Title
Chief Administrative Office, Facilities Division (Facilities) and the Health and Human Services Agency (HHSA), recommending the Board:
1) Receive and file a presentation on the status of the HHSA South Lake Tahoe El Dorado Center Campus Project; and
2) Provide direction to Facilities and HHSA regarding next steps.
FUNDING: To be determined; Public Health Realignment, other County funding sources to be determined.
Body
DISCUSSION / BACKGROUND:
On June 9, 2015, the Health and Human Services Agency (HHSA) recommended that Board designate a maximum of $5 million in Public Health Realignment fund balance to be used to purchase and/or build a new building in South Lake Tahoe to be used by HHSA staff, including but not limited to Public Health, Social Services, Community Services staff, and potentially other county departments such as Child Support Services, which could benefit the community by having access to services in the same location (File ID: 15-0649). In that same item, HHSA asked that the Chief Administrative Office (CAO), Facilities Division be directed to work with HHSA relative to its South Lake Tahoe space needs and identify potential solutions.
Justification for this proposal included long-term sustainability of owned versus leased space, as well as the ability to co-locate County staff, thereby creating an integrated service delivery system in South Lake Tahoe.
After multiple meetings and extensive exploration, on March 13, 2018, the CAO Facilities Division recommended the Board approve and authorize the Chair to sign the Purchase and Sale Agreement, and Joint Escrow Instructions with the owners of Assessor’s Parcel 027-362-08-100 (commonly known as 3368 Sandy Way, South Lake Tahoe) for $1,250,000 to facilitate the HHSA South Lake Tahoe El Dorado Center Campus Project.
On April 23, 2019, the CAO Facilities Division, in collaboration with the Procurement and Contracts Division, and the Health and Human Services Agency, recommended the Board award a Bid for tenant improvements in South Lake Tahoe.
HHSA, in collaboration with the CAO Facilities Division, now returns to the Board with an update and presentation on the status of the HHSA South Lake Tahoe El Dorado Center Campus Project, including discussion of possible shared space optimization and funding.
ALTERNATIVES:
1) The Board could decline to receive and file this presentation.
2) The Board could decline to provide direction regarding next steps for this project.
PRIOR BOARD ACTION:
1) June 9, 2015; Item No. - Legistar File 15-0649; Health & Human Services Agency (HHSA) recommending the Board consider the following: 1) Designate a maximum of $5 million in Public Health Realignment fund balance to be used to purchase and/or build a new building in South Lake Tahoe to be used by HHSA staff, including but not limited to Public Health, Social Services, Community Services staff and potentially other county departments such as Child Support Services, which could benefit the community by having access to services in the same location; and 2) Direct the Chief Administrative Office, Facilities Division, to work with HHSA relative to its South Lake Tahoe space needs and identify options for consideration, including but not limited to buying and renovating an existing building or the construction of a new facility
2) February 6, 2018; Item No. 26 - Legistar File 18-0236; Closed Session Property Negotiation
3) March 13, 2018; Item No. 18 - Legistar File 18-0338; Chief Administrative Office, Facilities Division, recommending the Board consider the following: 1) Approve and authorize the Chair to sign the Purchase and Sale Agreement and Joint Escrow Instructions 201-O1811/2640 with the owners of Assessor's Parcel 027-362-08-100 (commonly known as 3368 Sandy Way, South Lake Tahoe) for $1,250,000 as related to the Health and Human Services Agency’s El Dorado Center Project and direct staff to continue its due diligence concerning the potential renovation/reconstruction of the El Dorado Center and necessary tenant improvements of 3368 Sandy Way; 2) Authorize an escrow deposit of $25,000; 3) Authorize the Facilities Manager to sign any subsequent escrow and related documents; and4) Authorize the Chair to sign the attached budget transfer decreasing Public Health contingency and increasing operating transfers out and increasing operating transfers in and appropriations for fixed assets/buildings in the Accumulative Capital Outlay fund in the amount of $1,500,000 for the purchase of 3368 Sandy Way and associated due diligence and staff costs
4) May 22, 2018; Item No. 6 - Legistar File 18-0764; Chief Administrative Office, Facilities Division, recommending the Board:1) Find that the proposed property acquisition of 3368 Sandy Way in South Lake Tahoe is categorically exempt from review pursuant to California Environmental Quality Act (CEQA) Guideline section 15301(a); and 2) Direct and authorize staff to determine that the contingencies are satisfied and authorize the close of escrow to occur no earlier than 35 days after the filing of the CEQA Notice of Exemption.
