HomeMy WebLinkAboutStaff Report 1526City of Palo Alto (ID # 1526)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/2/2011
May 02, 2011 Page 1 of 7
(ID # 1526)
Summary Title: Approval of Contract Amendments for City Hall CIP
Title: Approval of Four Contract Documents for the Civic Center Infrastructure
Improvements Project (Capital Improvement Program Project PF-01002): (1)
Change Order with Nexgen Builders, Inc. in the Amount of $194,817 for
Restroom Remodeling for a Total Contract Amount Not to Exceed $656,130; (2)
Change Order with ACCO Engineered Systems, Inc. in the Amount of $62,747 for
a Data Center Cooling System Upgrade for a Total Contract Amount Not to
Exceed $1,536,542; (3) Change Order with H.A. Bowen Electric, Inc. in the
Amount of $262,076 for Electrical Panel Replacements and Circuit Tracing for a
Total Contract Amount Not to Exceed $1,175,476;and (4) Contract Amendment
No. Two to Contract No. C08124310 with Cambridge CM, Inc. in the Amount of
$83,180 for Extended Construction Management Services for a Total Contract
Amount Not to Exceed $1,282,390
From:City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1.Approve and authorize the City Manager or his designee to execute a change
order with Nexgen Builders, Inc. in the amount of $194,817 for restroom
remodeling for the Civic Center Infrastructure Improvements Project (PF-01002).
2.Authorize the City Manager or his designee to negotiate and execute one or
more additional change orders to the contract with Nexgen Builders, Inc.for
related, additional but unforeseen work which may develop during the project,
the total value of which shall not exceed $39,000.
3.Approve and authorize the City Manager or his designee to execute a change
order with ACCO Engineered Systems, Inc. in the amount of $62,747 for a Data
Center cooling system upgrade for the Civic Center Infrastructure Improvements
Project (PF-01002).
4.Authorize the City Manager or his designee to negotiate and execute one or
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more additional change orders to the contract with ACCO Engineered Systems,
Inc. for related, additional but unforeseen work which may develop during the
project, the total value of which shall not exceed $12,500.
5.Approve and authorize the City Manager or his designee to execute a change
order with H.A. Bowen Electric, Inc. in the amount of $262,076 for electrical
panel replacements and existing electrical circuit tracing for the Civic Center
Infrastructure Improvements Project (PF-01002).
6.Authorize the City Manager or his designee to negotiate and execute one or
more additional change orders to the contract with H.A. Bowen Electric, Inc. for
related, additional but unforeseen work which may develop during the project,
the total value of which shall not exceed $52,400.
7.Approve and authorize the City Manager or his designee to execute Amendment
No. Two to Contract No. C08124310 (Attachment A) with Cambridge CM, Inc. in
the amount of $83,180 to provide extended construction management services
for a total contract amount not to exceed $1,282,390 for the Civic Center
Infrastructure Improvements Project (PF-01002).
Background
As part of the City’s ongoing capital infrastructure maintenance program, a complete
building system study of the Civic Center was completed in fiscal year 2003. Following
the recommendations of the study, various building renovation projects, including
elevator upgrades, electrical system upgrades, generator replacement, and mechanical
system upgrades, have been implemented since 2005. A contract for construction
management services was awarded to Cambridge CM, Inc. in March 2008 to assist City
staff with project management of a set of more complex, building-wide modifications
(CMR:160:08). The first construction phase for the major work, Bid Package 1, was
awarded in August 2008 (CMR:334:08) and completed in July 2009. The second and
final phase of the work, Bid Package 2, which included the upgrade of the balance of
the building’s mechanical and electrical systems and exterior painting and sealing was
awarded as four separate prime contracts in July 2010 (CMR:320:10). These four
contracts were awarded to Nexgen Builders, Inc. for general work items and finishes,
Everest Waterproofing and Restoration, Inc. for exterior painting and sealing, ACCO
Engineered Systems, Inc. for mechanical, plumbing, and fire sprinkler control
modifications, and H. A. Bowen Electric, Inc. for electrical and fire alarm modifications.
