HomeMy WebLinkAbout02/18/1997, 5 - CITY HALL SEISMIC SAFETY/HVAC PROJECT BUDGET council y
j agenda nEpout
CITY OF SAN LUIS OBISPO
FROM: Michael D. McCluskey,Public Wor4. Director
Prepared By: David Elliott,Administrative Analyst IK2�/
SUBJECT: City Ball Seismic Safety/BIVAC Proj t Budget
CAO RECOMMENDATIONS
In order to cover projected budget shortfalls for the City Hall Seismic Safety&WAC project,
1) authorize transferring$55,000 from the capital outlay fund completed projects account to the
project budget
2) appropriate$145,000 from the unappropriated balance of the general fund to the project
account
DISCUSSION
Work on the City Hall Seismic Safety/HVAC Project has turned out to be far more complex and
troublesome than anyone envisioned. Consequently,for several reasons projected outlays will exceed
the current project budget by about$200,000. (The current project budget is$2,143,700.) By
category, costs will go beyond budgeted amounts by the following percentages:
Design 11 percent
Construction 3 percent
Construction Management 121 percent
Miscellaneous 23 percent
Although costs for construction will be fairly close to budget estimates, costs for design, construction
management, and miscellaneous work will surpass budgets by significant amounts.
The attached table presents in detail the current status of the project budget, with individual budget
items numbered for reference where there are significant projected budget shortfalls. The following
discussion focuses on those items with such shortfalls.
Item I/Additional Design on Addenda#1 and#21Projected$14,288 Shortfall. Just before the project
went out to bid,final plancheck revealed the need for extensive accessibility improvements to comply
with the Americans with Disabilities Act. The project engineer had to spend a considerable amount of
time designing these improvements to satisfy plancheckers, changing associated structural, mechanical,
and electrical systems, and then incorporating these improvements and changes into addenda to the
project specifications,because by that time the project was out to bid. This work was arguably outside
the scope of the original design contract, and no money was budgeted for it.
Item 2IRemaining Charge Orders beyond Remaining Contingencie s/Projected$48,000 Shortfall.
The original construction budget allowed $72,443 for contingencies, about six percent of the base
construction contract cost. Five change orders plus additional work by third party contractors have
used up$62,472 of the contingencies amount so far, leaving$9,971 in contingencies. The largest of
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the changes so far was a net$35,664 for eliminating non-standard HVAC controls and installing
Barber Colman controls,which the City has standardized on in recent new construction and renovation
projects because they can be linked and then monitored or adjusted from one location. There are
18 pending cost request bulletins and extra work requests which will result in an estimated
$43,000 of additional change orders. The largest cost request bulletin involves relocation of the
new transformers furnished by PG&E because space in the existing vault was not adequate.
Public Works would also like to allow about $15,000 to cover any other unanticipated expenses
which may crop up through the remaining construction period. The additional amount required
beyond the $9,971 remaining contingencies is about $48,000 ($43,000 plus $15,000 less $9,971).
Item 3IResident Inspection/Projected 517,400 Shortfall. Marwal Construction is the resident inspector
on the project,working on an hourly basis. The original budget of$65,600 was based on nine months
of work at about$7,300 per month. The change order for roof panel asbestos removal extended the
contract term by 70 days, or about 2-1/3 months. An additional 2-1/3 months at about$7,300 per
month works out to a little over$17,000.
Item 4IRewew of Submittals and Requests for Information/Projected$61,800 Shortfall. During
construction the construction contractor must submit shop drawings and manufacturer specifications
so that the engineer-of-record can verify that procedures and materials meet contract specifications.
