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HomeMy WebLinkAboutresolution.council.087-04RESOLUTION NO.~-' Series of 2004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CONTRACT FOR IMPROVEMENTS AT THE YELLOW BRICK SCHOOL, BETWEEN THE CITY OF ASPEN AND NEWLAND PROJECT RESOURCES, INC., AND AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS,. there has been submitted to the City Council a Contract for improvements at the Yellow Brick School, between the City of Aspen and Newland Project Resources, Inc., a true and accurate copy of which is attached hereto as Exhibit NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ASPEN, COLORADO: That the City Council of the City of Aspen hereby approves that Contract for improvements at the Yellow Brick School, between the City of Aspen and Newland Project Resources., Inc., a copy of which is annexed hereto and incorporated herein, and does hereby authorize the Mayor or City Manager to execute said agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the /iiS'r''O day of~~c.~004. ~Ielen Kati~ ~-t~l~/l~rud, Mayor I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held on the day her inabove stated. rathryn S. ,~c~t~, ~iqy Clerk TLO- saved: 8/31/2004-250-G:\tara\Resos\Yellow Brick.doc AGREEMENT FOR PROFESSIONAL SERVICES This Agreement made and entered on the date hereinafter stated, between the CITY OF ASPEN, Colorado, ("City") and Newland Proiect Resources, Inc. , ("Professional"). For and in consideration of the mutual covenants contained herein, the parties agree as follows: 1. Scope of Work. Professional shall perform in a competent and professional manner the Scope of Work as set forth at Exhibit "A" attached hereto and by this reference incorporated herein. 2. Completion. Professional shall commence work immediately upon receipt of a written Notice to Proceed from the City and complete all phases of the Scope of Work as expeditiously as is consistent with professional skill and care and the orderly progress of the Work in a timely manner. The parties anticipate that all work pursuant to this agreement shall be completed no later than December 31, 2004. Upon request of the City, Professional shall submit, for the City's approval, a schedule for the performance of Professional's services which shall be adjusted as required as the project proceeds, and which shall include allowances for periods of time required by the City's project engineer for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This schedule, when approved by the City, shall not, except for reasonable cause, be exceeded by the Professional. · ~ 3. Payment. In consideration of the work performed, City shall pay Professional on a percentage basis for all work performed in regards to improvements in the Yellow Brick School (see attachment "B"). Professional will be compensated at a rate of 8% of project costs, except as otherwise mutually agreed to by the parties the payments made to Professional shall not initially exceed that percentage. Professional shall submit, in timely fashion, invoices for work performed. The City shall review such invoices and, if they are considered incorrect or untimely, the City shall review the matter with Professional within ten days from receipt of the Professional's bill. 4. Non-Assignabili_ty. Both parties recognize that this contract is one for personal services and cannot be transferred, assigned, or sublet by either party without prior written consent of the other. Sub-Contracting, if authorized, shall not relieve the prOfessional of any of the responsibilities or obligations under this agreement. Professional shall be and remain solely responsible to the City for the acts, errors, omissions or neglect of any subcontractors officers, agents and employees, each of whom Shall, for this purpose be deemed to be an agent or employee of the Professional to the extent of the sUbcOntract. The City shall not be obligated to pay or be liable for payment of any sums due which may be due to any sub-contractor. 5. TerminatiOn. The Professional or the City may terminate this Agreement, without specifying the reason therefor, by giving notice, in writing, addressed to the other party, speCifying the effective date of the termination. No fees shall be earned after the effective date of the PSl-971.doc Page 1 termination. Upon any termination, all finished or unfinished docUments, data, studies, surveys, drawings, maps, models, photographs, reports or other material prepared by the Professional pursuant to this Agreement shall become the property of the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for damages sustained by the City by virtue of any breach of this Agreement by the Professional, and the City may withhold any payments to the Professional for the purposes of set-off until such time as the exact amount of damages due the City from the Professional may be determined. 6. Covenant Against Contingent Fees. The Professional warrants that s/he has not employed or retained any company or person, other than a bona fide employee working for the Professional, to solicit or secure this contract, that s/he has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gifts or any other consideration contingent upon or resulting from the award or making of this contract. 7. