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HomeMy WebLinkAboutStaff Report 3955City of Palo Alto (ID # 3955) City Council Staff Report Report Type: Consent Calendar Meeting Date: 8/5/2013 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 88%complete (based on expenditures to Flintco) and it is anticipated that the three-building complex will be open to the public in late 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 84%to 88%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. The number of subcontractor personnel on site and the pace of the City of Palo Alto Page 2 project have improved since the May 2 Notice. However,schedule slippages for completion of key mechanical and electrical components have occurred.The City and its contractors are attempting to adjust the work sequencing to avoid further project completion delays.Staff is monitoring compliance with the milestone dates and the pace of construction very closely and will report to Council frequently in the coming weeks. As a follow-up to the City’s May 2, 2013 letter, subsequent letters were also sent reiterating previous statements. The most recent of those follow-up letters is also attached (Attachment G). 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 $3,724,508 has been approved by the City, or approximately 15% 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 City of Palo Alto Page 3 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 June 17, 2013,several major milestones have been completed.All major HVAC systems have now been started up, with the exception of the unit for Building C-South, the Community Room and Kitchen. Carpeting and cabinet installation has commenced. The terrazzo floor in the Café has been completed. Wood slat work finishes have commenced and are almost completed. The Green Wall on the northeast wall of the building has been completed. The attached “Schedule Milestones” page in Attachment E has been revised to show the remaining key milestones. Some corrections to mechanical, electrical,and plumbing (MEP)work below the floor and above the ceiling are still outstanding, but much progress has been made. 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. All of these problems were detected by the City’s building inspectors or construction manager, Turner Construction,and the contractor is contractually 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. In addition, several of the contractor’s key sub-contractors have also gone out of business. 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. City of Palo Alto Page 4 Approved Construction Contract Change Orders To date, 48 change orders have been approved for a total amount of $3,724,508. This amount constitutes approximately 15%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 5%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. 43 $47,849 12 extra work items including water system work, wood slat steel supports, and trellis work totaling $52,281 minus credit given for three of the 12 work items for granite bollards and accent stone, drain piping, and a system permit set totaling $4,432. 44 $30,299 Six extra work items including flooring work and curb work. 45 $83,960 Nine extra work items including flooring work, lighting work, ventilation work, kitchen work for ADA purposes, and metal planters. 46 $31,788 15 extra work items including landscaping work,plumbing work, steel work, electrical work, and ventilation work totaling $34,709 minus credit given for one of the 15 work items for flooring work totaling $2,921. City of Palo Alto Page 8 47 $29,389 20 extra work items including stonework, telecom cabling, exhaust fan work, painting, electrical work, and green roof work. 48 $16,811 Four extra work items including AC work, counter work, and electrical work. TOTAL $3,724,508 TOTAL CO’s 1-48 *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. 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. City of Palo Alto Page 9 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 $17,923 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. 