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HomeMy WebLinkAboutR29450C - CO1 - DWGR Ktch/Bldg XpnsnPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF CHANGE ORDER NO. 1 TO CONTRACT NO. R29450C (THE PENTA BUILDING GROUP) IN THE CUMULATIVE AMOUNT OF $148,026.00 FOR THE KITCHEN/BUILDING EXPANSION PROJECT AT DESERT WILLOW GOLF RESORT SUBMITTED BY: Martin Alvarez, Redevelopment Manager Heather Buck, Project Coordinator CONTRACTOR: The Penta Building Group 44-250 Monterey Avenue Palm Desert, CA 92260 DATE: November 18, 2010 CONTENTS: Change Order No. 1 Change Order Photographs Progress Photographs Recommendation By Minute Motion: 1. Approve Change Order No. 1 to Contract No. R29450C with The Penta Building Group in the cumulative amount of $148,026.00 for items not included in the original contract for the Kitchen/Building expansion at Desert Willow Golf Resort; 2. Authorize the Chairman to execute the said documents; 3. Authorize the Director of Finance to transfer $148,026.00 from contingency to base for Change Order No. 1, Account No. 851-4663- 454-4001; and 4. Authorize the Executive Director to utilize a portion of the remaining contingency if applicable to accelerate the construction schedule and recoup a 14-day schedule delay resulting from Change Order No. 1 items. Executive Summary The 5,264 square foot expansion to the Desert Willow Kitchen/Building commenced in August 2010. It is 45 percent complete, and is scheduled to be complete by the end of Staff Report Desert Willow Kitchen/Building Expansion, Contract No. R29450C — Change Order No. 1 November 18, 2010 Page 2 of 6 the year. Approval of staff's recommendation will authorize Change Order No. 1 in the cumulative amount of $148,026.00 to address unforeseen site conditions, electrical, and structural modifications not included in the original project scope. The proposed modifications will improve the project's overall safety, operations, and quality. Staff recommends approval. Attached please find a summary table with itemized costs and credits for Change Order No. 1: DESCRIPTION COST Unforeseen Site Conditions: Repair mold conditions discovered in existing kitchen wall $18,000.00 f Relocation of electrical conduits discovered underneath future building pad $12,583.00 J Relocation of natural gas line discovered underneath future building pad $ 3,913.00 J Relocation of 3" main water line $ 9,850.00 J Relocation of interior fire sprinklers, electrical conduits necessary to install $11,768.00 structural beam at new lobby bar J Demolition of cooler box not depicted on construction plans $ 2,685.00 J Addition of electrical conduits and connection to provide power to the new $14,646.00 overflow parking lot lights and future surveillance cameras Electrical Modifications: Relocation of electrical panels not depicted on construction plans 1 $17,935.00 1 Relocation of main lobby electrical switching to accommodate construction wall $ 1,486.00 partition Communication Cabling Relocations/Modifications: Installation of new fiber optic cabling, communications necessary to $20,992.00 accommodate raising the new ceiling in lobby bar. Structural Modifications: I Structural modifications necessary to tie existing building to new structure 1 $12,000.00 Miscellaneous Items: Re -carpeting ballroom due to existing carpet no longer in stock I $20,000.00 Permit fees to the City I $ 4,605.00 SUBTOTAL $150,463.00 Credits: I Elimination of quarry tile underlayment j ($2,437.00) CUMULATIVE TOTAL $148,026.00 Backqround On January 14, 2010, the Agency Board approved the design for the Kitchen/Building expansion at Desert Willow Resort. The project scope includes, but is not limited to the following components: \\srv-fi12k3\groups\rda\Martin A1varez\2010\SR\111810C01 DWKitchenPenta doc Staff Report Desert Willow Kitchen/Building Expansion, Contract No. R29450C — Change Order No. 1 November 18, 2010 Page 3 of 6 • A 5,264 square foot expansion to the kitchen/building at the east end of clubhouse. • Remodel of the existing lobby/bar area to accommodate an expanded bar area with the relocation of two offices. • Expansion of the lobby/ballroom hallway to eliminate the pinch point. • Enclosure of the existing ballroom to reduce noise. • Modification to the ballroom audio visual, window shading, and lighting. • Creation of a secondary banquet lobby at east end of building. The project addresses