Subject:
Title
9:30 p.m. - 10:00 p.m. - Consider Continuing Agreement with Fairfax County to Renovate Patrick Henry Library and Build a Parking Garage and Amending Financial Participation in Project
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
9/17/2018 - Agreement for Feasibility Study
8/19/2019 - Presentation of Feasibility Study
11/4/2019 - Approve Resolution to apply for NVTA funding for garage
1/27/2020 - Adopt Resolution to apply for NVTA funding for garage
6/11/2020 - Approve design and construction agreement with Fairfax County to develop garage and parking
6/7/2021 - Approve continued participation in Development Agreement for Patrick Henry Library public parking
1/24/2022 - Approve funding for Patrick Henry Library Parking Garage Design
9/12/2022 - Approve continued participation in Development Agreement for Patrick Henry Library public parking
11/13/23 - Design presentation to Council
11/13/23 - Closed session
EXPLANATION AND SUMMARY:
Part 1 - Continue joint agreement
Staff has been working with Fairfax County since 2018 on the concept to renovate the Patrick Henry Library at the corner of Maple Avenue and Center Street and build an attached parking garage to serve both the needs of the County and the needs of the Town.
The Town has secured bond funding plus a grant from the Northern Virginia Traffic Authority (NVTA) to finance both the design and construction phases.
The design development phase is now at its conclusion, and Council must vote whether to reaffirm the Town’s financial participation in constructing parking spaces beyond those which the County is providing for library parking. Per the terms of the NVTA funds, those spaces must be reserved for commuter parking for a portion of weekdays (primarily for the morning commute times) but may be available for non-commuter parking at other times.
Per the terms of the County-Town agreement, the Town paid $663,000 for its share of the design contract in February 2022.
The agreement provides the Town the opportunity, at the end of the design development phase, either to continue participation in or terminate the joint agreement. If the Town terminates at this phase, it will receive a 50% refund of the fee it paid for design ($331,500).
Per the development agreement, this is the final “off-ramp” available to the Town. If the Town Council agrees to continue, the Town is committed to participating in the construction phase.
Part 2 - Request for increased funding
The County’s design process includes a rigorous value engineering process, where subject matter experts review all construction design and support systems and identify ways of decreasing total cost while still retaining project design and integrity. Town staff participated in this process in limited amounts over the summer.
The end of the process in September 2023 resulted in the County producing a revised cost estimate that reflected an increase of 42% for the overall library/garage project. The County will bear the largest portion of the overall increase, including 100% of the increase for the library itself; but the County has asked that the Town share in the increase related to the parking garage. The request is for an increase of $590,000 beyond the $4.2 million Maximum Town Construction Payment that is in the existing agreement. The formula for splitting the costs only allocates the garage costs to the Town on the basis of number of spaces. The Town will receive 40% of the parking spaces, which translates to 19% of total project costs. This was arrived at by looking at specific line items - i.e. we are not paying anything for library construction or fixtures, or for the photovoltaic cells (for solar power) that are on the rooftop of the parking garage.
A written explanation on the cost increases are attached, but most relate to known cost increase conditions facing all projects, such as increase in materials costs, supply chain shortages driving up material costs, and shortage of skilled construction labor.
To agree to the cost increase, the Town and County will have to amend the existing design and construction agreement, attached, to add $590,000 to its maximum Town construction payment for a total of approximately $4.7 million. The Town has the capacity to finance this increase out of current borrowed bond funds.
If the Town does not agree to fund its share of the increase, the County has the right, under section 3.2 of the agreement, to terminate the project if costs go too high. The County’s agreement cancellation would mean that the Town parking spaces would not be built. The County could still choose to move forward on library construction and the parking garage associated with library use.
The County has given verbal assurances that there will be no more requests for cost increases, and the maximum Town construction payment is defined in the contract. The amounts will be reconciled at the end of the project, but the Town’s responsibility would never exceed the maximum Town construction payment in the contract, if amended.
Departmental Recommendation: Recommend continuing with the joint agreement and accepting a one-time increase in the maximum Town construction payment not to exceed $590,000.
Finance Recommendation: Recommend continuing with the joint agreement and accepting a one-time increase in the maximum Town construction payment not to exceed $590,000.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town entered into a Design and Construction Agreement (“Agreement”) with Fairfax County for the joint development of a public parking facility at the reconstructed Patrick Henry Library. The County has advised that there will be construction cost increases and has proposed the Town agree to a new capped construction cost contribution from the Town. The Town Council may approve continuing with the Agreement and the new cost cap in its discretion.
Town Manager's Recommendation: I recommend the Town Council continue the Design and Construction Agreement between the Fairfax County Board of Supervisors and the Town of Vienna for the Patrick Henry Library and authorize me to negotiate an amendment of the Design and Construction Agreement between the Fairfax County Board of Supervisors and the Town of Vienna for Patrick Henry Library for the purpose of increasing the Town’s maximum Town construction payment and provide authority to the Town Manager for that new amount not to exceed $4,790,835 or 19% of construction costs, whichever is lesser, from the account noted above, as presented.
Cost and Financing: $590,000
Account Number: 300-000-0000-39420-48803, Project 820LBGP038
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA.
2020 CIP and Bond Issue
Decision Needed by This date: December 4, 2023
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to continue (terminate) the Design and Construction Agreement between the Fairfax County Board of Supervisors and the Town of Vienna for Patrick Henry Library,”
And (if the Council votes to continue the agreement)
“I move to authorize the Town Manager to negotiate an amendment of the Design and Construction Agreement between the Fairfax County Board of Supervisors and the Town of Vienna for Patrick Henry Library for the purpose of increasing the Town’s maximum Town construction payment and provide authority to the Town Manager for that new amount not to exceed $4,790,835 or 19% of construction costs, whichever is lesser, from the account noted above,”
Or
“I move not to authorize an amendment to the Design and Construction Agreement between the Fairfax County Board of Supervisors and the Town of Vienna for the purpose of increasing the Town’s maximum Town construction payment,”
Or
Other action deemed necessary by Council.