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Home My WebLink AboutR29450C CO2 Kitchen Building Expansion at DWGRContract No. R29450C PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF CHANGE ORDER NO. 2 TO CONTRACT NO. R29450C (THE PENTA BUILDING GROUP) IN THE CUMULATIVE AMOUNT OF $195,984.00 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: January 13, 2011 CONTENTS: Change Order No. 2 Recommendation By Minute Motion: Approve Change Order No. 2 to Contract No. R29450C with The Penta Building Group in the cumulative amount of $195,984.00 for items not included in the original contract for the Kitchen/Building Expansion project at Desert Willow Golf Resort; 2. Authorize the Chairman to execute the said documents; 3. Authorize the Director of Finance to transfer $140,061.35 from contingency to base for Change Order No. 2, Account No. 851-4663- 454-4001; and 4. Appropriate $55,922.65 from Account No. 851-4663-454-4001. Executive Summary. The 5,264 square foot expansion to the Desert Willow kitchen/building commenced in August 2010. The project undertaken on a 140-day completion schedule is substantially complete, and the grand reopening is scheduled for on January 14, 2011. Approval of staff's recommendation will authorize Change Order No. 2 in the cumulative amount of $195,984.00 to address unforeseen site conditions, electrical, structural modifications not included in the original project scope, and overtime compensation to accelerate the schedule to achieve completion by January 2011. The proposed modifications will Staff Report Contract No. R29450C Desert Willow Kitchen/Building Expansion Change Order No. 2 January 13, 2011 Page 2 of 7 improve the project's overall safety, operations, and quality. Attached please find a summary table with itemized costs and credits for Change Order No. 2: DESCRIPTION COST Unforeseen Site Conditions: Repair to existing 4 inch grease interceptor line $1,707.00 Roof repairs to accommodate new ballroom exit doors $3,963.00 Upgrade to existing cook line fire suppression system to meet new Fire Code $6,500.00 Grading modification and addition of curbing at southeast end of building $6,014.00 Additional work required to relocate existing fire hydrant $1,687.00 Additional asphalt in handicap parking area to reduce patching required for $5,000.00 underground utilities Design Modifications Not Included In Project Scope Additional modifications not included in design/contract (upgrades to gas line, $43,201.00 structural upgrades for new AV screen, electrical inverter for emergency backup lighting, conduits for future solar) Additional modifications not included in design/contract (low voltage burglar $69,858.00 alarm wiring for expansion, audio visual upgrades, speakers, controls, missing electrical for window shades, conduit and wiring for future security cameras) Electrical/Plumbing Modifications: Hot water re -circulating system in kitchen required by the Health Department $10,139.00 Gas Line Upgrade to accommodate kitchen and Lakeview Terrace $4,213.00 Additional low -voltage electrical requirements for roll up shades $1,607.00 Water filters for kitchen equipment (Health Department requirement) $3,534.00 Structural Modifications: Removal and reinstallation of existing kitchen hood to implement structural $4,416.00 modifications Bar soffit modification to accommodate new air condition ducts at bar $3,213.00 Miscellaneous Items: Accelerated schedule overtime pay to meet January 14, 2011, reopening $40,000.00 New carpet at existing impacted administrative offices $5,384.00 Addition of rebar to tie in concrete sidewalks between Lakeview Terrace and $1,607.00 new building expansion concrete SUBTOTAL $212,043.00 Credits ($16,059.00): Design modifications/value engineering $10,000.00 Revised interior signage / removal of paint prime at kitchen / grease interceptor $1,643.00 Removal of roll up doors at bar $4,416.00 SUBTOTAL ($16,059.00) CUMULATIVE TOTAL $195,984.00 G.