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this agreement shall result in, or be construed as establishing an employment relationship. Professional shall be, and shall perform as, an independent Contractor who agrees to use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or servant of Professional shall be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this contract. The manner and means of conducting the work are under the sole control of Professional. None of the benefits provided by City to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Professional. Professional shall be solely and entirely responsible for its acts and for the acts of Professional's agents, employees, servants and subcontractors during the performance of this contract. Professional shall indemnify City against all liability and loss in connection with, and shall assume full responsibility for payment of all federal, state and local taxes or contributions imposed or required under unemployment insurance, social security and income tax law, with respect to Professional and/or Professional's employees engaged in the performance of the services agreed to herein. 8. Indemnification. Professional agrees to indemnify and hold harmless the City, its officers, employees, insurers, and self-insurance pool, from and against all liability, claims, and demands, on account of injury, loss, or damage, including without limitation claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever, which arise out of or are in any manner connected with this contract, if such injury, loss, or damage is caused in whole or in part by, or is claimed to be caused in whole or in part by, the act, omission, error, professional error, mistake, negligence, or other fault of the Professional, any subcontractor of the Professional, or any officer, employee, representative, or agent of the Professional or of any subcontractor of the Professional, or which arises out of any workmen's compensation claim of any employee of the Professional or of any employee of any subcontractor of the Professional. The Professional agrees to investigate, handle, respond to, and to provide defense for and defend against, any such liability, claims or demands at the sole expense of the Professional, or at the option of the City, agrees to pay the City or reimburse the City for the PS 1-971.doc Page 2 defense costs incurred by the City in connection with, any such liability, claims, or demands. If it is determined by the final judgment of a court of competent jurisdiction that such injury, loss, or damage was caused in whole or in part by the act, omission, or other fault of the City, its officers, or its employees, the City shall reimburse the Professional for the portion of the judgment attributable to such act, omission, or other fault of the City, its officers, or employees. 9. Professional's Insurance. (a) Professional agrees to procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. The Professional shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 8 above by reason of its failure to procure or maintain insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. (b) Professional shall procure and maintain, and shall cause any subcontractor of the Professional to procure and maintain, the minimum insurance coverages listed below. Such coverages shall be procured and maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. In the case of any claims- made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. (i) Workers' Compensation insurance to cover obligations imposed by applicable laws for any employee engaged in the performance of work under this contract, and Employers' Liability insurance with minimum limits of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) for each accident, FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) disease - policy limit, and FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) disease - each employee. Evidence of qualified self-insured status may be substituted for the Workers' Compensation requirements of this paragraph. (ii) Commercial General Liability insurance with minimum combined single limits of ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,000.00) aggregate. The policy shall be applicable to all premises and operations. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall contain a severability of interests provision. (iii) Comprehensive Automobile Liability insurance with minimum combined single limits for bodily injury and property damage of not less than ONE MILLION DOLLARS ($1,000,000.00) each occurrence and ONE MILLION DOLLARS ($1,000,00- 0.00) aggregate with respect to each Professional's owned, hired and non-owned vehicles assigned to or used in performance of the Scope of Work. The policy shall contain a severability of interests provision. If the Professional has no owned automobiles, the PS 1-971 .doc Page 3 requirements of this Section shall be met by each employee of the Professional providing services to the City under this contract. (iv) Professional Liability insurance with the minimum limits of ONE MILLION DOLLARS ($1,000,000) each claim and ONE MILLION DOLLARS ($1,000,000) aggregate. (c) The policy or policies required above shall be endorsed to include the City and the City's officers and employees as additional insureds. Every policy required above shall be primary insurance, and any insurance carded by the City, its officers or employees, or carded by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Professional. No additional insured endorsement to the policy required above shall contain any exclusion for bodily injury or property damage arising from completed operations. The Professional shall be solely responsible for any deductible losses under any policy required above. (d) The certificate of insurance provided by the City shall be completed by the