, Fire Chief Cf`'5;'
Will Kolbow, Administrative Services Director �/:,�Zl.�✓
REVIEW: City ManagV2 Finance
1. SUBJECT
Authorization to Request Proposals for project management and design of Fire Station
Headquarters project.
2. SUMMARY
Public Works and Fire Department staff reviewed the previous conceptual space needs
study conducted in 2008 for the Fire Station Headquarter project. Based on this study,
the anticipated need for both Fire Station 1 and Headquarters uses is approximately
29,000 square feet. City staff has prepared advertising documents for the design of Fire
Station No. 1 and Headquarters. The total design program cost is estimated at
$2,540,000.
3. RECOMMENDED ACTION
Authorize Request for Proposals for project management and architectural and
engineering of the Fire Station Headquarters project.
4. FISCAL IMPACT
The total expenditure for project management and design is anticipated to be $2,540,000
and will be funded in Fire Station 1 (Project 20400) through MERGED 2008 TAX EXEMPT
— Design (954)
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
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6. DISCUSSION AND BACKGROUND
Introduction
The City's current fire station facility is both a Fire Headquarters and Fire Station 1, which
serves the portion of the city within a two-mile radius of the Old Towne Plaza. The building
was originally constructed in 1969. Over the years as the city expanded, so did the Fire
Department's staff, eventually outgrowing the current Fire Headquarters.
Project Overview
As a result of the impact of the 1994 Northridge earthquake, the City in 1997
commissioned an assessment of the Fire Headquarters to determine current code
requirements. That study showed that the Fire Headquarters was seismically deficient
and would suffer significant damage under the current code design basis seismic event.
In 1999, the City proceeded with the design of a major retrofit and renovation of the Fire
Headquarters which would have brought it into compliance with the code at that time and
would have also allowed the Fire Marshall's staff to relocate back into the building from
an adjoining portable building. The design was completed and the construction
documents put out to bid. The bids received turned out to be higher than anticipated at
which point the City decided to re-evaluate its approach with regards to upgrading the
Fire Headquarters to accommodate current needs and building codes. In 2008, the City
began the process for the design of the new Fire Station No. 1 and headquarters,
consultants were brought on board, however, shortly thereafter an economic recession
began and the City put the project on hold until present time.
The City is now exploring options to build a new Fire Station No. 1 and Headquarters on
City -owned property at the southeast corner of the intersection of Water Street and
Chapman Avenue, at 105 South Water Street. This new facility will be designed to
accommodate both Fire Station 1 and Fire Headquarters. Fire Headquarters is comprised
of Fire Department management, operations, administration, and Fire Marshal staff. The
project will be designed to allow Fire Station No. 1 and the Headquarters component to
be constructed as a single phase, or to allow the Headquarters component to be
constructed in a separate, later phase. The decision on the approach to construction
phasing will be based on the availability of funding.
Due to the magnitude and importance of the project, staff will request proposals for project
management, with expertise in Fire Station facilities prior to the request for proposal for
design. The project management team will assist the City in selecting and managing the
design team. The contract agreement for project management will be structured in such
a way that they will be retained through the development of the design with the option to
continue into the construction phase.
Public Works and Fire Department staff reviewed the previous conceptual space needs
study conducted in 2008. Based on the previous space study and an evaluation of current
and future needs, the anticipated need for both Fire Station No. 1 and Headquarters uses
is approximately 29,000 square feet, with 20,000 square feet for the Fire Station No. 1
and 9,000 square feet for Fire Administration. Fire Station No. 1 footprint will be larger
than a typical fire station since it will function as a central facility for storage of supplies,
maintenance equipment, and holding of numerous apparatus. In addition to storage of
essential equipment, the station will provide room for training facilities for Fire staff. The
existing Fire Station No. 1 and Headquarters is approximately 24,000 square feet. While
the proposed Fire Station No. 1 and Headquarters have approximately the same amount
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of space dedicated to Headquarters as the existing Headquarters space, the proposed
Fire Station No. 1 would be larger as the station would expand from a three bay to four
bay apparatus floor. This need for additional space makes it difficult to consider the
remodeling approach previously explored, as the existing site provides significant
constraints in order to accommodate the additional apparatus bay.
Cost Estimates
City staff has researched building costs for recently completed fire stations in both Orange
and Los Angeles County cities. It should be noted that the building areas of the
comparable facilities are smaller than what this project is proposing, however the Fire
Station component of the project is comparable. Based on the available information, staff
has determined that the construction cost of $700 dollars per square foot would be a
reasonable assumption for budgeting purposes.
A summary table of construction costs is shown below.