The total amount of the four contracts, including contingencies, was $3,491,042.
Utilization of multiple prime contractors provided reduced overhead cost for the
specialty contractors and increased competition for each contract, yielding a savings of
$2,945,463 below the original engineer’s estimates, which totaled $6,436,505. The
basic scope of work contained in these four contracts is progressing well and is
scheduled to be completed by mid-June 2011.
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During the course of construction during the past year,however, several additional
building deficiencies and upgrade opportunities have been identified. The cost of this
newly-identified work exceeds the contract amounts authorized by Council at the time
of the original contract awards. The recommended work beyond the original project
scope is the subject of the contract change orders discussed below.
Discussion
Staff recommends that this additional work be completed as soon as possible in order
to take full advantage of the continuing favorable construction cost climate and
minimize future inconvenience to both staff and the public. Some of the work consists
of deferred maintenance items that were not included in the original scope of work for
Bid Package 2 due to assumed budget constraints. The low bids received for the work,
and the resulting project budget surplus, provide an unexpected opportunity to
complete all of the major work recommended in the 2003 Civic Center Infrastructure
Study, with the exception of the Police Wing work (which is intentionally being deferred
pending identification of a final option for a Public Safety Building) and the replacement
of the main tower roof (which is not yet fully scoped). Staff recommends that the extra
work be performed by the current contractors through the issuance of change orders to
the original contracts, rather than rebidding the work, for several reasons. First of all,
the current contractors are very familiar with the details of the work to be done and are
already mobilized at the site, which will allow them to perform the work more efficiently
and for a lower price. Staff is also very satisfied with the craftsmanship,
responsiveness, and performance of the contractors to-date and is confident in their
ability to perform the remaining work. Lastly, utilizing the existing contracts will avoid a
lengthy bidding process and thus allow the work to be completed as soon as possible,
resulting in lower prices and less disruption to the building occupants.
The scope of each proposed change order and its associated costs are discussed in
detail below. Staff is also requesting additional contingency authority for each contract
in order to enable staff to address the potential for additional unforeseen work. As
noted in the staff report for the award of the original Bid Package 2 contracts, there is
an increased likelihood of additional required repairs or system replacements on
building renovation projects as compared to new construction. In addition, since a
project in an occupied facility requires the contractors to complete their work during off-
hours, the majority of change orders for the Civic Center Renovation Project are billed
at a premium rate for night or weekend work. Therefore, staff is requesting a twenty
percent contingency, rather than the customary 10-15 percent amount, for all increased
contracts.
Change Order for Restroom Remodeling (Nexgen Builders, Inc.)
Nexgen Builders, Inc. is the primary general contractor on the current Civic Center
Renovation project. Their primary responsibilities have been concentrated on the
general demolition and reconstruction work necessitated by the mechanical and
electrical upgrades to the interior of the building. The scope of work for the proposed
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contract change order would include major cosmetic upgrades to the restrooms on
Levels 1, 2, 3, 4, 5, and 6 (Attachment B). The upgrades would consist of new floor
and wall tile, replacement of the restroom partitions, upgraded lavatory counter tops,
and a fresh coat of paint. The need for this comprehensive upgrade became evident
while attempting to restore the restrooms following the demolition work that was a
necessary part of the current mechanical/electrical upgrade. The construction activity
in the current phase, as well as the various maintenance tasks performed over the
decades, has left these 40-year-old restrooms with a patchwork of mismatched tiles,
outdated fixtures and partitions, and dilapidated counters. By comparison, the
restrooms on Levels A, Mezzanine, and 8 were either built at a later date than the
original restrooms or have been modified in subsequent later years during ongoing
accessibility upgrades. Staff recommends approval of a contract change order for a
comprehensive upgrade of the selected restrooms in order to reduce future
maintenance costs and to provide a level of uniformity to the restrooms. The costs
associated with the contract change order with Nexgen Builders, Inc. for restroom
remodeling is $194,817. In addition, staff requests that the authorized contingency for
contract C11136276 be increased by $39,000, for a total contract amount not to exceed
$656,130.
