Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8a
ACTION ITEM
Date of Meeting
September 10, 2019
DATE: August 30, 2019
TO: Stephen P. Metruck, Executive Director
FROM: Nick Milos, Manager, Corporate Facilities
Amy Kiessling, Capital Project Manager I
SUBJECT: Pier 69 Lobby Improvements Project WP#: U00488 and CIP#: C800216
Amount of this request:
$175,000
Total estimated project cost:
$496,000
ACTION REQUESTED
Request commission authorization for the Executive Director to increase the budget for the
Lobby Improvements Project by $175,000 for a total project cost not to exceed $496,000.
EXECUTIVE SUMMARY
On October 9, 2018, Commissioners authorized $715,000 for two projects; the Commission
Chambers Refresh Project (CIP# C800216) for $394,000, and the Lobby Improvements Project
(WP# U00488) for $321,000. The commission chambers project was completed in April 2019,
under budget for a total project cost of $352,000. Commissioners also authorized the use of an
existing Job Order Contract (JOC) and Port work crews to complete the work. This is still the
proposed method.
The lobby project was still in the conceptual design phase when authorization was granted last
October. Completion of the design phase allowed for more accurate cost estimates, thus we are
requesting this additional authorization.
JUSTIFICATION
There has been no significant investment in the lobby since the building was renovated in 1993.
The proposed improvements enhance safety and security for reception staff by improving sight-
lines and eliminating the uncomfortable sense of vulnerability they currently experience when
visitors and employees approach the desk from behind. The improvements will also modernize
the look and feel of the lobby, improve accessibility, improve flow, and encourage public and
staff engagement.
COMMISSION AGENDA – Action Item No. ___8a_ Page 2 of 4
Meeting Date: September 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
Due to the elements within the scope of work, Port Construction Services would use a Job
Order Contract for both phases which will help maximize WMBE opportunities for this project.
DETAILS
The project will be completed with an existing Job Order Contract and managed by Port
Construction Services. Project support and select scope elements will be completed by Marine
Maintenance. Design and Construction Documents have been completed. The Economic
Development Division (EDD) has a favorable budget variance to cover the additional expense.
The unplanned capital portion can be funded from the EDD CIP Reserve. The lobby will remain
open and functional during construction. This requires off hour work, additional staff support,
and special accommodations to minimize construction impacts. The existing desk will be
salvaged for reuse; if no location can be found for its reuse, the desk will be disposed of at a
verified material sorting refuse center.
Scope of Work
The project would replace the existing reception desk and relocate it to the south side of the
lobby. Additional scope would include the installation of new LED light fixtures with
photometric sensors, installing LED retrofit kits to the existing soffit lighting, data and
communications cable upgrades to service the new desk location, painting and installation of
graphics, modification and relocation of the ship models, and a new table mounted video
display featuring a rotation of Port created content that will be managed by External Relations.
Schedule
The project would start in the 4
rd
quarter of 2019 and is anticipated to be completed by the end
of 2019.
Cost Breakdown
This Request
Total Project
$0
$100,000
175,000
290,000
$175,000
$390,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Add a single table-mounted video display and update finishes (paint, graphics
and modify models).
Cost Implications: $225,000 – Scope can be completed for less than the original authorized
amount of $321,000.
Pros:
(1) No additional financial authorization required.
(2) Realized savings through unspent authorized budget.
COMMISSION AGENDA – Action Item No. ___8a_ Page 3 of 4
Meeting Date: September 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
(3) Minimal disruptions to the lobby.
Cons:
(1) Safety and security improvements would not be realized, and reception staff would
continue to experience the uncomfortable sense of vulnerability.
(2) Limited improvement to the visitor and public receiving experience.
This is not the recommended alternative.
Alternative 2 – Complete the project as designed: new relocated reception desk, lighting and
power upgrades, new table-mounted video display, and updated finishes (paint, graphics and
modified model displays).
Cost Implications: $496,000
Pros:
(1) Safety and security improvements with relocated desk.
(2) Improved visitor and public receiving area.
(3) Realized energy and maintenance savings related to modernized lighting.
Cons:
(1) Additional cost of $175,000.
(2) Disruption of lobby operations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
$0
$321,000
$321,000
75,000
100,000
175,000
75,000
421,000
496,000
394,000
321,000
715,000
75,000
100,000
175,000
469,000
421,000
890,000
$75,000
$100,000
$175,000
Annual Budget Status and Source of Funds
The expense portion of this request will be funded under the P69 Facilities 2019 Operating
Budget. The capital portion of this request will be funded from the EDD CIP Reserve account
# C800216 which was included in the 2019 Plan of Finance. This project will be funded by the
General Fund.
COMMISSION AGENDA – Action Item No. ___8a_ Page 4 of 4
Meeting Date: September 10, 2019
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
$496,000
Business Unit (BU)
P69 Facilities
Effect on business performance
(NOI after depreciation)
No Incremental revenue or cost-savings
associated with this project
Annual depreciation expense is estimated to
increase by approximately $3k per year
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
ATTACHMENTS TO THIS REQUEST
Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 9, 2018 – The Commission authorized the Executive Director to proceed with the
construction of the Commission Chamber Refresh project and the Lobby Improvements
project at Pier 69, and to use a Port Construction Service contract and Port work crews
to complete the work. At the time, the total combined estimated project cost was
$715,000.
September 25, 2018 – The Commission received a presentation.