Professional's insurance agent as evidence that policies providing the required coverages, condi- tions, and minimum limits are in full force and effect, and shall be reviewed and approved by the City prior to commencement of the contract. No other form of certificate shall be used. The certifi- cate shall identify this contract and shall provide that the coverages afforded under the policies shall not be canceled, terminated or materially changed until at least thirty (30) days prior written notice has been given to the City. (e) Failure on the part of the Professional to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of contract upon which City may immediately terminate this contract, or at its discretion City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies so paid by City shall be repaid by Professional to City upon demand, or City may offset the cost of the premiums against monies due to Professional from City. (f) City reserves the right to request and receive a certified copy of any policy and any endorsement thereto. (g) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations (presently $150,000.00 per person and $600,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10-101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. 10. Ci_ty's Insurance. The parties hereto understand that the City is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA) and as such participates in the CIRSA Property/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Finance Department and are available to Professional for inspection during normal business hours. City makes no representations whatsoever with respect to specific coverages offered by CIRSA. PS1-971 .doc Page 4 City shall provide Professional reasonable notice of any changes in its membership or participatiOn in CIRSA. 11. Completeness of Agreement. It is expressly agreed that this agreement contains the entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or written representations, agreements, warranties or promises pertaining to the project matter thereof not expressly incorporated in this writing. 12. Notice. Any written notices as called for herein may be hand delivered to the respective persons and/or addresses listed below or mailed by Certified mail return receipt requested, to: City: City Manager City of Aspen 130 South Galena Street Aspen, Colorado 81611 Professional: Street Address. ~k'l City, State & Zip Code 13. Non-Discrimination. No discrimination because of race, color, creed, sex, marital status, affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or religion shall be made in the employment of persons to perform services under this contract. Professional agrees to meet all of the requirements of City's municipal code, Section 13-98, pertaining to non-discrimination in employment. 14. Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be waived except by the written consent of the City, and forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver of any term, covenant, or condition to be performed by Professional to which the same may apply and, until complete performance by Professional of said term, covenant or condition, the City shall be entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or indulgence. 15. Execution of Agreement by City. This agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. Notwith- standing anything to the contrary contained herein, this agreement shall not be binding upon the City unless duly executed by the Mayor of the City of Aspen (or a duly authorized official in his absence) following a Motion or Resolution of the Council of the City of Aspen authorizing the Mayor (or a duly authorized official in his absence) to execute the same. 16. General Terms. PS1-971.doc Page 5 (a) It is agreed that neither this agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. (b) If any of the provisions of this agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. (c) The parties acknowledge and understand that there are no conditions or limitations to this understanding except those as contained herein at the time of the execution hereof and that after execution no alteration, change or modification shall be made except upon a writing signed by the parties. (d) This agreement shall be governed by the laws of the State of Colorado as from time to time in effect. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in three copies each of which shall be deemed an original on the date hereinafter written. [SIGNATURES ON FOLLOWING PAGE] ATTESTED BY: CITY OF ASPEN, COLORADO: Title: /~-- ~__-A~ ate: Ol /Oq PS1-971.doc Page 6 WITNESSED BY: By: Title: Date: PS 1-971.doc Page 7 SCOPE OF WORK L Construction Management Compensation: Submission shall include a proposal as to the percentage of the project or flat fee that will be charged for construction management. Construction Management: This section will cover all components of Construction Management to include: A. Discussion of needs and materials with City Staff and occupants of the Yellow Brick. (The facility houses Primarily Child Care which must.meet certain State of Colorado Requirements, and non-profit agencies) B. Exploration of pricing, product quality, and competency of vendor. C. Management of sub-contractors such that they perform on time and in a professional manner. D. Proper permits are acquired for all components of this project. E. Proper precautions are taken by all sub-contractors. F. Scheduling of all sub-contractors in order to complete job by assigned date. G. Clean up is thorough and complete by all sub-contractor. H. Inspection