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HomeMy WebLinkAbout07/01/2003, C10 - ADDITIONAL BUDGET FOR THE LUDWICK COMMUNITY CENTER REMODEL PROJECT - SPECIFICATION NO. 90163B i council °� Jul 1 2003 2A ac en ba nepoit "=dw�t o C I T Y O F SAN L U I S O B I S P O FROM: Michael McCluskey, Public Works Direct Prepared By: Jay Walter, Deputy Director/City Engine Michael J. McGuire, Assistant Engineer SUBJECT: ADDITIONAL BUDGET FOR THE LUDWICK COMMUNITY CENTER REMODEL PROJECT - SPECIFICATION NO. 90163B CAO RECOMMENDATION: Approve transferring $61,000 from the C.I.P. Reserve Account to the Ludwick Community Center Remodel Project account. DISCUSSION Background The construction contract for the Ludwick Community.Center Remodel Project was awarded by the Council on February 4, 2003 after bids came in over the engineer's estimate. The project is now 50 percent complete with an October grand opening anticipated. However, at this point Public Works is anticipating that the amount allowed for project construction contingencies will be depleted, and additional budget is needed to cover additional costs. These additional costs can be grouped into three categories: 1) unforeseen conditions 2) design assistance during construc- tion and 3) optional improvements to the Ludwick Community Center. Unforeseen Conditions On March 3, 2003 Maino Construction began construction on the Ludwick Community Center Remodel Project. On a remodeling project, unexpected conditions are invariably encountered and require prompt resolution. As construction has progressed to the halfway point of the pro- ject, a number of unforeseen conditions with the building have been discovered. These condi- tions have occurred due to deterioration of existing building materials, incomplete or improper construction methods from the last remodel of the Center, and as-built construction drawings that did not correctly reflect existing conditions. Some of the costlier items that have been encoun- tered during construction include: 1. During re-roofing, it was discovered that approximately 300 lineal feet of the perimeter of the "eyebrow" roofs did not have metal flashing. Flashing at this location is vital for proper moisture protection of the roof and the walls below. Installing the new flashing required re- moval of some of the existing wood siding and then patching these areas with identical wood Council Agenda Report—Additional Budget for the Ludwick Community Center Remodel Page 2 siding. This was also necessary at window relocations in the Senior Services area. The wood siding removed was in such poor condition that very little could be reused for patching. Be- cause the wood siding is no longer manufactured, contractor had to purchase a similar wood siding material and sand each board down to remove the texture so it would match the exist- ing siding. The cost of this work was $10,000. 2. During asbestos abatement at the former Boy Scouts building, all of the surface mounted electrical fixtures and conduit were detached from the walls to facilitate removal of hazard- ous materials. Replacement of these fixtures was not anticipated in the base bid because abatement occurred during the bid process. Also, an existing light fixture at the front en- trance of the main building was vandalized. Building Maintenance requested that the vandal- ized fixture be replaced with a new fixture installed within the concrete sidewall near the en- trance to minimize vandalism and increase safety. This required cutting and drilling into the concrete sidewall for installation. The cost for these electrical revisions was $4,599. 3. The floors of the main room, pool room and Lil' Rec'ers area required an additional 3/8" thick underlayment layer of plywood. When these floors were opened up, it was discovered that the existing underlayment was 3/4" thick particleboard, not 3/8" plywood as anticipated. This discovery required all of the particleboard underlayment to be removed as it is an unac- ceptable underlayment material for the carpeting to be installed upon and would have voided the carpet warranty if left in place. It also required an additional layer of 3/8" plywood to be installed to avoid a tripping hazard at every door threshold and to comply with ADA re- quirements. Removal of the particleboard proved to be difficult as it had been glued and screwed to the subfloor. Intensive handwork was required for removal of broken screws and mastic from the surface of the subfloor to provide a level and smooth surface for proper placement of the plywood underlayment. The cost for this work was $3,561. 4. The existing fire sprinkler system in the Senior Services room was relocated so that it would be concealed above the ceiling. Leaving it in place as originally planned would have left all of the piping and sprinkler heads below the ceiling and would have resulted in visually unap- pealing spaces. The cost for relocation was $5,957. 5. During construction there were signs of water infiltration and damage on the walls of the gymnasium near the glass block windows. Further investigation revealed that the windows were never properly flashed at the time of installation and that the grout was leaking in some locations around the glass block. If not corrected, water infiltration will continue and possi- bly lead to damage of the new wall coverings. If new flashing is installed, it will require re- moval of the existing wood siding and installation of new wood siding as described in item 1. The estimated cost for this repair is $10,000. 6. The new mechanical system required new metal ducting underneath the stage floor. On the south side of the stage the location of a new duct conflicted with a steel column in the parti- tion framing. The duct was reworked to circumvent the column location. The cost for relo- cation was $4,000. The cost of these six major items totals $38,117. This represents 58% of the contingency amount with the project 50% complete. Other minor items and anticipated changes will bring the total up to $65,300, which is 98 percent of the amount allowed for construction contingencies. It ap- �co �� i Council Agenda Report—Additional Budget for the Ludwick Community Center Remodel Page 3 pears that the estimate for unforeseen conditions was about right. Per Council policy the award- ing authority (the Council in this case) must be notified when additional costs exceed 75 percent of the amount authorized for contingencies. Thus this is an early notice and in compliance with that policy. Design Assistance