HomeMy WebLinkAboutAgenda Packet - October 21, 1996 - CC ® OF AZUSA
7
Finance Department *213 E. Foothill Blvd. *P.O. Box 1395*Azusa, CA 91702-1395
Tel : (818) 912-5203 *FAX(818)334-6358
AGENDA ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: GEOFF CRAIG, DIRECTOR OF FINANC
VIA: HENRY GARCIA, CITY ADMINISTRATO'
DATE: OCTOBER 16, 1996
SUBJECT: APPRAISAL OF CITY'S COLLATERAL - PUBLIC SAFETY CENTER
Background
One of the requirements for obtaining the financing for the new Azusa Public Safety Center is that
the City provide a "bank" appraisal of its collateral. This report recommends that Council
authorize placing the order for such an appraisal from Timothy E. Long, Real Estate Appraiser
and Consultant, of Modesto, California, in the amount of$6,000.
Findings
One of the requirements for obtaining financing for the new Azusa Public Safety Center is that
the City provides an appraisal of its collateral that conforms to the Financial Institutions Reform,
Recovery and Enforcement Act (FIRREA).
Congress enacted FIRREA in 1989 to "bail out" the savings and loan industry. FIRREA created
the Office of Thrift Supervision (OTS) under the Treasury Department. The OTS was charged
with assuming the functions of the defunct Federal Home Loan Bank Board (FHLBB) and
supervising all federal and state savings and loan associations. FIRREA also set up the Resolution
Trust Corporation (RTC) to dispose of the assets of insolvent thrift institutions.
4.00// /3/4/*‘
;67 h9t
Honorable Mayor and Members of the City Council
October 16, 1996
Page 2
The Appraisal Subcommittee implements Title XI of FIRREA, which mandates state certification
and/or licensing of appraisers who perform assignments for Federal Financial Institutions
Regulatory Agencies (FFIRA) and for all federal and state savings and loan institutions. The
Uniform Standards of Professional Appraisal Practice (USPAP) are the current standards of the
appraisal profession, developed for appraisers and the users of appraisal services by the Appraisal
Standards Board of The Appraisal Foundation. They set forth the procedures to be followed in
developing an appraisal, analysis or opinion and the manner in which an appraisal, analysis or
opinion is communicated. They are endorsed by the Appraisal Institute and by other professional
appraisal organizations.
The City appraises its assets every three years on the basis of Generally Accepted Accounting
Principles (GAAP), However, inasmuch as an FIRREA, or "bank" appraisal of the City's assets
is seldom needed, it is more economical to procure it only on an "as needed" basis. For the
Azusa Public Safety Center, the appraisal will include the existing Police facility and the two
vacant lots adjacent to it (north and south).
Staff contacted two firms that are qualified to perform appraisals under the above standards.
American Appraisal Associates quoted a cost of$18,000 and a time period of 6-8 weeks to start
the work, followed by another 6-8 weeks to receive the results. This is costly and does not meet
the City's time line. By comparison, the firm of Timothy E. Long, Modesto, California, quoted
a fee for the appraisal of $6,000 with delivery by November 8, 1996. Mr. Long recently
completed a similar assignment for the City of Turlock and is highly recommended. Staff
suggests that Council place an order with Mr. Long.
The expenditure will be booked in FY 1996-97 account# 220-401-2200-7120 Project 650900 and
reimbursement will be requested from the proceeds of the fmancing.
Recommendation
Staff recommends that Council pass the attached Resolution placing an order with Timothy E.
Long of Modesto, California, for the preparation of an appraisal of the City's collateral for the
funding of the new Azusa Public Safety Center at a cost of$6,000 with delivery by November 8,
1996.
Attachment:
GJC:pap
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AZUSA WAIVING FORMAL SEALED BIDDING AND
AUTHORIZING ISSUANCE OF AN ORDER TO TIMOTHY E.
LONG, REAL ESTATE APPRAISER AND CONSULTANT, FOR
APPRAISAL OF CITY'S COLLATERAL IN FUNDING OF THE
AZUSA PUBLIC SAFETY CENTER
WHEREAS, Section 2-537 of the Azusa Municipal Code requires City purchases over the amount
of$5,000 to be awarded to the lowest responsible bidder after notice, and
WHEREAS, Section 2-536 of the Azusa Municipal Code allows the City Council to waive formal
"sealed"bidding upon finding that the process would be expedited by dispensing with them, and
WHEREAS,one of the requirements for obtaining the financing for the new Azusa Public Safety
Center is that the City must provide an appraisal of its collateral that conforms to FIRREA standards,
and
WHEREAS,time is of the essence in the financing of the new Azusa Public Safety Center inasmuch
as the transaction involves interest rates which may be subject to change at any time, and
WHEREAS,by soliciting telephone quotations from qualified appraisers,the City will clearly have
complied with the intent of Section 2-536 of the Azusa Municipal Code, even though formal
"sealed"bids will not have been solicited.