and approval of work by sub-contractors to a satisfactory level. I. Submit pay orders to City officials for payment to sub-contractors. J. Follow up on warranty issues. K. Change Orders willbe signed by both the Construction Manager and a City representative. IlL Bidding: The City will expect no less than three quotes for each component of the improvements. Prior to bidding the'components, the Construction Manager will meet with staff and the occupants of the Yellow Brick to identify cOlors, and/or materials being requested with appropriate items. The Construction Manager shall make recommendations as to which vendor they feel can best deliver the service and/or product, for the best price and in a timely manner. In some cases a City Contract may be required for larger components of this project. City staff will work with the Construction Manager in producing this document. IV. V. Management of Sub-Contractors: Construction Manager will oversee all construction of improvement projects. Manager will see that any required permits are obtained. Manager will see that all work is done in a professional manner. This would include but is not limited to: Proper prep-work · Scheduling of work by sub-contractors · Inspection and approval of sub-contractor work. · Timely Completion · Thorough Clean-up · All safety components required by OSHA or other regulating agencies. Warrantv: Construction Manager will follow through and see that all a proper inspection of all work is done and that all Warranty work is completed in a timely manner. The Construction Management of this project will not be complete until all componems of the improvements are signed off on by a City Representative, including warranty work. Consideration of Occupants: The Construction Manager shall understand that the occupants of the Yellow Brick are mostly Child Care agencies. In addition there are some non-profit agencies housed in the facility. Some State of Colorado Regulations may dictate typeS of materials used, when construction may take place, and particular notices that may be required. City Staff will assist the Manager with these issues. VII. Timelines: Estimated timelines would be as follows: · Contract.approval by City Council (August 23rd) · · NotiCe to Proceed (August 24th) · Completion Timeline (October 31 Improvement List: · Heating System Improvements (new delivery system & thermostats) · Common Area Flooring · Common Area Painting · ElectricalAudit · Gymnasium Improvements a. Ceiling b. Flooring c. Painting d. Electrical e. Lighting Kitchen Remodel Motion Detector for Common Area Lighting Building Signage Restroom Renovation Replacement of west end concrete steps Newland oject Resources,/nc. PROJECT MANAGEMENT ,/'DEVELOPMENT APPROVALS '~TRANSPORTATION PLANNING RECREATION PLANNING ,~ ENVIRONMENTAL ANALYSIS ,'~ INFORMATION MANAGEMENT (970) 927-4645 VOICE (970) 927-8148 FAX 417 ORIGINAL ROAD, BASALT, CO 81621 tornn@sopris, net August 6, 2004 Tim Anderson City of Aspen Yellow Brick Improvement Project 130 S. Galena Street Aspen, CO 81611 RE: REQUEST FOR PROPOSALS- YELLOW BRICK IMPROVEMENT PROJECT Dear Tim: I am pleased to present this proposal to provide construction management services for the Yellow Brick Improvement Project. As you will see from the information enclosed with this letter, I have extensive experience managing construction projects and improvements for properties in rural areas, small town communities and resort regions. In addition, I have developed an approach to the project that will reSult in the successful completion of the improvements project in a cost-effective and timely manner. It takes dedicated, up-front work to bring an improvement project such as the one contemplated to fruition. To be successful, a thoughtful, deliberate construction process must be undertaken that accounts for the needs of the client, develops an appropriate strategy that addresses those needs, and provides a process to successfully implement the project in a fiscally prudent yet obtainable manner. Newland Project Resources has the knowledge to facilitate, process and accomplish such a plan. The improvement construction project will be conducted in a comprehensive manner, considering the interrelationship of all variables when making decisions. My expertise primarily centers on value engineering and project management. In addition to providing construction management services, I propose to act as the Owner's Representative for the project, taking responsibility for insuring that the project is successful from initiation through completion of construction. Typically I collaborate with competent sub-contractor firms to provide the required improvements, but I am also very comfortable with seeking and providing at least three bids for each component of the improvements, as you, the City, desire. I am excited about this proposal because it presents an oppommity to use my skills to facilitate a public improvement project and to work with city staff and facility occupants. My previous experience gives me clear insight into the project's critical issues and the ability to develop solutions that can address these issues in a concise and straightforward fashion. I will use this experience, as well as my knowledge of project management issues, to provide you with the services desired in a fashion that exceeds your needs. I have read the Request for PropOsals and feel that I have a full understanding of the project. If selected, I have the schedule availability to give the projeCt the time and effort it requires. The material representations made as