To: HONORABLE MAYOR AND From: Katy Allen

CITY COUNCIL Sara L. Hensley

Subject: ALMADEN WINERY Date: 11-24-03

COMMUNITY CENTER

SEISMIC RETROFIT PROJECT

Council District: 10

RECOMMENDATION

Report on bids and take appropriate action based on the evaluation of bids for the Almaden Winery Community Center Seismic Retrofit Project, and approval of a ten percent contingency.

CEQA: Exempt, PP03-10-328.

BACKGROUND

Almaden Winery Center, formerly the Almaden Winery, is an existing two-story masonry building approximately 25 years old. The building is located at 5730 Chambertin Drive and is bordered by Treviso Avenue to the north and Le Franc Drive to the east (map attached). Total floor area of the existing building is approximately 15,000 square feet plus an additional 1,500 square-foot balcony on the second floor. Since the facility was acquired by the City, it has been in use primarily as staff offices for the Parks, Recreation and Neighborhood Services Department (PRNS).

PRNS proposed to renovate the existing Almaden Winery Center to convert the facility from its primary use as staff offices to an increased use as a community center. The plan for renovation will convert the existing staff office space on the first floor of the building to community use, including use for public meetings and classes. Multi-purpose rooms, activity rooms and a kitchen on the first floor accessible to the public are included in the scope of work. As a result of the change in the facility to public assembly use, the building will be required to be structurally upgraded to comply with the seismic design requirements in the current building code. The second floor will remain as staff offices.

ANALYSIS

A supplemental memorandum will be provided after bids are opened on November 25, 2003.

Council Policy provides for a standard contingency of 15 percent on public works projects involving the renovation of a building. However, a contingency of 10 percent is being requested because staff feels that on a project of this size, $181,300 will be sufficient to handle any unforeseen conditions that may arise during construction.

PUBLIC OUTREACH

This project was listed on the City’s Internet Bid Line and advertised in the San José Post Record. Bid packages for all Department of Public Works construction projects are provided to various contractor organizations and builder’s exchanges.

COORDINATION

This project and memo have been coordinated with the Departments of General Services, Fire, Planning, Building and Code Enforcement, Information Technology; City Attorney’s Office, Council District 10; the City Manager’s Budget Office and the County of Santa Clara, Department of Environmental Health.

COST IMPLICATIONS

1. AMOUNT OF RECOMMENDATION: (Engineer's Estimate $1,813,000)

2. COST OF PROJECT:

Project Delivery	$ 740,700	*
Construction	1,813,000
Contingency	181,300
TOTAL	$2,735,000

* A total of $408,209 was expended/encumbered in 1999-2000 through 2002-2003 for project delivery costs.

3. SOURCE OF FUNDING: 001 – General Fund

389 – Construction & Conveyance Tax Fund, Council District 10

4. FISCAL IMPACT: : This project is consistent with the Council Approved Budget Strategy’s Economic Recovery section in that it will spur construction spending in our local economy. $67,210 personnel cost and $40,000 non-personnel cost are estimated as the net annual operating costs for this facility. There will be an expected increase in General Fund expenditure of $107, 210 that will be addressed in the 2004-2005 budget process. The increase in expenditure is not significant because a portion of the additional staffing has already been addressed, the existing facility is being maintained by General Services and staff has applied anticipated revenue increase to offset the costs.

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC #	Total Appn.	Amt. for Contract	Adopted Budget Page	Last Budget Action (Date, Ord. No.)
001	6980	Almaden Winery Center Conversion	117543	2,164,000	1,813,000	Page 543	10/14/2003, Ord. No. 26997
389	4172	Almaden Winery Center Conversion	106363	197,000	--	Page 543	10/14/2003, Ord. No. 26997
		Total		$2,361,000	$1,813,000

CEQA

Exempt, PP03-10-328.

KATY ALLEN SARA L. HENSLEY

Director, Public Works Department Director, Parks, Recreation and

Neighborhood Services