The URL can be used to link to this page

Home My WebLink About1/2/2003 - STAFF REPORTS (12) DATE: January 2, 2003 TO: City Council FROM: Executive Director—Airports CONVENTION CENTER CONSTRUCTION MANAGER— CONTRACT AMENDMENT RECOMMENDATION: It is recommended that City Council approve Amendment #1 to Agreement A4577 with Turner Construction to modifythe Phase I Convention Center Project and add the Phase II Convention Center Project to the contract. SUMMARY: This action will amend the existing Construction Management contract with Turner to reflect the larger and longer than expected Phase I Project and add the Second Phase Project to the contract. BACKGROUND: On October 2, 2002, City Council approved Agreement #4577 with Turner Construction for Construction Management Services on the Phase I Convention Center Project. The contract was based on $2 million worth of construction and a four-month construction period. The project is now estimated at $2.9 million and because of the need to keep the kitchen operational, will require five months of construction. The non-fee portion of the Turner contract is based on actual cost to manage the project. With the larger and longer project, Turner has updated the actual cost of providing the required personnel,i.e.theirGeneral Conditions. Originally,the General Conditions costs were set at$171,460 on a $2 million project or 8.5% of construction costs. The proposed change would raise the General Construction Cost to $227,955 on a $2.9 million project or 7.8%. The attached Amendment #1 increases the time allowed and adds $56,495 to the General Conditions for Phase I. The larger Phase II Convention Center Project is currently budgeted at $20 million construction cost and has an opening deadline of December 25, 2004. To meet this time tine, a fast-track design effort as well as construction effort will be required. To provide for ongoing cost estimating and value engineering services during the design process, it is proposed that Turner provide preconstruction services throughout the effort. The project itself will take approximately 15 months of construction effort followed by two months for closeout. Turner has provided a cost breakdown for the preconstruction services at $174,502.50, and for the construction period through closeout services at$1,226,597.50 which is a total cost of$1,401,100. To that, a fee of 2.9% or $580,000 will be added. Convention Center Construction Manager- Contract Amendment January 2 2003 Page Two Total Phase II Project cost for Turner is proposed at $1,981,100. In comparing the cost of having a General Contractor (GC) vs. a Construction Manager (CM) on this project, the GC would not provide preconstruction service (estimating and value engineering) and would add between 12% - 15% to project cost. Taking the Turner preconstruction cost out of the total project cost(so it is comparable to a GC) leaves a cost of$1,806,597.50; that is 9% of the $20m projected construction cost. The attached Amendment incorporates the 2ntl phase project and its cost into the Agreement and increases compensation under the first phase. The Phase I charges will be paid for from the incremental TOT being collected up until the Second Phase bond debt service starts. The Phase II costs will be part of the bond issue proceeds with the preconstruction services charged as soft-cost and the remainder as hard construction cost. T A EN F. SMaOT, AAE Executive Director—Airports City Manager e ATTACHMENTS: 1. Amendment#1 2. Turner Cost Breakdown REVIEWED BY DEPT. OF FINANCE F L r AMENDMENT NO. 1 AGREEMENT NO. 4577 - CONSTRUCTION MANAGEMENT SERVICES THIS FIRST AMENDMENT to Agreement No. 4577 for contract services, (herein "Agreement")made and entered into on the day of 2003,by and between the CITY OF PALM SPRINGS(herein"City")and TURNER CONSTRUCTION COMPANY(herein "Constriction Manager") is hereby amended effective January 3, 2003, as follows: Section 1. Section 3.4 Term. is hereby amended to reflect a new ending date of February 28, 2005. Section 2. Exhibit "A" Scope of Services is hereby amended by replacing the introductory paragraph with the following: "Construction Manager shall provide Construction Management Services for the Convention Center Phase I Remodel/Expansion Project and the Phase II Expansion Project each in three phases: Phase I - Pre-bid/Bid; Phase 11 - Construction; Phase II-Post Constriction. Specific scope for each of the