during Construction When the design contract was awarded, Public Works thought that all needed construction ad- ministration services could and would be performed by MarWal Construction Management. For this reason the architect's scope of work did not include design assistance during construction. After reviewing the plans, though, MarWal felt the project was complex enough that the architect and its consultants would probably be needed during construction for review of Contractor sub- mittals and shop drawings, interpretation and clarification of the plans and specifications as needed by the Contractor or City, and evaluation of materials substitutions. Such assistance also protects the City in that design responsibility remains with the architect. The only source of money to pay for these services was the construction contingency allocation. Shortly after construction started, the agreement with the architect was amended to include de- sign assistance during construction at an estimated cost of$5,000. Public Works felt this amount would be a sufficient because MarWal could process the smaller, relatively routine submittals and requests for information. Because of the substantial unforeseen conditions described earlier in this report, the volume requests for information forwarded to the architect was much higher than anticipated. Typically, these construction administration fees range from 20 to 25 percent of total architectural design costs, which for this project would be $12,500 to $17,000. Staff antici- pates.these fees will total about $13,000. These costs were not anticipated when the construction contract was awarded, and they are driving the need for additional budget. Optional Improvements to the Ludwick Community Center Stage Construction. Renovation of the stage area in the gymnasium was bid as an additive alter- nate and was not considered for construction because all base bids exceeded the engineer's esti- mate of construction cost. However, project staff decided early on that it would be cost effective to install the structural framework at the stage for the amount of$13,990, since installation at a future date would require demolition of new construction and would be more expensive. It was further decided that if there were enough contingency funds still available towards the end of the project, the folding partition would be installed with minimal impact to new and existing con- struction. Then it was later determined when the partition wall between the stage and the gymnasium was removed that the existing basketball hoop and backboard visually blocked the stage. Initially, the existing framework for the basketball hoop allowed the hoop to be retracted for stage perform- ances. When the partition wall was later installed, though, the mechanism for retracting the bas- ketball hoop was removed and it was locked into a stationary position. If the hoop and back- board framework is left in place, it will visually block any activity on the Stage being viewed from the Gymnasium floor. A new retractable hoop and backboard would resolve this problem. NO--3 Council Agenda Report—Additional Budget for the Ludwick Community Center Remodel Page 4 The ultimate cost of these improvements will be $37,000. These costs were not anticipated when the construction contract was awarded, and they are driving the need for additional budget. Fire Alarm System. The existing fire alarm is a proprietary system that costs the City approxi- mately $3,500 per year in maintenance. Also, it is a system that does not conform to the Building Maintenance Section's equipment specifications for new and remodeled buildings. It is recom- mended that the existing system be replaced with a non-proprietary alarm system that requires less maintenance and repair. The initial cost for the new system will be $12,300 but will save the City an estimated $2,500 per year in maintenance costs and will pay for itself in five years. This cost was never anticipated, is not typically thought of as a construction contingency, and is also helping drive the need for additional funding.. Use of Construction Contingency Allocations Construction contingency allocations are intended to cover the cost of unforeseen construction conditions that arise during the project. Unfortunately, in this case the contingency allocation was tapped for various other costs — all in the best interests of the project but still resulting in non-conventional use of the allocation. These decisions in conjunction with actual construction needs will result in the contingency allocation being depleted. As required by policy, Public Works, by this report, is notifying the Council that additional costs will exceed 75 percent of the contingency allocation amount. In retrospect, when the construction contract was awarded staff should have probably bitten the bullet and simply: 1) asked for additional budget to cover the costs of design services and 2) made a firm recommendation on the stage improvements to either include them or not. The de- sire (and the decision) to add the stage improvements by staff, although well founded, led to un- derestimation of the total amount needed for the project. CONCURRENCES The consensus of Public Works, Parks and Recreation, Administration, and Mr. Arthur Ludwick, the private donor, is that use of the stage is an important component in the successful remodel of the Ludwick Community Center. They all concur with the recommendations of this report. FISCAL IMPACT This project was approved in the 2001-03 Financial Plan. (See pages 295-296 of Appendix B to the Financial Plan.) An additional $61,000 is now needed to cover the additional costs described in this report and summarized on the next page. Cl 0- Council Agenda Report—Additional Budget for the Ludwick Community Center Remodel Page 5 Budget Amount Revised Adjustments Budgeted Amount Needed Unforeseen Conditions $66,600 $65,300 -$1,300 Design Assistance during Construction 0 13,000 +13,000 Ludwick Center Improvements 0 49,300 +49,300 Totals $66,600 $127,600 +$61,000 Public Works is recommending that $61,000 be transferred from the C.I.P. Reserve Account to the Ludwick Community Center Project account. The balance in the Account as of June 30, 2003 was $65,100. The remaining $4,100 will be transferred to the 03-04 C.I.P. Reserve Account that was established by the Council during the budget process. is\_Council Agenda Reports\2003 agenda reports\Engineering and Maintenance Services(Walter)\CAR 90163B Additional Budget for Ludwick Remodel.doc