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HomeMy WebLinkAbout7B - Maintenance Center Constru AGENDA #: PREPARED BY: SUBJECT: DA TE: INTRODUCTION: BACKGROUND: DISCUSSION: AGEND7B.DOC STAFF AGENDA REPORT 7B PAUL HOKENESS, PARKS AND RECREATION DIRECTOR CONSIDER APPROVAL OF INCREASE IN PROJECT COST OF $26,332.00 FOR MAINTENANCE FACILITY PROJECT. APRIL 15,1996 The purpose of this agenda item is to receive Council approval for a change order and to request Council authorization to increase the maintenance facility project budget by $26,332.00. On August 7, 1995 the City Council approved advertisement for bids for the construction of a maintenance facility of approximately 45,000 square feet which included a salt/sand storage building. A bid opening was held on September 8, 1995 and fourteen contractors submitted bids. No bids were received for the proposed salt/sand storage building. On September 18, 1995 the City Council awarded bid to Rochon Construction for the maintenance facility with the understanding that the winning contractor would provide cost estimates to the city for the construction of a salt/sand storage building. As the project has proceeded, soil correction costs have been substantially more than originally anticipated. Some additional electrical work and silt fencing has been required as well. The purpose of this memorandum is to: 1. Approve Change Order #1 which is a total deduct from the project of $25,886.00. 2. Apprise the Council of potential changes in the total project cost. 3. Request that the Council consider allocating an additional $26,332.00 to the total project. PAGE 16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQuAL OPPORTLNITy. EMPLOYER CHANGE ORDER #1 Change Order #1 from BRW Elness Architect, Inc. is attached. The Change Order contemplates four actions: 1. Electrical revisions amounting to $5,242.00 were needed to accommodate the heating system which was selected for the building. The heating system which was selected was in fact $21,500.00 less than the more expensive system. However, electrical modifications were necessary to install this particular system. 2. In order to conform with the City's erosion control policies and, because additional soil mining was involved in an effort to minimize soil correction costs, an additional $2,200.00 was required for silt fencing. 3. Soil corrections in this site have been well beyond that originally anticipated. The work that has been required thus far for the building amounts to an additional $19,321.00 over that which was originally anticipated. The necessity for this additional expenditure is described in greater detail in the ISSUES section of this report. 4. Additional testing was conducted to determine whether additional granular fill could be located on site rather than importing fill. (which costs more by contract). This testing is incorporated in the $266.00 addition. 5. Because of these cost increases and additional soil corrections the staff reviewed the project to determine what if anything could be eliminated. The original architectural scheme included awnings with the building. Since the windows are tinted to provide for cooling and reduce glare, the awnings are not a necessity and did not seem to be a wise use of construction dollars. We are recommending that the awnings be deleted for a total project credit of ($52,915.00). Attached is a Maintenance Center project budget which identifies Change Order #1 and reflects the $25,886.00 credit. Also shown is the credit which was granted by the City Council at the time of project approval which included the permit fee, plan check fee, and park support fee. This credit was also AGEND7B.DOC PAGE offered to the Fire Station and the Council believed it to be equitable to apply the same criteria to the Maintenance Facility. The original investment earnings included in the budget were $40,000.00 Because the project has taken somewhat longer than expected and because of our fiscally conservative estimates, it appears that an additional $55,000 will be available in investment earnings to assist in this project. Ralph indicates that the actual investment receipts may be closer to $95,000.00. (As of March 31, 1996 our investment eamings on this project were $70,759.00). The bad news is that there are additional expenditures required to complete the project which I have listed below and also explained in greater detail in the ISSUES