a part of this cover letter and attached prOposal are valid for a period of 60 days. I certify that the information and data submitted in this proposal is mae and complete to the best of my knowledge, please call if you have questiOns or need additional info~ation, COntaCt Tom Newland at 927-4645 or fax 927-8148, regarding this Submittal. The e-mail address is tomn~sopris.net. ~,~,,, Newland Project Resources Request for Proposals - Yellow Brick Improvement ProjeCt Pa~e 2 Section 1 - Firm Qualifications Firm Overview Newland Project Resources (NPR) provides a variety of services to address your project needs. Using professional experience and expertise, NPR can provide recreational planning, project management, land use planning, transportation assessment and public process facilitation services: Project Afanagernent- develop and administer bid/proposal selection, contract negotiation and management, bid and change order administration, owner representative services, project closeout. Recreation- outdoor recreation planning, trails planning, trail and facility use master plans and assessments, recreation management plans, trail design and construction. Land P/arming- land use planning, property master plans, land development permitting, environmental assessment, property research and assessment, mapping and site development. Transportation- transportation studies, impact assessment, conceptual cost determination, corridor alternative determination and selection, corridor purchase negotiation. Public Process - process design, meeting facilitation, one-on-one conferencing, grant development, management and agreement negotiation. NPR has a hands-on management approach to projects and has implemented recreation plans, planning and development projects and public participation processes that have been both timely and cost effective. Tom Newland, principal of NPR, is familiar working with local codes, facility standards and specifications, state regulations and federal procedures. He also has proven negotiation and facilitation skills. :[n-House Expertise Project Mana_qernent and Adrn/n/strat/on A project can never claim to be complete until all of the planning, design and assessment is actually implemented on the ground, To do this, resources must be found, contractors hired and managed, and the project completed on time and within budget. NPR has experience in all aspects of project management including: · Cost estimating · Funding analysis/solicitation · Grant writing · Project phasing · RFP/]:TB management · Bid selection · Contract negotiation · Project oversight · Grant Administration (including Davis-Bacon wage certification, DBE and EEO compliance) · Project closeout Request for Proposals - Yellow Brick Improvement Pro]eot Page 3 Recreation Plann/n_q & Design More than a blueprint for the design process, planning is really a strategy for accomplishing project goals. Design is an evolving process that defines and clarifies the client's concepts. NPR uses an interdisciplinary approach, combined with a practical understanding of recreation planning requirements, to create successful plans that turn a client's vision into a lasting community asset. Project experience includes: · Master planning Site development Trail design/build plans · Park design/build plans · Land use planning · ADA compliance · Visual analysis · Facilities analysis/planning · Policy development · Site inventory and analysis · Feasibility studies · Alternative analysis · Design standards development · Signage design Environmental Assessment/Studies Everything that is manmade must be examined for its effect on our natural surroundings. Every successful plan or design must take these potential impacts into account in order to become a lasting and integral part of the community it serves. Project experience includes: · Environmental assessment · ]:mpact assessment · Floodplain/riparian studies · Wildlife area assessment · Archeological/cUltural site inventory · Geologic hazard analysis · Interpretation and environmental education plans Social/Economic Assessment In order to be successful, a project must truly benefit the community it serves while complementing, rather than impacting, the adjacent landowners and community interests. Often times it takes people skills, insight and the ability to compromise to make sure a project receives willing community- wide acceptance. NPR prides itself on the ability to work with people and arrive at solutions that allow the project to succeed despite initial concerns or criticism. Project experience includes: · Meeting facilitation · One-on-one conciliation (finding a middle ground) · Agreement negotiation · Policy development · Definition of project values NPR is an "S" corporation registered in the State of Colorado. Request for Proposals - Yellow Brick Improvement Project Page 4 Section 2 - Project ApProach NPR is proposing to complete the project with in-house resources including experience in project management, and facility design. NPR will Select experienced sub-consultants through an open bidding process to provide the required improvements. NPR is a licensed contractOr in the City of Aspen and Pitkin CoUntY (LiCense #5356, valid l:h~ough 4/27/05)I F611Owing is a summary of the project organization proposed: I City of AsPen, Colorado I Project Coordinator, City of Aspen Tom Newland Project Manager Newland Project Resources Sub-Consultants (to be selected through bidding process) Key Personnel Project I~lanager Tom Newland, Principal; Newland Project Resources, Inc. - Tom has more than 23 years of