A motion of the Board of the Central Puget Sound Regional Transit Authority authorizing the Executive Director to purchase all necessary furnishings, fixtures, equipment, computers and consultant services for space planning and tenant improvements and to implement the move for Sound Transit occupancy at Opus East, in an amount not to exceed $6,039,118.
Background:
The Board has selected Union Station as the new headquarters for Sound Transit and staff will relocate there in fall of 1999. The Board also authorized the Executive Director to enter into a five-year lease beginning July 1, 2000, at the proposed Opus Development and approve a short-term interim lease at 1100 2nd Avenue in order to co-locate consultants near Sound Transit headquarters. Previous actions did not include the authorization to make certain changes necessary to allow continued occupancy of the existing headquarters until the Opus East lease commences, nor did they authorize the purchase of all necessary furnishings, fixtures, equipment, computers and consultant services for space planning and tenant improvements to implement the move to Opus East. Although there is a net cost in setting up offices for co-location, there will be net savings when considering both design and construction costs as a whole.
Motion:
It is hereby moved by the Board of the Central Puget Sound Regional Transit Authority to delegate authority to the Executor Director to purchase all necessary furnishings, fixtures, equipment, computers and consultant services for space planning and tenant improvements and to implement the move for Sound Transit occupancy at Opus East. The authorized purchases shall be consistent with the budgets referenced in Exhibits A, B and C and shall not exceed $6,039,118.
Approved by the Board of the Central Puget Sound Regional Transit Authority at a regular meeting thereof on the day of , 1999.
Paul E. Miller
Board Chair
ATTEST:
Marcia Walker
Board Administrator
SOUND TRANSIT
MOTION NO. M99-50
Authorization to Purchase Furnishings, Fixtures, Equipment and Computers
for Occupancy at the Opus East Development
BACKGROUND AND COMMENTS
| Meeting: | Date: | Type of Action: | Staff Contact: | Phone: |
| Finance Committee
Board of Directors |
8/5/99
8/26/99 |
Discussion/Possible Action to
Recommend Board Approval Approval |
Paul Bay Bill Houppermans Jan Hendrickson |
398-5134 398-5125 398-5097 |
ACTION:
Approval of Motion No. M99-50 would authorize the Executive Director to purchase all necessary furnishings, fixtures, equipment, computers and consultant services for space planning and tenant improvements to implement the move to Opus East. Approval establishes a budget for this equipment and these services for an amount not to exceed $6,039,118. Motion No. M99-29 authorized execution of the leases with Opus Union Station Development and an interim lease at 1100 2nd Avenue.
BACKGROUND:
The Board has selected Union Station as the new headquarters for Sound Transit and staff will relocate there in fall of 1999. The Board also authorized the Executive Director to enter into a five-year lease beginning July 1, 2000, at the proposed Opus Development and approved a short-term interim lease at 1100 2nd Avenue in order to co-locate consultants near Sound Transit headquarters. Previous actions did not include the authorization to make certain changes necessary to allow continued occupancy of the existing headquarters until the Opus East lease commences, nor did they authorize the purchase of all necessary furnishings, fixtures, equipment, computers and consultant services for space planning and tenant improvements to implement the move to Opus East. Although there is a net cost in setting up offices for co-location, there will be net savings when considering both design and construction costs as a whole.
RELEVANT BOARD POLICIES AND PREVIOUS ACTIONS TAKEN:
FUNDING:
The funding will be provided through the adopted 1999 Link Light Rail design/pre-engineering budget, which totals $48.2 million. Monies for the design and construction of the light rail project are included in Sound Move.
Cost Summary:
Costs approved in this Motion can be summarized as follows (please refer to the attached Exhibits A, B and C which outline these costs in detail):
Cost of Facilities (tenant improvements, furniture and implementation) $3,550,430
Cost of computer equipment $2,488,688
Total $6,039,118
Projected Cost Savings:
Design consultants selected for the Link project (present and future) are required to co-locate, but because we provide space and furniture for them, our contracts specify a lower overhead rate in their billings. That savings over the design period will be approximately $7.5 million, as shown Exhibit C. The overall summary of costs and savings is thus:
Lease costs $3,506,211
Facilities $3,550,430
Computers $2,488,688
Overhead Savings ($7,503,387)
Net Cost - Hard Dollars $2,041,942
Additional costs that will be avoided (cost of re-work, travel $10-50,000,000
time, city and third party costs, delay to the work, poor
construction bids, risk of schedule delay, etc.)
ALTERNATIVES:
Alt. 1. Consultants to purchase their own furnishings, fixtures and equipment including computers. These costs would be passed onto Sound Transit. There would be inconsistency in equipment, furnishings, and fixtures. Computer hardware and software inconsistencies themselves would diminish the advantages of co-location.
Alt. 2. Lease all computer hardware and software, furnishings and fixtures. Leased equipment typically costs more. This would enable Sound Transit to have the latest technology in computers and equipment available.
CONSEQUENCES OF DELAY:
To avoid disruption to the planned move of Sound Transit staff to Union Station in November, it is important to start work on the modification to the 3rd floor of 1100 2nd Avenue at the end of July (i.e. move the server room) so that this work will not interfere with the work associated with the Union Station move. We also need to start work on the actual space layout and tenant improvements for Opus East by the end of July to allow the Opus East developer to plan for our needs during construction of the building.
LEGAL REVIEW:
The Legal Department has reviewed and approved this Background and Discussion paper.