PURPOSE

Staff recommends the City Council grant the General Manager of Burbank Water and Power (BWP) the authority to make the tenant improvements for the BWP offices to be located in the Magnolia Service Building for a cost of $835,000.  With this approval it is expected that the improvements can be completed by February 2005.

BACKGROUND

The Magnolia Service Building is comprised of controls, staff, meeting rooms, rest rooms, maintenance facilities, storage, and associated activities related to the Magnolia Power Plant.  The building is part of the original Magnolia Power Plant that was built in the late 1930s.  The original front portion of the plant, basement, and foundation has been retained and was reinforced so that the Magnolia Service Building could be built on the existing structure.

The result provided the Magnolia Project with a cost-effective building and more interior space than would have been otherwise required.  As part of the Site Lease Agreement between Southern California Public Power Authority (SCPPA) (the owner of the Magnolia plant) and Burbank, BWP was provided this interior space in excess of Magnolia�s needs.  The building contains 46,352 total square feet, with approximately 30,231 square feet to be used by Magnolia and 16,111 square feet to be used by BWP.

Magnolia has made significant contributions to tenant improvements required for the BWP areas on the second floor as these areas will be used by Magnolia during the startup and commissioning of the plant.  These contributions include HVAC, lighting, security, rest rooms on the second floor, and window treatments.  BWP will only purchase the furniture needed for its second floor space.  Magnolia has made the tenant improvements to 4,678 square feet of BWP space so it may use that space during start up rather than securing additional trailers and the land to locate them.  This leaves BWP with 9,000 square feet of space that is required to make the tenant improvements.

This building will soon be complete.  The tenant improvements have recently been designed and the contractor who is performing the construction of the Magnolia Service Building can make the improvements in the most cost-effective manner.  The current contractor could perform the improvements in conjunction with other Magnolia construction activities, thus using the Magnolia construction space, entries, storage, pathways, and supervision.

The third floor contains 9,000 square feet and will be used solely by BWP and represents the tenant improvements for BWP in this building. These tenant improvements include offices, conference and storage rooms, lunch room, flooring, rest rooms, lighting, HVAC, electrical outlets, data and communications lines, window treatments, wall treatments and interior doors.

RTKL, the design architect for BWP and Magnolia, designed the layout and the facilities for this third floor consistent with its design for the BWP Administration building and the Magnolia Project.  Perkowitz and Ruth, the project architect for Magnolia, specified the equipment and construction required to make these BWP improvements recommended by RTKL.

The Perkowitz and Ruth specifications, after approval by BWP, were considered by Whiting Turner, the builder of the Magnolia Service Building.  Whiting Turner works under agreement to Aker Kvaerner, the engineer procurement and construction contractor for the Magnolia Project.  Whiting Turner submitted its proposal for these improvements via Aker Kvaerner.  The proposal was considered by Aker Kvaerner, Magnolia project management staff, and BWP staff.  It should be noted that Magnolia project management staff includes BWP employees, consultants, as well as the engineering firm of Bibb and Associates.  The resulting change order for these improvements totals $835,000.

ANALYSIS

The third floor of the Magnolia Service Building will house the BWP Power Supply and BWP Finance staff.  These employees currently share offices with one another, use trailers, work from desks placed in the SCADA computer room, work from desks located in conference rooms, or share desks with others.  Of the 17 employees who will move to the third floor, only 3 have office facilities that are on-site and meet the standards for office space for such employees.

The 17 employees moving to the third floor include 6 managers and 1 supervisor who will have private offices, 5 professional staff, and 5 clerical.  There will also be two professional cubicles that will be unassigned that may be used by outside parties, consultants, or temporary assignments.  There remains sufficient space to add approximately 10 more professional staff and clerical employees.

The standards for office space at BWP are the following:

• General Manager                     300 square feet

• Asst. General Manager            240 square feet

• Manager                                   180 square feet

• Supervisor                                120 square feet

• Professional Staff                     90 square feet

• Clerical                                      60 square feet

It will not be possible to provide the General Manager nor the Assistant General Managers this standard for space because of limitations in the current BWP Administration Building, but the remaining space standards can be met.

The cost of these improvements average $91 per square foot for the third floor, if valued across all of the BWP space the cost is $60 per square foot.  These tenant improvements will be of the same fit and finish as the rest of Magnolia, as well as the BWP Administration building. 

FISCAL IMPACT

The current budget includes $695,000 for the tenant improvements on the third floor.  Additional funding of $140,000 may be used from the BWP Administration Remodel.  Because of delays caused by the workloads associated with Magnolia, the Administration Remodel Project will not need all of its funding during this fiscal year.

RECOMMENDATION

It is recommended that the City Council authorize the General Manager of Burbank Water and Power the authority to proceed with the tenant improvements for the BWP offices to be located in the Magnolia Service Building for a cost of $835,000.  The work may be done in conjunction with the construction of the Magnolia Power Project through the Southern California Public Power Authority. With this approval it is expected that the improvements can be completed  by February 2005.

If the Council concurs, the appropriate action would be a motion to adopt the resolution entitled �A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AUTHORIZING THE GENERAL MANAGER OF BURBANK WATER AND POWER TO PROCEED WITH TENANT IMPROVEMENTS IN THE MAGNOLIA POWER PROJECT CONTROL AND SERVICES BUILDING AND FURTHER AUTHORIZING REIMBURSEMENT OF THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY FOR THE COST OF SUCH IMPROVEMENTS, AND AMENDING THE FY 2004-2005 CITY BUDGET.� 

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Magnolia 3^rd Fl. Tenant Improve, Council 12-14-04

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