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 # 43-48 (PDF) City of Palo Alto Page 10 ·B -LBOC Agenda_7-9-2013 (PDF) ·C -LBOC Minutes_4-23-2013 (PDF) ·D -MPL Financial Charts_6-30-2013 (PDF) ·E -PAL Bi-Monthly Report May-June 2013 (PDF) ·F -City Notice to Flintco_5-2-2013 (PDF) ·G -City Follow-up Letter to Flintco_6-17-2013 (PDF) Contract Change Order City of Palo Alto Department: Public Works Engineering Contract Number: C11136473 ~b~ntltact Change e':d~r R~r:t~ .. ''i;jJ,ree ~, cpnti~J~i!J ' , . , ' . ;, ~ 0 ," _~j< ~ • " • I "', ,I., ~ ~ '1 '~"-/' ,,_"..,~ 'j " " ,"~_ll:¥ " , . . , 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: Accept~r City 2! Palo ~Ito: By: Signature Declined BY:£'rlJ~ Andy Brophy -Phil Bobel Title: Flintco -Project Manager Title: Assistant Director of Public Works Date: Date: tf/~(ff3 I I SCOPE OF WORK ... a: 0 N '2-"'t.. 11) 0 :IE ~ U) 0 0 Il. 0 <C u.. 0 Description Amount 111 184 81 Granite Bollards and Accent Stones at Arch-Adjustment -2,977 154.2 582 1166,2 PhotoVoltaic System Permit Set -479 171.2 348 736 105 1095 ASI105 Wood Slat Steel Supports 23,449 171.3 348 1314 1095 RFI 1314 WD Slat support A206 Col AC/A5 clearstory Included 171.4 348 1315 1095 RFI1315 Wd Slat Steel Bldg A (A206) Col AC/A5 Included 171.5 348 1331 1095 RFI1331 Wood Slat Steel Supports (C139) Included 171.6 348 1380 1095 RFI 1380 Wood Slat Steel Supports Bldg C Included 186.2 577 577.3 1174 RFI 577.3 Drain Piping at VRF 2nd Floor Bldg A -976 300 464 123 1090 ASI 123 Vertical Trellis Bldg A 9,245 331.2 672 1165.1 1197 RFI 1165.1 AHU-2A Copper Piping 4,895 426 561 1526 163 1096.1 ASI 163 Valves & Controls AHU, FCU & Water Systems 13,942 483 648 1495 065 1204 RFI1495 C02 Sensor at Shelving 2/F Bldg A 750 Total for this change order 47,849. 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 t'":G}~Q'tt:aefe'n~q'ye';~~~~d-~~'~M~~~~~~~~:~~:p~i~~~~~:,':~ ":~t ~:',,: :,' ::', ':~',',:' :': ,', < .. ',<',i':-,;' ,:':':~' .,":" \ ,,:'" ," ":' .. :':~ l ,,~ I .,... ~., ~ ~, , .. c~ -~ J. "-~ __ • 'i> __ ''''~.,,~, "-_~ ~( '.I.T y ~ .:...:.t ~~ ~ -_ ~ «. ~ "'''~ .. ,, "' ... ~" L}, ,.' '-'it'. 1", ~ __ \j' • C", _, --, _. _ , ,( -"1 ,II 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 Cit of Palo Alto: By: Signature Declined By: Title: Andy Brophy Title: Flintco -Project Manager Date: Date: SCOPE OF WORK "'0 .., '?.. "t-Il) "'0:: (.) :e I.L en 0 0 0. (.) 0:: « I.L (.) Description Amount 294 407 1089 1193 RFI 1089 Flashing for EF Curbs Bldg B&C 1,650 355 503 133 1093 ASI 133 & 133.2 Sidewalk Grade 3,589 133.2 370.1 567 988 165 1053R1 ASI 165 FD-3 Diffusers and Controls Bldg A 8,855 381 507 1261 1051 RFI 1261 Duct Shaft Enclosure (A222) 1,275 401.5 699 1274 147 052 1184 ASI147 Linear Floor Diffuser Color 14,006 468 618 1424 1207 RFI 1424 Duct Adapter Rectangular to Oval Bldg A 924 Total for this change order 30,299. 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 ~ -,' ~ ""<''''''~-''':i''''' l"'~~->~'-~='--., '>-'""'i:~-~''''""'Tf'l',,,,-.,r.,,~<~~,, ..... \"~ ",,-. , --"~ u ~ ~!~ "'~--EJ~ola~ra'et~Jli;mge,2~t:fi!~~~'i=£~"fff~;ii;~~,S'~,~~~!~~§~(,:: ',' .. ' ,; ,,': .',{"" ~', ~''"''''''':~:'' " , r "~.. . ~ • '<. t_ },'f. F.,,~ £. ~r. ~"" ':.~~ ,~,' .;o.A , .. 0' ", __ ,~",~" :!~~ ~,,~ .,,:;1 _,,,-.'1'_,. ,..."-~;.; ,< ,_ ,-)' z "" ,~,·~d h' >.!. ~ .' '-'_ • _ .' 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 Citll f Palo Alto: By: Signature Declined By: Title: Andy Brophy Flintco -Project Manager Title: Date: Date: SCOPE OF WORK "'0 N .., ... I/) ~ 0 :E u: (j) 0 0 c. 0 0:: <C u.. 0 Description Amount 186.2 577 1174adj C0-43 Deleted Column Cover Credit Revised 801. 681 352 485 1111 1209 NSC Tank Copper Vent Material 14,173. 1111.1 1111.2 378 493 1225 1162 Refridgerant Pipe Flashing hood 5,475. r Library Entray Under Floor Ductwork and 418 485 158 1209 Terrazzo epoxy sand fill upgrade A103 and B101b 27,518. Coordinate & adjust resin floor at cafe counter no cost 434 690 164 1187 FQ1 Stack Lighting perpendicular to s. wall room A202 20,581 r 434 1427.1 095 FR1 Stack Light on south wall of room A203 Inc void 434 566 1427.2 164 FR1 Stack light deleted on south wall of Room A202 Inc Closed 452 596 176 1089r2 Metal Planters 6,148. 497 657 1513 187 1183r1 Cafe and Kitchen revisions per ADA 9,264. I / Total for this change order 83,960. v 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 Chang~ 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: Accept City of Palo Alto: By: Signature Declined By: Title: Andy Brophy Title: Flintco -Project Manager Date: Date: SCOPE OF WORK . "0 C'I ., "t-Il) D:: 0 :E u:: en 0 0 13. 0 0:: c( LI. 0 Description Amount 101.3 576 022 1113 ASI 022 Granite Treads Stairs 2 & 3 Bldg A 1,993 304.3 692 076 1215 Pavers South of Southeast Driveway 3,857 342 497 1249 125 1062 ASI125 Double Door & Steel Under Window Teen Room (A104) 6,016 393 509 1198.1 1107 RFI 1198 & 1198.1 Ladder Safety Post NSC Tank 1,050 405 506 1278 1064 RFI1278 Compressed Lugs for Electrical Equipment -Settlement 4,500 430 555 1310.1 1160 RF11310.1 Accent Stone Soils Compaction 562 435 569 167 1136 ASI 167 Wharf Hydrant Location in Courtyard 5,141 451 588 1402 1110 RFI 1402 Stair 2 Angle Support Modification 1,009 457 646 1486 200 066 1195 ASI200 Exhaust Ventilation Tech Services (A216) 2,954 458 593 1152 Signage Foundations 338 485 640 1482 1180 RFI1482 Guardrail Receptacle Conflict East Terrace Bldg A 1,887 509 673 203.1 1185 ASI 203.1 NDS EZ-Drains at Landscape Areas 5,090 988, 1274, 1274.1, 19,49, 517.2 1274.2, 1274.3, 129, 147, Floor Diffuser and Plenum Box Reconciliation -2,921 1535, 1536 165 525 713 208 1218 ASI 208 Plant Substitutions Courtyard 157 528 714 210 1228 ASI 210 Granite Seat Paver at Beasley Sculpture 155 Total for this change order 31,788. 