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HomeMy WebLinkAbout3/26/2003 - STAFF REPORTS (2) DATE: March 26, 2003 TO: City Council FROM: Executive Director—Airports CONVENTION CENTER PHASE I IMPROVEMENTS — SCHEDULE RECOVERY PLAN RECOMMENDATION: It is recommended that City Council approve a Schedule Recovery Plan forthe Phase I Convention Center Remodel project to increase administrative change order authority, add a second superintendent and authorize weekend overtime. BACKGROUND: Regular reports to City Council have advised that the First Phase Convention Center Expansion project has run into a series of problems related to unknown conditions and design issues. Currently, the project is as much as three weeks behind and the $241,235 contingency account is fully committed to changes with a current estimated overrun of$16,000. The completion of this project, both the meeting rooms and the kitchen, is tied to contractual obligation of the Convention Center to handle incoming events/groups. The development team has worked diligently to try and correct the schedule issues, but it has seemed that for every step forward, two new problems have arisen. It is the recommendation of the development management team that City Council authorize additional superintendent help so one is focusing on the meeting rooms and the other on the kitchen. This will allow for an intensive management effort on both portions of the project; such is not feasible with the single position allocated in Turner's contract. The cost of this item is approximately $29,700. The second recommendation is to authorize the use of Saturday overtime to try and catch up the schedule. The cost of this would be approximately $25,000. And, lastly, the project contingency fund is fully committed and the demolition of the kitchen has yet to occur. If the kitchen follows the same pattern of discovery of unknown issues, there will be additional change orders which are estimated at $60,000. Summary of recovery plan costs: 1. Current contingency overrun $ 16,000 2. Additional superintendent $ 29,700 3. Overtime allowance $ 25,000 4. Potential change orders 60,000 Total $130,700 91q Convention Center P-1 Improvements - Recovery Plan March 26, 2003 Page Two Attached is a Resolution which would approve the above plan and authorize the project administrator an additional $101,000 in change order authority (current overrun $16,000 + overtime $25,000 and potential changes $60,000). Funding to cover these additional costs will come from the Second Phase expansion budget. A Budget Resolution taking funds from current reserves to be replenished by future years' incremental TOT collections is also attached. rgk-:�f�— ALLEN F. SMOOT, AAE Executive Director—Airports APPROVED City Manager ` ATTACHMENT: 1. Resolutions (2) REVIEWED BY DEPI OF FINANCE RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,APPROVING A CONSTRUCTION SCHEDULE RECOVERY PLAN FOR PHASE I CONVENTION CENTER EXPANSION/REMODEL PROGRAM. WHEREAS the City has undertaken the remodel of the Convention Center involving the kitchen and additional meetings rooms and design issues along with unknown conditions have resulted in a delay in schedule as much as three weeks; and WHEREAS the Convention Center is contractually obligated to provide facilities for incoming groups which require an on-time completion; and WHEREAS the project management team has met and developed a strategy to recover the schedule, NOW THEREFORE BE IT RESOLVED BY THE City Council of the City of Palm Springs as follows: Section 1. Turner Construction Company contract #A4577 is hereby amended to authorize an additional superintendent on the project for a nine-week period at $29,700. Section 2. The construction project management team is hereby authorized to utilize overtime to accelerate the remaining schedule up to a total of$25,000. Section 3. The contingency account is hereby increased by $101,000 and the Project Administrator is authorized to approve change orders up to that total amount. ADOPTED this day of 2003. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED &APPROVED AS TO FORM a� RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2002-03 FISCAL YEAR. WHEREAS Resolution 20357 approving the budget for the fiscal year 2002-03 was adopted on June 5, 2002; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 20357, adopting the budget for the 2002-03 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount 261 4282 50003 $130,000 Capital Projects Fund Convention Center Buildings& Equip Purpose To cover additional costs of Phase I Convention Center expansion. SECTION 2. SOURCE Community Promotion Fund reserves (via interfund transfers) to be repaid from future years' revenue from the TOT rate increase. Fund Activity Account Amount 112 29301 $130,000 Community Fund Balance Promotion Adopted this day of 12003 AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED AND APPROVED �C ,