the demands created by the expansion of the Lakeview Terrace, and adds flexibility to host multiple events simultaneously while preserving the ability to service residents and guests. Melzer, Deckert & Ruder Architects, Inc. completed the construction documents for the Kitchen/Building expansion and sealed bids were opened on July 23, 2010. On July 27, 2010, the Agency Board awarded a contract to The Penta Building Group (Penta) in the amount of $2,880,873.49 with a 10 percent contingency ($288,087.35) for the 5,264 square foot expansion of the kitchen/building. The Notice to Proceed was issued to Penta on August 9, 2010, with an aggressive completion scheduled for the end of December 2010 (140-day contract). The Desert Willow Kitchen/Building Expansion project continues to make progress and is approximately 45 percent complete (see attached construction progress photographs). Construction projects involving renovations and/or expansions are subject to unforeseen field conditions that are often discovered during construction. These field conditions often require retrofitting and modifications to meet current building codes, and to avoid conflicts with the proposed design. In order to address these unforeseen items, Agency staff, our architect, and construction manager negotiated the costs of the added scope in the form of a change order. Change Order No. 1 Change Order No. 1 consists of three categories required to address unforeseen site conditions, electrical modifications, interior communication cabling modifications, and miscellaneous items discovered during construction. Unforeseen Site Conditions: As part of the construction of the Desert Willow Kitchen/Building expansion, the contractor has encountered several unforeseen site conditions that are not part of the construction document scope and have caused minor timing delays. These unforeseen site conditions include the following items: \\srv-h12k3\groups\rda\Martin A1varez\2010\SR\111810C01DWKitchenPenta doc Staff Report Desert Willow Kitchen/Building Expansion, Contract No. R29450C — Change Order No. 1 November 18, 2010 Page 4 of 6 • Removal of mold and repairs to existing kitchen line wall due to mold and moisture conditions. • Relocation of several utilities (gas, water, and electric) that were discovered during the excavation of footings for the new building pad. These utilities were not properly depicted on the current set of as -built plans provided to the contractor. • Relocation of interior fire sprinklers, electrical conduits necessary to install a grade beam in the expanded lobby bar. The lobby bar ceiling is extended to the south into the former offices and the existing utilities requiring relocation where hidden in the former ceiling and not identified on the construction plans. • Additional demolition and disposal cost to remove an exterior cooler box that was not depicted on the construction plans. • Addition of conduits to address electrical needs and low voltage cabling from the existing clubhouse to the new overflow parking lot. The total cost to address these unforeseen items is $73,445.00. Staff recommends approval. Electrical Modifications: During the demolition of the existing walls, three existing electrical panels required relocation to address the new design. The panels were not property identified on the construction plans. These electrical panels require relocation to coincide with the new electrical panels being installed as part of the expansion. The cost of this scope is $17,935.00. In addition, light switches and security alarm key pad required relocation outside of the temporary construction partition located in the main lobby ($1,486.00). The cost to implement these upgrades is $19,421.00. Communications Re-cablinq/Modifications: At the time of the initial design process, the existing IT communication's room was left intact and was not relocated to avoid significant costs. This room contains the computer server and communications wiring for the entire building, which includes the following: • Fiber Optics (computer communications) • Coax Cable (TV) • Telephone • Fire Alarm • Security In order to accommodate the expansion of the lobby bar towards the existing office space, a new structural beam was installed adjacent to this room and area. As part of the lobby bar expansion, the ceiling slopes directly into the existing communication cabling