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 ./ V ./ Contract Change Order City of Palo Alto Department: Public Works Engineering Contract Number: C11136473 t .~, "t? I' '.,.. 'If ' ,', > '< " ' I ,'; • ,'.r,,' ",-", 'J , , ~ ''1 , , ' ,,~~ '. " ' , ' ' , ' " , , , " ti~~''!!t1~~:~·cZ~~~€I;,~:~,:~~~ 1f.Q'~~~~~;'f~.fi!,.+:;·~f!'!:tJi:np:~tiJ: . .' ' " \'~i' \ ':', '.' "" ',':' , " , 1 , ~ -:." • ~ -j 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'~ 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 Cituf Palo Alto: By: Signature Declined BY:f~ Title: Andy Brophy • -'=-"'" Phil Bobel Flintco -Project Manager Title: Assistant Director of Public Works Date: Date: ~dl!~ I I SCOPE OF WORK ~o N '" "L II) ~ 0 :il u: tn 0 0 Il. 0 ~ < u.. 0 Description Amount 154.3 636 731 1178 RFI 731 Paint GSM Cap Flashing for PV Curbs Bldg A 1,471 ./ 175.4 695 1558 1201 RFI1558 Aluminum Angle and Paint 946 ./ 217.5 701 127 1200 ASI127Telecom Cabling 1,588 V 257.2 686 111 1188 ASI 111 Rework Column Ceiling Slope Revision Bldg A 995 ,/ 266.2 649 894 1149 RFI 894 Motor Starters Exhaust Fans Mechanical Yard 2,962 ./ 365.2 671 071 1219 Blackout Painting Above Bldg A Entry & Bldg C Classrooms 2,610 ,/ 072 398.2 700 1286 1198 RFI 1286 Reroute Fire Sprinkler for Tunnel Bldg C 393 V 404 524 1043.2 1073.1 RFI 1043.2 Electrical for Green Wall Control Panel -Settlement 2,142 ./ 419 543 1333 1114 RFI1333 Closure Panel North CW Bldg A 1,139 ./ 444.2 705 171 1214 ASI 171 Engineering Ceiling Framing 938 ./ 449 586 1397 1127 RFI 1397 Exterior Soffit Bldg B South Elevation 1,230 ,/' 456 599 479.1 179 1132 ASI 179 Night Sky Cooling Riser Room (A233) 2,836 ./ 464 611. 061 1220 Shim Aluminum Angle for Stonework at Door Frames 3,004 v 488 658 191 1179 ASI 191 HC Pull Straps at Lockers 362 .,/ 500 650 1103.1 1203 RFI 1103.1 Soffit at Drift Clips Bldg A (A208) 1,419 ./ 502 652 1504 1181 RFI1504 LF1 Type Light Fixtures Beasley Sculpture ' 669 ,/ 510.2 674 073 1211 FO-073 Furred Drywall Partition Bldg A (A205! A231) 590 t/ 510.3 675 073 1213 FO-073 Furred Drywall Partition Bldg A (A137A) 420 t/ 530 655 1445 1194 RFI1445 Green Roof Irrigation Connection 2,813 V 535 709 1577 1221 RFI1577 Bench Back at Casework (A108) 862 ./ Total for this change order 29,389. v' 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 ApPENDIX B -CONTRACT CHANGE ORDER PAGE20F4 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 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 City of alo Alto: By: Signature Declined Title: Andy Brophy Flintco -Project Manager Date: .... 0 '" .., "I:... tn (.) :;E u: U) 0 Il. (.) 0::: <C 1L 390 512 1272 407 525 1279.1 415 549 1354 155 545 727 1. Potential Change Order 2. Change Management By: Title: Date: SCOPE OF WORK U) 0::: 0 (.) Description 1067 R,F11272 Counter Support Furring Bldg B (8104) -Settlement 1074 RFI 1279.1 Conduit Seals -Settlement 1142 ASI 155 Door Hardware & Light Switch -Settlement 1229R2 AC in NW Parking Lot (1000 SF) Total for this change order Amount 2,465 1,025 990 12,331 16,811. / ,/ / ./ / 3. Request for Infonnation 5. Field Order or Extra Work Authorization 4. Architect's Supplemental Instl1lctions 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 PAGE2oF3 Agenda Library Bond Oversight Committee Quarterly Meeting Tuesday, July 9, 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 – April 23, 2013 AGENDA REVIEW & REVISIONS UNFINISHED BUSINESS 1. DISCUSSION – Construction Progress a. Mitchell Park Library & Community Center NEW BUSINESS 2. DISCUSSION - Update on Main Library Project a. Construction Progress and Schedule b. Bond Issuance 3. DISCUSSION - Draft Financial Report Summary from Administrative Services a. Expenditures to Date – Summary Spreadsheet 4. ACTION - Approval of Quarterly Report to Finance Committee 5. Next Steps a. Next Meeting – Tuesday, October 22, 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 Minutes Library Bond Oversight Committee Quarterly Meeting Tuesday, April 23, 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 Committee Members Absent: 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  Approved as amended 4-0 o Amendment: fix typos AGENDA REVIEW & REVISIONS UNFINISHED BUSINESS 1. DISCUSSION – Construction Progress a. Mitchell Park Library & Community Center  Melton recommended going back and recalculating the percent complete  