HomeMy WebLinkAboutItem 09September 28, 2012
Lakev :Ile
Item No. C
RESOLUTION APPROVING HERITAGE CENTER CHANGE ORDERS
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution Approving
Heritage Center Change Orders
Passaae of this motion will result in arnvoval of rhanae orders for the T4eritaae Canter
Construction Project.
Overview
The City Council approved the contracts for the Heritage Center Project on April 2, 2012. As
with any remodeling project, there are construction issues which evolve as work progresses.
The construction manager, Contegrity Group is recommending approval of change orders for
the project. Throughout the entire process, staff and construction manager evaluated each
modification to insure that the City was receiving a quality product within the original scope of
work at the best possible pricing.
Primary Issues to Consider (see attached)
• Purpose of the change orders
• Project budget and estimated costs as of October 1, 2012
• Project Financing
• Interim Financing - Sale of Senior Center
Supporting Information
• Resolution approving Heritage Center change orders
• Supporting documentation is on file in the offices of the Interim Parks and Recreation
Hennen, Interim Parks & Recreation Director
Financial Impact: $1,136,702 budgeted: N/A Source: Heritage Center Construction Fund
Related Documents (CIP, ERP, etc.):
Notes:
Primary Issues to Consider
The revised contracts based on the change orders are as follows:
Purpose of the change orders
a) Max Steininger, Inc. - Change Order #1 $17,119.40
Unsuitable soils found on drive lane north of building, requiring
removal and installation of appropriate material.
b) Friedges Drywall - Change Order #1 $1,557.00
Installation of modified doors, skim coat vestibule, relocate specific
doors, eliminate second entrance door in front of building (deduct)
and add gypsum board to back entry door area (vestibule 162).
c) Friedges Drywall - Change Order #2 $12,999.00
Structurally reinforced the existing wood trusses in original portion of
building and installed non - combustible insulation /vapor barrier in
truss space per fire protection code.
d) Friedges Drywall - Change Order #3 $1,250.00
Revise Historical Society and Yellow Ribbon display cases and modify
gypsum board soffits in circulation area A117.
2
Original
Change
Contract
Description of Work
Contractor
Total
Orders
Revised
Earthwork/Utilities
Max Steininger
98,892
17,119
116,011
Concrete
Thompson Construction
61,750
61,750
Carpentry and Gypsum
Friedges Drywall
92,300
16,705
109,005
Roofing
Kato Roofing
86,000
86,000
Doors /frames
Kendell Doors & Hardware
27,143
5,804
32,947
Tile
MCI, Inc
4,000
1,946
5,946
Acoustical Treatments
Twin Cities Acoustics Inc
22,795
4,714
27,509
Flooring
MCI, Inc
38,840
38,840
Painting
Full Specturm
11,890
720
12,610
Fire protection
Quality Design and Fire P.
41,003
175
41,178
Mechanical /plumbing
Westman Plumbing
29,900
848
30,748
Heating, vent and air
SCR, Inc.
111,900
4,730
116,630
Electrical
VINCO Inc.
56,600
27,683
84,283
Total contracts
683,023
8 0,444
763,457
Purpose of the change orders
a) Max Steininger, Inc. - Change Order #1 $17,119.40
Unsuitable soils found on drive lane north of building, requiring
removal and installation of appropriate material.
b) Friedges Drywall - Change Order #1 $1,557.00
Installation of modified doors, skim coat vestibule, relocate specific
doors, eliminate second entrance door in front of building (deduct)
and add gypsum board to back entry door area (vestibule 162).
c) Friedges Drywall - Change Order #2 $12,999.00
Structurally reinforced the existing wood trusses in original portion of
building and installed non - combustible insulation /vapor barrier in
truss space per fire protection code.
d) Friedges Drywall - Change Order #3 $1,250.00
Revise Historical Society and Yellow Ribbon display cases and modify
gypsum board soffits in circulation area A117.