public and private sector experience. As a public official and private consultant he has managed a number of successful improvement projects, including the Pitkin County Health and Human Services Building, the Pitkin County Courthouse remodel, the Pitkin County' Courthouse Plaza remodel, placement of subdivision improvements for the Hiller Creek Estates above Ruedi Reservoir; placement of access, infrastructure, and single-family residence on a 35-acre property above Brush Creek Village Subdivision; and placement of access, infrastructure and a single-family residence on a ZOO-acre parcel on Capitol Creek Road. Tom also acted as Project Manager for design and pre-construction services for the Tiehack Pedestrian Bridge and for several trail projects involving CDOT Enhancement Grants and other federal grants. Tom provides the personal contact needed to incorporate citizen, elected official and stakeholder input to the process. NPR will act as the primary consultant for the project, bringing on the required sub-consultants to provide additional resources to the process. Request for Proposals - Yellow Brick Improvement Project Page 5 Section 3 - Project Costs and Schedule Project Costs Although NPR generally offers its services to public entities under a defined Rate Schedule, the "fee as a percentage of the project" is most applicable for a compensation approach in this case. Under this approach, a fee of 8% of the project should cover the construction management aspects of the work. This fee does include reimbursable expenses for the project, such as printing costs, mailing/delivery fees, or other services that may be required. Any design and/or engineering sub-consultant work that may be required is not included and, if it is mutually determined to be needed, will not be undertaken without a proposal that has been submitted and approved by the City of Aspen. Payment for services will be made upon submission of monthly invoices enumerating the appropriate charges based on a percentage of the work completed. NPR is a fully insured "S" corporation licensed in the State of Colorado. addition, NPR carries Errors and Omissions :Insurance in the amount of $1,000,000 per claim and $2,000,000 aggregate limit. Tn Project Schedule Although I am not knowledgeable of the specifics of the project, my initial feelings are that the October 31 completion date may be somewhat optimistic, especially when considering the lead time required for permits and waiting for the results of an electrical system audit. In addition, my current workload would not allow me to put enough of my time towards the project to complete it by October 31st. I am proposing that the City consider lengthening the completion timeline to December 31, 2004, so that I could have sufficient time to complete the project based on the variables described above. Request for Proposals - Yellow Brick ImprOvem~t PrOject .... Page MEMORANDUM TO: THR U: FR OM: DATE: RE: MAYOR & CITY COUNCIL STEVE BAR WICK, CITY MANA GER JEFF WOODS, MANAGER OF PARKS & RECREATION PA UL MENTER, FINANCE DIRECTOR TIM ANDERSON, RECREATION DIRE CTOR SHIRLEY RI. TTER, KIDS FIRST DIRECTOR JUNE 11, 2004 YELL 0 W BRICK BUILDING - CHILD CARE RE COMMEND~ TION$ ' ' SUMMARY: There are 2 related issues that staff is in need of council direction: · Yellow brick building operations, with fiscal consideration · Childcare funding recommendations The yellow brick building houses four (4) childcare programs, three (3) additional non-profit agencies, and employees and/or storage to four (4) City Departments. Total leasable space for the building is 16,126 square feet. Of this space there is about 1,000 square feet cun'ently vacant. Rents for leasable space are currently set at: · $ 6.72/sq. ft. Annually for Child Care · $13.32/sq. ft. Annually for Non-Profits Currently 15,072 of the possible 16,126 leasable square footage is occupied. Total Annu~al Revenue generated by the yellow brick building is: · $80,460 Child Care Rent · $11,712 Non-Profit Rent · $32,112 City Offices Rent · $24,583 Utility Allocation (additionally paid by lease holders) Total: $148,867 (Please see attached schedule "A" for detail on lease holders, space occupied and rent paid) Total Annual Expenditures for the yellow brick building are approximately $146,000 to 150,000 annually. This varies a~cording to repairs that may be necessary. For example, the building had to absorb a $3,500 unexpected repair bill for the boilers this past winter. Expenditures for the building are identified in attachment "B". At the end of the last Fiscal Year (September of 2003) the building had a balance of $2,740. As you can see the building is operating at a break even level at best, and with any increase in services, or emergency needs, the building is not sustainable. There are no available funds being generated to build up a Capital Reserve Fund at this time. Rental of the vacant space along with reimbursements for a share of utilities could generate an additional $15,000 (or more) annually for the building and create funding for a Capital Reserve and future building improvements. Kids First Advisory Board and staff have been working with yellow brick building childcare tenants regarding improvements and repairs needed. The most pressing needs are new heat controls and delivery systems. PREVIOUS COUNCIL ACTION: Aspen City Council has used money from the childcare fund to acquire and improve the yellow brick building since the early 90's. Uses have included: roof repairs, plumbing and electrical repairs, replacement of doors and windows, painting; new floor