Pellentir asked to make sure that Change Orders (CO’s) are accounted for in the percent complete figure  Hackmann said staff has been working on refining the percent complete figure  Eggleston and Jacobs explained staff is continually working through issues related to the percent complete figure with Turner and Flintco  Mossar said that it is the LBOC’s job to ensure that there is enough money to complete the project and that the LBOC needs to know all outstanding 2 charges related to the project to determine the City’s vulnerability  Smith then asked for an explanation of the worst case scenario  Eggleston suggested that staff bring back more information on this at the next meeting  Smith encouraged far greater attorney involvement in all meetings between staff and Turner and/or Flintco  Melton encouraged staff to email information to the LBOC if completed earlier than the next meeting b. Temporary Main Library  Eggleston said that the Temporary Main Library bookshelves have arrived, the shelving has been installed, the office furniture and check out machines are in place, and Main will close on April 30th with Temporary Main opening May 3rd  leConge said that Temporary Main is very small, has very little shelving, reduced hours, and is meant to be an in-and-out or pick-up library 2. DISCUSSION – Design Progress a. Main Library  Eggleston said the design is done and the permits are ready  Eggleston said the project went out to bid in early March, bids were opened April 9th, and of the five pre-qualified contractors four submitted bids  Eggleston said the engineers estimate was $15.9 M and one bid was well below that and most bids were $2-3 M above that  Eggleston said that the low bidder did not submit to the City the additional, necessary paperwork and withdrew their bid  Eggleston said the City is working with the City Attorney’s Office on whether or not they can cash in their bid bond  Eggleston said the low bid now is now approximately $17.7 M with SJ Amoroso Construction Company  Eggleston said SJ Amoroso is a union contractor that does a lot of public sector work  Eggleston said the buffer between the costs and the bonds is narrowing but for reasons such as a new roof at the Main Library the City can dip into the infrastructure reserve  Mossar said that the extra infrastructure projects (like roofing at Downtown Library) may put the total library projects budget over the amount approved by the voters. We should know in advance how this would be handled.  Eggleston added that staff will recommend the City accept the SJ Amoroso bid and not re-bid the project o leConge agreed with this  leConge said the Palo Alto Library Foundation has achieved their $4 M fundraising goal 3 NEW BUSINESS 3. DISCUSSION - Update on Main Library Project a. Bidding and Construction Schedule  See 2A notes b. Preparation of Bond Issuance  Narayan gave an update on the status of the bond issuance  Narayan said staff will ask Council on May 6th for the authority to issue the remainder of the bonds  Narayan said if Council approves that request the bonds will go to market in June with the intent to close the bond issuance by the end of June 4. DISCUSSION - Draft Financial Report Summary from Administrative Services a. Expenditures to Date – Summary Spreadsheet  Narayan said there have been $560,000 in expenses since the last report  Narayan explained the additional detail he added to the financial report since the last meeting  Eggleston again explained additional expenses to the Main Library and that those can come from the General Fund if necessary because they were not included in the bond estimate  Pelletier said to update the figure for the next meeting on the Main Library and the reasons for the budget increases  Pelletier asked why pages five to 16 of the financial report were included o Narayan said those pages are provided because the LBOC asked for that level of detail on expenditures  Pelletier asked about the difference between the contract amount and what has been paid 5. ACTION - Approval of Quarterly Report to Finance Committee  Approved as amended 4-0 (moved by Mossar, seconded by Melton) o Amendment: the LBOC Chair will add a paragraph to the Finance Committee transmittal letter highlighting LBOC concerns about future costs o Smith also requested that language be added stating that the LBOC financial reports are not independently audited 6. Next Steps a. Next Meeting – Tuesday, July 23, 2013 or another date?  