HomeMy WebLinkAboutStaff Report 3781City of Palo Alto (ID # 3781)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 6/17/2013
City of Palo Alto Page 1
Summary Title: Mitchell Park Construction Contract Bi-Monthly Report
Title: Submittal of Mitchell Park Library and Community Center Bi-Monthly
Construction Contract Report
From: City Manager
Lead Department: Public Works
Recommendation and Draft Motion:
Draft Motion: I move that Council:
1)Accept this update on the Mitchell Park Library and Community Center (MPL&CC)
construction project; and
2)Direct staff to continue to submit bi-monthly reports to Council and to take related
actions which Council may direct.
Executive Summary
The MPL&CC construction is approximately 84%complete (based on expenditures)and it is
anticipated that the three-building complex will be open to the public late in 2013. The
estimated opening time frame has been changed from our earlier estimate of spring 2013 to
late 2013 due to delays caused by the contractor and their subcontractors, the necessity to fully
correct every deficiency, and to insure that the buildings are of the highest quality. It will also
take six to eight weeks after construction is completed to move into the buildings, prepare the
library collection and other materials for public use,and ready the staff and the space for
opening. The percentage completion has increased from 82%to 84% since the last report.
Because of the delays, errors,omissions, and unacceptably slow pace of construction, the City
issued a Notice to Flintco on May 2, 2013 (Attachment F) that it intends to initiate default
proceedings unless specified actions are completed by designated milestones. If initiated,
these proceedings would remove Flintco and replace it with a new general contractor to
complete the project. Staff is monitoring compliance with the milestone dates and the pace of
City of Palo Alto Page 2
construction very closely and will report to Council frequently in the coming weeks. The City
has begun planning for the potential transition to a new general contractor and will be
requesting Flintco’s bonding company to either complete the work itself or reimburse the City
for additional costs associated with a replacement contractor. The City is in the process of
seeking input from a number of experienced firms in this area.
Costs have increased above the bid amount partially due to building complexities and partially
due to the performance of the City’s contractors. To date, a total increase (Construction
Contract Change Orders)of $3,484,412 has been approved by the City, or approximately 14%
above the base construction contract amount.The bid amount was approximately 24% below
the City Engineer’s estimate and Council has authorized a maximum increase of 20% above the
base contract amount in change orders. Thus,the project remains below budget, despite the
unforeseen costs.
Background
At 56,000 square feet, MPL&CC is the City's largest construction project in four decades.Inside
the state-of-the-art library building, teens, children, and those just wanting a quiet space will all
have their own dedicated areas.The two-building Community Center complex will contain an
expansive community room, kitchen, teen center, cafe,computer room and game room.The
complex will be the City's model for an eco-friendly facility with extensive green roofs, solar
water heating, night sky water cooling, photovoltaic panels, stormwater infiltration, and natural
daylight utilization all wired with a state-of-the-art data feedback and control system.
On September 12, 2011,Council authorized an increase in change order authority and a ceiling
for the MPL&CC construction contract from 10% to 20% to cover unanticipated construction
costs. Council also directed staff to provide Council with a monthly report (subsequently
modified to bi-monthly)on change orders with Flintco, the general contractor.Council also
requested the City Attorney to provide additional confidential briefings regarding potential
claims against other responsible parties. Additionally, Council also directed staff to report on
project milestones in the bi-monthly reports.
Discussion
Construction Progress
On June 4, 2012, Council requested information on construction progress and set-backs since
the last report and milestones that staff expects will be reached by the next report.
Since the last bi-monthly report,which was submitted to Council on April 8, 2013,no major
milestones have been completed.The attached “Schedule Milestones” page has been revised
City of Palo Alto Page 3
to show the 10 key building interior milestones which must be achieved well ahead of opening
to the public. Staff will report on achievement of these milestones from this point forward.
Many corrections to mechanical, electrical,and plumbing (MEP)work in the walls and above
the ceiling were not completed on time. Some floor panels will have to be temporarily
removed to allow for corrections and re-inspections. The number of corrections and re-
inspections required is much higher than for a typical project. Another problem is that many
corrections are still needed on the sliding glass doors and this issue has been outstanding since
April 2012. Many of the windows failed water testing multiple times. The windows are now
complete, however, the MEP work is not and therefore the ceiling cannot be completed.
All of these problems were detected by the City’s building inspectors or construction manager,
Turner Construction,and the contractor is required to correct them. The City will pursue
recovery of these costs from the contractor, either by way of withholding payment or through
separate action. Sub-standard work will not be accepted.However,these corrections cause
delays in the work of the next subcontractor and some could cause a delay in a critical path
item,thus further delaying the project. City staff is proactively working with the general
contractor and City consultants to avoid delays while not compromising quality. In addition,
the City contracted with Big D Builders to perform work on an “as needed” basis to complete
specific components of the work that Flintco is unable or unwilling to do.The City plans to pass
the Big D costs on to Flintco Pacific. The maximum amount of the contract is $240,000, which is
below the threshold for Council approval. An action will be brought to Council for approval
should it become necessary to increase this contract. Big D Builders is the construction firm
that recently completed the Palo Alto Art Center renovations and their work on this project was
done on time and under budget.
Compounding problems, Flintco has recently undergone some significant organizational
changes. The President of the company has been replaced and a portion of the Flintco
organization has been sold. The City has and will continue to meet with Flintco’s new President
to discuss performance issues. The contract contains a liquidated damage provision for each
day of contractor delay and the City expects to invoke this provision once the job is finally
completed.
Looking ahead to the next bi-monthly report, the key milestones that will need to be completed
are the mechanical, electrical, plumbing (MEP)work and the Mechanical Room. These
deadlines have been missed and rescheduled multiple times. The heating system cannot be
started up and thoroughly tested because the MEP work is not done. Without a heating system
woodwork cannot be brought into the buildings for installation.
City of Palo Alto Page 4
Approved Construction Contract Change Orders
To date, 42 change orders have been approved for a total amount of $3,484,412. This amount
constitutes approximately 14% of the base construction contract amount. Since the last bi-
monthly report, there have been five additional change orders issued. Council has authorized
change orders up to 20% of the base contract amount;leaving about 6% remaining. A
breakdown of the change orders and the key components of each are contained in Table 1
listed below with a brief description of each. Please recognize that change orders can include
reductions and credits as well as new costs. You will see this, for example, reflected in Change
Order #5 in Table 1 below. The shaded change orders have been issued since the last bi-
monthly report.
Table 1
Change Order Amount Change Order Summary
1 $41,725 Eight extra work items including the pruning of trees, clean-
up of the old building, and removing conduit found during
site clearing and grading.
2 $33,102 Four extra work items including the rerouting of a storm
drain around tree roots and the addition of a new manhole
that the drawings showed being present but wasn’t.
3 $215,501 10 extra work items including an adjustment needed due to
tree root interference, an upgrade in wall insulation
capability, and design coordination needed for steel
installation.
4 $242,754 11 extra work items including the installation of dowels at
additional locations, the installation of thicker glass railings
to increase stability, increased gas transmission line
coordination, and extra concrete water protection.
5 $4,436 24 extra work items including an extra light fixture cost, fire
safety drawing coordination, and a variety of additional
required supplies totaling $70,536 minus credit given for
three of the 24 work items including spare fixtures no longer
required and reimbursed City of Palo Alto dump fees
totaling $66,100.
