HomeMy WebLinkAboutEmergency Item - Proposed Delay in Employee Clinic RelocationAGENDA ITEM COVER SHEET
Meeting Date: March 19, 2019
Item #�V���
Reviewed By:
Contact Name: Jack A. Butler Department Director:
Contact Number: 407-554-7063 City Manager:
Subject: Proposed delay in Employee Clinic relocation.
Background Summary:
The City must soon replace its existing City Hall due to structural integrity issues. The work to construct a
new City Hall has started with pre -construction services by the design -build firm of Wharton -Smith.
Construction is expected to start July 1, 2019. Based on the existing conceptual design included in the
design criteria package created by Zyscovich and the initial design submission from Wharton -Smith, the
Employee Clinic is within the footprint of construction for the new City Hall. It is also being impacted by
reconstruction of Oakland Avenue as part of the Lakefront Park Improvements — Phase 1 project, the
design of which anticipates removal of the existing Clinic building. These capital projects meant the Clinic
had to be relocated prior to July 1. The new location selected was the west end of the City Hall Annex —
an area presently occupied by the City's Human Resources Department. This department will be housed
in the new City Hall, but would have to be relocated to the east end of the Annex until then.
Using the normal task order process, City staff solicited price proposals from pre -qualified companies.
Only one of those companies, BASE Construction, submitted a bid of $473,000. This bid was not
accepted, as it exceeded the $200,000 statutory limit for such continuing services contracts. Staff
subsequently sought a price proposal from Hembree Construction, Inc., a construction company with
extensive experience building commercial medical offices, which provided an initial proposal of
$370,884.32; however, there were several exclusions from the proposal, such as bonds and insurance,
which are required elements of the eventual agreement. The bid also excluded remodeling needed to
relocate the HR Department. The City Commission voted on March 5, 2019 to accept this initial proposal,
with authority for the staff to continue negotiations and for the Mayor to execute an agreement for up to
$400,000. The final price proposal exceeded this limit.
At the same time, adverse soil conditions were discovered in the area where the underground
stormwater treatment facility was to be constructed for the Lakefront Park Improvements project. The
cost impact of having to redesign the stormwater system and make changes to the construction effort is
presently unknown. Staff is also well aware that the current high -cost construction market imparts
upward price pressures on all Downtown Redevelopment projects. As a result, staff proposes that the
Employee Clinic remain in its present location and the footprint of the future City Hall accommodate the
facility. The Clinic may be modified to be externally consistent with other City facilities in the area or
relocated after City Hall construction has been completed.
Issue:
Should the City keep the Employee Clinic at its present location and accommodate the facility with the
design of the future City Hall?
Recommendation:
Staff has concluded that the cost of relocating the Employee Clinic, and the related prior relocation of the
Human Resources Department and City Commissioner offices in order to provide the space needed to
accommodate the Clinic in the City Hall Annex, has exceeded its value to the overall development of the
site. Staff is also concerned about the potential need for the funds allocated to the Clinic Relocation
project being needed for more critical capital projects. Accordingly, staff recommends that the City
Commission:
(1) Retain the Employee Clinic in its current location;
(2) Notify Wharton -Smith that the design proposed for the future City Hall needs to accommodate the
Clinic in its current location; and
(3) Retain the remaining Employee Clinic Relocation budget (about $60,000) in the project for future
work related to facility modifications or relocation.
Attachments:
None.
Financial Impact:
Eliminating funds for the Clinic Relocation project will allow that budget to be used for other, more critical
capital projects in the Downtown area and reduce the risk to those other projects from any unforeseen
contingencies and market pricing pressures.
Type of Item: (please mark with an 'Sc')
Public Hearing
For Clerk's Dent Use:
Ordinance First Reading
Consent Agenda
Ordinance Second Reading
Public Hearing
Resolution
Regular Agenda
x Commission Approval
Discussion & Direction
_ Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by Q N/A