The July 23, 2013 meeting was moved to July 9, 2013 $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) $45.56 (Mitchell) $49.04 (Mitchell) $50 (Mitchell) $22.39 (Main) $20.1 (Main) $18 (Main) 1.33 (Other) 1.65 (Other) 4 (Other) Cu r r e n t P r o j e c t i o n En g i n e e r ' s E s t i m a t e Bo n d E l e c t i o n Es t i m a t e Dollars (Millions) Library Bond Fund Utilization Projections (June 2013) Mitchell Park Library Main Library Temporary Libraries & Bond Costs $76M $73.47M $76M $29.24 (Flintco) $5.83 (Turner) $6.02 (Group 4) $4.47 (Other) Palo Alto Library Projects Bi-Monthly Progress Report May/June 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 May/June 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  Carpeting and terrazzo flooring installation commenced  Cabinet installation commenced  Green Wall completed  Three HVAC systems online UPCOMING ACTIVITIES  Exterior painting and trim  Interior ceilings in progress  Finish carpeting  Finish cabinets Mitchell Park Library Shelving Installation Commenced Library Roofing Started May/June 2013 Mitchell Park Library Green Wall Photos Mitchell Park Library & Community Center Management Summary May/June 2013 Noteworthy Accomplishments  Carpeting and terrazzo flooring installation commenced  Cabinet installation commenced  Green Wall completed  Three HVAC systems 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 May/June 2013 Mitchell Park Library & Community Center Completion Plan (Updated 7/31/2013) Building Interior (Project Wide) City Target Date Mechanical/Electrical/Plumbing (MEP) Rough-in 8/5 Fire Life Safety Systems Online 8/8 Grid for Sloped Ceilings 8/9 HVAC System in C-South Online (Heat) 8/13 Interior Painting 8/13 Elevator Final Inspection 8/21 Begin System Furniture & Casework* 8/26 Automated Handling System 8/30 Staff Moves In (Substantial Completion; TCOO)** 9/25 Open To Public (COO) Late 2013 Building Exterior (Project Wide) City Target Date Exterior Stone 8/7 Exterior Painting 8/9 Final Parking Lot Paving 8/12 Art Work 9/30 *Air-out of buildings commences (14 day process) **Inspections completed and a small number of punch list items remain. All fire safety requirements are met. Main Library 1213 Newell Road, Palo Alto Exterior View May/June 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  Demolition work commenced including asbestos abatement UPCOMING ACTIVITIES  Complete lobby demolition  Complete roof demolition  Commence geo-thermal wells 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 45,563,014 3,479,986 11000 Main Library 18,000,000 20,100,000 22,392,578 -2,292,578 11010 Art Center Temporary Library 500,000 528,232 -28,232 Bonding and Financing Costs 4,000,000 500,000 185,320 314,680 BONDED AMOUNT 76,000,000 76,000,000 73,480,613 2,519,387 Thru June 2013 PALO ALTO LIBRARIES BOND MEASURE N PROJECTS FINANCIAL SUMMARY BUDGET COSTS Last updated 7/30/2013 CITY OF PALO ALTO OFFICE OF THE CITY MANAGER 250 Hamilton Avenue. 7th Floor Palo Alto. CA 94301 650.329.2392 May 2, 2013 Mr. Tom Maxwell, President and CEO Flintco Pacific 401 Derek Place Roseville, CA 95678 VIA CERTIFIED MAIL AND ELECTRONIC MAIL Re: Mitchell Park Library and Community Center Project, Palo Alto Palo Alto Contract No. CII136473 NOTICE TO CORRECT DEFECTIVE WORK; NOTICE TO SUBMIT ACTION PLAN FOR PERFORMING UNCOMPLETED WORK AND NOTICE OF INTENT TO INVOKE DEFAULT PROCEEDINGS Dear Mr. Maxwell: We remain very concerned with the pace and quality of the construction at the Mitchell Park Library and Community Center project ("Project") in Palo Alto. The Project is now approximately one year behind schedule. Work crews are quitting or failing to show up to the job site on a regular basis. The number of workers on site on a typical day falls considerably short of what would be expected, and does not support significant progress on either available work or essential corrective work. On days when crews are present, Flintco is not adequately coordinating or supervising trades. Much of the work fails building department inspections, or is identified on site as not complying with the Contract requirements. Most troubling is that Flintco has submitted no plan for completing the Project any time soon. The City has repeatedly informed Flintco of these problems in weekly team meetings and regular correspondence, observation reports, corrective action reports, and inspection reports. The City put Flintco's surety on notice of these problems earlier this year (see attached letter dated January 18,2013) and has requested that it intervene to resolve these problems on multiple occasions. The City hoped there would be an improved approach to managing the project when Flintco's parent company was sold to Alberici Corporation. The reorganized senior management does not appear to have taken any significant steps to address the City's concerns. The City has attempted to motivate Flintco to complete the job by regular partnering meetings, field team motivators and even financial