section of this report: POTENTIAL CHANGES IN PROJECT COST Salt/Sand StoraQe BuildinQ One of the major cost increases for the project will be for the salt/sand storage building. The salt/sand storage building was initially expected to be a wooden, barn-like structure capable of holding 2,500 tons of mixed salt and sand salt. The original estimate for this structure was $100,000.00 Upon receipt of quotations from a storage facility contractor, the wooden building costs increased to $147,000.00. Considering the magnitude of that number, staff members asked the architect to obtain a figure for the same size building only constructed of tip up panels similar to the main maintenance facility structure. The bid received was in the amount of $167,000.00 Since receiving this news, the staff has been evaluating the need for a salt/sand storage building, its size and design. The number of conclusions have been reached: 1. There is little financial incentive to reduce the size of the structure since a 1,500 ton capacity tip up panel building has been quoted at $124,000.00 The smaller building, moreover, will result in additional mixing costs to the City as outlined in Doug Hartman's April 4, 1996 memorandum. (attached) 2. The wooden barn-like structure originally proposed, while somewhat less expensive will be susceptible to heavy equipment damage, rotting, and is higher maintenance. In addition, it has aesthetic disadvantage. (See attached photo of Eagan facility). AGEND7B.DOC PAGE 3. A 2,500 ton capacity tip up panel salt/sand building, while representing the greatest cost, appears to be the best investment in that it is resistant to damage by equipment, is capable of ready expansion when needed, and is aesthetically consistent with the maintenance facility. Additional Soil Correction Additional soil corrections in the estimated amount of $23,000 are required for the heavy vehicle driveway/parking area. Paintina Vehicle Maintenance Area The original bid award excluded painting of the vehicle maintenance area in the amount of $3,460. After reconsidering this issue, I believe that the City's best interest would be served if the vehicle storage area were painted along with the initial project. This is a reasonable dollar amount and would be much less expensive than our crew painting this area at a later date. Additional Heat For Brick Work Because of the intensely cold weather, additional heat has been needed to allow for the brick work to proceed. This has amounted to an additional $1,400.00 Other Three additional items are adds to the project which were not contemplated in the base bid. They include $2,000.00 for telephone/computer wiring, telephone equipment in the amount of $7,000.00 and a fax/computer estimated at $1,000.00 ISSUES: From a staff perspective, it appears that the only significant means of saving costs in the project are through the deletion of the proposed awnings. The Council should determine whether this is an appropriate action and if so, approve Change Order #1 accordingly. The soils condition in the Waterfront Passage Office Park have been documented to be bad. The natural question is therefore why wasn't the magnitude of the soil correction incorporated in the architects estimates and therefore in the contractors bids rather than having to be added at this point. While soil borings were taken on the site, the following factors contributed to these substantial increases for soil corrections. There were two deep pockets of poor soils which were found during excavation and were not identified in the original soil borings. This is not an uncommon occurrence in construction, AGEND7B.DOC PAGE as soil borings are taken randomly throughout the site and it is not always possible to identify all poor soils. The costly portion of making these soil amendments is importing granular materials. We did not have enough borrow material on the site to make these soil corrections. The original budget included $30,000.00 for furnishings which was going to include furniture, phones, and office equipment. The furniture alone will cost approximately $30,000.00 leaving no additional funds for phones, office equipment and installation. The furniture which is being purchased for the building includes tables and chairs for the multi-purpose room and conference room, as well as desks and chairs for the supervisors and receptionist. The furniture which is being ordered is from the State contract