6 $25,123 Seven extra work items including additional gas main
protection, curb strengthening, and deck support for the
Building A green roof.
City of Palo Alto Page 5
7 $74,304 19 extra work items including HVAC driven floor
adjustments, electrical system adjustments, data cable
rerouting, and a new load break cabinet totaling $109,965
minus credit given for two of the 19 work items including
stones for the Arch provided by the artist and value
engineering totaling $35,661.
8 $385,251 10 extra work items including additional fill, perforated
metal panel ceiling work, various waterproofing, and
conduit.
9 $195,706 18 extra work items including multiple curb installations,a
basketball court slab, and an art sculpture foundation.
10 $78,514 13 extra work items including a Flintco field staff
supplement, waterproofing, plumbing and electrical system
alterations, and tree protection measures totaling $79,226
minus credit given for one of the 13 work items identified as
plumbing fixture changes totaling $712.
11 $224,662 14 extra work items including beam strengthening, interior
& exterior roof tank pipe supports, electric vehicle chargers,
load break cabinet bollards, and additional steel.
12 $20,347 Seven extra work items including A/V work, electrical
changes, and a roof access ladder.
13 $80,721 13 extra work items including metal stud framing, light
fixtures, and miscellaneous electrical work.
14 $54,028 Five extra work items including a thickened roof edge,
equipment curbs, a Building A ramp, signage support, and a
book drop.
15 $176,586 12 extra work items including additional lighting, electrical
work, soil for silva cells & planting areas, and HVAC work.
16 $53,256 Four extra work items including traffic signal modifications,
construction recovery costs, and a tube steel base plate
modification.
17 $278,710 Five extra work items including tube steel and supplemental
exterior wall steel revisions.
18 $76,823 Seven extra work items including concrete floor sealer, wall
short panels, leakage testing, pipe supports,and permit
processing.
19 $36,526 Eight extra work items including building security, lighting,
and electrical work.
City of Palo Alto Page 6
20 $20,832 Seven extra work items including lighting and electrical
work.
21 $122,071 Six extra work items including roof curbs, studs, and roof
crickets.
22 $16,839 Six extra work items including duct, gutter, and ceiling work.
23 $122,472 Nine extra work items include occupancy changes, tube
steel and the related work, and artwork preparation totaling
$123,104 minus credit given for one of the nine work items
for roof parapets, flashing, and crickets totaling $632.
24 $46,654 Three extra work items including night sky cooling tank
repair work and parapet and roof details.
25 -$37,158 20 extra work items including glass changes and book drop
and elevator improvements totaling $44,790 minus credit
given for five of the 20 work items including deleted A/V
work, geotextile fabric work, and storm drain/gas line cost
savings totaling $81,948.
26 $28,056 Five extra work items including roof substrate revisions and
curtain wall supports totaling $31,465 minus credit given for
one of the five work items related to roof drain plumbing
totaling $3,409.
27 $49,470 Eight extra work items including exhaust fan work,
additional channels, and roof work.
28 $24,225 Nine extra work items including expansion joint work,
kitchen equipment wiring, and roof and plumbing work.
29 $94,174 14 extra work items including exterior wall water proofing,
bathroom work, plumbing work, and electrical work totaling
$101,983 minus credit given for two of the 14 work items
including a WAP reduction and book drop work totaling
$7,809.
30 $32,331 Eight extra work items including power for signage and
other outdoor expenditures.
31 $23,886 Eight extra work items including perimeter wall work,
elevator shaft power and lighting, and electrical work.
32 $102,472 Five extra work items including demolition, reconstruction,
and fire prevention work.
33 $73,172 10 extra work items including data, raised floor, electrical,
and shelving work.
City of Palo Alto Page 7
34 $37,090 Five extra work items including door, fire prevention, and
signage work.
35 $59,002 10 extra work items including window shade, door, flooring,
and electrical work.
36 $62,559 Seven extra work items including tile, landscaping, and
electrical work.
37 $12, 446 Six extra work items including electrical and plumbing work.
38 $27,673 Six extra work items including basketball equipment,
signage, and wall work totaling $27,789 minus credit given
for one of the six work items for tree planting work
adjustments totaling $116.
39 $48,234 Nine extra work items including a trash & bike enclosure, art
backing, signage work, and framing work.
40 $112,459 10 extra items including hand excavation work, EV work,
window work, and electrical work totaling $115,573 minus
credit given for two of the 10 work items for lighting
adjustments totaling $3,114.
41 $33,582 12 extra work items including column work, wall work, and
electrical work totaling $35,574 minus credit given for two
of the 12 work items for plumbing and ceiling adjustments
totaling $1,992.
42 $73,796 15 extra work items including fencing and gate installation,
AV work, and curbing totaling $88,558 minus credit given for
two of the 15 work items for driveway and waterproofing
adjustments totaling $14,762.
TOTAL $3,484,412 TOTAL CO’s 1-42
*For further information about each of the change orders see the attached corresponding
Contract Change Order Scopes of Work (Attachment A).
Change order requests submitted by the contractor are typically bundled together and
summarized in one single change order. On September 12, 2011,Council further directed staff
to submit any change order request which exceeds $85,000 to Council for approval. Staff is
interpreting this to mean an individual change order line item more than $85,000. One may
note that over the course of a period of time a number of on-site decisions are made, in order
to not slow the project down, which can add up to more than $85,000 when compiled later.
Bundled Change Order 11, for example, totals $224,662, but includes a series of change orders,
none of which exceeds $85,000. Council has approved one change order to date (Change Order
# 17)which contained line items exceeding $85,000.
City of Palo Alto Page 8
Related Council Directives for the Bi-Monthly Report
Council further directed that staff report to Council on oversight activities. Therefore, attached
is the most recent Library Bond Oversight Committee agenda (Attachment B)and Library Bond
Oversight Committee minutes (Attachment C).
On October 17, 2011, Council requested information on two other related topics and these are
addressed below.
1)Expenditures for New Consultants
The City Attorney’s Office has hired the following consultants to assist with the review of
construction costs requested by Council. The table below shows the amount encumbered
and the amount spent to date.
Contract Amount Amount Expended
ZFA Structural Engineers $25,000 $19,581
Legal Counsel (Jarvis Fay)$75,000 $58,362
Reidinger Consulting (Scheduling)$85,000 $72,327
Legal Counsel (Otis & Iriki)$455,000 $440,113
Legal Counsel (Ginn & Crosby, LLP)$35,000 $7,364
David Neagley $275,000 $0
Project Controls & Forensics $100,000 $0
2)Outstanding Change Orders Proposed by the Construction Contractor (Flintco)
In addition to knowing the amount of the change orders approved to date by the City
(above), Council members asked the value of the outstanding change orders proposed by
Flintco but not yet approved or rejected. This information is contained in Attachment D.
The first graph in Attachment D shows both Potential Change Orders (PCOs), which is an
internal list compiled by the City’s construction manager of certain work items that could
eventually result in extra work claims,and actual Change Order Requests (CORs),a subset of
the PCOs, which have been submitted by Flintco to date.
A large batch of CORs was retracted by Flintco with the stated intention of modifying them.
