Financing and Construction Guaranteed Maximum Price for City Hall Addition Approved by City Council
August 9, 2017
SANTA MONICA, Calif. – At last night’s meeting, the Santa Monica City Council approved financing and a Guaranteed Maximum Price (GMP) for construction services for the City Services Building (CSB). This City Hall addition will bring City employees spread out in different leased locations onto one campus offering streamlined public services and long-term fiscal savings.
Council approved Lease Revenue Bonds totaling $76,760,000 million for the project. The bonds carry a “Green Bond” designation due to the strong environmental qualities of the CSB as a “Living Building”, the highest green building standard available. The credit rating agencies – Fitch Ratings, Moody’s Investors Service, and Standard & Poors – each assigned their highest possible lease revenue bond ratings to the bonds (AA+, Aa1, and AA+, respectively), and affirmed the City’s AAA general obligation bond credit ratings.
The total project budget for the CSB is $74,804,729. This budget has not changed since coming before Council in November 2016. The difference between the bonding amount and the project budget includes two things: (1) art contributions to the building in the amount of $760,000 and (2) contingency funds covering changes up to $1,195,271 for such items as additional electric vehicle charging infrastructure and bike infrastructure.
Construction services not to exceed $70,600,507 ($61,843,526 Guaranteed Maximum Price, with a 2.4% contingency) was awarded to Hathaway Dinwiddie Construction Company for the final phase of the project: construction, which is set to begin in early September 2017. A contract for construction management services was also awarded to GKK Works in the amount of $887,920.