City Council Report


City Council Meeting: May 11, 2010

Agenda Item: 8-D

To:                   Mayor and City Council

From:              Lee E. Swain, Director of Public Works

Subject:         Preconstruction and Design Guaranteed Maximum Price Contract for Parking Structure 6


Recommended Action

Staff recommends that the City Council authorize the City Manager to negotiate and execute a design-build contract for architectural and engineering design services with Morley Construction Company for the demolition and rebuilding of Parking Structure 6 for a Guaranteed Maximum Price (GMP) of $3,694,350 (includes 8% contingency).


Executive Summary


On June, 30, 2009, City Council approved Morley Construction Company as the design-builder for Parking Structures 1 and 6; however, on November 10, 2009, City Council recommended that only Parking Structure 6 be designed at this time.  Staff negotiated the contract terms and a GMP of $3,694,350 (includes 8% contingency) with Morley Construction Company for preconstruction and design services of Parking Structure 6.  Funds are available in the Capital Improvements Program budget.



On December 19, 2000, City Council established the Downtown Parking Task Force in response to a Planning Commission suggestion for a public process to assess community sentiment regarding the “Downtown Parking Management Program” report released in April 2000 by Kaku Associates, which recommended public parking modifications in the downtown area.  On April 9, 2002, City Council conceptually approved the strategic plan recommended by the Downtown Parking Task Force to retrofit, rebuild, and add parking resources in the downtown area over a 10-year period.  On February 28, 2006, City Council approved the Downtown Parking Program and authorized staff to proceed with the next steps in implementing the program.


On June 30, 2009, City Council approved Morley Construction Company as the design-builder for Parking Structures 1 and 6.  On November 10, 2009, City Council recommended that only Parking Structure 6 be designed at this time as funding for Parking Structure 1 had not been identified.  In addition, City Council recommended that staff research automated parking systems to determine whether or not an automated parking garage is a feasible alternative to a self-park garage for Parking Structure 6.  Staff researched automated parking systems and presented an Information Item to City Council in April 2010.



The Downtown Parking Improvement Program recommended that Parking Structures 1 and 6 be demolished and rebuilt in the same locations with additional spaces, with the Environmental Impact Report (EIR) analysis addressing an envelope of three levels below ground and up to nine levels above ground.  The rebuilding of each structure will result in a net increase of up to 350 spaces per structure.  The new structures may include ground floor retail, solar panels on the roof, bicycle storage facilities, and public restrooms; and, they will be safe and efficient for users and their vehicles.  The EIR for the Downtown Parking Improvement Program was approved on May 9, 2006.  In addition, the Walker Parking Study, which further described the future needs for Downtown parking, was presented to Council on September 8, 2009.


At the November 10, 2009, study session to discuss concept massing, urban design, circulation, and cost implications of rebuilding Parking Structures 1 and 6, City Council recommended that only Parking Structure 6 be designed at this time.  This would allow the City an opportunity to reassess the parking demands in the Downtown area and identify funding source before moving forward with the recommendation to rebuild Parking Structure 1.  Following the meeting, staff negotiated the contract terms and a GMP of $3,694,350 (includes 8% contingency) with Morley Construction Company for the preconstruction and design services of Parking Structure 6.


Next Steps

During the design process, Public Works, Planning & Community Development, and Housing & Economic Development staff will work with the design team to develop a series of alternatives and tradeoffs, and will consider the following issues:

·         Relationship of the structure and its uses to the pedestrian realm at the street.

·         Building massing and scale considerations.

·         Onsite circulation and number of spaces that can be accommodated.

·         Accommodation of programmatic elements such as retail/restaurant.

·         Creative capital uses.

·         Storage and/or other uses.


Staff will return to the City Council with a review of concept designs and tradeoffs after this evaluation.  This review will address various plans and strategies to create a structure within the building envelope.  With Council input, the design team will work with the interdepartmental City team to further the design.  In a final step, Council will be asked to review the final schematic design.


Reconstruction of Parking Structure 6 will require the termination of a lease with Willie and Gloria’s Salon, located at 1429 2nd Street.  They have been tenants since 1985 and are now on a month-to-month lease in anticipation of the reconstruction of Parking Structure 6.  The Police Substation is also located in Parking Structure 6 and will be permanently relocated to an existing retail space in Parking Structure 5, currently occupied by the Dance Doctor.  The owner of the Dance Doctor has indicated that he will look for another space to lease within the City.  The cost to relocate the Police Substation, including design and construction costs, will be presented as a separate Council action.


Financial Impacts & Budget Actions

Funds in the amount of $3,694,350 are included as part of the FY2010-11 proposed budget.  The entire project of rebuilding Parking Structure 6, including architectural and design services, is estimated to cost $35 million, which will be financed with funds from the Parking Authority and the Special Revenue Fund.  Additionally, ongoing revenue sources have been identified to support both debt financing of this project and other improvements to parking structures in the Downtown area.  A comprehensive parking plan will be presented to Council in the fall of 2010.


The financing plan developed by staff assumes the use of $6.1 million in fund balance from the Parking Authority and $6.6 million in fund balance accumulated in the Special Revenue Fund from Downtown Parking Developer Fees.  Debt proceeds will provide a funding source for the remainder of the project, using ongoing parking revenues of approximately $1.1 million per year and ongoing Downtown Parking Developer Fees of approximately $580,000 per year, until this source expires in 2016.  Remaining debt service is expected to be funded from revenues generated from increased parking structure rates.  After debt service, this tentative financing plan provides a minimum of $1.3 million per year for other parking improvements.


Prepared by:  Karen Domerchie, Architectural Associate




Forwarded to Council:







Lee E. Swain

Director of Public Works


Rod Gould

City Manager