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Home My WebLink About12/17/2003 - STAFF REPORTS (22) DATE: December 17, 2003 TO: City Council FROM: Executive Director -Airports TURNER CONSTRUCTION AGREEMENT NO. 4577 - 2ND AMENDMENT - CONVENTION CENTER RECOMMENDATION: It is recommended that City Council approve Amendment No. 2 to Agreement No. 4577 with Turner Construction Company for construction management services on the Convention Center project. SUMMARY: This action would approve an update to the Construction Manager's contract to reflect the expected four (4) month project delay. BACKGROUND: Turner Construction Company was selected prior to the first phase Convention Center project to provide construction management services, both pre-construction and during construction, for the Convention Center Phase II project. The original contract called for preconstruction work to begin January 2003 with construction beginning in September 2003. This contract was approved before the architect for the project was selected. By the time that selection was completed it was obvious that project construction would have to be delayed until December 2003. Rather than ask for additional fees to keep their staff mobilized during this extended preconstruction period,Turner sent a letter asking that their existing preconstruction fee of $175,000 be spread over ten (10) months which would take them to the projected December 2003 construction start date. The proposed contract Amendment No. 2 reflects the ten (10) month revised preconstruction period and adds an additional four(4) months at$17,500 per month, but does not increase the overall contract as the monthly "construction period staff'expenses are decreased by a like amount. The second change to the contract is to increase the "fee" portion of the contract (2.9% of the actual construction cost)from$580,000 to$740,304.84. This increase reflects the City Council's action of last September 3, 2003 wherein the overall construction budget was increased from $20 million to $25,527,753. The contract calls for a fee adjustment based on construction cost adjustments. The third change to the agreement is to provide for $17,900 of reimbursable expenses over the four(4) month delay period from December 2003 through March 2004. This is the only requested increase in fees related to the delay; Turner has agreed to absorb some $118,560 of additional staff expenses necessary to restart and redo work related to the delay. Nothing in the current contract would require Turner to redo work at not cost, however they realize they are part of the team and must assume some of the responsibility for the delay. The last change is a clarification. Currently, in the Convention Center Construction budget we are carrying $901,205 for "General Conditions" ( i.e., testing, safety, printing, extra supervision, etc.). The clarification is that up to $195,000 of the �� Turner Construction Agreement No. 4577 - 2n'Amendment - Convention Center December 17, 2003 Page 2 General Conditions' dollars may be utilized to reimburse Turner Construction for Safety Engineer visits and additional superintendents if said additional superintendents will expedite the project's completion. A minute order approving Amendment No. 2 and Amendment No. 2 are attached for City Council consideration. y-Vv APPROVED. ALLEN F. SMOOT, A. A. E. . - City Manager Executive Director - Airports Attach ment(s):1. Minute Order 2. Amendment No. 2 REVIEWED BY DEPT. OF FINANCE AMENDMENT NO. 2 AGREEMENT NO. 4577 - CONSTRUCTION MANAGEMENT SERVICES THIS SECOND 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 "Construction Manager") is hereby amended effective as follows: Section 1. Section 3.4 Term is hereby amended to reflect a new ending date of September 30, 2005. Section 2. Exhibit "C" Schedule of Compensation, Phase 1I, is hereby amended to read as follows: "Phase II Expansion Compensation: Terms of Compensation. The services provided raider this Agreement shall be performed for a lurnp sum fee of Two Million One Hundred Fifty-Nine Thousand Three Hundred Four Dollars and Eighty-Four Cents, 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: General Conditions Fee A. Pre-Construction Expenses Staff February 2003 $0 $17,500.00 $0 March 2003 $0 $17,500.00 $0 April 2003 $0 $17,500.00 $0 May 