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HomeMy WebLinkAbout09/25/2002city Council Agend .V I DIIL�IO�U ��d 'III t,�x Wednesday, September 25, 2002 SPECIAL MEETING 4:00 p.m. — Conference Room A City Hall 21825 East Copley Drive Diamond Bar, CA 91765 Mayor Wen P. Chang Mayor Pro Tem Debby O'Connor Council Member Carol Herrera Council Member Bob Huff Council Member Bob Zirbes City Manager Linda C. Lowry City Attorney Michael Jenkins City Clerk Lynda Burgess Copies of staff reports or other written documentation relating to agenda items are on file in the Office of the City Clerk, and are available for public inspection. If you have questions regarding an agenda item, please contact the City Clerk at (909) 860-2489 during regular business hours. In an effort to comply with the requirements of Title II of the Americans with Disabilities Act of 1990, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accommodation(s) in Order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting. Please refrain from smoking, eating or drinking in the Council Chambers. The City of Diamond Bar uses recycled paper and encourages you to do the same. CITY OF DIAMOND BAR SPECIAL CITY COUNCIL AGENDA September 25, 2002 Conference Room A Diamond Bar City Hall 21825 E. Copley Drive CALL TO ORDER: 4:00 p.m. ROLL CALL: Council Members Herrera, Huff, Zirbes, Mayor Pro Tem O'Connor, Mayor Chang 2. COUNCIL CONSIDERATION: 2.1 DISCUSSION OF OPTIONS FOR CONSTRUCTION OF THE COMMUNITY/SENIOR CENTER Recommended Action: Discuss option presented for reducing construction costs and authorize staff to develop Change Order No. 1 reducing the scope of the project. Requested by Agenda # Meeting Date: _ September 25, 2002 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council VIA: Linda C. Lowry, City Manager TITLE: Discussion of Options for Construction of the Diamond Bar Community/Senior Center RECOMMENDATION: It is recommended that the City Council discuss the options presented for reducing the construction costs for the Community/Senior Center and authorize staff to develop Change Order No. 1 to reduce the scope of the project. FINANCIAL IMPACT: The original budget for the total project is $12.6 million. This cost includes grading, engineering and architectural fees, construction management services, site utilities, associated fees from outside agencies (Water District/Edison/etc.), furniture fixtures & equipment, specialty inspection services and all other costs associated with the project. The City Council has appropriated approximately $12.4 million for the Community/Senior Center. The City is anticipating the receipt of approximately $200,000 of Roberti-Z'berg Harris 2000 funds from the State. Once these funds are received, it is recommended the funds be allocated to the Community/Senior Center for a total appropriation of $12.6 million. To date, the City has expended approximately $2.2 million on the project. The Walnut Valley Water District recently notified the City that it will cost $250,000 to replace the District's reclaimed water line on site. Therefore, there is a remaining budget of $10.15 million to complete the project. BACKGROUND: On Friday, September 6th the City received a total of seven (7) bids to construct the project ranging from a low bid of $9,881,670 to the high bid of $11,167,600. In addition to the $9.8 million construction costs, the City will also need to provide funds for 8% contingency ($784,000), furniture fixtures and equipment ($335,000), specialty inspections ($75,000), other utility design fees for gas, telephone, etc. ($25,000), increase to EIR consultant ($50,000). 0 0 It should be noted that the project team is continuing to explore other cost saving options such as changing the specified light fixtures, conducting value engineering on the HVAC and electrical systems, and additional modifications to the landscape plan. These numbers are estimated cost savings actual cost saving may vary based on the contractors actual cost. OPTIONS At this point, the City has the following options to move forward with the project: 1. Accept the bid and award contract based on this price. There are sufficient funds in the project budget for this option. However, there are other project costs that will be incurred which will need additional appropriations such as specialty inspection services, cost of Walnut Valley Water system, furniture fixtures and equipment, contingency of 5%, etc. There is currently about $10.15 million available in the project budget. The true fiscal impact of this option would require the City Council to appropriate an additional $1 million for this project. 2. Reject all bids, redesign building to reduce the scope of project and re -bid. This may be required if the City does not want to issue a contract based on the current bids and/or the contractor is unwilling to negotiate a reduction in the overall project bid through a change order. The true fiscal impact of this option would require the City to increase the cost reduction options to offset any increase architect and engineering fees to redesign the project. Also, this would delay the project by 3-4 months. 