HomeMy WebLinkAbout06/19/1990, 10 - CHANGE ORDER #10 FOR TENANT IMPROVEMENT IN THE MARSH STREET PUBLIC PARKING STRUCTURE, CITY PLAN NO. TE
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COUNCIL AGENDA REPORT MM"`
FROM: David Romero, PublicWorksDirector
Wayne Peterson, City Engineer
Thomas Gingg, Engineering Field Supero or
SUBJECT: Change Order #10 for tenant improvement in the
Marsh Street Public Parking Structure, City Plan
No. M-41D
CAO RECOMMENDATION:
By motion, approve the contract change order for tenant
improvement to the Marsh Street Public Parking Structure in the
amount of $386,697.08, and authorize the transfer of $257,000
from Capital Control Account to the Construction Account.
DISCUSSION:
On December 20, 1988 (Resolution No. 6556 - 1988 Series) , the
City approved a lease agreement with Charles Ford Company
(Riley's) for the commercial retail space in the Marsh Street
Public Parking Structure. The lease rental rate is based on the
City installing tenant improvements. At the time the rental
agreement was worked out, the construction plans for the parking
structure were in final stages of plan check, and it was not
possible to design the tenant improvements to be included in the
original bid package without delaying the entire project several
months. This implied that the tenant improvements would be
constructed as a change order during the construction of the main
parking structure, or alternatively by a separate bid after
completion of the structure. Because of the importance of
completing the tenant improvements in a timely fashion, staff
opted for the change order approach.
On October 9, 1989 (Resolution 6699 - 1989 Series) , the City
authorized a contract for design of certain tenant improvements
within the parking structure.
The tenant improvement plans were completed and staff requested a
proposal from Madonna Construction Company to construct the
improvements. Staff received the proposal on April 17, 1990.
After considerable revision and negotiation, a second bid was
received on May 22, 1990. The tenant improvements include both
those which are City responsibility in the amount of $343,618.62
and those which are Riley's responsibility in the amount of
$43,078.46. Staff proposes to issue a change order to Madonna
Construction for the entire amount, with Riley's reimbursing the
City for Riley's share as the work progresses. A formal
agreement (Exhibit B) reflecting this has been prepared and
submitted for execution by Riley's.
RECEIVED
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som COUNCIL AGENDA REPORT
Riley's
Page Two
The "tenant improvements" which the City will provide are those
which are basic to the shell of the building such as walls,
floor, basic electric, heating, ventilating and airconditioning,
plumbing and exterior doors. Riley's is responsible for wall
finish, false ceilings, lighting and interior partitions, and
similar appointments. The basic split of responsibility was
worked out many months ago, with supplemental information
provided more recently by Bruce Fraser, architect for the
project. One area which was not clearly defined in the agreement
is the level of improvement to be provided by the City in the
restrooms. This week staff and Riley's agreed to equally share
this $10,959.15 cost.
ALTERNATIVES:
1. Reject change order, advertise for competitive bids, with
contractor to move in after Madonna Construction has
completed the parking structure.
Advantages: A competitive bid should result in a lesser
cost than a change order.
Disadvantages: A different contractor would have to wait
until Madonna Construction completes the structure in
September before moving in, thus delaying completion of the
improvements until perhaps November. Riley's has a great
deal of additional store improvements and merchandise
stocking to do before it can open. A two month delay would
mean that Riley's would miss the Christmas season. They are
already extremely unhappy with having missed the fall
season.
FISCAL IMPACT:
The original contract for the parking structure was $3,621,600.
The work done under this CCO will cost $386,697.08. There is
$85,000 in the design account (051-9863-092-571) that can be
transferred to construction account (051-9863-092-572) . $257,000
will need to be transferred from the Capital Control Account to
the Construction Account. $43,078.46 will be reimbursed to the
City upon completion of the improvements. The transfer of
$257,000 from the Capital Control Account will mean that the
account may require augmentation when the City chooses to
purchase land for a third parking structure site. The amount of
shortfall in this account cannot be determined at this time
because a property has not been identified and appraised.
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COUNCIL AGENDA REPORT
Riley's
Page. Three
Council should be aware that the parking fund is currently
operating with a negative cash flow. This was discussed with you
at the study session February 26, 1990. Staff is working on
proposals to correct that situation and will be reporting to you
on this in the near future.
STAFF RECOMMENDATION:
Staff is very sympathetic to Riley's concerns regarding the
extensive delays in completing the structure. Accordingly staff
feels that the change order approach, even with its implied
increased cost, is the preferred alternative.
Attachment: Division of Responsibility
Agreement
rileys/dfr#22
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EXHIBIT A
DIVISION OF RESPONSIBILITY
FOR LEASE SPACE IMPROVEMENTS
FOR RILEYS DEPARTMENT STORE
Revised May 23, 1990
ITEM CITY RILEYS
03600/Cementitious Grout 21450.00 0.00
05500/Miscellaneous Metals 3,680.00 0.00
06200/Finish Carpentry 6.00 49025.00
07200/Insulation 69204.25 0.00
08100/Metal Doors, Frames 117.59 11981 .31
08200/Wood Doors 97.05 19635.91
08700/Door Hardware 190.50 392.1.1.22
09250/Metal Framing, Gypsum Drywall 332384.40 2499.10.20
09500/Resilient Flooring/Wainsooat 0.00 19388.05
09500/Acoustic Ceiling Treatment 179294.85 0.00
10150/Toilet Partitions 0.00 49634.50
10400/Signage. 0.00 131. 10
10522/Fire Extinguishers, Cabinets 0.00 815. 10
10800/Bathroom Accessories 0.00 1 ,599.65 4
15400/Plumbing 71776.65 49725.004t
15500/Fire Protection Sprinklers 169675.00 0.00
15600/Heating, Ventilating, Air
Conditioning 1709120.65 0.00
16000/Electrical, Lighting, Alarm 80, 148. 10 0.00•
TOTALS $3389139.04 $489558.04
+. 5,479.58 - 5,479.58
$ 343,618.62 S 43,078.46
6/6/90
NOTE: Because of unclear definition of "Commercial retail shell in conformance
with industry custom and practice", Tom Donat and I agreed we would split
cost of the 3 items listed. All relate to level of improvement in the
bathrooms.
$10,959.15 = $5,479.58
2
David Romero, Public Works Director
C
10. PARKING STRUCTURE TENANT IMPROVEMENTS (ROMERO/M-41D)
Staff is still working on report. To be distributed under
separate cover.
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