The contractor may also request information to clarify drawings and specifications. Howard F. Stup&
Associates is the engineer-of-record on this project. On four previous projects for the City(which
were less complex and difficult than the City Hall project), Stup's costs for such review had been
extraordinarily low, indicating high quality plans and specifications as well as efficiency in processing
the submittals and requests. For this reason,Public Works was confident in a)allowing Stup to work
on a time and materials basis and b)budgeting only$9,000 for this purpose. Unfortunately,the
number of requests for information was unexpectedly high, and Stup billed for what seemed to be an
unusually high number of hours to process these requests along with required submittals from the
construction contractor. Four months into the project, Public Works met with Stup to address this
situation. Stup agreed to follow more streamlined procedures and to submit invoices with detailed
accounting for time billed. Predictably, subsequent invoice amounts dropped sharply,but by that time
the damage had been done because the bulk of submittals and requests for information always come in
near the start of construction. The necessity of maintaining a good working relationship with the
engineer-of-record complicated the response to this situation.
Item 5IRevtew of Roof Panel Asbestos Change Order/Projected$7,792 Shortfall. Early in the project
the asbestos abatement subcontractor contended that the roof panels could not be removed using the
procedure described in the specifications prepared by Stup along with Ecosystems Technologies.
Because of the potential for an expensive change order to remove and dispose of the panels as a
hazardous material using full asbestos containment safeguards, Public Works asked Stup to
research field investigation files, document observations about panel attachment, attend a jobsite
demonstration of attempted panel removal, and submit field reports with conclusions about the
necessity of full containment safeguards. There was no money budgeted for this work.
Item 6121sbestas Consultation and Inspection/Projected S25,751 Shortfall Ecosystems Technologies,
which designed the asbestos abatement portion of the project as a subcontractor,was also the
subcontracted asbestos inspector until the roof panel removal problems cropped up. Because of a
potential conflict of interest, Public Works dismissed Ecosystems from project inspection duties. By
that time, though, the payments to Ecosystems(through Stup)had exceeded the budget for asbestos
inspection. In retrospect, the billed hours on the first invoices submitted for the inspection work seem
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to be significantly overstated. After Ecosystems leff, American Environmental Specialists stepped in
on short notice and provided independent asbestos consultation and inspection.
Item 7/Independeni Air Balancing and Testing/Projecied$11,000 Shortfall. After any complex
HVAC installation, a specialty firm balances and tests the equipment to ensure it operates according to
specifications. Typically,this is a construction contract cost,with the owner approving the specialty
firm and the construction contractor paying for the work. On this project the mechanical engineer
specified that the City would pay for the work outside the construction contract, but because the
engineer did not disclose that condition, no money was budgeted for this purpose.
Item 8IVoice and Data Recabling/Projected$10,308 Shortfall. When construction workers
removed the ceiling tiles and supporting grid on the lower floor, they found a Gordian knot of
voice and data cabling worse than anyone anticipated. The primary problem was that the existing
active cable lay in the way of new ductwork and equipment. Other related problems included a
plethora of abandoned cable, disorganization of cable runs, improper suspension of cable, and lack
of code-required plenum ratings for the cable. To avoid an expensive change order from the
construction contractor, Information Systems requested a quotation from Accelerated
Technologies for removing and replacing all the voice and data cabling. Accelerated
Technologies, the City's cabling maintenance contractor, had performed recent cabling work for
the City and was familiar with the City Hall voice and data cable networks. Based on this
quotation, a purchase order in the amount of$45,000 was issued for the required recabling work
and $45,000 was transferred from the City Administrative Officer's ventures and contingencies
account. After the work was completed, Information Systems requested that Accelerated
Technologies install an additional 22 voice and 31 data connections and relocate six data lines at a
price of$10,308.
Almost all of the project expenses shown in the attached table have been incurred or encumbered by
contract. Consequently, a budget amendment is required at this point to satisfy remaining contract
obligations. Future investigation after project completion may identify negligent design and inspection
work and may lead to recovery of a portion of the payments made for that work.
FISCAL IIVIPACT
About$200,000 is needed to cover the estimated project budget shortfall. There is currently$56,882
available in the completed projects account.