The City has informed Flintco that its retraction may jeopardize the ability of the City to act
City of Palo Alto Page 9
on these CORs. Due to the failure of Flintco to meet its self-imposed deadlines for
resubmittal of the CORs, the City has resumed issuance of Unilateral Change Orders in order
to ensure a cash flow for the subcontractors so they will not leave the job. Recently, Flintco
began submitting CORs again.Many of the newly submitted CORs appear to be duplicative
of,or inconsistent with,previous CORs. City staff and Turner will take extreme steps to
ensure that Flintco is not double paid.
The latest bi-monthly report concerning all Library Projects (“Palo Alto Library Projects”) is
included as Attachment E.
Resource Impact
There are no resource impacts associated with providing the bi-monthly reports to Council. The
approved change orders are within the Capital Improvement Program Project (CIP)Budget PE-
09006 for the MPL&CC project.
Policy Implications
There are no policy implications in providing the bi-monthly reports to Council.
Environmental Review
Providing bi-monthly reports on this topic to Council does not constitute a project under the
California Environmental Quality Act (CEQA).
Attachments:
·A -MPL COs # 38-42 (PDF)
·B -LBOC Agenda_4-23-2013 (PDF)
·C -LBOC Minutes_2-5-2013 (PDF)
·D -MPL Financial Charts (PDF)
·E -PAL Bi-Monthly Report March-April 2013 (PDF)
·F -City Notice to Flintco (PDF)
,
Contract Change Order
City of Palo Alto
Department: Public Works Engineering
Contra<:t Number: C11136473
'Gontract Change Order Thirty-Eight -continued
CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in
the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire
work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to
complete any additional work specified therein, for the consideration stated therein.
CLAIM PROCEDURE: Any items in Contractor's Change Order Request that are not included in this Change Order are
hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim
pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order.
Accepted for Contractor: Accepted!or City o!~ Palo Alto:
By: Signature Declined By: (/-j:;Ptid/!..f(
Title: Andy Brophy Title: Phil Bobel
Flintco -Project Manager Assistant Director of Public Works
Date: Date: '::::/1 /13
,/ I
SCOPE OF WORK
'0 N "l.. "t.. '"
<DQ:
0 :E u-ti) 0 0
Q. (J Q: « u-(J Description Amount
, ,
020.1 579 187.1 056 1083 RF1187.1 & 187.2 Basketball Standard 3,011 ./
275 390 1051 116 1172 RFI1087 TPO to Parapet Transition Bldg A & C 11,534 ,/
388 531 144 051 1076 ASI144 Signage Backing Bldg A 10,746 ./
398 523 1286 1106 RFI1286 Wall Around Roof Hatch Access Ladders Bldg C 2,335 ./
445 603 1254 1111 RFI1254 Tree Over Gas Line Middlefield Rd (Credit) (116) ,/
466 605 1426 1082 RFI1426 Volume Damper Control Extension Bldg A 163 v"
Total for this change order 27,673. t/
1. Potential Change Order 3. Request for Information 5. Field Order or Extra Work Authorization
2. Change Management 4. Architect's Supplemental Instructions 6. Change Order Request
Note: This Change Order is being issued unilaterally by the City. The basis for the adjustment in the contract sum was determined by
the City pursuant to Section 7.2.4 (iii). Contractor has indicated that it is unwilling to execute a Change Order because it does not wish
to be bound by subsection 7.2.13 of the Contract General Conditions. The City's action in approving this unilateral Change Order is
intended to ensure fair and prompt adjustment to the Contract Sum. In doing so, the City expressly disavows any intent to waive or any
actual waiver of any of the Contract provisions regarding Change Orders. All provisions of the Contract Documents remain in full force
and effect.
ApPENDIX B -CONTRACT CHANGE ORDER PAGE20F3
Contract Change Order
City of Palo Alto
Department: Public Works Engineering
Contract Number: C11136473
CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in
the contract price specified for each Line Item and as to the extension. of time allowed, if any, for completion of the entire
work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to
complete any additional work specified therein, for the consideration stated therein.
CLAIM PROCEDURE: Any items in Contractor's Change Order Request that are not included in this Change Order are
hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim
ursuant to Section 4.2 of the Contract General Conditions within thirt 30 da s of the date of this Chan e Order.
Accepted for Contractor: Accepted for City of Palo Alto:
By: Signature Declined By:
Title: Andy Brophy Title: Flintco -Project Manager
Date: Date:
SCOPE OF WORK
... 'h: 0 '" '" "t-Il)
0 :E u.: tn 0 0 Q.. 0 IX: c( LL 0 Description Amount
155.2 248 647 076 243 ASI 076 Trash & Bike Enclosure 14,536
207.4 362 983 1169 RFI 983 Hose Bibb in Fire Rated Wall Bldg C 1,594
219 307 094 1150 ASI 094 Detectable Warning Panels Bldg A 1,296
385 519 1306 141 1071 ASI141 Art Backing, Casework, and Safes Bldg A & B 13,668
409 527 1292 1088 RFI 1292.1 CW Framing at Main Entrance Bldg A 2,661
410 529 1301 1102 RFI 1301 Stringer Shim Stair 2 Bldg A 2,909
411 536 1088 1104 RFI1088 Unistrut Roofwalk System Bldg A 2,306
424 548 1151 Workspace and Dryfit for Vinyl Signage 3,994
450.2 597 177 1119.2 AS1177Soffit Framing 2nd Floor Bldg A 5,270
Total for this change order 48,234.
1. Potential Change Order 3. Request for Information 5. Field Order or Extra Work Authorization
2. Change Management 4. Architect's Supplemental Instructions 6. Change Order Request
Note: This Change Order is being issued unilaterally by the City. The basis for the adjustment in the contract sum was determined by
the City pursuant to Section 7.2.4 (iii). Contractor has indicated that it is unwilling to execute a Change Order because it does not wish
to be bound by subsection 7.2.13 of the Contract General Conditions. The City's action in approving this unilateral Change Order is
intended to ensure fair and prompt adjustment to the Contract Sum. In doing so, the City expressly disavows any intent to waive or any
actual waiver of any of the Contract provisions regarding Change Orders. All provisions of the Contract Documents remain in full force
and effect.
ApPENDIX B -CONTRACT CHANGE ORDER PAGE20F3
Contract Change Order
City of Palo Alto
Department: Public Works Engineering
Contract Number: C11136473
['''',"~.''i',,~~!:., ~,"'~,t' ,~. 'I'" <,"'~~"f"'~~ '~'<l'}'~-:';'''"J.,.~:..<.,;'~<-t.,-<.., t~~"·<~~1<"'~}".l:\s"~~<",-4~~~" '>'"'~',,~~' ,,., ~ ~ , ' '< c-• f~:~~,~Ctr¢!~'~ <~If1JjltJfJ~'itl!~<t~~:f!;~_~t~,;~"~gyriti,I!?fiie(/Jj)o , ,,-;:", '
, . " '" , , -f<,_"lr, ~"_'I~q., ,. J,< __ \c o'R-~l':::_J,_1,""'!,,''''<l~-."' ',,,,, >_~.",b-"l.;':;:l'~"'.<",., ~ .' ,.~~ .-
CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in
the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire
work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to
complete any additional work specified therein, for the consideration stated therein.
CLAIM PROCEDURE: Any items in Contractor's Change Order Request that are not included in this Change Order are
hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim
pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order.