coverings in the common area, asbestos abatement, ceiling replacement, basement renovation, and a new boiler. Since 1995 approximately $2,692,415 (including $1.520,000 for partial acquisition cost) has been used from the childcare fund for the yellow brick building. Additionally improvements were made with Park funds and basement improvements were made with funds loaned by the City of Aspen, to be repaid by the Yellow Brick Capital Reserve Fund. BACKGROUND: Rents for the facility and the philosophy when the City took ownership was to keep pricing affordable for the Child Care Centers, with other non-profits paying double the childcare rent amount (keeping close to the Red Brick rents). This would generate enough revenue for the building to operate on its own and build a Capital Reserve for major repairs. CURRENT ISSUES DISCUSSION: The yellow brick building is in need of improvements and upgrades. While you find a list of items on Attachment "A", two items that MUST be addressed are the heating system and electrical systems for the yellow brick building. This is the purpose for this pre-budget meeting. While the facility can operate ~vith or without other improvements, Child C~hre is unable to operate when the heating system fails 'to function properly. When the City of Aspen upgraded systems in the building following the purchase of the property, new boilers were installed to the old delivery system. While this does function, it is no longer efficient and/or effective in delivering heat throughout the facility. Rooms are consistently too Cold or too hot. Utility bills are unusually high, as the old delivery system does not effectively operate with the newer efficient boilers. In addition, the yellow brick building is still operating with an antiquated system of electrical switches. Rooms have breakers rather than switches and in the gym for example; these could be within reach of young children, creating a safety hazard. Staff recommends that an electrical audit be performed for the building, providing recommendations and costs for upgrades that address safety and efficiency. Other improvements listed in Attachment "A" outline the physical condition the City would like to consider reflected in this facility. Common and shared area improvements such as floor coverings, 2 . paint, restrooms, kitchen, and the gymnasium are mn down and the building cannot afford the upgrades within its current budget. Kids First Advisory Board understands and fully supports the needed repairs at the yellow brick building. The recommendations come from the following rational. The financial performance of yellow brick building needs to be re-evaluated, several things have changed since the original Proforma was developed. It is also increasingly difficult to keep the lower level rented resulting in lower revenues than expected. Thoughts as to how these improvements can be achieved are: 1. Change the way the City of Aspen views the yellow brick building - from operating as a charity to the childcare tenants to operating as a landlord and charge rents commensurate with the cost to operate the facility. 2. Request emergency funding from the Childcare Fund to fund the yellow brick building improvements. 3. Increase childcare program rents. 4. Rental of the basement space f6r storage in addition to office space. 5. Increase Non-Profit (otherlthan childcare) rents to equal the Red Brick rents. Comparison of rent paid by all other Pitkin County childcare programs to the rent paid in the yellow brick building. Program Rent/mortgage/buildingcosts paid ' ..... For-profit $ 5.45 per square foot ($2,000 month for 4,400 square feet inside, playground space outside included. Also paysfor leasehold improvements and utilities. For-profit $ 0 ~' For Profit Purchasing building and land. Mortgage payment of $3,400 / month, + property tax of $8,500 annually. Building is 2,700 sq. ft. Provider also pays for building improvements and utilities. Non-profit Charged, but do not pay, given in:kind. Actual cost $ 0. Pay only for building improvements and utilities Non-profit $ 0 donation asked, n6'minal amoUnt given Non-profit $1 lease - in-kind donation. pay only for building improvements and utilities Non-profit $1,176 annual land lease, building is °wned'OUtrightlPayonly for building improvements and utilities Non-profit $ 0 Pay only for building improvements and utilities Non-profit $ 0 Pay only for building improvements and utilities Non-profit and for- $ 6.67 per square foot, increasing each Year by cPI. Also pay profit housed in the for leasehold improvements and utilities. yellow brick building Home childcare providers of course, do not pay additional costs, and can deduct many costs, including rent, mortgage, improvements, and utilities from their personal income taxes. 