Public Works recommends transferring$55,000 from the completed projects account along with
$145,000 from the unappropriated balance of the general fund(for a total of$200,000)to the project
budget for the City Hall Seismic Safety/HVAC Project.
ALTERNATIVES
1. Transfer$145,000 from the Neighborhood Traffic Management project budget instead of the
unappropriated balance of the general fund. The budget for the Neighborhood Traffic
Management project has a current balance of$170,100, although there are no current requests
pending from neighborhoods wanting traffic management devices installed. Transferring
$145,000 from this account would leave$25,100 available for design and construction of
temporary traffic management devices if a neighborhood requested such work There would
still be$86,600 committed in other accounts for related work on the following projects:
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Council Agenda Report- City Hall Seismic Safety/HVAC Project Budget
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Traffic Calming $40,000
Ramona Pedestrian Crossing $151000
Augusta School Crossing $31,600
2. Appropriate the entire$200,000 needed from the unappropriated balance ofthe general fund
Attachment:
City Hall Seismic Safety/HVAC Project- Status of Project Budget-January 1997
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CITY HALL SEISAHC SAFETY/HVAC PROJECT
STATUS OF PROJECT BUDGET
FEBRUARY 1997
Projected
Ref. Previously Projected Surplus/
# Description Budgeted to be Spent (Shortfall)
Design
Conceptual Design 6,800 6,800 0
Conceptual Design Revisions 2,620 2,620 0
Base Design 79,919 79,919 0
Additional Design-Boiler Installation 4,880 4,880 0
Additional Design -Fire Sprinklers/Emergency Generator 10,568 10,568 0
Additional Design-ADA Compliance 20,933 20,933 0
Additional Design-Plancheck Revisions 2,520 2,520 0
Miscellaneous(Postage,Copying,Printing) 1,260 1,506 (246)
1 Additional Design-Addenda#1 and#2 0 14,288 (14,288)
129,500 144,034 (14,534)
Construction
Base Construction 1,179,757 1,179,757 0
Change Order-Office Trailer 3,659 3,659 0
Change Order-Roof Panel Asbestos Removal 578,024 578,024 0
Change Order-Gutter Asbestos Removal 10,000 10,000 0
Change Order-Suballic Asbestos Encapsulation 5,600 5,600 0
Change Order-Miscellaneous Additions 6,771 6,771 0
Change Order-Elimination of Non-standardized HVAC Controls (50,000) (50,000) 0
Installation of Standardized HVAC Controls 85,664 85,664 0
Upgrade of Light Fixtures for Council Hearing Room 713 713 0
Miscellaneous 65 65 0
Remaining Contingencies 9,971 9,971 0
2 Remaining Change Orders beyond Contingencies 0 48,000 (48,000)
1,830,224 1,878,224 (48,000)
Construction Management
3 Resident Inspection 65,600 83,000 (17,400)
Materials Testing and Inspection 9,400 9,400 0
4 Review of Submittals and Requests for Information 9,000 70,800 (61,800)
Review of Project Schedule and Procedures 0 2,428 (2,428)
Review of City Clerk Office Addition 0 1,261 (1,261)
5 Review ofFbdPanel Asbestos Change Order 0 7,792 (71792)
6 Asbestos Inspection 21,976 47,727 (25,751)
Independent Review of Unacceptable HVAC Controls 0 1,100 (1,100)
7 Independent Air Balancing and Testing 0 11,000 (11,000)
Miscellaneous(Postage,Photofinishing,Copying) 0 936 (936)
105,976 235,444 (112,068)
Boiler Replacement
Boiler Installation 24,440 24,440 0
Asbestos Removal 2,994 2,994 0
Interim Heating Provisions 5,566 1,985 3,581
33,000 29,419 3,581
Miscellaneous
8 Voice and Data Recabling 45,000 55,308 (10,308)
PA System for Off-site Council Meetings _ 0 1,060 (1,060)
45,000 56,368 (11,368)
Total Project 2,143,700 2,343,489 (199,789)
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