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Home My WebLink AboutR29450C CO3 DWGR Kitchen and Building ExpansionContract No. R29450C PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF CHANGE ORDER NO. 3 TO CONTRACT NO. R29450C (THE PENTA BUILDING GROUP) IN THE CUMULATIVE AMOUNT OF $68,570.00 FOR THE KITCHEN AND BUILDING EXPANSION PROJECT AT THE DESERT WILLOW GOLF RESORT SUBMITTED BY: Martin Alvarez, Redevelopment Manager CONTRACTOR: The Penta Building Group 44-250 Monterey Avenue Palm Desert, CA 92260 DATE: March 24, 2011 CONTENTS: Change Order No. 3 Recommendation By Minute Motion: 1. Approve Change Order No. 3 to Contract No. R29450C with The Penta Building Group in the cumulative amount of $68,570.00 for items not included in the original contract to close out the Kitchen and Building Expansion Project at the Desert Willow Golf Resort; 2. Authorize the Chairman to execute the said documents; and 3. Funds are available in Account No. 851-4663-454-4001. Executive Summary The 5,264 square foot expansion to the Desert Willow kitchen and building commenced in August 2010, and was completed on January 14, 2011. Approval of staff's recommendation will authorize final closeout Change Order No. 3 in the cumulative amount of $68,570.00 to close out the construction contract that addresses modifications not included in the original project scope and final negotiated extended general conditions. Attached please find a summary table with itemized costs and credits for Change Order No. 3: Staff Report Contract No. R29450C Desert Willow Kitchen and Building Expansion Change Order No. 3 March 24, 2011 Page 2 of 6 DESCRIPTION COST Design Modifications Not Included In Project Scope Bulletin #3 design modifications $ 4,324.00 Addition of air conditioner dampers to control air flow in Palm Desert Room $ 1,730.00 Bulletin #10 design modifications $ 8,617.00 Roofing Modifications: Connection of existing drains to flow properly Roof truss modifications Repair of rain damage in existing roof Parking Lot/Site Modifications: Relocation of electrical pull box to install art pad Parking lot modifications to meet ADA and City requirements Addition of ADA handrail at east parking lot Service yard modifications Miscellaneous Items: Additional vinyl ceiling grid at bar per Health Department requirements Building and Safety Title 24 Energy Reports Temporary gas to the Lakeview Terrace Project Missing condensing unit not shown on plans Modified exit signage required by the Building and Safety Department Addition of stamped concrete to tie terrace and event lawn Addition of landscape mounding at trees per Landscape Department Extended General Conditions Credits: Design modifications/value engineering Backaround SUBTOTAL I $ 1,421.00 $ 6,366.00 $ 1,500.00 $ 1,193.00 $13,856.00 $ 1,750.00 $ 10,500.00 $ 1,557.00 $ 2,707.00 $ 536.00 $ 4,409.00 $ 2,418.00 $ 4,160.00 $ 1,840.00 $15, 000.00 $83,884.00 1 ($12,000.00) ($ 1,707.00) ($ 1,607.00) SUBTOTAL $ 15,314.00 CUMULATIVE TOTAL 1 $ 68,570.00 1 On January 14, 2010, the Agency Board approved the concept design for the Kitchen and Building Expansion Project at the 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 and building at the east end of clubhouse. • Remodel of the existing lobby and bar area to accommodate an expanded bar area with the relocation of two offices. • Expansion of the lobby and ballroom hallway to eliminate the pinch point. • Enclosure of the existing ballroom to reduce noise. \\srv-fi12k3\groups\rda\k4artin Alvarez\2011 \Staff Reports\3-10-11 CO3DW KltchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen and Building Expansion Change Order No. 3 March 24, 2011 Page 3 of 6 • Modification to the ballroom audio visual, window shading, and lighting. • Creation of a secondary banquet lobby at the 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 and 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 and 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 and Building Expansion Project is 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 design 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 final close out Change Order No 3. Change Order No. 3 Change Order No. 3 addresses five categories required to address design modifications, parking lot modifications, miscellaneous items, and credits not included in the original contract. This Change Order will close out the project. Desiqn Modifications not included in desian: Bulletin 3 — Issued by the project architect, addressed items not included in the original design and