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
FIND AS FOLLOWS:
Section 1. That the formal "sealed" bidding process is waived, and
Section 2. That a Purchase Order for the preparation of an appraisal of the City's
collateral necessary for the funding of the new Azusa Public Safety Center be placed
with the firm of Timothy E. Long of Modesto, California, for the sum of$6,000.
PASSED,APPROVED AND ADOPTED this day of , 1996.
MAYOR
I HEREBY CERTIFY that the foregoing Resolution No. was duly adopted by
the City Council of the City of Azusa, at a regular meeting thereof,held on the day of
1996 by the following vote of the Council.
A ITE,C. TTU!`TT ANC TiAl2LDC.
v.47;. .
IIMEINI 0 OF AZUSA
Finance Department*213 E. Foothill Blvd. *P.O. Box 1395 *Azusa, CA 91702-1395
Tel : (818) 912-5203 *FAX(818)334-6358
AGENDA ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOHN BRODERICK, CHIEF OF POLIC rep
GEOFF CRAIG, DIRECTOR OF FINANC G'
VIA: HENRY GARCIA, CITY ADMINISTRATOR 44
DATE: OCTOBER 15, 1996
SUBJECT: ARCHITECTURAL AND ENGINEERING FEES FOR
AZUSA PUBLIC SAFETY CENTER
Background
Over the summer months, Council conducted workshops with the result that the scope, features,
construction timetable and financing plan for the new Azusa Public Safety Center have been
clearly defined and approved. As the City progresses towards final preparation of the plans and
specifications, one important step is to increase the order to WMM Associates, project architects,
to exactly coincide with the final scope of the project. The amount of the increase is $93,000.
Findings
On July 13, 1994 the City entered into a contract with WMM Associates, Los Angeles, for the
provision of architectural and engineering consulting services for the Azusa Police facility
extension and alteration. Over the two years that have passed since the contract was signed,
WMM has been of great assistance to the City, not only in the field of standard design and
engineering, but in identifying and suggesting solutions to problems that would have arisen during
the course of construction. A brief list of these areas is given below:
• Structure of the Light and Water Building : The existing facility is in poor condition
for resistance against seismic activity. The facility requires an upgrade to the roof
structure and wall structure in order to better transfer lateral loads from the roof
diaphragm to the ground.
.. 4a/e3(/Z / M//
e. •
F
•
Honorable Mayor and Members of the City Council
October 15, 1996
Page 2
• Relocation and Design of the new Communications Center : The existing
Communications Center was an addition to the Police facility and was not designed to meet
the Essential Service Requirements in the State of California. The center is planned to be
relocated into the new portion of the facility in order for the center to meet the current
code requirements.
• Both buildings require complete new roofing and roofing design since the existing roof
cannot be repaired because of its extremely poor condition, changes in roof mounted
equipment from the original design are needed.
• Air conditioning for the Light and Water Building : The existing air conditioning for
the Light and Water building is old and new systems must be designed to provide better
maintenance and better life-cycle costing.
• Fire Rating for the existing corridors and doors : The existing corridors must be
redesigned and repaired in order to provide Fire Ratings.
• Fire Sprinkler Systems : There was no fire sprinkler system for the existing Light and
Water Building. A new system needs to be designed to connect to the existing Police
Facility basement system.
• New Emergency Generator, Fuel Storage and Electrical Connections : The existing
system is not reliable and is not large enough to accommodate the required load of the new
facility.
• New Elevator required by ADA : The basement must be accessible to the Handicapped.
Several possible solutions were reviewed and the installation of a new interior elevator
shaft was selected in order to save total cost.
• Additional exterior finishes (Bullet Resistance) : Specific areas of the exterior face of
the facility need modifications for bullet resistance.
• Additional Interior Partitions for the Light and Water building : Partitions will be
redesigned and relocated for a more efficient use of the spaces.
Honorable Mayor and Members of the City Council
October 15, 1996
Page 3
• Changes to the existing Booking Areas for Prisoners : The existing prisoner booking
area is too small and does create some question regarding officer safety. The space will
be redesigned to provide for handling of more prisoners and better security for all
involved.
• Plumbing additions to the Light and Water building : The plumbing for the facility
must be redesigned to accommodate the handicapped and a more efficient layout.
• Installation of new ductwork and HVAC equipment for the existing Police Facility
and the Light and Water Building : New ductwork design will route the air conditioning
systems more efficiently through the facility. Existing ducts will be cleaned and repaired
as much as possible.
• New Electrical Services for both facilities : The existing service for each facility is not
large enough to handle the new facility design. The Light and Water facility is also of an
odd service that does not correspond to that of the existing Police facility. The Light and
Water system must be removed and the Police facility must be "back-fed" in order to be
serviceable.