2
e) Friedges Drywall - Change Order #4 $899.00
Lower ceiling height from 9' to 8' in order to reuse existing can lights
and add soffit on west and east end of Circulation A147.
f) Kendell Doors and Hardware - Change Order #1 $5,804.00
Add 1.7 new Best Core locks and provide wireless actuators and
receivers at front door locations.
g) MCI, Inc - Change Order #1 $787.00
Eliminate VCT (vinyl composition tile) in Art Room and add quarry
the base in kitchen.
h)
MCI, Inc - Change Order #2
$225.00
Installation of VCT -1 in Coffee Room Al 15 and provide credit to
patch VCT -4 in Coffee Room A115.
i)
MCI, Inc - Change Order #3
$934.00
Remove floor box cover plates at 9 locations in multi - purpose room
A153, in -fill boxes with concrete flush with top of existing slab and
patch with new VCT.
j)
Twin City Acoustics, Inc. - Change Order #1
$4,273.00
Provide new 2'x2' ceiling grid system throughout 27 rooms in order to
install insulation and vapor barrier in wood truss system to meet fire
protection code.
k)
Twin City Acoustics, Inc. - Change Order #2
$440.67
Install break metal soffit in hallways Al26 and A137A to accommodate
ceiling height differences.
1)
Full Spectrum - Change Order #1
$720.00
Painting of soffit in lobby (Room A100), hollow metal door and frame
in Room Al l l and painting in Vestibule A140.
m)
Westman Plumbing, Inc. - Change Order #1
$848.00
Relocation of existing valving below truss space as result of installation
of insulation /vapor barrier in truss space per fire protection code.
n)
SCR, Inc. - Change Order #1
$5,100.00
Relocation of existing ductwork below wood truss space as result of
compromised existing trusses in original portion of building.
o)
SCR, Inc. - Change Order #2
($750.00)
Deduct for omitting two fire dampers in Storage Room A109 and
omitting two fire dampers in Storage Room A107.
p) SCR, Inc. - Change Order #3 $380.00
Lock all remaining existing dampers open.
q) Vinco, Inc. - Change Order #1 $1,251.00
Add power to door openers in west front door vestibule.
r) Vinco, Inc. - Change Order #2 $12,083.00
Relocate electrical boxes in original portion of building as result of
installation of insulation /vapor barrier in truss space per fire
protection code.
s) Vinco, Inc. - Change Order #3 $1,952.57
Disconnect electric feed to four unit heaters, work on circuiting in
Rooms Al22, A155 and A163 for safety purposes, disconnect switch
and relocate in Room Al29, disconnect and remove conduit and
wiring to receptacle on outside wall of Room A162 along with
miscellaneous changes in five other rooms.
t) Vinco, Inc. - Change Order #4 $2,974.92
Lighting demolition and changes in ten rooms, power and
communications changes in seven rooms, addition of light fixture and
additional electrical needs for motor and equipment schedule.
u) Vinco, Inc. - Change Order #5 $991.17
Miscellaneous additional electrical work throughout building.
v) Vinco, Inc. - Change Order #6 $8,430.17
Remove all existing fire alarm smoke detectors throughout building.
Connect new flow and tamper devices and connect to fire alarm panel.
Provide shunt trap for range and connect annul system panel to fire
alarm panel. Provide power and switch to kitchen hood lights and fan.
Replace and revise existing exit lights and lighting needs. Install new
interior and exterior horn /strobes to replace existing strobes not
operating.
w) Quality Fire and Design - Change Order #1 $175.00
Relocated sprinkler head to accommodate owner - supplied cabinet unit
per fire protection code.