not included in the project contract. These items include design modifications to tie the Lakeview Terrace Project to the Kitchen and Building expansion. The cost of these design modifications is $4,324.00. Staff recommends approval. In order to properly tie the existing air conditioning system with new system, the addition of air flow dampers was included to allow the flexibility of controlling air flow to the expanded Palm Desert Room. The cost of this upgrade is $1,730.00. Bulletin 10 — Issued by the project architect are addressed items not included in the original design and not included in the project contract. These items include the addition of recessed lighting, switch control, modifications to the electrical dimming system in kitchen and pick-up bar areas. In addition, exterior security lighting to the service yard was added; not included in the design. The cost of these upgrades is $8,617.00. \\srvfi12k3\groupsVrda\Martin Alvarez\2011\Staff Reports\3-10-1 1 CO3DWKitchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen and Building Expansion Change Order No. 3 March 24, 2011 Page 4 of 6 Roof Modifications: In order to connect the existing roof drain to new roof drains, modifications were required to properly coordinate drainage on the roofs. The cost of this upgrade is $1,421.00. The architecture design of the roof trusses were properly specified to carry proper slopes at the top side to allow for roof drainage. To address this issue, additional built- up roof (foam roofing material) was required to properly drain the flat roof elements. The cost of this additional scope was $6,366.00. During the expansion project, rains occurring in December caused roof leaks in the existing roof system. These areas were repaired and addressed in order to avoid future damage. The cost of this work is $1,500.00. Parking Lot/Site Modifications: As part of the installation of the overflow parking lot, an electrical pull box was installed prior to determining the final location of the "Desert Blossom" art piece. Modification to the location of the pull box were required to properly place the art piece and reduce visual impacts of the in -ground concrete box. The cost of this modification is $1,193.00. Parking lot designs were required to properly meet ADA requirements and tie the existing parking lot grades to the new sidewalks. The added cost of these modifications is $13,856.00. In conjunction with the parking lot modifications, the addition of an ADA handrail was required at the east sidewalk. The cost of this addition is $1,750.00. The clubhouse service yard was reconfigured to allow for additional underground utilities, upgraded grease trap tanks and new trash and recycling enclosures. Per the design specifications, the contractor re -poured concrete in this area. The engineering elevations provided a few concrete elevations which were vague. After the concrete was re -poured the service yard was discovered to be steep and usable for deliveries and servicing of the trash and recycling bins. The contractor and engineer shared responsibility for this issue and concrete was removed and re -poured to meet functionality requirements at a cost of $21,000.00. The cost of this work was negotiated and split by the contractor and the Agency. The cost for this work is $10,500.00. Miscellaneous Items: The proposed modifications under this category include the following items: • Additional vinyl ceiling grid at bar per $1,557.00. • Building and Safety Title 24 Energy Reports: • Temporary Gas to Lakeview Terrace Project • Missing condensing unit not shown on plans Health Department requirements: $1,557.00. $536.00. $4,409.00. \\srv-fi12k3\groups\rda\Mar1in Alvarez\2011\Staff Reports\3-10-11CO3DWKitchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen and Building Expansion Change Order No. 3 March 24, 2011 Page 5 of 6 • Modified exit signage required by the Building and Safety Department: $2,418.00. • Addition of stamped concrete to tie Terrance and event lawn: $4,160.00. • Addition of landscape mounding at trees per Landscape Department: $1,840.00. • Based on the goal to open early January 2011, overtime pay was utilized for critical path subcontractors including, framers, drywallers, plaster, tile and painters. The contractor has provided evidence reviewed by our Construction Manager that indicates that the contractor did incur additional costs for overhead and overtime for his operation and staff during the approved overtime for subcontractors. The recommended approval of Extended General Conditions is $15,000.00. The contractor did meet our goal of opening the project to ensure that Desert Willow's peak season, scheduled events, and revenues are not significantly impacted. Staff recommends approval. Credits: The contractor has provided a credit for the following items not required or valued engineered to reduce costs: • Miscellaneous design modifications throughout the project: $15,314.00. 