Accepted for Contractor: Accepte.d.fDr City of Palo Alto:
By: Signature Declined BY:(MPf5~
Andy Brophy -Phil Bobel Title: Flintco -Project Manager Title: Assistant Director of Public Works
Date: Date: 3/"1../'8
I ,
SCOPE OF WORK
"'0 '" .., ~ II) "'0::
(.) :E u:: iii 0 0
Il. (J 0:: « LI. (J Description Amount
050.3 128 009 1182 Hand Excavation Around PG&E Gas Main 26,065 /
051.4 568 EV01 1105 ASI EV 01 EV Locations, Footings, and Bollards 11,524 /
190.1 428 448 084 1094.3 ASI 084 Window Shade Pocket Framing at Curtain Wall 50,950 ..,/
371.2 592 881 084 1081 RFI 881 Perforated Panel Exterior Trim 12,639 ./
374 502 1245.1 1098 RFI 1245, 1245.1, 1288 GO & VRF Northeast Terrace Bldg A 5,792 /
391 511 1268 1066 RFI1268 Plumbing Pipes in Telecom Room Bldg C (C128) 765 ,/
394 553 1115 Fasteners for Underfloor Electrical Straps 7,394 ,/'
415 549 1354 155 1142 ASI 155 Door Hardware & Lightswitch Bldg A (A 118) -198 /
421 545 1335 1134 RFI 1335 Field Paint Top of Light Shelves Bldg A 444 /
448 585 173.1 058 1131 ASI 173 & 173.1 Boxes, Wall Plate Cover, and Light Fixture Bldg A&B -2,916 ,/
Total for this change order 112,459.
1. Potential Change Order 3. Request for Infonnation 5. Field Order or Extra Work Authorization
2. Change Management 4. Architect's Supplemental Instructions 6. Change Order Request
Note: This Change Order is being issued unilaterally by the City. The basis for the adjustment in the contract sum was determined by
the City pursuant to Section 7.2.4 (iii). Contractor has indicated that it is unwilling to execute a Change Order because it does not wish
to be bound by subsection 7.2.13 of the Contract General Conditions. The City's action in approving this unilateral Change Order is
intended to ensure fair and prompt adjustment to the Contract Sum. In doing so, the City expressly disavows any intent to waive or any
actual waiver of any of the 'Contract provisions regarding Change Orders. All provisions of the Contract Documents remain in full force
and effect.
ApPENDIX B -CONTRACT CHANGE ORDER PAGE20F3
Contract Change Order
City of Palo Alto
Department: Public Works Engineering
Contract Number: C11136473
CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in
the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire
work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to
complete any additional work specified therein, for the consideration stated therein.
CLAIM PROCEDURE: Any items in Contractors Change Order Request that are not included in this Change Order are
hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim
ursuant to Section 4.2 of the Contract General Conditions within thirt 30 da s of the date of this Chan e Order.
Accepted for Contractor: Accepted for City of PallO Alto:
By: Signature Declined By:
Andy Brophy
Flintco -Project Manager Title: Title:
Date: Date:
SCOPE OF WORK
.... 0 N .., -: I/) D:: u :E u:: en 0 0 0... (,) 0:: c( u. (,) Description Amount
096.2 030 ASI 030.1 Aluminum Covers at HSS Outriggers 0
127.3 282 1168 Com cast Cable Sawcutting and Hand Excavation 1,634
199.2 500 1231 1065 RFI1231 1231.1 Add Drill Pavers for Lights -Adjustment 278 ./
207.7 444 1112 1042 RFI 1112 Relocate FDC Line Bldg B 1,873 ,/
213 293 860 1022 RFI 860 Added Column Covers 2nd Floor Bldg A 6,548 ./
277.2 419 1090 1117 RFI 1090 Small Energy Dissipator NSC Tank 587 r/
282 400 1073 033 1143 RFI 1073 Room Finish in Vestibule Bldg C (C136) 5,139 V
306 408 1105 1054.1 RFI 1105 Box Out Column Tops 14,892 r/
336 454 1179 1046 RFI 1179 GSM for Elevator Shaft Gaps Bldg A 916
391 511 1268 1066 RFI1268 Plumbing Pipes in Telecom Room Bldg C (C128) -Adjustment -375
427 562 168 057 1087.1 ASI168 Acoustic Pony Wall Underftoor (A116) 3,707
494 665 194 1164 ASI 194 Non-Rated Ceilings (A221 , A233, A234) -1,617
Total for this change order 33,582.
1. Potential Change Order 3. Request for Information 5. Field Order or Extra Work Authorization
2. Change Management 4. Architect's Supplemental Instructions 6. Change Order Request
Note: This Change Order is being issued unilaterally by the City. The basis for the adjustment in the contract sum was determined by
the City pursuant to Section 7.2.4 (iii). Contractor has indicated that it is unwilling to execute a Change Order because it does not wish
to be bound by subsection 7.2.13 of the Contract General Conditions. The City's action in approving this unilateral Change Order is
intended to ensure fair and prompt adjustment to the Contract Sum. In doing so, the City expressly disavows any intent to waive or any
actual waiver of any of the Contract provisions regarding Change Orders. All provisions of the Contract Documents remain in full force
and effect.
ApPENDIX B -CONTRACT CHANGE ORDER PAGE20F3
Contract Change Order
City of Palo Alto
Department: Public Works Engineering
Contract Number: C11136473
! " -, " , , .., , ' .,' ., I'" ,~ -, ~ ~:~~f1tr~,Ct Change Orch~t ffl0tfty..frrw'o ~ ,ciQi#lnu.e~' , ", , " ': ":""'::"'3"~' ':-~~;, "~'" , ',J I~ ,'~ _ ' ~ ~ .' ~" " • < ) ~ ,1. ,.., ,->" '" , ~!-.., __ • <~ •• ~., ~;;; ~ ~ )-~ .'.<;:::' ~', ~ ~
CONTRACTOR CERTIFICATION: The unQersigned Contractor approves this Change Order as to the changes, if any, in
the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire
work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to
complete any additional work specified therein, for the consideration stated therein.
CLAIM PROCEDURE: Any items in Contractor's Change Order Request that are not included in this Change Order are
hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim
pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order.
Accepted for Contractor: Accept~r ~ty ~ Palo ~to:
By: Signature Declined
Title: Andy Brophy
Flintco -Project Manager
Date:
'0 CO< ... "!:.. 0 :E ii: en Q. 0 « c(
090 303 (Various-(Various-
See Alt. A) See Alt. A)
157.3 313 101
221 666 896 096
229 318 920
245.2 357 932
250 364 989
251 365 927
292 415 1107
299 463 122
304.2 479 1185
329 449 1170
375 501 1239
377 499 1230.1
438 563 1373
521.1 697 202
1. Potential Change Order
2. Change Management
Title: Phil Bobel
Assistant Director of Public Works
Date: 'f/'~/13
I ,
SCOPE OF WORK
Q:
0 0 Description Amount
,
It) 0 u.
