HomeMy WebLinkAboutORD-2019-039 Budget Amendment #2-C – Approval of an Intermediate Budget for the Link Government Services Center Remediation Project
ORD-2019-039
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 7, 2019
Action Agenda
Item No. 8-g
SUBJECT: Budget Amendment #2-C – Approval of an Intermediate Budget for the Link
Government Services Center Remediation Project
DEPARTMENT: County Manager
ATTACHMENT(S):
INFORMATION CONTACT:
Travis Myren, 919-245-2308
Steve Arndt, 919-245-2658
Gary Donaldson, 919-245-2453
PURPOSE: To approve a budget amendment totaling $975,000 to fund an intermediate budget
for the Link Government Services Center Remediation Project. The intermediate budget would
fund the temporary relocation of building occupants while a final project scope is approved and
completed.
BACKGROUND: The Link Government Services Center has experienced long term water
infiltration into the building envelope. A remediation project has been planned, and the project
has been let for bid twice. The first set of bids was deemed non-responsive because the
apparent low bidder declined to share information with the County that would have been
necessary to complete a comprehensive analysis of the bid. As a result, all bids were rejected
on September 5, 2019, and the bid specifications were modified to require the missing
information as a condition of the bid.
The second set of bids was received on September 25, 2019. However, these bids were also
rejected to afford the apparent low bidder an opportunity to establish a joint venture as a way to
comply with the bid requirements.
On October 20, 2019, moderate rainfall occurred at the Link Center and resulted in visible
quantities of water penetrating the interior of the building. During this same time, indoor air
quality tests began to indicate higher levels of biological contaminants compared to identical
tests taken throughout the prior year. These changing conditions warranted a root cause
analysis to confirm that the scope of the remediation project would correct the deficiencies that
were allowing the additional water penetration.
On October 24, 2019, an architect and building engineer performed a series of investigative
demolition cuts into the building’s cavity wall. According to the architect’s report, these cuts
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revealed, “…a critical element of the building envelope, the continuous sheathing, was in fact,
not continuous.” The architect and engineer further reported that, “The breeches were irregular
enough to confidently say that a contractor would not be able to find all breeches and seal them
to prevent future water intrusion without removing all of the brick and cast stone.” The scope of
the current remediation project that was bid on two previous occasions does not include this
additional scope of work which would add to the projected cost and duration of the project and
may approach the cost and duration of new construction.
The architect who is contracted to work on the Link Remediation Project is scheduled to present
findings to the Board of Commissioners at the November 19, 2019 meeting. At that time, the
architect will also present options to proceed, including the probable costs and duration for each
option.
As these options are evaluated and implemented, both an industrial hygienist and an
occupational health professional who have been working with the County on this project have
advised relocating the building occupants on a short but reasonable timeline.
Budget Amendment #2-C provides an intermediate budget of $975,000 to relocate the Link
Government Services Center building occupants for the remainder of FY 2019-20. Of this total
amount, $127,000 in PAYGO funds will be redirected from two projects in the FY2019-20
Capital Budget to the Asset Management Services operating budget to fund operational costs
related to rent, utilities, and maintenance. These capital projects will now be funded with debt
proceeds.
The remaining remediation related costs of $848,000 will be budgeted in the Link Center
Remediation Capital Project. This increase will be debt financed. Additional funds needed
beyond FY 2019-20 will be included in future fiscal year budget appropriations.
Upon approval of this budget amendment, the current Link Center occupants will be relocated to
four different locations:
• The Public Defender’s Office is being relocated to a leased building at 115 E. King Street.
• Finance and Administrative Services, Public Affairs, the Arts Commission Director, and
the Risk Manager will be relocated to a leased facility at 405 Meadowlands Drive.
• The Homeless Services Coordinator will move to existing office space in the Housing and
Community Development Department.
• The remaining occupants, the County Manager’s Office and the Clerk’s Office, will move
to the Whitted Building.
The leased facilities and the Whitted facility will be modified to accommodate a long term
relocation.
This budget amendment amends the following Link Center Remediation Capital Project, as well
as the Court Street Annex and Equipment & Vehicles Capital Project Ordinances:
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Link Center Remediation Capital Project ($848,000) - Project #10069
Revenues for this project:
Current
FY 2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Alternative Financing $178,000 $848,000 $1,026,000
Total Project Funding $178,000 $848,000 $1,026,000
Appropriated for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Professional Services $117,000 $110,000 $227,000
Construction $61,000 $738,000 $799,000
Total Costs $178,000 $848,000 $1,026,000
Court Street Annex Capital Project - Project #10004
Revenues for this project:
Current
FY 2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Alternative Financing $168,600 $20,000 $188,600
From General Fund $20,000 ($20,000) $0
Total Project Funding $188,600 $0 $188,600
Appropriated for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Professional Services $17,500 $0 $17,500
Equipment $46,100 $0 $46,100
Construction $125,000 $0 $125,000
Total Costs $188,600 $0 $188,600
Equipment & Vehicles Capital Project - Project #30010
Revenues for this project:
Current
FY 2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Alternative Financing $2,083,423 $107,000 $2,190,423
From General Fund $107,000 ($107,000) $0
NCDOT Funds $349,627 $349,627
Total Project Funding $2,540,050 $0 $2,540,050
Appropriated for this project:
Current FY
2019-20
FY 2019-20
Amendment
FY 2019-20
Revised
Vehicles $2,540,050 $0 $2,540,050
Total Costs $2,540,050 $0 $2,540,050
FINANCIAL IMPACT: This budget amendment would add $848,000 to the FY2019-20 Capital
Budget, and move $127,000 from the Transfer to County Capital function of the FY 2019-20
General Fund to the Asset Management Services Budget as an intermediate step toward a full
remediation of the Link Government Services Center. The intermediate budget would fund the
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temporary relocation of building occupants for FY 2019-20 while a final project scope is
approved and completed.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal
impacts are applicable to this item
• RESULTANT IMPACT ON NATURAL RESOURCES AND AIR QUALITY
Assess and where possible mitigate adverse impacts created to the natural resources of
the site and adjoining area. Minimize production of greenhouse gases.
• ENVIRONMENTALLY PREFERABLE PURCHASING
Promote the use of chemicals, materials, equipment, and systems which are officially
recognized as to minimize environmental impacts.
RECOMMENDATION(S): The Manager recommends that the Board approve Budget
Amendment #2-C, authorize the County Manager to execute a lease for 405 Meadowlands
Drive, and ratify the Manager’s signature for a lease for 115 East King Street.
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