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. 3 be approved in the cumulative amount of $68,570.00 to close out the contract. Fiscal Analvsis As part of the contract approval, a 10 percent contingency in the amount of $288,087.34 was allocated. Change Orders 1-3 resulted in the following costs: • Change Order No. 1: $148,026.00 • Change Order No. 2: $195,984.00 • Change Order No. 3: $ 68,570.00 The total of Change Orders No. 1-3 represents 13 percent of the overall project cost. Funds are available in Account No. 851-4663-454-4001. The project is funded with Redevelopment Agency funds; therefore, there is no fiscal impact to the City's General Fund. Since opening in January 2011, Food and Beverage Operations has exceeded the anticipated revenues generated for lunch, group outings, and events. Desert Willow averaged 560 lunch covers per day in February 2011. Previous years' average for February was 290 covers per day. This represents a 48 percent increase over previous \\srv-fi12k3\groups\rda\Martin Alvarez\2011\Staff Reports\3-10-11CO3DWKitchenPenta.doc Staff Report Contract No. R29450C Desert Willow Kitchen and Building Expansion Change Order No. 3 March 24, 2011 Page 6 of 6 year. Food and Beverage sales have exceeded projected budgets for January and February and this trend is expected for the remaining months of the peak season. Submitted By: pment Manager Paul S. Gibson, Director of Finance Apt"K� Jo7. Wohlmuth, Executive Director Department Head: usti McCarthy, ACM eievelopment �d BY RDA ON VERIFIED BY /ZOK //) Kily ) v Oriainal on file with City Clerk's Office \\Srvfi120\groups\rdaWartin AlvarezQ011\Staff Reports\3-10-11COMMitchenPenta.doc PALM DESERT REDEVELOPMENT AGENCY Contract # / P.O. # I R29450C 16933 Change Order No. I 3 Chan CONSTRUCTION CHANGE ORDER Contingency: YES X I NO Contract Purpose Desert Willow Kitchen/Building Expansion Account No. ( 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 Bulletin #3 design modifications 4,324.00 Added A/C dampers to control air flow in Palm Desert Room 1,730.00 Bulletin #10 design modifications 8,617.00 Connected existing roof drains for proper flow 1,421.00 Roof truss modifications 6,366.00 Repaired rain damage in existing roof 1,500.00 Relocated electrical pull box to install art pad in parking lot 1,193.00 Parking lot modified to meet ADA and City requirements 13,856.00 Added ADA handrail at east parking lot 1,750.00 Service yard modifications 10,500.00 Added vinly ceiling grid at bar per Health Dept requirements 1,557.00 Building and Safety Title 24 Energy Reports 2,707.00 Temporary gas to Lakeview Terrace 536.00 Missing condensing unit not shown on plans 4,409.00 Modified Exit signage as required by Building and Safety 2,418.00 Added stamped concrete to tie terrace and event lawn 4,160.00 Added landscape mounding at trees per Landscape Dept 1,840.00 Extended General Conditions 15,000.00 Credit for design modifications/value engineering 15,314.00 TOTALS: 15,314.00 83,884.00 NET CHANGE IN CONTRACT PRICE: 68,570.00 JUSTIFICATION: To address unforeseen site conditions, structural modifications and miscellaneous items not in project scope. TOTAL BUDGET FOR PROJECT: + 3,224,883.49 Less: Expend. & Encumb. To Date: - 3,224,883.49 Less: This Change Order Amount: - 68,570.00 BALANCE OF BUDGET REMAINING FOR PROJECT: (68,570.00) CONTINGENCY: Amount Approved by Board: + 288,087.35 Less: Prior Amendment(s): - 288,087.35 Less: This Amendment: - - Balance Remaining of Contingency: - The amount of the Contract will be (DeMased) Increased by the Sum of: Sixtv-Eight Thousand, Five Hundred Seventv and NO/100 Dollars ($68,570.00). GArda\Ngenda Items\2011\3-24-11\Penta R29450C-Chng 3.docx See reverse ... Contract R29450C Change Order No. 3 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 $ 3.293.453.49 The undersigned Consultant approves the foregoing Change Order # 3 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 # 3 . 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: EXECUTIVE DIRECTOR CERTIFIED FUNDS AVAILABLE: 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. 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