1084 ASI 083, 140,202 Fences, Gates, and Related Footings 50,532 ,/
1044 ASI101 Wood to Granite Seatwall West Courtyard 325 v'
1176 ASI 096 Courtyard AV Projector Pedestal 7,003 ./
1192 RFI 920 Waterproofing at Stair 1/Fire Riser Room 2,131 .,/
1043 RFI 932 Column Cover Bases & Heights 2,161 ./
1171 RFI 989 WP Curb Between Pavers and Green Roof 10,089 t/
1050 RFI 927 Exterior Protective Coating for Substrate 1,465 ./
1100 RFI 1107 North Curtain Wall Beam Supports Bldg A 4,797 ./
1085 ASI 122 Driveways Middlefield Rd -10,931 V'
1170 RFI1185 Extend Gutter Width Middlefield Rd 440 V
1148 RFI 1170 Waterproofing Parapet & Exterior Soffit -3,831 ./
1103 RFI1239 Braces Operable Partition MPR (C139) Bldg C 6,200 ,/
1157 RFI 1230 & 1230.1 Beam Closure Plates Bldg C 1,222 /
1092 RFI 1373 Footing Stem Wall Fence & Gate 4 Bball Court 2,193 ./
ASI 202 Gate Elevation, Swing, and Glass Panels (Partial) Included
Total for this change order 73,796. /
3. Request for Information
4. Architect's Supplemental Instructions
S. Field Order or Extra Work Authorization
6. Change Order Request
Note: This Change Order is being issued unilaterally by the City. The basis for the adjustment in the contract sum was detennined by
the City pursuant to Section 7.2.4 (iii). Contractor has indicated that it is unwilling to execute a Change Order becauss it does not wish
to be bound by subsection 7.2.13 of the Contract General Conditions. The City's action in approving this unilateral Change Order is
intended to ensure fair and prompt adjustment to the Contract Sum. In doing so, the City expressly disavows any intent to waive or any
actual waiver of any of the Contract provisions regarding Change Orders. All provisions of the Contract Documents remain in full force
and effect.
ApPENDIX B -CONTRACT CHANGE ORDER PAGE20F 3
Agenda
Library Bond Oversight Committee
Quarterly Meeting
Tuesday, April 23, 2013
7th Floor Conference Room
4:00 PM – 5:30 PM
Committee Members: Sandra Hirsh (Chair), Alice Smith (Vice-Chair), John Melton,
Dena Mossar, James Schmidt
Staff: Phil Bobel (Public Works), Brad Eggleston (Public Works), Debra Jacobs (Public
Works), Richard Hackmann (Public Works), Monique leConge (Library), Joe Saccio
(Administrative Services), Tarun Narayan (Administrative Services), Jim Pelletier (City
Auditor’s Office), Cara Silver (City Attorney’s Office)
Others:
ROLL CALL
ORAL COMMUNICATIONS
APPROVAL OF MINUTES – February 5, 2013
AGENDA REVIEW & REVISIONS
UNFINISHED BUSINESS
1. DISCUSSION – Construction Progress
a. Mitchell Park Library & Community Center
b. Temporary Main Library
2. DISCUSSION – Design Progress
a. Main Library
NEW BUSINESS
3. DISCUSSION - Update on Main Library Project
a. Bidding and Construction Schedule
b. Preparation of Bond Issuance
4. DISCUSSION - Draft Financial Report Summary from Administrative
Services
a. Expenditures to Date – Summary Spreadsheet
5. ACTION - Approval of Quarterly Report to Finance Committee
6. Next Steps
a. Next Meeting – Tuesday, July 23, 2013 or another date?
ADA: Persons with disabilities who require auxiliary aids or services in using
City facilities, services, or programs or who would like information on the City's
compliance with the Americans with Disabilities Act (ADA) of 1990, may
contact (650) 329-2550. Sign language interpreters will be provided upon
request with 72 hours in advance notice.
Meeting materials will be provided at the meeting. Visit www.cityofpaloalto.org
or call (650) 617-3174 for more information.
1
Draft Minutes
Library Bond Oversight Committee
Quarterly Meeting
Tuesday, February 5, 2013
7th Floor Conference Room
4:00 PM – 5:30 PM
Committee Members Present: Sandra Hirsh (Chair), Alice Smith (Vice-Chair),
John Melton, Dena Mossar, James Schmidt
Staff Present: Phil Bobel (Public Works), Brad Eggleston (Public Works), Debra
Jacobs (Public Works), Richard Hackmann (Public Works), Monique leConge
(Library), Joe Saccio (Administrative Services), Tarun Narayan (Administrative
Services)
ROLL CALL
ORAL COMMUNICATIONS
None
APPROVAL OF MINUTES – October 30, 2012
Approved 5-0, moved by Mossar, seconded by Schmidt
AGENDA REVIEW & REVISIONS
UNFINISHED BUSINESS
1. DISCUSSION – Construction Progress
a. Mitchell Park Library & Community Center
Jacobs gave an update on MPL
Jacobs has directed Flincto to go back and correct things that have not
been done properly
Bobel said two major mile stones have occurred: windows installation and
testing has been completed and the ceiling installation has begun
Bobel said staff is pushing to have as much work done as possible but has
to wait to start some things until Mechanical/Electrical/Plumbing (MEP) is
complete
Bobel said Bay Mountain Air was removed from the job as a subcontractor
but Flincto is still failing to fully control, schedule, and ensure the quality of
its subcontractors
2
Bobel told the LBOC he contacted the parent company of what we refer to
as Flintco (but is technically Flintco Pacific) and opened up a dialogue with
the CEO of the parent company, Flintco LLC.
Bobel said since then, due to most of the subsidiaries of Flintco LLC being
sold, the CEO of Flintco LLC is now the CEO of Flintco Pacific so Bobel is
hoping this will improve the situation
Smith said staff needs to look at the legal ramifications of the sale of most
of the parts of Flincto LLC and how that affects any recourse the City
might have against Flintco Pacific
Bobel said the most important thing to figure out now is what are the
assets of Flintco Pacific
Smith said staff should also ask for outstanding litigation against Flintco
Pacific
Bobel said staff has to determine when, if ever, they should find Flintco in
overall default on the project but that brings with it a myriad of issues
The City has issued three default notices for components of the project
thus far
Bobel explained that many times firing a contractor or subcontractor costs
more money in the end so that is a big factor in the decision
Bobel then presented the updated MPL construction schedule
Bobel said it is likely there will be a punch list on this project of things that
still need to be completed once MPL is operational
Melton said that when he used to do projects once the 75% completion
threshold was achieved he would have the engineers go back and
generate a new cost to complete figure in order to double check the
numbers
Smith asked staff to look into legal remedies for correcting the errors by
the window and glass subcontractor
b. Temporary Main Library
Eggleston said that Temporary Main Library will be in the Art Center
Auditorium
Eggleston said on April 1, 2013 Temporary Main Library construction will
begin and will open May 3, 2013
leConge said very basic library service with be provided at Temporary
Main Library with limited circulation and hours
2. DISCUSSION – Design Progress
a. Main Library
Eggleston said the bid process for Main Library is underway and should
be completed in the coming months
Eggleston said that Nova Partners was brought on for Main Library as the
construction management firm and that they have done work for the City
before and things have gone smoothly
3
Eggleston said Nova has been doing plan reviews and more detailed
analysis of the specs of Main Library due to issues with MPL
Nova is working on additional prequalification criteria for the contractors
who are allowed to bid on the project
Melton asked if there are local contractors under consideration and
Eggleston said he didn’t know
NEW BUSINESS
3. DISCUSSION - Update on Main Library Project
a. Bidding and Construction Schedule
Mossar said that the bonded cost for library renovations should be
presented along-side the construction costs in the reports
Hirsh asked staff to include the reasons why the Main Library project cost
is over the projected cost so it stays at the forefront
Smith asked if staff is going to do performance bonds with each
subcontractor at Main but staff didn’t know the answer
Eggleston said that he thinks they will issue invitations to bid on March 1,
2013 and should have those back within a month and award the contract
on May 6, 2013
Eggleston said construction is expected to begin in early June 2013
Hirsch asked if staff could account for secondary costs to the Main Library
project caused by delays to MPL
b. Preparation of Bond Issuance
Saccio said the bond process would begin in March 2013 and takes about
two-and-a-half to three months to complete
Schmidt reminded us that the thinking from previous conversations is to
issue the maximum amount of bonds allowable for the last project, Main
Library, and return extra funds if you have them
4. DISCUSSION - Draft Financial Report Summary from
Administrative Services
a. Expenditures to Date – Summary Spreadsheet
Narayan gave the report and didn’t have anything unusual to note
5. ACTION - Approval of Quarterly Report to Finance
Committee
Approved 5-0 as amended, moved by Mossar
4
6. Next Steps
a. Next Meeting – Tuesday, April 23, 2013
Hirsh asked staff to send her the transmittal template for sending LBOC
financial reports to the City Council Finance Committee including the
additional sentence that the timing of when different reports are
produced/released is the reason they contain different figures at times
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Co
s
t
Percent Completion
Mitchell Park Library Approved Change Orders (CO's) and Outstanding
Potential Change Orders (PCO's)
Approved CO's
Outstanding PCO's
Flintco COR's
10% Contingency
20% Contingency
4.19
(DT)
5.21
(DT)
4
(DT)
$45.94 (Mitchell)
$49.04
(Mitchell)
$50
(Mitchell)
$22.34*
(Main)
$20.1
(Main)
$18
(Main)
1.46
(Other)
1.65
(Other)
4 (Other)
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e
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t
P
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Bo
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e
Dollars (Millions)
Library Bond Fund Utilization Projections
(April 2013)
Mitchell Park Library Main Library Temporary Libraries & Bond Costs
$76M
*The Main Library Projection was increased following Council approval on July 25, 2011 (Staff Report #1438) of approximately $1.7M of design
amendments and future building improvements related to deferred maintenance, code upgrades and service enhancements.