\rdaWartin Alvarez\2010\SR\1-13-11 CO2DWKitchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen/Building Expansion Change Order No. 2 January 13, 2011 Page 3 of 7 Backqround On January 14, 2010, the Agency Board approved the concept design for the Kitchen/Building Expansion at Desert Willow Golf Resort. The project scope includes, but is not limited to the following components: • 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 is substantially complete. 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 items, Agency staff, our architect, and construction manager negotiated the costs of the added scope in the form of a change order. Chanqe Order No. 2 Change Order No. 2 addresses four categories required to address unforeseen site conditions, design modifications, electrical/plumbing modifications, overtime pay, miscellaneous items and credits discovered during construction. G \rdaWartin A1varez\2010\SR\1-13-11CO2DWKitchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen/Building Expansion Change Order No. 2 January 13, 2011 Page 4 of 7 Unforeseen Site Conditions: As part of the construction of the Desert Willow Kitchen/Building Expansion, the contractor encountered several unforeseen site conditions that are not part of the construction document scope and have caused minor schedule delays. These unforeseen site conditions include the following items: • As part of the installation of the new 10,000 gallon grease interceptor, the contractor discovered repairs required to the existing grease interceptor line. • With the expansion of the ballroom and Palm Desert Room, existing roof drains required repairs and relocation to accommodate new existing doors to the Lakeview Terrace. • The existing cook line fire suppression system requires upgrades to meet current Fire Code and to tie into the new cook line fire suppression system. • Unforeseen grading issues between the new building and existing parking lot heights requires curbing at the east end of the building to mitigate grade differences. • Addition of new asphalt in handicapped parking lot to reduce trench patching resulting from the installation of multiple underground utilities. The cost for this work is $5,000.00. The total cost to address these unforeseen items is $24,871.00. Staff recommends approval. Desiqn Modifications not included in desiqn: Bulletin 2 — Issued by the project architect, addressed items not included in the original design and not included in the project contract. These items include upgrades to the existing gas meter required by the Gas Company to properly serve the added natural gas load created by both the Lakeview Terrace and the Kitchen Expansion projects. Also included in this scope were structural upgrades to the ballroom to support the new projector screen. The addition of an electrical inverter was required to service emergency lighting in case of a power outage. The final item included in these design modifications was the addition of solar conduits to the south facing roof, to serve future solar installation. The cost of these design modifications is $43,201.00. Staff recommends approval. Bulletin 4 — Issued by the project architect addressed items not included in the original design and not included in the project contract. These items include low voltage wiring for burglar alarm system for the new building expansion, audio visual upgrades to better serve the expanded ballrooms, speakers, lighting dimmer controls, electric roll -down window shades, conduits and wiring for future security cameras throughout the kitchen, entrance/exits and bar area. The cost of these upgrades is $69,858.00. GArda\Martin A1varez\2010\SR\1-13-11CO2DWKitchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen/Building Expansion Change Order No. 2 January 13, 2011 Page 5 of 7 Plumbina/Electrical Modifications: The Health Department requires a hot water re -circulating system that controls the water temperature for cooking stations. The system controls water values to ensure proper water cooking temperatures. This scope was not included in the design of the project. The cost of this scope is $10,139.00. In order to accommodate the natural gas load for both the Lakeview Terrace and Kitchen Expansion, the existing gas meter requires upgrades. The cost of this work in coordination with the Gas Company is $4,874.00. As part of the project scope, new electrically controlled window shades were installed. The design of the project included the shades, but failed to include the electrical wiring in order to tie all the shades and control them in zones. In order to accomplish the proper zoning, additional low -voltage cabling is required to properly control the shades. The cost for this work is $1,607.00. A water filtering system was required by the Health Department for all new kitchen equipment. The cost of this upgrade is $3,535.00 Structural Modifications: Removal and reinstallation of existing kitchen hood was required to install a 6x6 structural post to protect the IT (communications) closet. The cost for this work is $4,416.00. Bar soffit modifications were required to accommodate new air conditioning ducts at the new bar. The design of the wood ceiling did not accommodate the extension of the new air conditioning ducts. The ceiling above the new back -bar required lowering to accommodate the air conditioning ducting. The cost of this scope is $3,213.00. Miscellaneous Items: The proposed modifications under this category include the following items: • Re -carpeting the existing back office corridor. As part of the project, the new bar area was extended to the south into the existing offices. The extension of the bar into the existing offices required patching of the existing corridor carpet and new carpet in one office. 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 existing offices. The cost for re -carpeting the office corridor and one office is $5,500.00. • Both Change Orders No. 1 and 2 have added scope to the project and caused delays to the original completion of 140-days. Staff and our construction manager worked on a recovery schedule to recoup the time and achieve opening the facility in early January 2011. Based on the goal to open early January 2011, overtime pay was utilized for critical path subcontractors including, framers, dry- \\srvAl2k3\groups\rda\Martin A1varez\2010\SR\1-13-11002DWKitchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen/Building Expansion Change Order No. 2 January 13, 2011 Page 6of7 wallers, plaster, tile and painters. The overtime pay cost to achieve our project completion time frame is $40,000.00. A matrix of the specific costs is attached to the report. Maintaining the project on schedule was critical to ensure that Desert Willow's peak season, scheduled events, and revenues are not significantly impacted. The addition of rebar between concrete installed as part of the Lakeview Terrace project and new concrete poured for the kitchen project at the east end of the site. The cost for this work is $1,607.00. Credits: The contractor has provided a credit for the following items not required or valued engineered to save money: • Miscellaneous design modifications throughout the project: $10,000.00 • Removal of paint priming behind new kitchen walls (not required): $846.00 • Revised signage: $561.00 • Removal of roll down cages at new bar (not required): $4,416.00 • Leaving existing grease interceptor in place: $236.00 The cumulative amount received in credit totals $16,059.00. 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. 2 be approved in the cumulative amount of $195,984.00. In addition, staff recommends that the remaining contingency balance of $140,061.35 be transferred to base contract and that an additional $55,922.65 be appropriated to complete the project. The total of both Change Orders No. 1 and 2 represent 11.61 percent of the overall project cost. Fiscal Analvsis As part of the contract approval, a 10 percent contingency in the amount of $288,087.34 was allocated. Change Order No. 1 resulted in a cost of $148,026.00, leaving a contingency balance of $140,061.34 (Account No. 851-4663-454-4001). Change Order No. 2 in the amount of $195,984.00 utilizes the remaining contingency balance and requires an appropriation of $55,922.65 from Account No. 