incentives. Nothing has worked. C i tyOf Pa I oA I to.o rg Printed With soy-based inks on 100% lecycled paper processed without chlOrine. Page 1 of4 The schedules provided by Flintco show slippage each month. Recently, the slippage has been so extensive that the schedule now indicates we are no closer to completion than we have been for many months. In fact, Flintco has actually lengthened the schedule due to completed work that must be torn out and re-done. This constant rework on the part of Flintco is impacting its subcontractors' willingness to maintain adequate crews at the Project. The latest schedule (submitted on 4/25/13) is the most alarming one yet as it shows extending completion from October 8 to November 22,2013. Flintco's own schedule estimates it will take seven additional months to complete a project that is already approximately one year late. In light of Flintco's schedules and the lack of progress on site, it is reasonable to conclude that the Project will not be completed for months without dramatic and immediate change. We must now embark on a course of action to effect a dramatic change quickly and a return to a normal and acceptable work pace. To that end, we are issuing this letter pursuant to sections 12.2.2 and 12.2.3 of the Contract's General Conditions requiring correction of defective work and establishing time frames for action. If these actions are not taken and dates are not met, the City anticipates issuing a Default Notice pursuant to section 15.2 of the Contact. The required actions fall into three categories and are described below and in the referenced attachments to this letter. Category I: Urgent Corrective Actions There are five components of the Mitchell work that need immediate corrective action. Those five components are summarized in Attachment I and described in Attachments LA through I.E. This letter constitutes your notice pursuant to sections 12.2.2 and 12.2.3 of the Contract's General Conditions that corrections must be commenced within 7 days of this notice and completed by May 30,2013. Category II : Correction of all identified Defective Work The Contract General Conditions section 3.6.1 provides that the methods and procedures adopted by Contractor shall be such as to secure a quality of Work satisfactory to City and to enable completion of the Work in the time agreed upon. Per General Conditions section 3.3.1, Contractor shall be in charge of and responsible for all portions of the Work of the Contract, and shall be responsible for conforming such portions to the requirements of the Contract Documents and readying such portions to receive subsequent Work. Lastly, per section 12.2.2 Contractor shall correct Defective Work that becomes apparent during the progress of the Work. Flintco has produced defective work which is identified in the following three Attachments: II.A. Inspection (Request) log II.B. Turner/ABB Master QAlQC log (Site Observation Report) II.C. Group 4 Architects Field Observation Log (This includes observation logs from Group 4 and its consultants). C ityOfPa I oAI to.o rg Printed with soy-based inks on 100% recycled paper processed without chlorine. Page 2 of4 The Site Observation Reports and Quality Control Field Observation logs which describe defective work have been sent to Flintco via multiple emails and reviewed in the Owner, Architect, Contractor Meetings. The Turner/ ABB Master QAlQC logs have been provided to Flintco numerous times (throughout April, May, and June 2012 and an outstanding open issues log was provided on 7/11/12, 7117112, 8/31/12, & 11/07112 ). We also sent you the Site Observation Report for the ABB "General Waterproofing Site Visit Report for Building A 9 11 12" on 9-20-12. Lastly, the Inspection Request logs and resulting Inspections are always available on Sharepoint for Flintco to view at any time. The City has requested Flintco to correct the items on the logs or provide the City with a corrective action plan and timeline for completing the work. In addition, the City has requested to be advised when actions have been completed, so that they can be field verified by the City's appropriate agents. Flintco has either failed to correct the items, failed to complete a corrective action plan and/or failed to notify the City of any completed correction. Therefore, this letter constitutes notice to Flintco pursuant to sections 12.2 of the Contract's General Conditions that corrective action is required. Within 14 days of this notice, Flintco is required to submit to the City a detailed Plan of Correction showing with respect to each item on the three logs: (1) Certifying that the corrective work has been completed and is ready for a field re-inspection or (2) If the work has not