Change Order for Computer Room Mechanical System Upgrade (ACCO Engineered
Systems, Inc.)
This scope of work for the proposed contract change order for ACCO Engineered
Systems, Inc., the mechanical contractor for the project, includes the addition of a
cooling unit in the Information Technology Data Center/Server Room on Level 2
(Attachment C). During the course of the project, the construction management team
noted a design deficiency in the cooling system for this critical facility. The Data Center
is served by two separate air conditioning systems -a very inefficient unit located on
Level 8, and a second unit mounted below the Center’s flooring system that blows
chilled air directly onto the server components. These two systems are further
supplemented by three portable cooling units during periods of high demand in the
summer months. The temperature in the Data Center, which houses computer server
equipment that stores information critical for the operation of all City departments,
must be maintained within a narrow range in order to prevent equipment failure. Staff
proposes the installation of an additional subfloor-mounted cooling unit that will work in
conjunction with the existing subfloor unit to cool the Data Center more efficiently and
at lower cost than the existing system. This combination would allow for the
elimination of the unit housed on Level 8, which currently runs continuously and blows
air inefficiently through ceiling-mounted air diffusers. The installation of the new
cooling unit would also eliminate the current need for the three portable units, which
consume more electricity than the permanent units. This would also free up one or
more of the portable units to be utilized as a redundant unit for the Police Department
computer server room. The costs associated with the contract change order with ACCO
Engineered Systems, Inc. for the Data Center cooling system upgrade is $62,747. In
addition, staff requests that the authorized contingency for contract C11136279 be
May 02, 2011 Page 5 of 7
(ID # 1526)
increased by $12,500, for a total contract amount not to exceed $1,536,542.
Change Order for Electrical Panel Replacements (H. A. Bowen Electric, Inc.)
The scope of work for the proposed contract change order with H. A. Bowen Electric,
Inc., the project electrical contractor, would provide for the replacement of 22 electric
distribution panels and the tracing of existing electrical circuits (Attachment D).
Twenty-four (24)other electric distribution panels were already designated for
replacement as part of the current Civic Center Renovation project. The construction
manager has recently notified staff that some of the remaining panels have not passed
inspections by the City’s building inspector due to non-compliant grounding and phasing
concerns. Simply put, the electrical panels are not able to pass inspections due to
failing components, a condition characteristic of the wear and tear imparted on the
system over its decades of service. A typical problematic symptom is that the
contractor has been unable to tighten down new wires routed to some of these panels
as required by building codes due to the deteriorated condition of the panel hardware.
After a diagnostic evaluation requested by staff, the project’s consulting electrical
design engineer recommended the replacement of 22 (out of a total of 32) electric
distribution panels that were not included in the original project scope. Replacement of
these panels will provide protection for the building occupants, electrical maintenance
staff, and the building itself from the life and safety concerns generated by the panels’
current deteriorated condition. The change order scope of work also includes work to
trace and identify existing electrical circuits within the Civic Center. Over the decades,
electrical circuits in the building have been redistributed to provide power for
renovations and office area reconfigurations. Circuits have been added and deleted
without clear documentation of the modifications. This lack of documentation creates a
safety hazard for maintenance staff when they work on the electrical distribution panels
and circuitry and violates current building code requirements. Furthermore, it makes it
difficult to determine which building components will be de-energized during power
shutdowns. Existing Facilities Management staff does not have the capacity to correct
these deficient conditions without additional labor support. Therefore, the electrical
contractor will work cooperatively with City staff to trace, identify, and label existing
electrical circuits throughout the building. The costs associated with the contract
change order with H. A. Bowen, Inc. for electrical panel replacements and circuit tracing
is $262,076. In addition, staff requests that the authorized contingency for contract
C11136280 be increased by $52,400, for a total contract amount not to exceed
$1,175,476.
Contract Amendment No. Two for Construction Management Services (Cambridge CM,
Inc.)