and is very conservative, yet functional and durable. A salt/sand storage building is not presently required by MPCA standards, however, we are required to control runoff which includes covering the pile. I believe it is reasonable to expect that such standards for building enclosures will be adopted within the next few years. While the City certainly may not be able to construct a salt/sand storage building that meets its ultimate needs, it is important to construct a building which at least meets its current needs. Such a building should architecturally blend with the principal building on the site. This is particularly important since the ordinance requires that the building be either substantially screened from adjacent properties or roadways or consist of the same architectural materials as the principal structure. ALTERNATIVES: 1. Approve Change Order #1 2. Approve an additional expenditure of up to $26,332.00. 3. Defer action for further information. RECOMMENDATION: Alternatives #1 and #2. ACTION REQUIRED: Approve Change Order #1 and the addition of $26,332.00 to the project cost by a motion and second. FISCAL IMPACT: Because the project has been somewhat less expeditious than anticipated and because investment experience has been favorable, staff is anticipating that the investment earnings may cover all or the vast majority of the $26,332 project budget increase. In the event that this source would be insufficient the remaining funds would be taken from the sewer and water fund balance. Reviewed by: Frank Boyles, City Manager AGEND7BDOC PAGE PRIOR LAKE MAINTENANCE CENTER BUDGET lIEM Building Construction Sand /Salt Storage Building Architect Fees Furnishings Administration (1 1/20k) Financing Contingency Additional Expenditures Additional Soils Corrections Painting Vehicle Storage Area Additional Heat for Brick Work Telephones/Computer Wiring Telephones - Equipment Skylight Fax / Computer Printer 23,000.00 3,460.00 1,400.00 2,000.00 7,000.00 1,000.00 1,000.00 Change Order Items Soil Supplements Electrical Work Extra Silt Fence Extra Soil Testing Delete Sunscreen 19,321.00 5,242.00 2,200.00 266.00 (deduct) $ (52,915.00) Investment Earnings Permit Fee Credit TOTAL * As of 3/31/96 REVBUD.XLS ORIGINAL BUDGET $ 2,562,000.00 100,000.00 220,000.00 30,000.00 40,000.00 65,000.00 23,000.00 $ (40,000.00) o PROJECTED I ACTUAL BUDGET $ 2,582,601.00 167,000.00 220,000.00 30,000.00 40,000.00 65,000.00 o o 38,860.00 o $ (25,886.00) $ (70,759.00) * $ (20,484.00) $ 3,000,000.00 $ 3,026,332.00 CHANGE ORDER OWNER ARCHITECT CONTRACTOR FIELD . OTHER o o o o o A/A DOCUME^T G701 PROJECT: (name, address) Prior Lake Maint. Building CHANGE ORDER NUMBER: 1 DATE: February 5, 1996 ARCHITECT'S PROJECT NO: CONTRACT DATE: September 19, 1995 CONTRACT FOR: General Constructi on Prior Lake, MN TO CONTRACTOR: Rochon Corporati on (name, address) 12866 Hi ghway 55 Plymouth, MN 55441 The Contract is changed as follows: 1 . 2. 3. 4. 5. Provide elect deleted by electrical note 33 on alternate #11 Extra silt fence. Soil correction. Extra testing. Delete sunscreen. Add Add Add Add Deduct Deduct $ $ $ $ ($ 52,915.00 ($ 25,886.00) 5,242.00 2,200.00 19,321.00 266.00 Tota 1 Not valid until signed by the Owner, Architect and Contractor. The: original (Contt2ct Sum)(6azrznt~PrieeTwas . . . . . . . . . . . . . . . . . . . . . . . . s 2,582,601 .00 Ne:t change: by pre:viously authori.z.c:d Change: Orde:rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s -0- The: (Contr:lct Sum)(6tt3nlAlec!&M3*imwmilRc;c) priorto this Change: Order was. . . . . . . . . . s 2,582,601 .00 The: (Contt2ct Sum) EGuuMlCe&~~RGc) will be: ("~c1) (de:crCLSed) ('tS"eIlM~bythisCh:mge:Ordc:rinthe::amountof........................... .S( 25,886.00) The: ne:w (Contr2ct Sum) (Cuar.w~wu2cicqinducling this Change: Order will be .. s 2,556,715.00 The: Contr2ct Time will be: (incrClSed) (de:crosed) (unchange:d) by The date: of Subst:mtial Comple:tion as of the: date: of this Change Order the:re:fore: is ) days. NOTE: This sumrT12r'}' does not reflea changes in the ContJ'2a Sum, ContJ'2a Time or GU2l'2nteed Maximum Price which have been authorized by Construction Ch:ange Directive. . .- BRW Flnp~~ Arrhitprt'J Tnr ARCHITECT 700 3rd Street South . Address Minnea Rochon r.orDor~tinn CONTRACTOR 12866 Highway ~~ Address P1ymollth, MN ~~441 BY~ DATE ? J J 'LJ 'if? -- , r.it~ Of Prinr f ~kp OWN 16200 ~aglp r.rppk Avp ~~ Address " Pri or;.... Lak~. _ MN~.. 