$73.93M $76M
*The Main Library Projection was increased following Council approval on July 25, 2011 (Staff Report #1438) of approximately $1.7M of design
amendments and future building improvements related to deferred maintenance, code upgrades and service enhancements.
$29.24
(Flintco) $5.97
(Turner)
$6.02
(Group 4)
$4.71
(Other)
Palo Alto Library Projects
Bi-Monthly Progress Report
March/April 2013
Mitchell Park Library & Community Center
Main Library
Mitchell Park Main Entry
Table of Contents
I. Mitchell Park Library & Community Center
Status Report
Management Summary
Schedule Milestones
II. Main Library
Status Report
III. Financial Summary
Mitchell Park Library &
Community Center
3700 Middlefield Road, Palo Alto
The new Mitchell Park Library and Community Center is a highly
sustainable joint-use facility that will be a vibrant destination for
civic, cultural, social, educational, and recreational activities. The
new center, which will replace undersized and aged facilities, is
made possible through Measure N and the strong partnership
between the city and the community. During construction,
temporary library and teen center facilities are available at the
Cubberley Community Center.
WEB CAM LINK: http://173.164.239.206/view/viewer_index.shtml
March/April 2013
PROJECT CONSTRUCTION
CONSTRUCTION BEGAN:
September 2010
ANTICIPATED OPENING:
Late 2013
PROJECT TEAM
OWNER:
City of Palo Alto Public Works
ARCHITECT:
Group 4 Architecture
GENERAL CONTRACTOR:
Flintco Pacific, Inc.
CONSTRUCTION MANAGER:
Turner Construction Company
FOR MORE INFORMATION
www.cityofpaloalto.org/gov/topics/pro
jects/facilities/library/default.asp
KEY ACCOMPLISHMENTS
Mechanical systems coming online
Landscaping commenced
Green roof substantially complete
Stone work commenced
UPCOMING ACTIVITIES
Exterior painting and trim
Interior ceilings in progress
Ornamental fencing
Courtyard hardscape
Mitchell Park Library Landscaping Begins
Library Roofing Started
March/April 2013
Mitchell Park Library Landscaping Work Commenced
Photos
Mitchell Park Library & Community Center
Management Summary
March/April 2013
Noteworthy Accomplishments
Landscaping commenced
Interior glazing commenced
Green roof planting substantially complete
Mechanical systems coming online
Current Project Challenges:
Processing the high volume of change documentation and providing direction
o Flintco reports submittal of 97 more change order requests is still pending
o Weekly review meetings are in progress
The pace of work needs to pick up with more manpower assigned to critical path activities
Disputes over non-compliant work needs resolution
Safety
Public Safety is a priority outside the fence. No incidents reported to date.
Quality Control
City and Special Inspection Work:
o Work needs to be ready when inspection is requested
o Work should pass inspection the first time
Quality Control Observation Reports:
o Open reports for above ceiling and under floor work need to be signed off
o Remedial sliding glass doors work is in progress
Mitchell Park Library & Community Center
Schedule Milestones
March/April 2013
Main Library
1213 Newell Road, Palo Alto
Exterior View
March/April 2013
2011
PROJECT CONSTRUCTION
CONSTRUCTION BEGINS:
Summer 2013
ANTICIPATED OPENING:
Late 2014
PROJECT TEAM
OWNER:
City of Palo Alto Public Works
ARCHITECT:
Group 4 Architecture
CONSTRUCTION MANAGER:
Nova Partners
FOR MORE INFORMATION
www.cityofpaloalto.org/gov/topics/pro
jects/facilities/library/default.asp
KEY ACCOMPLISHMENTS
Construction contract awarded
Main Library closed and Temporary
Main Library opened in May
UPCOMING ACTIVITIES
Construction to commence in late
June
The Palo Alto Main Library renovation and addition is in the
final phase of design “Better Libraries for Palo Alto” projects,
funded by the passage of Measure N by voters in 2008. The
project incorporates upgrades to the historic building’s structural,
electrical and mechanical systems while preserving the integrity of
architect Edwards Durrell Stone’s iconic design. The new
addition includes a program room and additional restrooms
to extend the services of this heavily-used branch. The
project targets LEED certification.
MEASURE
N
ENGINEER'S
ESTIMATE PROJECTED RESERVES
09010 Cubberley Temporary Library 645,000 619,687 25,313
09005 Downtown Library 4,000,000 5,212,000 4,191,782 1,020,218
09006 Mitchell Park Library & C.C.50,000,000 49,043,000 45,942,397 3,100,603
11000 Main Library 18,000,000 20,100,000 22,342,563 -2,242,563
11010 Art Center Temporary Library 500,000 528,232 -28,232
Bonding and Financing Costs 4,000,000 500,000 310,000 190,000
BONDED AMOUNT 76,000,000 76,000,000 73,934,661 2,065,339
Thru April 2013
PALO ALTO LIBRARIES
BOND MEASURE N PROJECTS
FINANCIAL SUMMARY
BUDGET COSTS
CITY OF
PALO
AL.TO
PUBLIC WORKS DEPARTMENT
PO Box 10250
Palo Alto. CA 94303
650.329.2151
May 22, 2013
Mr. Thomas MaxwellJ President
Mr. John Stump, Senior Vice President
Flintco Pacific, Inc.