2003 $0 $17,500.00 $0 Jrme 2003 $0 $17,500.00 $0 July 2003 $0 $17,500.00 $0 August 2003 $0 $17,500.00 $0 September 2003 $0 $17,500.00 $0 October 2003 $0 $17,500.00 $0 November 2003 $0 $17,500.00 $0 December 2003 $4,475.00 $17,500.00 $33,650.22 January 2004 $4,475.00 $17,500.00 $33,650.22 February2004 $4,475.00 $17,500.00 $33,650.22 March2004 $4,475.00 $17,500.00 $33,650.22 -1- B. Construction& Closeout April 2004 $9,863.75 $54,391.66 $33,650.22 May 2004 $9,863.75 $54,391.66 $33,650.22 June 2004 $9,863.75 $54,391.66 $33,650.22 July 2004 $9,863.75 $54,391.66 $33,650.22 August 2004 $9,863.75 $54,391.66 $33,650.22 September 2004 $9,863.75 $54,391.66 $33,650.22 October 2004 $9,863.75 $54,391.66 $33,650.22 November 2004 $9,863.75 $54,391.66 $33,650.22 December 2004 $9,863.75 $54,391.66 $33,650.22 January 2005 $9,863.75 $54,391.66 $33,650.22 February 2005 $9,863.75 $54,391.66 $33,650.22 March 2005 $9,863.75 $54,391.66 $33,650.22 April 2005 $9,863.75 $54,391.66 $33,650.22 May 2005 $9,863.75 $54,391.66 $33,650.22 June 2005 $9,863.75 $54,391.66 $33,650.22 July 2005 $9,863.75 $54,191.66 $33,650.22 August 2005 $9,863.75 $54,391.66 $33,650.22 September 2005 $9,863.75 $54,391.68 $33,650.22 $215,175.00 $1,203,825.00 $740,304.84 GRAND TOTAL $2,159,304.84 Compensation for the above sums shall be billed to the City on a monthly basis as outlined above on a hunp sum basis. The Construction Manager's General Conditions are for a Lump Sum Amount of($1,419,000.00)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 stun 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($25,527,753.00) dollars and will be billed as a lump sum amount of($33,650.22) 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 Performance,Construction Manager shall further provide a Status Report to the City on October 30, 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 July 30, 2005, 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 constriction will be completed. The City's Project Administrator, upon his prior written approval may reimburse, at cost, Constriction Manager for costs of safety engineer's visits to the site and for extra Project Superintendent time if said extra time will help expedite the project. Total reimbursements shall not exceed $195,000.00 and said funds shall come from the City's pre-established General Conditions Budget of$901,205.00. Costs will be reimbursed based on attachment No. 1 hereto. -2- a��4 y 12/05/2003 FRI 11:06 FAX Z004/006 1z/0'si2003 10:49 FAX 760 318 3815 PSP INT'L AICFT 0009 Section 3. Duie E e, caution_ The persoia(s) executing this Anoendment on bofalf of the patties hezato warrant that (i) such party is duly organized and existing, (ii)they are duly authorized to execute and deliver this Amendment on behalf of said party,(i ii)by so executing this Amendment, such party is formally bound to the provisions of this Amendment, and (iv) the eatezing into this Amendment does not violate any provision of any other agreement to which said party is bound. Section 4. Ful l Force and Effect. The parties further agree that,except as specifloally provided in fMs amendment, the terms of the agreement shall remain unchanged and in full force and affect IN WITNESS VvTTPREOF,the parties Hereto have ma"d these presents to be exquatedon the day of ,2003. "City" ATTEST: CITY OF PALM SPRINGS, CALIFORNIA Ey, City Clcwk City Manager REVIEWED AND APPROVED: City A.ttomey "Construction Manager°' TURNER CONSTRUCTION COMPANY Name: Title: Namo: Ti'Cle: -3- ;2 12/03/2003 WED 10:50 [TR/RX No 0783] [a008 ATTACHMENT #1 (To Amendment No. 2 to Agreement No. 4577) Turner Construction Hourly Rates: Position Hourly Rate Superintendent $75.00 Safety Engineer $75.00 c;7,az14 to MINUTE ORDER NO. APPROVING AMENDMENT NO. 2 TO AGREEMENT NO. 4577 WITH TURNER CONSTRUCTION COMPANY RELATED TO A FOUR (4) MONTH DELAY IN THE START OF CONSTRUCTION OF THE CONVENTION CENTER EXPANSION PROJECT. - - - - - - - - - - - - - - - - - - - - I HEREBY CERTIFY that this Minute Order approving Amendment No. 2 to Agreement No.4577 with Turner Construction Company related to a four(4) month delay in the stat of construction of the Convention Center Expansion project,was adopted by City Council of the City of Palm Springs, California in a meeting thereof held on the 17th day of December, 2003. PATRICIA A. SANDERS City Clerk