phases is itemized as follows:" Section 3. Exhibit "A" Scope of Services, Pre-bid/Bid, is hereby amended by adding the following item b.1: "b.l. Cost Estimating. Construction Manager shall provide three months of cost estimating services to prepare up to four separate cost estimates throughout the design process of the Phase II Expansion Project." Section 4. Exhibit"C" Schedule of Compensation is hereby amended for Phase I expansion to reflect an increase of$56,495 to be equally divided in five monthly payments of $11,299 to be added to the current monthly payments called for between January 2003 and May 2003. Section 5. Exhibit"C" Schedule of Compensation is hereby further amended to add a Phase II Expansion Project Compensation Schedule to read as follows: "Phase II Expansion Compensation: Terms of Compensation. The services provided under this Agreement shall be performed for a lump sum fee of One Million Nine Hundred Eighty-One Thousand One Hundred dollars, as outlined in the General Conditions breakdown and the Billing Schedule of the Construction Manager's Proposal, attached hereto. The monthly fee breakdown is as follows: 1)13 General Conditions Fee A. Pre-Construction Expenses Staff January 2003 $0 $19,346.87 $0. February 2003 $0 $19,346.87 $0. March 2003 $0 $19,346.87 $0. April 2003 $0 $19,346.87 $0. May 2003 $0 $19,346.87 $0. June 2003 $0 $19,346.87 $0. July 2003 $9,863.75 $19,346.87 $0. August 2003 $9,863.75 $19,346.91 $0. B. Construction& Closeout September 2003 $9,863.75 $58,280.55 $32,222.22 October 2003 $9,863.75 $58,280.55 $32,222.22 November 2003 $9,863.75 $58,280.55 $32,222.22 December 2003 $9,863.75 $58,280.55 $32,222.22 January 2004 $9,863.75 $58,280.55 $32,222.22 February 2004 $9,863.75 $58,280.55 $32,222.22 March 2004 $9,863.75 $58,280.55 $32,222.22 April 2004 $9,863.75 $58,280.55 $32,222.22 May 2004 $9,963.75 $58,280.55 $32,222.22 June 2004 $9,863.75 $58,280.55 $32,222.22 July 2004 $9,863.75 $58,280.55 $32,222.22 August 2004 $9,863.75 $58,280.55 $32,222.22 September 2004 $9,863.75 $58,280.55 $32,222.22 October 2004 $9,863.75 $58,280.55 $32,222.22 November 2004 $9,863.75 $58,280.55 $12,222.22 December 2004 $9,863.75 $58,280.55 $32,222.22 January 2005 $9,863.75 $58,280.55 $32,222.22 February 2005 $9,863.75 $58,280.56 $32,222.26 $197,275.00 $1,049,050.00 $580,000.00 GRAND TOTAL $1,981,100.00 Compensation for the above stuns shall be billed to the City on a monthly basis as outlined above on a lump stun basis. The Construction Manager's General Conditions are for a Lump Stun Amount of($1,401,100) dollars as outlined in Turner's General Conditions proposal dated September 18, 2002. The Construction Manager's General Conditions will be billed as a lump sum amount, as outlined in the above schedule. The fee for the Construction Manager's Services is 2.9%of the total cost of construction except for Turner's General Conditions. The Fee has been calculated at 2.9% of($20,000,000.00) dollars and will be billed at a lump stmi amount of($32,222.22) dollars per month. During the last month's billing the fee(but not the general conditions charge which remains fixed)will be adjusted to reflect the actual cost of the project and the fee will either be increased or decreased based on the actual cost of the project. As provided in Exhibit "D", the Schedule of I,,* f Performance, Construction Manager shall further provide a Status Report to the City on February 28, 2004, setting forth the Construction manager's best estimate of the date of completion for all Convention Center Expansion (the "Status Report"). In the event that the Status Report indicates that construction cannot be reasonably completed by December 24,2004,then the monthly payment schedule above (for both General Conditions and the Management Fee) shall be adjusted for the remaining term of the Agreement to the date that construction will be completed. Section 6. Schedule"D" Schedule of Performance is hereby amended by adding an additional schedule for the Phase II Expansion Project as follows: "Phase II Expansion Schedule of Performance: Items of Performance Time for Performance A. Pre-Constriction Services Pre-Bid/Bid) 1. EstimatingNalue Engineering On or before September 1, 2003 2. Commence Solicitation and Pre- On or before June 1, 2003 Qualification process for Trade Contractors. 