been completed, a plan for correcting it and the date on which it will be corrected. Category III: Commencement of Available Work The City has, at each Wednesday's Owner, Architect, Contractor (O.A.C.) Meeting, requested Flintco to begin work in areas where work is available to Subcontractors. The pace of work is not sufficient in large part because staffing has not been assigned to work on building components which are available for such work. To avoid a default notice pursuant to Section 15.2 of our Contract, Flintco must submit a Staffing Plan of work for the areas listed below within 7 days and execute that plan immediately thereafter. The Staffing Plan shall list the Subcontractor, the number of workers and the dates to be worked to address the areas raised in Attachment IILA. Please respond to each of the requirements outlined above by the specified time frame. Failure to do so will result in further action pursuant to our Contract. Sincerely, [List of Attachments on Next Page] C i tyOfPa I oAI to.o rg Printed With soy-based inks on 100% recycled paper processed without chlOrine. Page 3 of4 Attachments A. Letter dated January 18,2013 Category I Attachments: Urgent Corrective Actions Summary of Items Requiring Urgent Corrective Actions LA. Remaining deficiencies in the Sliding Glass Doors as described in Attachment LA. I.B. Deficiencies in the Title 24 Glazing Certification as described in Attachment I.B. I.C. Replacement of Cabling in Bldgs. B & C as described in Attachment I.C. I.D. Correction of walls not meeting ADA clearances as described in Attachment I.D. I.E. Correction of Waterproofing in Building A Shower Rooms as described in Attachment I.E. Category II Attachments: Correction of All Identified Defective Work II.A. Inspection (Request) log. Attachment II.A. II.B. Turner/ ABB Master QAlQC log. Attachment II.B. II.C. PA G4 Field Observation Log (This includes observation logs from Group 4 and its consultants). Attachment II.C. Category III Attachments: Commencement of Available Work III.A. Areas for Commencement of Available Work cc: John Stump, Senior Vice President of Flintco Pacific Mark D. Wood, Fidelity and Deposit Company of Maryland, Bond Number PRF08975391/82198910 Alex Dam, Federal Insurance Company, Bond Number PRF08975391/82198910 Jim Hamel, Zurich American Insurance Company Tom Tripp, Turner Construction J. Michael Sartor, Director, Public Works, City of Palo Alto Phil Bobel, Assistant Director, Public Works, City of Palo Alto Molly S. Stump, City Attorney, City of Palo Alto C ityOfPa I oA I to.o rg Printed With soy-based inks on lOO% recycled paper processed without chlorine. Page 4 of4 CITY OF PALO ALTO PUBLIC WORKS DEPARTMENT PO Box 10250 Palo Alto, CA 94303 650.329.2151 June 17,2013 Mr. Tom Maxwell President and CEO Flintco Pacific 401 Derek Place Roseville, CA 95678 VIA CERTIFIED MAIL AND ELECTRONIC MAIL Re: Mitchell Park Library and Community Center Project, Palo Alto Palo Alto Contract No. Cll136473 CITY'S EV ALUTION OF FLINTCO'S RESPONSE TO MAY 2, 2013 NOTICES Dear Mr. Maxwell: This letter follows up on my letter of June 6, 2013 in which the City acknowledged receipt of documentation dated 5/30/13 by Flintco with respect to the deadlines in the City'S 5/2/13 letter concerning potential default on the Mitchell Library and Community Center construction project. We have since reviewed the submitted information and the work performed on site. Not all the work has been completed. This letter contains a summary of the remaining work which Flintco has indicated it will complete in order to avoid the City finding Flintco in default. Category I Corrections Five specific corrections were required to be completed by 5/30/13 and each is addressed below (Category I of the City's 5/2/13 letter): 1. Sliding Doors The problems with the doors have not all been corrected. In light of the inability of the current subcontractor to fix the doors by 5/30/13, Flintco has advised the City that it is in the process of receiving bids from new subcontractors to order and install the doors required by the City-Flintco Contract ("Contract"). We understand that Flintco has indicated that, if the City permits the door installation to proceed, that all door installation will be completed by 9/30/2013. In light of Flintco's commitment to a date certain for door installation, the City is presently reviewing whether to permit Flintco to proceed with sliding door installation. Tentatively, the City is willing to conduct air and water testing of the 3C­ West doors (121,122 and 126) as part of this evaluation, and Flintco has requested that the City schedule the testing. In the these three doors pass all tests, the City Cit y 0 P~ge' y ~f 3 0 . 