5~37~-1714 BY ~2T ~ 31L}-~~ DATE ',...:., B DATE AlA DOCUMENT G701 · CHANGE ORDER · 1981 EDmON · AlA. · C>1987 · THE AMERJCAN INSTITUTE Of ARCHITECTS, 173S NEW YORK AVE.. N.W., WASHINGTON, D.C. 20006 G701-1987 INTEROFFICE MEMORANDUM DATE: TO: FROM: SUBJECT: APRIL 4, 1996 FRANK BOYLES, LARRY ANDERSON, PAUL HOKENESS DOUG HARTMAN, PUBLIC WORKS SUPERVISOR SAND/SALT STORAGE BUILDING The following summary is a comparison of time spend to mix our stock pile of sand/salt mix in the fall of 1995, compared to mid-winter of 1996. Fall Mixing: 2,500 TN /320 Man & Equipment Hours = 7.81 TN / HR Winter Mixing: 175 TN / 70 Man & Equipment Hours = 2.5 TN / HR While it is inevitable that winter mixing will be necessary at some point in the future, today it creates some concerns: . Man Hours: There currently are only six full time employees for three departments (street, sewer and water). In order to provide all the required maintenance services during the winter, personnel is very limited. We currently use one person from parks to assist in plowing. In addition, we currently have been able to use two qualified retired personnel on an on-call basis to assist in plowing and snow removal operations. They are paid only for the time worked during snow operations which saves substantial money for the City. It is unknown how long we will be able to do this. . F our of eight sanders are not designed to spread winter mixed sand. Frozen chunks prohibit sand flow. The added time mixing mid-winter is because the frozen chunks of sand and salt need to be broken down small enough to pass through our roller type sanders. Estimated cost to replace these roller sanders with auger/spin sanders is $15,000. These are currently scheduled for replacement in the 1999 CIP. . Salt availability can become a problem during severe winters. Our salt suppliers stock pile was nearly depleted in early February. As recent as the winter of 1993, the City's stock pile of sand/salt was depleted by mid-winter. No salt was available because of severe winter conditions in the eastern half of the country. An attempt was made by the Public Works Department to use straight sand with no salt. This created major problems when the sand froze in the truck boxes. Sand would not flow and trucks were removed from service for around two days until they thawed out so the sand could be removed. This winter we were fortunate to have only one watermain break compared to an average of six. Lift station problems were minimal. Had it been any different, I do not know if we would have had time to mix. The proposed concrete building at $167,000 would contain the 2,500 tons that we currently put up. A downsized concrete building at $124,000 would only contain 1,300 tons. This would add approximately 350 HRS of mixing in one season. Some time could be reduced if new sanders were replaced immediately. If you place a value on the additional time required to mix or sub contract the work, the following cost estimate should be considered. 175 HRS Truck with Operator @ $50.00/HR 175 HRS Loader with Operator @ $75.00/HR TOTAL = $ 8,750.00 = $13.125.00 $21,875.00 If you have any questions regarding the above, let me know. SANDSALT.DOC 'I~I B R W Elness Architects prepared a Maintenance Facility Master Plan, in 1989, that included analysis of the city's current and future needs for operational space, storage and equipment. Consistent with the plan, the city has since expanded the office and shop spaces, added additional vehicle maintenance equipment and space, tripled the size of salt/sand storage, and constructed a new and versatile cold storage building. Consistent with the city's goals, each building project incorporated the following items to increase worker efficiency and minimize future operational costs, while making the public works campus a source of civic pride. . Systems are designed for easy future expansion. . Materials arc highly durable. · Plans anticipate future technology. . Building systems are very cost- effective. . Natural light is used to minimize energy costs. The most recent addition to the campus is the cold storage building. made of tilt-up pre-cast concrete panels, bermed walls, transparent energy panels, and skylights. Weld plates, additional electrical capacity, welding outlets, and other features were added to facilitate any future use and expansion. City of Eagan Public Works Eagan, Minnesota ~ '2\;.. ~ . ~_. ., ~1 -- I I Q I I