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HomeMy WebLinkAboutItem 08 - Coury Phase II Appropriation MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JUNE 20, 2017 SUBJECT: COURY HOSPITALITY PHASE II DESIGN SERVICES BUDGET AND APPROPRIATION ORDINANCE RECOMMENDATION: City Council consider: • adopting a resolution approving the Phase II Design Services Budget not to exceed $2,854,850 under the terms of the Development Services Agreement with Coury Hospitality for the construction of the new depot and hotel complex located at 815 South Main Street; • adopting an appropriation ordinance for the funding of the Phase II Design Services Budget; • authorize the City Manager to approve and execute the necessary documents; and take any necessary action. FUNDING SOURCE: Funding is budgeted in the FY2017 budget. Upon approval of the attached appropriation ordinance and transfer of funds from the 4B Transit Fund to the General Facilities Capital Projects Fund, funding will be available in the General Facilities Capital Projects Fund 177-48840-415-001-170001-0. BACKGROUND: The process to reach final design and subsequently a construction contract with a GMP requires a significant amount of preliminary effort and cost. The budget for the Pre- Development efforts were approved by City Council on March 7, 2017. These Pre- Development efforts which provide an accurate basis upon which the Design Services Contract scopes and fees as well as the GMP will be based, have been completed. To keep the project progressing toward target construction dates and completion of the garage by late 2018, it is imperative that the next phase of this process, final design of the garage and other site elements upon which the garage design and construction depend must continue without any delay. The Phase II Design Budget includes the following components: • Garage Final Design (SD/DD/CD) o Architexas $ 220,000 o Structural Engineering $ 128,000 o MEP $ 450,000 o Civil/Site $ 90,000 o Walker Parking Consultants $ 432,000 • Architexas & Consultants o Schematic Design ■ Site & Plaza $ 409,000 ■ Hotel $ 106,000 o Design Development ■ Site & Plaza $ 590,000 ■ Hotel $ 152,000 o Reimbursable Expenses $ 107,250 • Coury Management thru November $ 30,000 • Management Reimbursable $ 5,600 • Contingency $ 135,000 Total Budget Phase II Design $ 2,854,850 The budgeted efforts under the garage final design, including schematic design, development design and construction documents, are necessary to complete the design and construction documents prior to construction of the garage. The second major grouping of fees include schematic design and design development elements for site, plaza and the hotel that impact the parking garage. Specifically, the site grading is necessary for the construction of the garage to proceed. Additionally, the integral relationship of the lower level of the garage and the basement of the hotel with the MEP network serving the garage as well as the hotel and station/depot require that they be designed to a consistent baseline derived from the design development activities. Staff recommends approval. RESOLUTION NO. 2017-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, APPROVING A PHASE II DESIGN SERVICES BUDGET FOR THE RAIL DEPOT/STATION, HOTEL AND PARKING GARAGE PROJECT AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine and Coury Hospitality ("Coury") entered into a Development Services Agreement dated December 7, 2016 (the "Contract"); and WHEREAS, the Contract provides for the joint, public/private development of a rail depot/station, a rail station hotel, interior and exterior public spaces, and a parking garage; and WHEREAS, Section 2.5 of the Contract provides for the preparation of a development and construction budget "Approved Budget"; and WHEREAS, Coury prepared a Pre-Development Budget for tasks necessary for the continued development of the final scope of the design and construction of the Rail Depot/Station, Hotel and Parking Garage; and WHEREAS, the City of Grapevine approved said Pre-Development Budget on March 7, 2017; and WHEREAS, work under the Pre-Development Budget has been completed; and WHEREAS, to continue the progress on the joint project, the approval of a Phase II Design Services Budget is imperative; and WHEREAS, all legal prerequisites for the adoption of this resolution have been met, including but not limited to the Local Government Code and the Open Meetings Act; and WHEREAS, the City Council hereby declares that the approval of this resolution is in the best interest of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. Section 2. That the City Council of the City of Grapevine hereby approves the Phase II Design Services Budget in an amount not to exceed $ 2,854,850 for the continued development of the final scope of the design and construction of the Rail Depot/Station, Hotel and Parking Garage as an element of the project "Approved Budget", and authorizes the City Manager, or his designee, to execute any documents necessary to proceed. Section 3. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 20th day of June, 2017. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Resolution No. 2017-056 2 ORDINANCE NO. 2017-034 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS; AUTHORIZING THE TRANSFER OF $2,854,850 FROM THE 4B TRANSIT FUND TO THE GENERAL FACILITIES CAPITAL PROJECTS FUND AND APPROPRIATING A LIKE AMOUNT IN THE GENERAL FACILITIES CAPITAL PROJECTS FUND; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City supports the Phase II Design Services with Coury Hospitality ("Coury") for the rail depot/station; a rail station hotel, interior and exterior public spaces, and a parking garage; and WHEREAS, funding of $2,854,850 is available in the 4B Transit Fund from the 2017 Adopted Budget; and WHEREAS, all constitutional and statutory prerequisites for the approval of this Ordinance have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this Ordinance to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated hereinabove are found to be true and correct and are incorporated herein by reference, as if copied in their entirety. Section 2. That the City Council hereby approves the use of funds from the 4B Transit Fund. Section 3. That the City Council hereby authorizes the transfer of $2,854,850 from the 4B Transit Fund to the General Facilities Capital Projects Fund and appropriates $2,854,850 to the General Facilities Capital Projects Fund from available funds. Section 4. The fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the public creates an emergency which requires that this ordinance become effective from and after the date of its passage, and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 20th day of June, 2017. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Ordinance No. 2017-034 2