creating a conflict. Communication cabling specifically for the computer cannot \\srvfi12k3\groupsVda\Martin A1varez\2010\SR\111810C01 DMitchenPenta doc Staff Report Desert Willow Kitchen/Building Expansion, Contract No. R29450C — Change Order No. 1 November 18, 2010 Page 5 of 6 be cut or spliced in order to be extended. New cabling is required to achieve the proper extension above the new ceiling and to upgrade to CAT 3. CAT 3 is more advanced, which provides a more effective and advanced communications. The cost to address these modifications is $20,992.00. Staff recommends approval. Structural Modifications: As part of the expansion to the east, a portion of the existing structure was cut-off to accommodate the proper connection to the new structure. In order to properly connect the two buildings (new and existing), an additional portion of the existing roof trusses is required to be pulled back and shored to accommodate proper structural connection to the new building. The cost to address this additional structural modification is $12,000.00. Staff recommends approval. Miscellaneous Items. - The proposed modifications under this category include the following items: • Re -carpeting the ballroom. As part of the project, square footage was added to the existing ballroom and to the Palm Desert room. In addition, sections of the existing slab were cut to install additional electrical and communication floor outlets. Staff's intent was to replace the carpet utilizing the existing pattern; however, the existing field pattern is no longer manufactured. Staff worked with the architect to provide an alternate carpet pattern that would match the proposed modification. The cost for re -carpeting the ballrooms is $20,000.00. • Permit fees to the City of Palm Desert not included as part of the project specifications are in the amount of $4,605.00. Credits: The contractor has provided a credit of $2,437.00 for the deletion of underlayment material underneath the new kitchen tile. As part of the slab construction, the concrete slab was properly adjusted to insure tile is flush with finish floor surfaces. Schedule Delays: The change order items have added scope to the project and caused minor delays in the completion schedule (14 days). Staff is working on a recovery schedule to recoup the time. Staff is requesting that the Executive Director be authorized to use a portion of the remaining contingency to approve overtime work if applicable in order to recoup the time delays and achieve the original completion date of December 31, 2010. Maintaining the project on schedule is critical to ensure that Desert Willow operations and peak season revenues are not significantly impacted. Staff recommends approval. \\srv-fi12k3\groups\rda\Martin A1varez\2010\SR\111810C01 DWKitchenPenta doe Staff Report Desert Willow Kitchen/Building Expansion, Contract No. R29450C — Change Order No. 1 November 18, 2010 Page 6 of 6 The project architect, staff, and construction manager have reviewed these change orders, and have deemed them acceptable and consistent with industry standards. A majority of the change order items have added scope to the project that are required to properly address health and safety items, and ensure the project meets operational needs. Staff recommends that Change Order No. 1 be approved and that $148,026.00 be transferred from contingency to the base contract leaving a contingency balance of $140,061.35 or (5 percent). In addition, staff recommends the Agency Board authorize the Executive Director to utilize a portion of the remaining contingency if applicable to accelerate the construction schedule and recoup a 14-day schedule delay resulting from Change Order No. 1 items. Fiscal Analysis As part of the contract approval, a 10 percent contingency in the amount of $288,087.34 was allocated. Change Order No. 1 results a cost of $148,026.00, which can be absorbed by the project's contingency (Account No. 851-4663-454-4001). The project is funded with Redevelopment Agency funds, therefore there is no fiscal impact on the City's General Fund. Submitted By: in Alvarez, Rede' ielopment Manager Department Head: K /1 Jest McCa AC r R development Paul S. ib , hector of Finance ZE Jo Executive Director Bather Buck, Project Coor rotor iip,� Ltd BY RDA 41 ON a!EP±FIED BY OX 11141� on f0r., City ci�r's Office \\srv-fil2k3\groups\rda\Martin