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. G.VdalMartinAlvarez12 I SRN-13-11CO20WKrtchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen/Building Expansion Change Order No. 2 January 13, 2011 Page 7 of 7 Submitted By: Krrtin Alvarez, Re velopment Manager Department Head: PS.aul cCarthy, A M for Rede I:)pment Gibson, Director of Finance n M. Wohlmuth, Executive Director tl--e� &'�� Heather Buck, Project Coordinator BY RDA ON 0 VERIFIED BY K fy Original on file with City Cirk's ffice G \rda\Martin A1varez\2010\SR\1-13-11COWWKitchenPenta doc g��.,.,.sss� �s < O� °--—----——— - - — ———------------o� E$88888858888So8$$8$$$$8888888$88 � m.oueon�8e$e8m8e88$eemmmmone8.00�u e.00n8 a rc p- - -- - - - - - ux ...... o ..... o ............. o o ... o o 0 0 ..m o � � H p s � 000 -- a ----------------------------------- ----------------------------------- 0 a"« 8808808888888888888888080080888888 a mooMMMmmm�mMMm� �m�MmmmmmmM ;� mm mm mmmmmmmm m O ,K o� �r 0 0 0 0 0 0 o ry A e �+ OS/97JL1 � OI(SULT LL OS/bi/iI -- - OI/EZ/ZT 3 07/ZZ/ZT _ OT/TZ/ZI f OT/OZ/Zt N m'Otletht - oT/9Tlzi _ - OTUT/ZT r 0I/9T/ZT 3 OT/ST/ZI OT/bT/ZI OT/EI/ZT I ° oth2hT _ �^ OT/TTUT LL OS/0T/ZT F OT/61ZT 3 0T/9hT _ OT/L/ZT OT/9/ZT - " - `^ O[/S/ZT x w m B OT/b/ZT OT/E/ZT $ I .. 1 N 1 m oihhi 3 OT/t/ZT oT/OE/TT OT/6Z/TT m:OLIRht tr g - �^ OT/LUST -,OT/9Z/tt f OT/SZ/ST 3 WWII WWII f OThZ(IT �^ OTMAZ iR _ '^ OT/OUTT a oQQ a c ma mo ' _ -� E H v .Y, 00 u m m t oy� - ys ' c' w o H n o = a c> o q 9_ o c c u a ,n vz g� c,un Aar` m qo mo `o o ,�, „s n v E u '" " i w w v m E: a E v E u _ E E x V fo cmia�6z�=DZh O Y z r r n ° o u z a i z 8 3 s ° a4� �iW�W s aw�r�z g zF`m o00o a' 2 F. O z O N O n V a W oxFI.z z a g�-a �w-x am u o�zi'a��sx T�c�w�000u� o°�aua?u ouWoo�z W p owir-a'o� --pzw�a t z �W OzfLL�oxoou�aWa a000maa o PALM DESERT REDEVELOPMENT AGENCY Contract # / P.O. # I R29450C 16933 ChangeOrder No. I 2 CONSTRUCTION CHANGE ORDER Contingency: YES X I 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 Additional unforseen site conditions 24,871.00 Design modifications not in original scope: -Gas line, structural upgrades fornew AV screen, electrical inverterfor emergency backup ligiting, conduits for future solar - Burgular alarm wiring for expansion, AV upogrades, speakers, controls, electrical for window shades, conduit & wiring for future security cameras Electrical / Plumbing modifications Structural modifications Accelerated overtime pay Carpet existing administrative offices Add rebarto tie Lakeview Terrace to building expansion Deducts for design modifications, revised interior signage, grease interceptor, roll up doors TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: 16,059.00 16,059.00 43,201.00 69,858.00 19,493.00 7,629.00 40,000.00 5,384.00 1,607.00 212,043.00 195,984.00 To address unforeseen site conditions, structural modifications and miscellaneous items not in project scope. TOTAL BUDGET FOR PROJECT: + 3,168,960.84 Less: Expend. & Encumb. To Date: - 3,028,899.49 Less: This Change Order Amount: - 195,984.00 BALANCE OF BUDGET REMAINING FOR PROJECT: (55,922.65) CONTINGENCY: Amount Approved by Board: + 288,087.35 Less: PriorAmendment(s): - 148,026.00 Less: This Amendment: - 195,984.00 Balance Remaining of Contingency: (55,922.65) The amount of the Contract will be (Oesfeased) Increased by the Sum of: One Hundred Ninety-five Thousand, Nine Hundred Eighty-four and NO/100 Dollars ($195,984.00). Girda\Agenda Items\2011\1-13-11\Penta R29450C-Chng 2.doc See reverse Contract R29450C Change Order No. 2 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 $ 3.224.883.49 The undersigned Consultant approves the foregoing Change Order # 2 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 # 2 . 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. 3 REQUESTED BY: 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: JEAN M. BENSON, CHAIRMAN SECRETARY 1 /13/2011 Date Approved 1 /13/2011 Date Approved G:\rda\Agenda Items\2011\1-13-11\Penta R29450C-Chng 2.doc See reverse L) O 1t� O N 0 Z H U H Z C) to M U r CO r U' C C 0 M Z U25 m Z U)_ LL c 2 �- m ° oCL O Z Q' ) 0 Q Q O U m O O N 00 cl) +, 00 a) OHO U M 8 (D N N O O LO O M 00 O N N M 0 0 0 0 0 0 a) N O 00 O r O -0 O 0 E Lf U (.)0 r r M H Z O U c o � � } a o Z U Uw Q Z a) o 0 o OO o F- Q 70 O c 000 Lo Q U L O J �• C� C� C� o H LO � cooOOO � Q 0— N M qq LO U