3. Issue a change order after award of contract to devalue the project by approximately $1 million by changing certain specifications, eliminating elements for landscape/hardscape and/or replacing specific elements with less costly items (as identified above). This option, assuming the contractor concurs with the value of the change order items would allow the project to proceed without additional appropriations. We are currently pursuing option 3 and we recommend that the Council concur with selecting this option. We further recommend that if the cost savings can not be achieved through the change order approach, that the City reject all bids, devalue the scope of the project in the plans and specifications and re -bid the project. If the City is required to re -bid the project it will extend the project timeline by approximately 3-4 months. Our goal is to reduce the cost of the construction by $1 million (plus or minus) while maintaining the Council's vision for the project. If you have any questions regarding this process, please contact me at your convenience. PREPARED BY: Deputy City Manager Attachment: The published engineer's estimate for the project was $8.5 million; however, the real estimate for the construction work was $8.9 million. Unfortunately the low bid came in about $1 million over what we anticipated. Attachment A identifies the areas of construction where the costs have increased from the original construction document cost estimates. As you can see, the significant cost increases occur in the following areas: Site Utilities $119,765 HVAC $154,000 Electrical $267,982 These areas along with the 15% contractor's profit mark up account for an increase of $623,000. The remaining cost increases are found in items such as flashing ($28,000), insulation ($23,000), AC pavement ($18,000), SWPP — Storm Water Prevention Program ($20,000), Masonry ($20,000) and the contractor's profit mark up for these items. Since most of the cost increase can be attributed to items such as HVAC and electrical that can not be reduced or exchanged for lower cost items, the project team began to explore other options to reduce the cost of the project. COST REDUCTION ITEMS In an effort to reduce the cost of the project, the project team identified the following items that can either deferred for later construction, substitute lower quality materials, or eliminate from the project all together. 1. Changing the electric partitions through out the building to manual partitions ($100,000) 2. Change custom milled carpet to high quality carpet ($ 30,000) 3. Replace stone veneer at select locations with stucco ($ 80,000) 4. Replace copper roof screen with perforated metal ($ 8,000) 5. Delete exterior metal window screen at Sr. Center & Banquet Room ($ 50,000) 6. Change electric window shade to manual shades for lower windows ($ 30,000) 7. Change the current wood veneer to another less costly veneer ($ 20,000) 8. Replace ground cover along slopes & other select areas with hydro -seed ($100,000) 9. Defer construction of the water feature until construction of library ($100,000) 10. Delete 2 small manual partitions in banquet room ($ 77,000) 11, Delete Closed Circuit TV equipment ($ 40,000) 12. Defer construction of western parking lot ($150,000) 13. Change Parlex 1000 on rear of building to stucco ($ 20,000) 14. Building Management System ($150,000) 15. Contractor profit mark up of 15% on the above items ($143,250) TOTAL COST SAVINGS ($1,089,250) Construction Cost Estimate 9/25/2002 (D Diamond Bar Civic 1 Senior Center Am"Cel Diamond Bar, CA Plenni" Services Scope Reduction Alternates Inc. Description Grand Total 005. Change the electrical acoustical partitions to manual (99,386) 008. Custom mill to high quality carpet (29,433) 010. Stone veneer to stucco, North & West %Trace Waft (79,027) 012. Copper screen to painted metal (7,346) 016. Delete steel window screens (42,154): 018. Automatic shade screens to manual, lower level (36,746), 020. Repalce Sycamore veneer with Birch (70,349) 028. Eliminate ground cover, retain hydro seed (98,228) 030. Parklex 9000 to stucco (20,340) 036. Delete Water Feature and change stone to DG (136,603) 040. Delete Two Small Manual Partitions (76,946) 042. Wood Exter Fascia and Crown to Rdwd to Cedar (12,279). 046. Delete CCN Camera / Monitors (39,393):i .052. Defer construction of west end parking area, including lights (142,889) 058. Delete Building Management System (178,081) 060.. Defer planting of 50% of non required trees , , , 12732 Partial Totals (1.196,523) (1A96,523) Partial Total (1,196,523) Diamond Bar Community/Senior Center Page 1 Estimate Totals 7,839,935 8,544,897 (704,962E General Contractor Profit it occurred while reading from or writing to(98,017) Total 8 9130 000 9, 732 979 802 9791 ATTACHMENT A Variance Report Page 1 City of Diamond Bar 9/16/2002 Community 1 Senior Center AnalyticalAPSI vs. APSI WlRevisions Planning Services Inc. Item Description r�_._ Total Diamond Bar Diamond Bar Variance CSC CD APSI CSC CD APSI_W_Revs 01.00 Surveying 22,518 22,518 0 02.00 SWPP 20,000 (20,000) 05.00 Site Utilities 748,256 868,021 (119,765) 07,00 AC Pavement 271,507 289,435 (17,928) 09.00 Landscaping 745,273 745,265 8 10.00 Water Feat 63,880 63,880 0 11.00 CIP Concrete 668,041 668,041 0 12.00 Arch precast 717 717 0 15.00 Masonry 404,109 423,675 (19,566) 16.00 Structural 587,702 593,830 (6,128) 17.00 Metal Decking 45,694 55,088 (9,395) 19.00 Rough Carp 325,573 332,198 (6,625) 20.00 Finish Carpentry 296,927 296,927 0 22.00 Waterproofing 11,614 11,614 0 23.00 Insulation 45,988 70,588 (23,600) 27.00 Built up rig 96,540 97,213 (673) 28.00 Flashing 161,452 209,321 (27,869) 29.00 Doors 102,432 102,432 0 31.00 Glass/Glazing 293,252 305,108 (11,856) 3300 Drywall 199,620 199,620 0 34.00 Ceramic tile 131,557 131,557 0 36.00 Acoustical 81,707 81,707 0 38.00 Flooring 99,586 100,748 (1,162) 40.00 Painting 58,950 58,950 0 42.00 RR Acc/Part 22,733 22,733 0 44.00 Flagpoles 10,790 10,790 0 45.00 Display Case 11,822 11,822 0 46.00 Signs 67,987 73,093 (5,106) 47,00 Fire Exting 2,246 2,246 0 48,00 Aco Partitions 299,339 299,339 0 49.00 Vertical lift 23,126 23,126 0 50.00 Proj Screen 2,210 6,010 (3,800) 51.00 Food Sery Eqp 129,308 135,308 (6,000) 52.00 Wind Treat 237,284 237,284 0 53.00 Fire Sprinkler 75,631 75,631 0 54.00 Plumbing 233,131 236,646 (3,515) 55.00 HVAC 532,948 686,947 (154,000) 56.00 Electrical 681,287 949,270 (267,982) 57.00 Fire Alarm 26,199 26,199 0 Total 7,839,935 6,544,898 (704,963) Estimate Totals 7,839,935 8,544,897 (704,962E General Contractor Profit it occurred while reading from or writing to(98,017) Total 8 9130 000 9, 732 979 802 9791 ATTACHMENT A