Project budget and estimated costs as of October 1, 2012
The project budget and estimated costs as of October 1 compared to the April 2 budget are as
follows:
The estimated project costs exceed budget by $41,598 which is 3.8% of the April 2 budget
5
As of
As of
Description of Work
Oct. 1, 2012
Apri12, 2012
Variance
Earthwork/Utilities
116,011
98,892
(17,119)
Concrete
61,750
61,750
Carpentry and Gypsum
109,005
92,300
(16,705)
Roofing
86,000
86,000
Doors /frames
32,947
27,143
(5,804)
Tile
5,946
4,000
(1,946)
Acoustical Treatments
27,509
22� 795
(4,714)
Flooring
38,840
38,840
-
Painting
12,610
11,890
(720)
Fire protection
41,178
41,003
(175)
Mechanical /plumbing
30,748
29,900
(848)
Heating, vent and air
116,630
111,900
(4,730)
Electrical
84,283
56,600
(27,683)
Total contracts
763,457
683,013
(80,444)
Masonry - materials
6,446
9,184
2,738
Bituminous and trucking
4,389
5,000
611
Aluminum entrances
32,585
21,945
(10,640)
Fireplace - materials
-
6,921
6,921
General Conditions
57,370
76,318
18,948
Construction Manager
39,900
39,900
-
Architect /engineer
66,242
60,750
(5,492)
Furniture
29,426
29,785
359
Kitchen equipment
20,363
19,660
(703)
Technology
9,753
12,000
2,247
Automated temperature controls
19,950
20,000
50
Miscellaneous
66,139
41,210
(24,929)
Commodities
2,179
-
(2,179)
Printing and Advertising
10,873
-
(10,873
Total other expenditures
365,615
342,673
(22,942)
Contingency
7,000
68,788
61,788
Total budget estimate
$ 1,136,072
$ 1,094,474
$ (41,598
The estimated project costs exceed budget by $41,598 which is 3.8% of the April 2 budget
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Three major unforeseen challenges arose during construction which has resulted in project costs
exceeding the April 2, 2012 estimates as shown below
a) Structural wood trusses. The original police station was constructed with wood trusses
in 1984. The structural integrity of the trusses had been compromised with penetrations
for HVAC, electrical and other purposes either during the original construction or
subsequent remodeling projects. Architects, engineers and building inspectors for the
Heritage Center determined that the trusses had to be reinforced to support the roof load.
In addition, the current fire and building code requires the installation of a non-
combustible insulation and a vapor barrier in and around the trusses. The total cost of
change orders to address the structural wood truss issues is $35,303 for Friedges Drywall
($12,999), Westman Plumbing, Inc. (848), SCR, Inc. ($5,1.00), Vinco, Inc. ($12,083) and
Twin City Acoustics ($4,273). In addition, the cost of professional services to prepare
plans and specifications was $2,250.
t,) Parking lot soils corrections. The earth work contractor (Max Steininger) was required
to grade the parking lot and drive areas along with installation of Class V material in
preparation of the installation of the asphalt. However, the soils on the drive lane north of
building and two accesses were comprised primarily of black dirt and substandard soils.
To remediate the problem, the soils had to be excavated to an average depth of three feet.
The earth work contractor submitted a significant cost to excavate the soils. Staff was able
to negotiate with Friedges Excavating to perform the soil removal and disposal for a cost
of $5,000. The excavating contractor provided a change order cost of $17,119 to replace
the excavated soils.
c) Parking lot asphalt. Valley Paving, Commercial Asphalt and Flint Hills Resources had
agreed to contribute 700 tons of asphalt material along with the installation of material
for the parking lot at no cost to the City. However, the materials required to complete the
parking lot exceed the donation by $12,914.
The issues noted above represent $72,616 or 70% to the changes in the total project costs and
therefore are the primary factors for the project exceeding the April 2, 2012 project cost
estimates.
Contract
9
Change
Other
Expenditures
Orders
Expenses
Total
a. Structural wood trusses
35,303
2,250
37,553
b. Parking lot soils corrections
17,119
5,000
22,119
c. Parking lot asphalt
-
12,914
12,914
Other project costs
28,022
2,778
30,800
Subtotal
80,444
22,942
103,386
Contingency
(61,788)
Total budget adjustments
$ 41,598
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Project Financing
The Heritage Center project is financed with a combination of revenue sources including the
Building Fund, Park Dedication fees and the net proceeds of the sale of the Senior Center. All
remaining financing requirements are to be provided from fundraising activities.
Changes to the Heritage Center Project financing are as follows:
a) Sale of Senior Center. At its October 1 meeting, the City Council will consider sale of
the Senior Center for $345,000. The Purchase Agreement requires City payment of
$13,800 of commissions. The Agreement also includes a $145,000 contract for deed at
4.5% interest which will result in $17,595 of interest earnings over the term of the
contract.
b) CDBG reimbursement. The CDBG reimbursement requirements are reduced by
$17,777 as a result of city investment in the parking lot, facilities and land acquisition
since the initial project in 1984. The net proceeds have been adjusted accordingly. The
final determination of the reimbursement amount is subject to review and approval by
federal agencies and therefore is subject to change.