• Renovation of the Firing Range Mechanical Systems : The existing firing range has very
poor air circulation due to poor initial design and construction techniques. The existing
equipment will be re-used and a new distribution system will be provided.
The increased scope of work precisely coincides with the project description as presented to
Council on July 21 of this year. It is reassuring to note that, despite the increase, WMM has
provided the following items at no charge to the City:
1. Needs Assessment Services. The estimated fee savings for this is approximately $25,000
to $30,000. Traditionally, this is not part of the standard scope of services.
2. Information and assistance on "pre-qualification" of General Contractors. The fee savings
for this service is estimated to be $7,500.
3. Credit is being given for work done on items in the original scope of work that have now
included in the expanded scope of work; this credit is $20,900.
4. Introducing the City of Azusa to the Office of the State Architect for the possibility of
receiving a grant for the amount of$500,000.
Honorable Mayor and Members of the City Council
October 15, 1996
Page 4
Overall, staff considers the work of WMM Associates to be of very good value to the City of
Azusa and is recommending approval of the $93,000 increase. The funds for this project are
budgeted in FY 1996-97 account # 220-401-2200-7120 Project 650900.
Recommendation
Staff recommends that Council pass the attached Resolution waiving formal "sealed" bidding and
ordering the procurement of additional architectural/engineering consulting services from the firm
of WMM Associates be increased from $186,000 to $279,000, an increase of$93,000.
GJC:pap
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AZUSA WAIVING FORMAL SEALED BIDDING AND
AUTHORIZING ADDITIONAL ARCHITECTURAL/ENGINEERING
CONSULTING SERVICES FROM WMM ASSOCIATES
WHEREAS, Section 2-537 of the Azusa Municipal Code requires City purchases over the amount
of$5,000 to be awarded to the lowest responsible bidder after notice, and
WHEREAS, Section 2-536 of the Azusa Municipal Code allows the City Council to waive formal
"sealed" bidding upon finding that the process would be expedited by dispensing with them, and
WHEREAS, on July 13, 1994 the City entered into a contract with WMM Associates for the
provision of architectural and engineering consulting services for the Azusa Public Safety Center
extension and alteration,at which time the City had complied with the intent of Section 2-536 of the
Azusa Municipal Code, and
WHEREAS, during the course of preparing the plans and specifications for the project, WMM
Associates have been of great assistance to the City in identifying various underlying building
conditions that could have led to costly construction change orders in the field, if not dealt with in
advance, and
WHEREAS, it has become necessary for the original contract to be increased by $93,000 in order
to include the identified items in the scope of the project,
NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
FIND AS FOLLOWS:
Section 1. That the formal "sealed" bidding process is waived, and
Section 2. That a Purchase Order for the increase of$93,000 for architectural and
engineering consulting services be authorized and issued to WMM Associates of Los
Angeles.
PASSED,APPROVED AND ADOPTED this day of , 1996.
MAYOR
I HEREBY CERTIFY that the foregoing Resolution No. was duly adopted by
the City Council of the City of Azusa, at a regular meeting thereof, held on the day of
1996 by the following vote of the Council.
AYES: COUNCIL MEMBERS:
i li i i i i i i i i i i i i i i i i i
4AZUSAC;4
CITY OFrity c?/ 71/(14-a
`"° '
� Public Safety Facility Construction Projects
�" CITY OF
i ?AZUSAV�
h/e,,inieshimer New Connecting Library Safety Subtotal Subject Former Light& Total
Public Stfett' Center Police Departunent Building Renovation to Financing II'ater Building Schedule
Building
Architect Estinialed Construction Cost $892,500 $1,350,000 • $2,242,500 $757,500 $3,000,404
Firing Range Renovation 200,000 200,000 200,000
IIVAC Rtcplacenient 200,000 0 200,000 200,000
Contingency at 20% 258,500 270,000 528,50(1 151,500 680,0(10
Citywalk Passageway 250.000 250,000 250,000 t
Total Estimated Cost with Contingency 1,551,000 1,870,000 0 3,421,00() 909,000 4,330,000
Architects Fees at 10.0% 155,100 155,100 90,900 246,000
Architects Fees at 8.5% 158,95(1 158,950 158,950 .
Total Estimated Architect bees 155,100 158,950 0 314,050 • 90,900 /Ib4'
Already Expended:.Engr., Legal & Misc Fees 104,621 104,621 104,621
Parking Lot Acquisition 165,00(1 165,000 165,000
Conwrunications Center Equipment 900,000, 900,000 900,000
'total Public Safety Center Estimated Cost 1,975,721 2,928,950 0 4,904,671 999,900 5,904,571
I.ibrnuy Safety Renovations
Phase 1I (FEMA & City Match) $498,500 $498,5(10 498,500
'total Project Cost $1,975321 $2,928,950 '$498,500 $5,403,171 $999:900 $6,403,071