401 Derek Place
Roseville, CA 95678
Re: Mitchell Park Library and Community Center Project, Palo Alto
Contract No. Cl1136473
Dear Messrs. Maxwell and Stump:
The City of Palo Alto has received your letter of May 10J 2013 that references our May 2, 2013 letter to
you notifying Flintco of its failure to correct defective work. In that letter, we requested an action plan for the
performance of uncompleted work and notified Flintco of the City's intent to invoke default proceedings.
With regard to Flintco's May 10, 2013 letter, the City is disappointed that Flintco has elected to repeat its
inaccurate contentions rather than provide the requested information and take the necessary steps to address its
failure to uphold its contract responsibilities.
At our meeting on May 20J 2013J we reviewed Flintco's status to complete all noted categories of default
items by no later than May 30,2013. We noted at the beginning of the meeting that we had seen little to no
progress on any of the default itemsJ and did not view FlintcoJs May 10, 2013 letter as responsive to the
information requested, particularly with regard to categories two and three.
Mr. John Stump made very specific representations concerning the default categories identified in the
City's letter of May 2J 2013. The purpose ofthis correspondence is to confirm our understanding of Flintco's
promises, and underscore our expectations that Flintco will fulfill its promises without further excuse or delay.
I. Category One Deficiencies
Category I.A: Sliding Glass Doors
With respect to the sliding glass doors, the City's May 2 correspondence identified the eight prior notices
given to Flintco to correct its defective work. For almost a year, Flintco has failed to address the numerous
deficiencies in the door instaliationJ and has unsuccessfully tried to modify a door not recommended by the
C ityOfPa I oAI to.o rg
Printed with soy-based Inks on 100% recycled paper processed vvithout chlorine
manufacturer for exterior use. The door's failure in the field water testing of April 25, 2013 should have
been sufficient for Flintco to realize that the door is not suitable.
The City understands that Flintco has made a firm commitment that the reinstallation of doors, including
all head, jamb and sill details, and the various instructions to Flintco related to this work will be performed in
compliance with the contract by no later than May 30,2013, and that this work has commenced.
Category 1.B: Title 24 Certification
The Title 24 certification of glazing assemblies is a contract requirement. Flintco is obligated to
demonstrate that the glazing assemblies installed meet these requirements. The usual practice is to provide
materials that have been pre-certified as complying with Title 24 requirements. Flintco's subcontractor has
elected to employ glazing assemblies that were not pre-certified to meet Title 24 standards. Turner conducted
extensive research to give Flintco's subcontractor an opportunity to seek certificatioll of its unrated glazing
assemblies. Although Flintco has at times contended that it has provided the certificates, it is Turner's assessment
that no certifications have been provided by Flintco. The City has yet to see any evidence that Flintco or its glazing
subcontractor is actively pursuing approval of its unrated glazing assemblies. Either Flintco needs to replace the
installed glazing with certified glazing assemblies, or it must obtain approval for the non-certified assemblies.
In an effort to comply with the City's notification of potential default, Flintco has told us that it intends to
provide the City with a binder containing all correctly filled out code compliance forms and supporting
documentation from the corresponding manufacturer. This will specifically note corresponding center of glass U
factor and SHGC, for each and every type of glass assembly and/or NFRC certificates for all Title 24 certification
items in accordance to the Plan Review Comments from the Building Department dated April 15, 2013 for the
Energy Acceptance Forms by no later than May 24, 2013.
Category 1.C: Cabling Replacement and Cleaning
Flintco failed to protect cabling from water intrusion and contamination from debris during installation.
This is one of many instances of Flintco failing to provide adequate quality control and oversight over the work
being performed at the project.
Flintco has assured the City that all of the cabling for Buildings Band C will be replaced in their entirety,
and that all conduits will be cleaned to remove all water and debris by no later than May 3D, 2013. Flintco was
unable to identify to the City who will be performing this work, in light of the recent discharge of Applegate
Johnston's cabling subcontractor. The City understands that Flintco's cleaning and replacement of cabling will be
done in a manner that will protect the cabling from water intrusion.
Category 1.D: Correct Lavatories to Comply with ADA Requirements
Flintco has a contractual obligation to comply with ADA requirements. As an experienced contractor,
Flintco should be well acquainted with ADA requirements, and the strictness by which such requirements are
enforced. As yet another instance of a failure in Flintco's quality control, the lavatory walls were found to have
numerous departures from ADA requirements. Rather than correcting these problems, Flintco's approach was to
seek relief from compliance with these requirements. Not too surprisingly, those charged with inspection of ADA
requirements rejected Flintco's request. The City required corrections to be completed by May 30,2013.
Flintco has promised that all lavatory walls will be corrected to comply with ADA requirements by no later
than May 30, 2013. Flintco has noted a possible delay to the completion of tile work because of a delay in the
ordering of tile materials. This notation is also applicable to Category i.E. Flintco is required to perform this
corrective work, or submit a schedule that realistically demonstrates completion by the May 30, 2013 deadline.
Category 1.E: Use of Incompatible Materials in Building A Showers
The walls and floors at the Building A showers were installed using a waterproof coating that was
incompatible with the type of wall board used. Flintco claims that it relied upon a sales representative's
statements that the materials were compatible. Consultation by Turner with the manufacturer's technical
representatives have confirmed the incompatibility ofthe waterproofing with the wall board, and have confirmed
that the manufacturer will not warrant the bathroom enclosures as currently installed. Flintco's use of non
compatible materials in the Building A showers requires immediate correction to ensure a competent
waterproofing system that will receive a manufacturer's warranty.
Flintco will correct its unacceptable use of incompatible materials and incorrectly installed product in the
Building A showers by no later than May 30, 2013. Flintco will remove all installed Red Guard product on the
floors and walls and will install a competent waterproofing system that will receive a manufacturer's warranty
covering the entire waterproofing system.
The City wishes to stress that it expects all of the above items to be completed in their entirety, except as
expressly noted above, by no later than May 30,2013, and that any failure by Flintco will be considered grounds
for immediate termination.
II. Category II Deficiencies
Our correspondence of May 2, 2013 required Flintco to provide a detailed Plan of Correction by no later
than May 16, 2013. No plan has been received. The City observes that Flintco's reported identification of 42% of
the items being "Work in Progress" is neither sufficient nor an accurate identification. Flintco has indicated that
it has elected to adjust its schedule to permit work to proceed in the many areas where work is currently
available.
Flintco will provide the City with a six week look ahead schedule, that will identify the specific activities
that will be completed, and the allocation of personnel that the City may expect to see performing each task,
including subcontractor personnel. This schedule will also address all of the thirty-six items identified by the City
in Category III.
In addition, Flintco will provide a list of what it considers to be the constraints on completion of all work in
a constraint log. The constraint log will identify all of the constraints currently identified by Flintco as preventing
or impeding its ability to complete construction.
III. Category III Deficiencies
The City asked Flintco to provide a staffing plan that identifies the subcontractor, the number of workers
and the dates to be worked to complete the thirty-six items identified. Flintco's submission of "target dates" does
not assist the City in understanding how Flintco intends to proceed with the completion of these items. In some
instances, Flintco's "target dates" appear to directly contradict its most recent schedule update. For example, we
observe that Flintco now claims that the "TelejData Rooms" will be completed on June 7, 2013. Flintco's most
recent schedule update indicates that TelejData Rooms -Electrical Trim (CFIN 1215) is not scheduled for
completion until August 16, 2013.
