RESOURCE MANAGEMENT AGENCY – H. MAVROGENES

Approve additional change order authority for RMA Director in the amount of $720,000.00 or approximately (3) three percent of the contract total for the construction of the Jail Expansion Project. Approve a budget amendment transferring $300,000 of Jail Impact fees to the capital improvement fund and a capital budget amendment increasing appropriations on the Jail Expansion project by $500,000. (4/5 vote)

SBC FILE NUMBER: 120.5

The Jail Expansion project has been under construction for nearly 23 months and has approximately one month remaining. At the time of contract award, the Board delegated change order authority to the RMA Director in the amount of $210,000, or approximately 1% of the total construction cost of $20,139,852. That amount was increased by the board at the September 11, 2018 meeting to $630,000.  That amount has been exhausted and staff is requesting an additional change order authority in the amount of $720,000.

Staff is requesting board approval of an additional $720,000 (approximately 3.5%) in additional delegated change order authority for the RMA Director.  Taking this action allows staff to get the project completed and closed out.

Seven change orders have been approved by staff thus far (Change Order 1 was approved by the Board at time of contract award for purchasing insurance in the amount of $390,000): Change Order 2 included 20 items with an extra cost of $145,157.46 and credits of $55,564.16, for a net extra cost of $89,593.30. Change Order 3 included 16 items with an extra cost of $103,883.26 and credits of $1,624.51 for a net extra cost of $105,507.77.  Change Order 4 included 9 items with an extra cost of $48,800.  Change Order 5 included 12 items with an extra cost of $234,515 and credits of $16,074 for a net extra cost of $218,441.  Change Order 6 includes a total of 10 items with an extra cost of $125,421.  Change Order 7 includes 11 items with an extra cost of $113,251.  Change Order 8, which is still pending, includes 21 items with an extra cost of $88,462.  Change Order 9, which is still pending, includes 10 items and is forecasted to be an extra of $170,000.  The total change order amount is forecasted to be $1,350,000 or 6.7%.

The overall project budget for the Jail Expansion is $25,167,532. With the requested change order authorization amount of $720,000, the overall  project budget will require additional appropriations of approximately $294,000.  Without the addition of $390,000 for insurance, which was part of Change Order #1, the overall project would be under the budgeted amount. The current jail budget update with all previous amendments approved by the Board of Supervisors is attached hereto.

Additionally, it is recommended that the board increase appropriations in the FY19/20 capital budget for $500,000. At the FY19/20 budget hearings the board adopted a project budget for the jail expansion project in the amount of $2,000,000 for the current fiscal year (19/20). This amount should have included an additional projected cost of $200,000 at the time of the adoption for a total project amount of $2,200,000. Due to this error, and the revision in projected total costs, a capital budget amendment is recommended for FY19/20 bringing the total projected costs to $2,500,000.

The $500,000 appropriations increase will be covered by fund balance currently held in the Capital Improvement Fund ($200,000) and Jail/Juv Hall Impact Fees ($300,000). The Capital Improvement Fund balance holds the Certificates of Participation financing revenue that was received in FY18/19.

Staff respectfully recommends that the Board:

1. Approve additional change order authority for the RMA Director in the amount of $720,000.00 or approximately 3.5% of the contract total for the construction of the Jail Expansion Project. (4/5 vote)
2. Approve a budget amendment transferring $300,000 of Jail Impact fees to the capital improvement fund and a capital budget amendment increasing appropriations on the Jail Expansion project by $500,000. (4/5 vote)