Cambridge CM, Inc. was retained to serve as the construction manager for Bid Package
1 as well as the current Civic Center Renovation project. The work of all three building
contractors discussed above is overseen and coordinated by a staff project manager
with the assistance of two Cambridge CM construction managers. Though the
recommended change order work will be performed concurrent with the ongoing
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construction activity, the proposed work will extend the current project timetable by
approximately three months, through September 2011. As a result, staff recommends
approval of the attached contract amendment extending Cambridge CM’s current
contract for an additional three months. The costs associated with the attached
contract amendment with Cambridge CM, Inc. for construction management services is
$83,180, for a total contract amount not to exceed $1,282,390.
The attached table (Attachment E) summarizes the dollar amounts for each of the
existing contracts and the proposed changes.
Resource Impact
Funds for these contract change orders and contract amendment are available in
Capital Improvement Program Project PF-01002, Civic Center Infrastructure Upgrades.
As shown in Attachment E, the contract change orders and contract amendment will
authorize additional work and contract contingencies totaling $706,720. Even with the
addition of the proposed work, the total expenditures for this phase of the Civic Center
Renovation Project will be approximately $2.24 million below the original engineer’s
estimate of the project cost.
Policy Implications
This recommendation does not represent any change to existing City policies.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act
(CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an
existing facility and no further environmental review is necessary.
Attachments:
·A -Amendment Two to Contract No. C08124310 with Cambridge CM, Inc.(PDF)
·B -Scope of Work for Proposed Change Order to Contract No. C11136276 with Nexgen
Builders Inc.(PDF)
·C -Scope of Work for Proposed Change Order to Contract No. C11136279 with ACCO
Engineered Systems Inc.(PDF)
·D -Scope of Work for Proposed Change Order to Contract No. C11136280 with H. A. Bowen
Electric Inc.(PDF)
·E -Summary of Contract Costs (PDF)
Prepared By:Joe Teresi, Senior Engineer
May 02, 2011 Page 7 of 7
(ID # 1526)
Department Head:J. Michael Sartor, Interim Director
City Manager Approval: James Keene, City Manager
Attachment B
Scope of Work for Proposed
Change Order for
Nexgen Builders, Inc.
(Contract No. C11136276)
Attachment C
Scope of Work for Proposed
Change Order for
ACCO Engineered Systems, Inc.
(Contract No. C11136279)
Attachment D
Scope of Work for Proposed
Change Order for
H. A. Bowen Electric, Inc.
(Contract No. C11136280)
CIVIC CENTER RENOVATION PROJECT (CIP PF-01002)
CONTRACTOR CONTRACT NO. TRADE
ORIGINAL
CONTRACT
AWARD
ORIGINAL
AUTHORIZED
CONTINGENCY
ORIGINAL TOTAL
CONTRACT
AUTHORIZATION
PROPOSED
CHANGE
ORDER
PROPOSED
CONTINGENCY
PROPOSED
TOTAL
CHANGES
PROPOSED
NOT-TO-
EXCEED
CONTRACT
AMOUNT
ACCO C11136279 MECHANICAL $1,270,695 $190,600 $1,461,295 $62,747 $12,500 $75,247 $1,536,542
NEXGEN C11136276 GENERAL $367,313 $55,000 $422,313 $194,817 $39,000 $233,817 $656,130
BOWEN C11136280 ELECTRICAL $749,000 $112,000 $861,000 $262,076 $52,400 $314,476 $1,175,476
Subtotals $2,387,008 $357,600 $2,744,608 $519,640 $103,900 $623,540 $3,368,148
CONSULTANT
EXISTING
CONTRACT
AMOUNT
EXISTING
ADDITIONAL
SERVICES
EXISTING TOTAL
CONTRACT
AUTHORIZATION
PROPOSED
AMENDMENT
#2
PROPOSED
TOTAL
CHANGES
PROPOSED
NOT-TO-
EXCEED
CONTRACT
AMOUNT
CAMBRIDGE C08124310 CONST. MGMT. $1,089,210 $110,000 $1,199,210 $83,180 $83,180 $1,282,390
Totals $706,720
CONTRACT SUMMARY
ATTACHMENT "E"
H:\Personal\Civic Center Remodel\aTTACHMENT e Contract Summary.xls