Station
Bid Date
Building
Area
Bid Amount
Cost/
SF
Buena Park Station No. 61
May 2, 2017
18,000
$14,000,000
778 -
Anaheim Station No. 5
September 27, 2019
9,500
$5,400,000
568
Newport Beach Station No. 5 -
February 8, 2018
10,314
$6,389;186
619
Los Angeles Station No. 39
February 22, 2017
18,500
$14,500,000
784
Costa Mesa Station No. 1
November 1, 2016
11,920
$6,867,000
576
The total estimated design cost for the Fire Station Headquarters project is $2.5 million
assuming a $700 dollars per square foot construction cost. The design cost includes
architecture and engineering (A&E) design fee, administrative review, and project
management.
The current schedule anticipates the design phase to be completed by December 2020,
at which time funding for construction will need to be secured. Staff has projected
construction cost to be in the range of $25.3 million to $27 million to build Fire Station 1
and Headquarters as a single project. Staff will include provisions in the design Request
for Proposals (RFP) that provide for the phased construction of Fire Station 1 and
Headquarters. Under this scenario, the City could construct Fire Station 1 first, and then
build the Headquarters component of the building at a later date. We anticipate that
construction costs for Fire Station 1 alone would be in the range of $17.5 million to $18.7
million. The phasing of the two parts of the project would allow for less of an initial
investment in the project however, phasing does not lower the overall cost of the project
and could result in additional costs if construction prices rise or there is a need to make
code revisions to the plans at the time of construction. The upper range of prices
considers the assumption that construction cost will continue to rise at a rate of 3.4% as
published by the Engineering News Record, October 15, 2018. The projected cost
includes contingencies, construction engineering, permitting, furniture, fixtures, and
equipment.
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A summary table of total project costs is shown below.
Fire Station No. 1 and Headquarters
$/sf
Total
29,000 Square Feet
$700
$20,300,000
Description of Cost
% of Cost
Construction Contingency
12%
$2,436,000
Construction Management
10%
$2,030,000
Other Permits, Fees, Legal)
1%
$203,000
Furniture, Fixtures and Equipment FF&E
1.5-2%
$350,000
Sub -Total Construction Costs $25,319,000
A/E Fee
8%
$1,624,000
Admin Review
1.5%
$304,500
Project Management
3%
$609,000
Sub -Total Design Costs $2,537,500
TOTAL PROJECT COST 1 $27,856,600
Financing the Project
Staff has identified several potential sources to fund the design and construction of the
station. These include available bond proceeds from the Successor Agency to the Orange
Redevelopment Agency (SAORA), Fire Facilities Fees, and the General Capital Projects
Fund. Below is a summary of funds currently available:
Fund
Amount Available
SAORA Bond Proceeds
$6,325,000
Fire Facility Fees
1,730,000
Capital Projects Fund
8,500,000
TOTAL
$16,556,000
NOTE: $1,000,000 in the SAORA Bond Proceeds has already been appropriated to this project and is
included in the above figures.
Other existing City financing sources could potentially be available for the project.
However, these are reserve funds and staff would advise against using reserves that are
designated for other purposes. Further, due to other infrastructure needs, staff would not
recommend using all of the available funds in the Capital Projects Fund.
To cover the shortfall in funding, staff has been exploring grant opportunities and use the
funding sources above for any required local matches. However, nothing has been
identified, but staff continues to assess opportunities. As such, staff has explored the
possibility of debt financing in order to pay the difference. Under the assumption that the
City would utilize a total of $10 million in available funds, including all design work, and
the current Construction Cost Index indicates that construction costs are increasing at a
rate of 3.4% annually, there would be a need to borrow approximately $21 million. Rates
for A -rated municipal bonds are currently at 3.5%. This would result in a 30-year debt
service of approximately $1.2 million per year. Anticipated rate hikes by the Fed could
put rates to as high as 5% by the time construction would start, in which case annual debt
service would increase to $1.4 million. Since the proceeds will be used to pay for a fire
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station, future fire facilities fees could be used to pay a portion of the debt service, with
the General Fund or Capital Projects Fund making up the difference. In order to increase
the amount of fire facilities fees available for future debt service, the City Council should
consider amending the developer impact fee schedule. Fire facilties fees, like police, park
& library facilities fees have not been updated since 2003. These fees have not been
adjusted for the increased cost of construction or general inflation. There are other
financing options that can be explored, including a public private partnership.
As stated above, $1 million has been appropriated for this project. Upon receipt of
proposals, staff will return to the City Council and recommend additional appropriations
and award of contract based on the outcome of the proposals.
Options and Recommendations
1. Issue an RFP for Project Management and Design Services
2. Continue to assess funding options during design phase, including grant and other
outside sources.
3. Consider constructing only the Fire Station No. 1 portion of the project, which could
possibly be funded with various City funds.
4. Consider proceeding with the full project scope and assess debt service options
5. Assess retrofit and remodel of the existing station to accommodate current needs
and building codes.
7. ATTACHMENTS
• None
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