We understand that the six week look ahead schedule and the constraint log will be updated to address
the requested staffing plan, and that Flintco will provide these documents to the City by no later than May 24,
2013.
IV. City's Response to Flintco's Excuses
As to Flintco's various excuses and accusations, the City and its Construction Manager, Turner, have
repeatedly demonstrated that Flintco has utterly failed to devote the effort necessary to ensure timely
completion of the project. The City provides the following observations concerning Flintco's list of complaints:
A. Project Design
Flintco has attempted throughout this project to excuse its poor management, coordination and quality
control by blaming the completeness of the design. Flintco has yet to explain why it proceeded to bid on this
project if it had an honest belief that the project design was inadequate. There is no apparent evidence of Flintco
claiming an inability to bid based on the project design. Now, after having two years in which to study the project
drawings, Flintco still claims that it does not know how to complete the project. Flintco appears to be suffering
from either an appalling lack of construction experience, or is engaged in a concerted effort to manufacture
claims.
When the City visits the project site, it is evident that there are three separate buildings with ample work
available at each location, but little to no workers present. It is inexcusable for Flintco not to have a significant
body of workers at the project working on completion. If Flintco has an honest belief that it is unable to perform,
then Flintco should provide a specific list of those issues that prevent it from working at each area of Buildings A,
Band C where work is available but not being performed.
B. Flintco's Abuse of Construction Administration Processes
Part of Flintco's apparent decision to manufacture claims in lieu of performing its contractual
responsibilities is the attempt to occupy the City's construction management resources with needless and
repetitive requests for "direction. Flintco's demands for "field orders" to proceed with contract work is a good
example of this type of abusive behavior. Flintco does not require a field order to proceed with its contractual
obligations. The City requests that Flintco cease and desist from demanding Field Orders for the performance of
contract work.
Another wasteful Flintco practice is the generation of frivolous Requests for Information. There are
numerous instances where Flintco has requested direction about matters that are directly addressed in the
contract specifications, or in the applicable building codes. The City is not obligated to provide Flintco with
information that is readily available in the contract documents. This practice on the part of Flintco demonstrates
either a desire to divert City resources away from proper project administration and/or another abusive claims
fabrication practice. The City demands that .Flintco senior management take personal responsibility over the
repetitive and unnecessary requests made by Flintco's staff.
At the May 20, 2013 meeting, Mr. Stump told us that if we provided him with proof that Flintco has
engaged in such practices, he would ensure that these kinds of RFls are no longer issued by Flintco. We agreed to
provide Mr. Stump with some examples ofthese abusive RFls.
Flintco has indicated its perception of responses to RFls is couched in a manner that does not directly
address its concerns. We understand that Mr. Stump will provide us with some recent examples of RFls in which
the response has not provided Flintco with the information it believes it needs to complete its work. The City has
indicated its willingness to assist with improving the RFI process so that it is more productive for all concerned.
These RFls will be exchanged no later than May 31,2013.
C. Processing of Change Orders
Another further example of Flintco's efforts to bog down the administration of this project is its repeated
failure to comply with the contract requirements for the submission of change orders. Flintco has largely ignored
its obligation to provide notification of claims within seven days. Flintco's failure to provide timely notification
until long after issues have arisen denies the City the opportunity to investigate and document while the
particular issue is pending. Flintco's failure to provide timely and adequate notice has prevented the City in some
instances from verifying both the basis for its claim and the amounts being claimed by Flintco.
Article Seven of the General Conditions provides specific requirements for the identification and
documentation of allowable costs. Flintco has repeatedly failed to provide documentation that complies with the
documentation requirements. As a result, this requires a series of requests for additional information back to
Flintco in order to obtain accurate costing. Flintco also continues to include improper percentage markups in its
Change Order Requests, instead of the percentage markups that are plainly provided under Section 7.3.1 and
7.3.2 of the Contract. This requires recalculation and correction of overstated percentage markups, and is a waste
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of project resources. If Flintco desires quicker processing of its change order requests, the City suggests that
Flintco examine its own failure to comply with the Contract requirements.
We understand that Flintco will provide the City with its views on resolving change order issues, which will
be provided in the form of a "settlement proposal" in an effort to maintain confidentiality of Flintco's position.
This "settlement proposal" will be provided by Flintco to the City by no later than June 21, 2013. The City will
review Flintco's position and provide a response, in an effort to seek closure on these issues.
D. Flintco's Failure to Provide Supervision, Coordination or Quality Control
One of the more obvious problems on this project is Flintco's failure to devote adequate resources to
supervision, coordination and quality control. The numerous instances of failed inspections and re-inspections
demonstrate that Flintco does not have qualified and experienced personnel overseeing its own work and the
work of its subcontractors. One example of Flintco's apparent indifference to quality came in a recent inspection,
where a dozen items were identified to be corrected. The Flintco representative then asked the Inspector to
approve installation of drywall over these uncorrected conditions. This remarkable indifference to quality and
conformance with contract requirements appears to be endemic to Flintco's performance on this project, and is
the primary reason for so many non-conformance reports being issued on this project.
It is Flintco's contractual obligation to provide continuous quality control over its own work and the work
of its subcontractors. The City believes the best way for Flintco to minimize its quality problems is to adopt an
internal coordination and quality control program within its own operations and with its subcontractors.
The City will continue to make its inspector available on reasonable notice to provide building inspections.
It is Flintco, however, not the City, who should provide its own quality control efforts on a continuous basis.
E. Progress Payment Requests
Another Flintco complaint deals with its progress payment requests. Again, it appears that the problem
rests with Flintco. Flintco has engaged in a consistent effort to exaggerate percentage completion of its work in
an apparent effort to have the City overpay for the work completed. This process of correcting these overstated
reports is made all the more complicated by the amount of corrective work that remains outstanding. The City's
construction manager has spent several hundred hours investigating and correcting Flintco's overstated payment
requests. At times, these submissions have gone beyond a mere difference of opinion, and have presented issues
of false and overstated demands for payment that are of great concern to the City.
The processing of progress payment requests will go much faster if Flintco abandons its practice of
exaggerating what has been completed, and overstating its progress payments. In addition, if Flintco takes a
more active approach toward addressing the correction of defective work, it will provide a more ready means of
assessing completion, and will have a greater opportunity for actual progress on contract work.
v. Status of Default ..
The City appreciates the promises and assurances provided by senior Flintco management at our meeting
of May 20,2013. We want to ensure there is no misunderstanding that Flintco must fulfill its obligations to fully
cure all default items by no later than May 30,2013. If that does not occur, it is the intention of the City to
declare Flintco in default, and invoke all necessary remedies to mitigate the City's damages, including but not
limited to the appointment of a new contractor to complete the project. To that end, the City will be bringing
representatives to the site in the next few days to review the status of completion. Please alert Flintco's staff and
subcontractors oftheir contractual obligation to provide full access to the City and its representatives during
these site visits.
Sincerely,
ffJ~L<----
J. Michael Sartor
Director Public Works
John Stump, Senior Vice President of Flintco Pacific
Fidelity and Deposit Company of Maryland, Bond Number PRF08975391/8219891O
Federal Insurance Company, Bond Number PRF08975391/8219891O
Jim Hamel, Zurich American Insurance Company
Tom Tripp, Turner Construction