Alvarez\2010\SR\111810C01 DWKitchenPenta.doc PALM DESERT REDEVELOPMENT AGENCY Contract # / P.O. # I R29450C 16933 Change Order No. I 1 CONSTRUCTION CHANGE ORDER Contingency: YES x No Contract Purpose Desert Willow Kitchen/Building Expansion Account No. I 851-4663-454-4001 Contractor's Name The Penta Building Group Project No. Address: 44250 Monterey Avenue Vendor No. I 12177 Palm Desert, CA 92260 You are hereby requested to comply with the following changes from the contract plans and specifications: DECREASE INCREASE DESCRIPTION OF CHANGES In Contract Price In Contract Price Repair mold in existing kitchen wall 18,000.00 Relocate electrical conduits beneath future pad 12,583.00 Relocate natural gas line beneath future pad 3,913.00 Relocate 3" main water line 9,850.00 Relocate sprinkler lines/elect conduits for lobby bar beam 11,768.00 Demolish cooler box 2,685.00 All elect conduit for overflow parking lot 14,646.00 Relocate electrical panels 17,935.00 Relocate lobby electrical switching 1,486.00 Install new fiber optic cabling 20,992.00 Structural modification to tie existing and new structures 12,000.00 Re -carpet ballroom 20,000.00 Additional permit fees 4,605.00 Quarry tile underlayment 2,437.00 TOTALS: 2,437.00 150,463.00 NET CHANGE IN CONTRACT PRICE: 148,026.00 JUSTIFICATION: To address unforeseen site conditions, structural modifications and miscellaneous items not in project scope. TOTAL BUDGET FOR PROJECT: + 3,168,960.84 CONTINGENCY: Less: Expend. & Encumb. To Date: - 2,880,873.49 Amount Approved by Board: + 288,087.35 Less: This Change Order Amount: - 148,026.00 Less: Prior Amendment(s): - - BALANCE OF BUDGET Less: This Amendment: - 148,026.00 REMAINING FOR PROJECT: 140,061.35 Balance Remaining of Contingency: 140,061.35 The amount of the Contract will be (Decreased) Increased by the Sum of: One Hundred Fortv-eiaht Thousand, Twentv-six and No/100 Dollars ($148,026.00). GArda\Agenda Items\11-18-10\Penta R29450C-Chng 1.doc See reverse ... Contract R29450C Change Order No. 1 Continued from front This Contract Amendment covers changes to the subject contract as described herein. The consultant shall perform all work as necessary or required to complete the Contract Amendment items for a lump sum price agreed upon between the Consultant and the Palm Desert Redevelopment Agency, otherwise referred to as Owner. Contract Time Extension -0- Days. Revised Contract Total $3,028.899.49 The undersigned Consultant approves the foregoing Change Order # 1 as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order # 1 . The Consultant agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the Contract Amendment items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Contract Amendment shall be effective when approved by the Owner. Execution of this Contract Amendment by the Consultant constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the Owner from all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of the Contract Amendment, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, and loss of productivity, as well as any and all consequential damages. This document will become a supplement to the Contract and all provisions will apply hereto, all items included above must have required signatures as per the purchase resolution. REQUESTED BY: 3. CERTIFIED FUNDS AVAILABLE: EXECUTIVE DIRECTOR FINANCE DIRECTOR NOTE: No payments will be made prior to Executive Director and Agency Board approval 2. ACCEPTED BY: CONTRACTOR 4. APPROVED BY: CINDY FINERTY, CHAIRMAN SECRETARY 11/18/2010 Date Approved 11 /18/2010 Date Approved GArda\Agenda Items\11-18-10\Penta R29450C-Chng t.doc See reverse ... Z 0 N Z IL X W iD Z J_ m Z w 2 U H Y 0 J_ H w W CO w a U 0 0 IV a) N w U Z U W Q O Z v- Z Z 4 O O O LO Z Z Z 00 O O O U O L U 0�0 Ci c a < 00 w, U C7 O co U N Z U 75 m Z CO LL c 2 C: o a Q_ -o 0 a) Z a 0 Q o U O) O U 0') a) 00 • (/) Lz +� 00 a) VF- O M 0 0 0) L O O N O O O 00 U VOQ� Q H Z 0 U c 0 a .L U cn O O r) -0 0 O " a) v cn C O L 4) U cn O 4- 0 N M d un 0 0 LO 0 0 N O 00 Nr J 0 Proeress Photos View looking north of new framing for clubhouse expansion. View of interior kitchen framing and ballroom corridor looking west. G WaV.t nNvaruWeser W,Hrn DWOU-Pr &afttdou View of new east banquet lobby and future covered walkway. View looking south of the new Lakeview Terrace and the east banquet lobby transition. Goa\Mahn Nvarez�en Wdlo DWOct-Pr Staftt dot✓