3. Assist the City in bidding out On or before July 1, 2003 and trade packages and provide ongoing until completion of recommendations for trade contract of the project. awards. B. Construction Services (Construction) 1. Commence Construction Management August 1, 2003 until Services completion. 2. Provide status report to the City February 28, 2004 setting for the anticipated date of final completion C. Contract Closeout 1. Manage the completion of all trade From August 1, 2003 until contracts and finalize all outstanding completion but no later than costs with trade contractors December 25, 2004 2. Finalize record drawings, submittal From November 1, 2004 until 9*45"' packages, and O&M Manuals to the completion,but no later than to the City finalize the completion February 28, 2005 or thirty- of the project. five (35) days after filing Notice of Completion, whichever is sooner. 3. Assist the City through the Trade Expiration of Warrantee Contractor warrantee periods Periods It is understood that the foregoing Schedule of Performance is subject to all of the terms and conditions set forth in the test of the Agreement. The summary of the items of performance in this Schedule of Performance is not intended to supersede or modify the more complete description in the text. In the even of any conflict or inconsistency between the Schedule of Performance and the text of the Agreement,the text shall govern." SIGNATURES ON NEXT PAGE I TURNER CONSTRUCTION COMPANY ORANGE COUNTY/COACHELLA VALLEY BUSINESS UNIT Palm Springs Convention Center Expansion Renovation-Phase 2 General Conditions September 18,2002 DESCRIPTION QUANT. UNIT $/UNIT SUBTOTAL TOTAL REMARKS JOBOFFICEAIL -- _ - _ TRAILER RENTAL-TURNER-24X60 ___ 20 _MOS 850 $_ 1.7,000 JANITORIAL 20 MOS 200 $ 4,000 DELIVER,SET-UP,REMOVE,RETURN 1 _LS 4,500_ $ 4,500 UTILITIES TO TRAILERS LS $ BY ELECT TRAD JOBOFFICE $ 25,500 GENERALEXPENSE OFFICE EQUIPMENT OFFICE SUPPLIES 20 MOB 250 $ 5,000 _ BLUE PRININTING-CONTRACT DRAWINGS LS _ $ - BY OWNER BLUE PRININTING-SHOP DRAWINGS/AS-BUILT 1 ITS 15,000 $ 15,000 _ COMPUTERS-PC's 20 MOS 1,125 $ 22,500 COMPUTER PERIPHALS(PRINTERS,INTERNET 5 EA 2,000 $ 10,000 ADDITIONAL SOFTWARE _ 3 _ EA 2,500 $ 7,500 PROGRESS PHOTOS 15 MOB 125 _$ 1,B75 BOUNDARY SURVEY(Exisling Conditions) 1 LS _ 5,000 $ 5.000 TELEPHONE/FAX SYSTEM 1 LS 2,500 $ 2,500 TELEPHONE SERVICE 20 _ MOB 1,500 $ 30,000 POSTAGE,EXPRESS MAIL 20 MOS 250 $ 5,000 _ PHOTOCOPIER 20 MOS 300 $ 6,000 _ PHOTOCOPIER SUPPLIES 20 MOS 100 $ 2,000 NEXTEL COMMUNICATIONS 80 MOS 280 $ 22,400 _ DRINKING WATER&ICE 20 MOS 100 $ 2,000 MISCELLANEOUS EXPENSES 20 MOS 300 j$ 6.000 _ GROUP SAFETY MANAGER INSPECTIONS _ 15 MOS 1,100 IS 16.500 SAFETY PROGRAM EXPENSE 15 MOS 200 $ 3,000 PROJECT SIGN _ _ 4-FA _I_ 500 $ 2,000 SMALL TOOLS&SUPPLIES FIRST AID SUPPLIES _ 15 MOS 50 $ 750 GENERALEXPENSE PROJECT STAFF _ PRECONSTRUCTION PROJECT EXECUTIVE(Part Time) _ 8 MOS 1,000 $ 8,000 PRECONSTRUCTION MANAGER(Part Time) 5 MOB _ 5,760 $ 28,800 _ PRECONSTRUCTION MANAGER(Full Time) 3 MOS 14,400 $ 43,200 ESTIMATOR 3 MOS 8,625 $ 25,875 PROCUREMENT ENGINEER _ 3 MOS 11,500 $ 34,500 CONTRACTADM_I_N_ISTRATOR 2 MOS 7,200 $ 14,400 CONSTRUCTION - OPERATIONS MANAGER(par�time_) 171 MOB 1,000 $ 17,000 PROJECT EXECUTIVE(Patllime) 17 MOS 4,000 _$ 66,000 PROJECT MANAGER _ _ 17 MOS 14,400 $ 244,800 PROJECT SUPERINTEN_D_EN_T __ 16 MOS 13,500 $ 216,000 _ _ SUPERINTENDENT 10 MOB 12,750 $ 127,500 PROJECT ENGINEER _ 17 MOB 11,500 $ 195,500 QA/QC MANAGER 15 MOS 1,500 $ 22,500 ADMINISTRATIVE ASSISTANT 18 MOB 5,500 $ 99,000 _ FINANCIAL MANAGEMENT-ACCOUNTING 625 HRS 62 $ 38,750 I PROJECT STAFF $ 1,183,825 INSURANCE TAXES FRINGE BENEFITS GLI INSURANCE 1 LS 20.000 $ 20,000 BUILDER'S RISK M$ $ By Owner INSURANCE,TAXES,FRINGE BENEFITS $ 20,000 GRANDTOTAL $ 1,401,100 o q447 MINUTE ORDER NO. APPROVING AMENDMENT #1 TO AGREEMENT NO. A4577 WITH TURNER CONSTRUCTION COMPANY TO INCORPORATE CONSTRUCTION MANAGEMENT SERVICES FOR THE SECOND PHASE CONVENTION CENTER EXPANSION PROJECT AND AMEND THE CONTRACT TO INCREASE COMPENSATION ON THE PHASE ONE PROJECT. - - - - - - - - - - - - - - - - - - - - I HEREBY CERTIFY that this Minute Order approving, Amendment #1 to Agreement No. A4577 with Turner Construction Company to incorporate construction management services for the second phase Convention Center Expansion Project and amend the contract to increase compensation on the phase one project, was adopted by City Council of the City of Palm Springs, California in a meeting thereof held on the 2nd day of January, 2003. PATRICIA A. SANDERS City Clerk 9