3 FINANCIAL IMPLICATIONS: · Increase the rent to childcare programs in this building, which would create a higher demand on the financial aid program though Kids First. Attachment "A" shows a scale of rent increases at $1.20 increments. Each $1.20 increment is estimated to increase thc average annual cost of childcare for one child by approximately $120.00. This would put these 4 childcarc programs at a competitive disadvantage in comparison to most other programs listed above. Staff is not making this recommendation. Request emergency funding from the Childcare Fund to assist the yellow brick building as has been done with other childcare programs, in the past. This could be handled as a loan to the building, paid back through an assessment to tenants for the improvements or forgiveness through the annual Kids First grant cycle. Related to number 2 above - A change in policy allowing for-profit childcare programs to apply for Kids First grants. This would increase the possible grant requests from an average of eight (8) to sixteen (16) existing childcare providers. Kids First has always allowed a contingency for additional new programs or requests, but this could result in increased requests for funding. This would be handled by recommendations from the Kids First Advisory Board and addressed by city council during the budget process. A parmership between the City and the childcare programs operating within the Yellow Brick. For example: the City, through Kids First grants would match funds raised by Childcare ' programs for building improvements. This is favored for the long term, and has been used with programs in the past, .but does not address the immediate need. · Rental of the basement space for storage in addition to office space. We believe this will fill the vacant space and increase revenue by about $15,000 per year. Increase Non-Profit rents from $13.32 to $16.00, to more closely equal the Red Brick rents. This would increase Yellow Brick Revenues by an initial $8,311 and if the basement were 100% occupied by another $16,864. RECOMMENDATION (S): Direction to staff to make th e following changes in the operation of the yellow brick building, and in grant policy for childcare programs regarding Kids First grants. The request for supplemental funding will be brought to council following regular city policy and procedures. Increase non-profit (other than childcare) rents and allow the basement area to be used for storage as well as office space to achieve 100% occupancy. These two items would increase annual revenues by approximately $25,175 plus utility allocations. o Change the way the City of Aspen views the yellow brick building - from operating as a charity to the childcare tenants to operating as a landlord. The Kids First Advisory Board sees a need to set apart the improvements to a building that is a city asset, and the funding from Kids First to all childcare programs. 4 e o Request emergency funding from the Childcare Fund in an amount up to $100,000 for the heating improvements. This request would be considered a loan to the building, paid back through assessments made equally to all tenants for the improvements, or forgiveness for childcare providers through the annual Kids First grant cycle. (If assessments for needed repairs are assigned equally to all tenants, Kids First Advisory Board recommends making grant funding available for identified improvements.) Allow all licensed, non-profit, and for-profit childcare programs in Pitkin County to apply for Kids First grants. Our records indicate that an early advisory board made the decision to award grants only to non-profits; this was not a deci sion made by city council, nor is it stipulated in the ordinance. ThiS recommendation would allow the childcare tax to more fully benefit all licensed childcare providers in Pitkin County. Funding equity for all childcare providers at the same time as considering requests from childcare providers in the yellow brick building. An annual review of rents comparing the yellow brick building to other centers. (The yellow brick building rents do increase annually by the Denver/Boulder CPI.) An annual review of the yellow brick building's financial status, operations, need for improvement, and occupancy rate. ALTERNATIVES: If council wishes to make improvements to the Yellow Brick the alternatives have been listed. The real question is how to fund the immediate needed improvements; secondarily the question is how to achieve long term sustainability in operations and maintenance of the Yellow Brick. Staffproposes to come back to Council during the 2005 budget process with ideas on long term sustainability. The other alternative is to do nothing at this time. Manager's Comments: ATTACHMENT (S) A = Yellow brick building matrix of rents, square footage, and proposed improvements. B = Last Fiscal Year of Yellow Brick Operations and Maintenance. 5 Jun 14 04 O2:3Op Stace~ Stroh 3:2;1 PM 06/14/04 Accrual Basis S?0.925.S48S Yellow Brick School Building Profit & Loss October 2002 through September 2003 Ordinary Income/Expense Income 4100 - iNCOME FROM TENANTS 4110 - Fixed Minimum Rent 4120- Utilities Income 4121 - Electricity & Water Income 4122 - Gas Income 4123 · Sewer Income 4124 - Trash Income Tbtat 4120 - Utilities Income Total 4t00 - INCOME FROM TENANTS Total income 60~0 - NNN EXPENSES 6005 - Boiler System Phone Line 6010 - Custodial 6025 - Landscaping 6030 - Maintenance & Repairs 6035. M&'nagement Fees 6045- Pay Phone 6050 ~._Se~. ?ity Costs ' 6055. S~cu~ty System Ph°ne Line 6060 - Snow Removal 6065- SupPlies for Building 6090- UTILITIES ' 6091 -'Electricity & Water 6092 - Gas 6094. Sewer 6095- Trash Disposal Total 6090 · UTIUTIES Total 6000 · NNN EXPENSES 6500. GENERAL & ADMINISTRATIVE 6520 · Bank Charges 6540- Lease/Blclg/Boolckeeping 6550 · Office Supplies 6560. Postage Total 6500 · GENERAL & ADMINISTRATIVE Total Expense Net Ordinary Income Other income/~_xpense Other Income 7100 · Interest or] Bank Accounts Total Other Income Net O1J~er income Net Income Oc~ '02 - Sep 03 125,442.90 8,388.78 10,510.45 1,632.30 4,051.79 24,583.32 150.026.22 1 50,026.22 722.35 37,777.31 15,215.18 32,053.84 I'5,069.54 826.83 3,035.50 1,200.33 3,427.50 4,891.67 11,219.53 13,078.67 2,033.76 5,069.63 31,406.59 145,5'26.64 -0.02 1,350.00 235.39 74.00 1,659.37 147~.86.01 2,740.21 20.75 20.75 20.75 2,760.96 Page 1