0 r 9 Printed with soy-based Inks on 100% recycled paper processed without chlorine. J will take that into its consideration of Flintco's progress. The City is hopeful that the testing and inspection of the doors will permit these doors to be accepted, with the remaining doors to have all corrections completed and accepted by Flintco' s deadline of 9/30/2013. The City reserves its right to declare Flintco in default concerning its failure to install the sliding doors in accordance with its May 2, 2013 letter, and any additional time provided to Flintco to complete its work shall not be considered a waiver of the City's right to require compliance with all contract requirements. Please provide a copy of the purchase order for the replacement sliding doors, and indicate submittal and delivery dates. Please note that compliance with Title 24 (discussed below) is a further requirement for acceptance of these doors. 2. Title 24 -Flintco submitted a package of materials on 5/29113 targeted to demonstrate compliance with Title 24 for glazing. Our analysis finds that this package is nearly complete. Flintco is expected to submit all remaining required documentation as detailed in Attachment A. We understand that Flintco requires additional time in order to submit the documentation and we agree to provide additional time. Flintco has indicated it will submit all documentation required for Tide 24 glazing by 6/28/13. The City reserves its right to declare Flintco in default concerning its failure to provide all required Title 24 documentation in accordance with the May 2,2013 letter, and any additional time provided to Flintco to complete its work shall not be considered a waiver of the City's right to require. compliance with all contract requirements. 3. Replacement of Cabling in Buildings Band C -Not all ofthe work was completed by 5/30, but it is now complete. The City expects Flintco to complete all testing immediately. 4. ADA Corrections of walls -This work has been completed, except for the tiling. Flintco has indicated to the City that there is additional lead time required when ordering new tile. The City understands this and is agreeable to allow for extra time for the tiling work. Flintco has indicated it will complete all tiling by 7/19/13. 5. Waterproofing of Building A Shower Rooms -This work has been completed except for testing and tiling. As mentioned above, Flintco has indicated that there is additional lead time required for ordering new tile. The City understands this and is agreeable to allow for extra time for the tiling work and testing. Flintco has indicated it will complete all tiling and testing by 7/19/13. Category II and III Requirements With respect to Categories II and III in the City'S 5/2/13 letter, Flintco has provided a 6 week schedule and a one week staffing plan as a way of meeting the requirements for Plans to address these two areas of concerns. Flintco indicated that it would submit a new staffing plan each week. This has not occurred following the first week. The City expects Flintco to submit its staffing plan and results from the previous week as Flintco had agreed to do in response to the May 2,2013 letter. Page 2 of3 Additional Requirements The City expects Flintco to meet the milestones indicated in Flintco' s 6 week schedule. The 6/10/13 milestone for continuously operating the HV AC system in Building A was partially met in that air (albeit not conditioned air) is being moved through the building. The City expects that Flintco will be successful in reaching all of the following milestones based on Flintco's schedule: 6/18/13 -Passing all above-ceiling and below raised floor inspections 6/25/13 -Completion of installation of all pavers 6/27/13 -Continuously operate HV AC systems in buildings B & C 7/10 /13 -Completion of installation of all wood slats and panels Meeting all of the above requirements and time frames is necessary to avoid Flintco being found in default. The City reserves its right to declare Flintco in default concerning its failure to meet all of the above items in accordance with its May 2, 2013, and any additional time provided to Flintco to complete its work shall not be considered a waiver of the City's right to require compliance with all contmct requirements. Sincerely, ichael Sartor, lrector, Public Works City of Palo Alto cc: John Stump, Senior Vice President ofFlintco Pacific ,Mark D. Wood, Fidelity and Deposit Company of Maryland, Bond Number PRF08975391182198910 Alex Dam, Federal Insurance Company, Bond Number PRF08975391182198910 Jim Hamel, Zurich American Insurance Company Tom Tripp, Turner Construction Phil Bobel, Assistant Director, Public Works, City of Palo Alto Molly S. Stump, City Attorney, City of Palo Alto Page 3 of3