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Estimate
Budget
October 1
Apri12
V ariance
Financial Sources
City of Lakeville
Building Fund
377,000
377,000
Park Dedication Fund
150,000
150,000
Total City Funds
527,000
527,000
Sale of Senior Center
Market value
345,000
345,000
Commisions
(13,800)
-
(13,800)
Future interest on CD.
17,595
17,595
CDBG reimbursement
(118,905)
(136,682)
17,777
Net proceeds from sale
229,890
208,318
21,572
Lakeville Senior Organization
100,000
100,000
-
Fundraising activities
279,182
259,156
20,026
Total construction financing
$ 1,136,072
$ 1,094,474
$ 41,598
Project Costs
Construction contracts
763,457
683,013
80,444
Other
365,615
342,673
22,942
Contingency
7,000
68,788
(61,788)
Total project costs
$ 1,136,07
$ 1,094,474
$ 41,598
Changes to the Heritage Center Project financing are as follows:
a) Sale of Senior Center. At its October 1 meeting, the City Council will consider sale of
the Senior Center for $345,000. The Purchase Agreement requires City payment of
$13,800 of commissions. The Agreement also includes a $145,000 contract for deed at
4.5% interest which will result in $17,595 of interest earnings over the term of the
contract.
b) CDBG reimbursement. The CDBG reimbursement requirements are reduced by
$17,777 as a result of city investment in the parking lot, facilities and land acquisition
since the initial project in 1984. The net proceeds have been adjusted accordingly. The
final determination of the reimbursement amount is subject to review and approval by
federal agencies and therefore is subject to change.
7
c) Fundraising Activities. With the completion of the Heritage Center, the fundraising
requirements are $279,182, which is $20,026 more than the April estimates.. It should
also be noted that the contingency was reduced by $14,878 (from $ 83,666 in the January
estimates to $ 68,788 in the April 2 Budget) at the April 2 meeting. Currently there is
approximately $110,000 cash collected from fundraising initiatives, leaving an estimated
$169,000 to complete the fundraising goal.
Interim Financing - Sale of Senior Center
The Resolution Approving the Construction Contracts Financing for the Heritage Center
Project, which was adopted by the City Council on April 2, provided interim financing from the
Liquor Store for (a) the future fundraising and (b) the sale of the existing senior center.
The terms of the Purchase Agreement for the sale of the Senior Center includes a purchase
$345,000 with $200,000 down and a Contract for Deed in the amount of $145,000 at 4.5%
interest; the City will accrue $17,595 of interest earnings on the Contract for Deed. The City is
responsible for $13,800 of commissions relating to the sale.
The Finance Director is recommending selling the Contract for Deed to the Liquor Fund rather
than have an interfund loan for an extended period of time. If the City Council concurs, a formal
resolution will be provided at a future meeting whereby the $148,795 (representing the contract
for deed plus accrued interest less commissions) would be transferred from the Liquor Fund to
the Heritage Center Construction Fund in exchange for the Contract for Deed. The future
payments from the Contract for Deed would therefore accrue to the Liquor Fund.
8
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION APPROVING HERITAGE CENTER CHANGE ORDERS
WHEREAS, the construction contracts for the Heritage Center were approved on
April 2, 2012.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville
that the Heritage Center change orders are hereby approved as shown below:
Description of Work
Contractor
Earthwork /Utilities
Max Steininger
Concrete
Thompson Construction
Carpentry and Gypsum
Friedges Drywall
Roofing
Kato Roofing
Doors /frames
Kendell Doors & Hardware
Tile
MCI, Inc
Acoustical Treatments
Twin Cities Acoustics Inc
Flooring
MCI, Inc
Painting
Full Specturm
Fire protection
Quality Design and Fire P.
Mechanical /plumbing Westman Plumbing
Heating, vent and air SCR, Inc.
Electrical VINCO Inc.
Total contracts
Original
Change
Contract
Total
Orders
Revised
98,892
17,119
116,011
61,750
61,750
92,300
16,705
109,005
86,000
86,000
27,143
5,804
32,947
4,000
1,946
5,946
22,795
4,714
27,509
38,840
38,840
11,890
720
12,610
41,003
175
41,178
29,900
848
30,748
111,900
4,730
116,630
56,600
27,683
84,283
683,013
80,444
763,457
DATED this I" day of October, 2012.
ATTEST:
Charlene Friedges, City Clerk
CITY OF LAKEVILLE
Mark Bellows, Mayor
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