5) August 28, 2018; Item No. 5 - Legistar File 18-1063; Chief Administrative Office, Facilities Division, recommending the Board consider the following:1) Authorize a project delivery method of Design-Build (D/B) as related to the construction of the South Lake Tahoe El Dorado Center Building;2) Make findings pursuant to Article II, Section 210b(6) of the El Dorado County Charter that the ongoing aggregate of work to be performed is not sufficient to warrant the addition of permanent staff; and 3) Authorize the Purchasing Agent to sign Agreement for Services 3218 with Architectural Nexus, Inc., for a not-to-exceed amount of $496,450 and a term of three years to provide Design Criteria Consultant Services as related to the Health and Human Services Agency’s South Lake Tahoe El Dorado Center Campus Project.
6) January 29, 2019; Item No. 4 - Legistar File 18-1912; Chief Administrative Office, Procurement and Contracts Division and Facilities Division, recommending the Board consider the following pertaining to the Health and Human Services Agency El Dorado Center Campus Project:1) Adopt the plans and specifications concerning the tenant improvements needed at the 3368 Sandy Way, South Lake Tahoe location;2) Approve and authorize the Chair to sign the construction bid documents; and 3) Authorize advertisement for construction bids (Bid Number: 19-968-041).
7) April 23, 2019; Item No. 22 - Legistar File 19-0449; Chief Administrative Office, Facilities Division and Procurement and Contracts Division, and Health and Human Services Agency, recommending the Board consider the following:1) Reject the Bid Protest submitted by Norwood Construction Services for Bid No 19-968-041; and 2) Award Bid No. 19-968-041 for the tenant improvements needed at 3368 Sandy Way, South Lake Tahoe to the lowest responsive and qualified bidder, Roebbelen Contracting, Inc.; and 3) Authorize the Chair to sign Public Works Contract No. 19-968-041, subject to review and approval by County Counsel and Risk Management; with Roebbelen Contracting, Inc. for $1,064,000 and a term of 120 calendar days; and 4) Authorize the Purchasing Agent to sign an Escrow Agreement, if requested by any Contractor and in accordance with Pubic Contract Code Section 22300, for the purpose of holding Contract retention funds.
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
Chief Administrative Office, Facilities Division
CAO RECOMMENDATION:
It is recommended that the Board receive and file the presentation and provide direction to HHSA and Facilities regarding next steps in the El Dorado Center planning process, including reviewing alternative building/space designs and related funding options, and return to the Board for further direction.
FINANCIAL IMPACT:
The El Dorado Center Project includes two phases. The initial phase of the project included the purchase and build-out of the building located at 3368 Sandy Way. This phase was completed at a cost of $2.6 million. The second phase of the project includes the tear down and rebuild of the El Dorado Center. As currently envisioned, the rough estimate for this second phase ranges from $12 million to $15 million. HHSA does not currently have the funding to cover all of this cost. CAO Facilities Division and HHSA are requesting direction from the Board to allow staff to re-envision the scope of this second phase of the project. This would potentially include downsizing the scope of the project, as well as re-envisioning the second phase to include other county departments, along with HHSA. Some of the other county departments are currently in leased facilities, which could help offset some of the costs as a result of moving into a county-owned facility. CAO Facilities Division and HHSA would return to the Board with a re-envisioned phase two of the project, along with recommendations on funding.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to receive and file this presentation.
STRATEGIC PLAN COMPONENT:
Infrastructure
CONTACT
Don Semon, HHSA Director
Russ Fackrell, Facilities Division Manager