HomeMy WebLinkAboutItem 1i - Accept work by TKE Construction'. GQ�LIFORN
—�9
F
mco�oo.aica
Au6usf 5, 1903
STAFF REPORT
Development Services Department
DATE: July 1, 2014
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
SUBJECT: ACCEPT ALL WORK PERFORMED BY TKE CONSTRUCTION FOR
THE MUSEUM EDUCATION CENTER PROJECT AND AUTHORIZE THE
FINAL PAYMENT TO BE MADE IN ACCORDANCE WITH THE
CONTRACT DOCUMENTS
Recommendation: Approve
SUMMARY
On June 4, 2013, the City Council awarded a contract to TKE Construction in the
amount of $927,339, inclusive of a 10% contingency, to build a Museum Education
Center for the City. There were three (3) change orders for extra work approved during
the project, as well as additional costs incurred by the City to equip the building for use.
The total of these change orders and additional costs is $75,120.03, which is within the
allotted contingency. The terms and conditions of this project have been complied with,
and the required work has been performed to staff's satisfaction, for a final cost of
$922,701.03. It is recommended that the City Council accept the project as complete,
and authorize the final payment in accordance with the contract documents.
BACKGROUND
The City Council approved, in concept, the design and construction of a proposed
Museum Education Center of approximately 2,600 square feet at the January 20, 2009,
City Council Meeting. A fund raising effort was actively pursued over several years by
the Arcadia Historical Museum Foundation, resulting in $500,000 raised toward the
construction of the building.
The plans originally developed for the Museum Education Center were conceptual, and
did not provide the level of detail necessary to pursue a typical plan -based bidding
process. Therefore, at the November 6, 2012, meeting, the City Council authorized the
use of the design /build process to proceed with moving toward the construction phase
of this project. On March 5, 2013, the City Council authorized the release of an RFP to
interested design /build contractors. The RFP contained technical specifications that
outlined the key building components desired for the project, the minimum level of
construction quality necessary for the building, and the finishes, materials, and
Accept Work -TKE- Museum Education Center
July 1, 2014
Page 2
furnishings required to make this a building all parties, and the community, would be
proud of.
The RFP was released on March 7, 2013, to interested firms. Five (5) proposals were
received from design /build teams. Largely due to the nature of the process, the original
range of bids was wide, from two proposals at $759,000 on the low end, to a high
proposal price of $1.7 million. The review of submitted proposals and the interview
process was completed on May 13, 2013, and, following meetings of the review panel,
TKE Construction was selected as the preferred consultant team. TKE's final revised
bid came in at $797,581. At that time, the City Council approved an additional $50,000
for the project to add a brick veneer to the entire building so that it would better match
the surrounding buildings, bringing the base contract total to $847,581.
DISCUSSION
Construction began in October 2013, and continued into June 2014. Through
consultation and negotiation with TKE, a number of changes were requested as the
project progressed. Several unforeseen items and conditions were discovered that
required extra work from the contractor, and several items that were not initially in the
scope of work were added during construction. Additional costs were also incurred by
the City to equip the building for communications, security, and specific use. The table
below lists the change orders and additional costs incurred:
Change
Order
Description
Amount
1
Design Modifications - Material Upgrades- Landscaping Changes
$24,365.04
2
Relocate Gas Line
$3,726.30
3
ADA parking lot improvements
$30,218.71
Addl.
Costs
City Installed fire /water lines, alarm and security system,
communications, IT services, additional shelving and cabinets.
$16,809.98
TOTAL
$75,120.03
The design /build process provides an excellent opportunity to work collaboratively with
a construction team in all facets of the construction process. After the conceptual plans
were agreed upon through the contract approval, the City worked with TKE on a number
of refinements to the building and site. To improve the overall function and appearance
of the building, a number of changes were encapsulated as Change Order #1. These
included upgrades to the doors and the addition of two new doors, adding skylights to
provide natural light, and adding two new closet areas and countertops. There were
also several landscaping costs included in this change order, including the removal of
several trees, additional grading and soils import, and changes to the total amount of
landscaped area in the scope of work. Credits were also given to the City for several
items related to the arbor that used to be on -site, and changes to the lighting plan. The
ultimate cost of this change order was $24,365.04.
Accept Work -TKE- Museum Education Center
July 1, 2014
Page 3
Change Order #2 was simply the relocation of a gas line for $3,726.30. The final change
order was a remodel of the parking lot shared between the Gilb Museum of Arcadia
Heritage and the Museum Education Center. The existing parking lot was not in
compliance with ADA requirements in terms of handicap accessible parking spaces,
striping, and cross slopes. This was a known condition and it was anticipated that this
work would trail the construction of the Museum Education Center and would be bid
separately. Through the process, however, it became apparent that this work could be
completed using the existing contractor and related sub - consultants at a substantial
cost savings to the City. The decision was made to include this necessary work into the
overall scope of the project at a cost of $30,218.71.
Additional costs were incurred by the City through the construction process to equip the
building for communications and safety. To save costs, the City directly contracted for
these additional services: fire /water service line installation, alarm system, lock system,
additional cabinets and shelving, and cable and IT services. The total of all these items
was $16,809.98.
This project was the City's first experience with the design /build contracting process for
a City facility. Because the original plans and concept for this building were not detailed,
the design -build process was a good option in that it allowed an opportunity for the City
to collaborate with the chosen contractor on all aspects of the project. TKE Construction
was excellent to work with and came through on their end at the agreed -upon contract
amount. Despite the lack of detail in the original plans, it is important to note that the
vast majority of the change orders for the project were for upgrades in materials and
improvements in facilities that were not part of the original scope of work. The design -
build process is one that staff will pursue for other projects in the future.
FISCAL IMPACT
The approved construction budget for this project was $797,581 with a 10%
contingency, and an additional $50,000 authorized by the City Council for the brick
veneer. This provided a total construction budget of $927,339. Including change orders,
the total amount expended for this project will be $922,701.03. This is within the 10%
contingency approved for the project. The project is partially funded by a $500,000
donation from the Arcadia Historical Museum Foundation. The balance of the funding
for this project is provided by the Parks and Recreation Impact Fee fund. This fund is
comprised of monies charged to new development for projects that build park and
recreation facilities in the City or expand the capacity of such facilities. The Museum
Education Center will be used in large part by the City's Recreation and Community
Services programs. No General Fund dollars have been utilized for the construction of
the Museum Education Center.
Accept Work -TKE- Museum Education Center
July 1, 2014
Page 4
RECOMMENDATION
It is recommended that the City Council accept all work performed by TKE Construction
for the Museum Education Center project and authorize the final payment to be made in
accordance with the contract documents.
Approved-
Dominic LazzarA6
City Manager