AMENDMENT TO THE CONTRACT FOR TENANT IMPROVEMENTS AT 1333 SOUTH BON VIEW AVENUE / GC BUILDERS

SUBJECT:

AMENDMENT TO THE CONTRACT WITH GC BUILDERS FOR TENANT IMPROVEMENTS AT 1333 SOUTH BON VIEW AVENUE

RECOMMENDATION: That the City Council approve an amendment to Contract No. PK0708-17 in the amount of $106,095 with GC Builders of Rancho Cucamonga, California, for tenant improvements at 1333 South Bon View Avenue; a revised contingency of $115,125 for the remainder of the project for a new contract authority of $1,986,470 ($1,871,345 revised contract plus $115,125 contingency); authorize the City Manager to execute said contract amendment (on file in the Records Management Department); and authorize the filing of the Notice of Completion at the conclusion of all construction activities related to the project.

COUNCIL GOALS: Invest in the City’s Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)

FISCAL IMPACT: The Fiscal Year 2008-09 Capital Improvement Program Budget includes appropriations of $3,034,840 for the Revenue and Administrative Services Office Relocation project. In August 2008, the City Council approved a construction contract in the amount of $1,535,000 plus a contingency of $230,250 (a total of $1,765,250). Since the initial award, unforeseen additions to the original scope of work have been identified at an estimated cost of $336,345, or $106,095 more than the contingency amount. These items include modifications to the existing roof and HVAC duct work to accommodate the new roof-top mounted HVAC units, additional utilities and telecommunications conduits, and an extension of exterior stucco work. Since the cost of these additional items exceeds the available contingency for this project, and given the amount of work yet to be completed, staff recommends approval of these additional items and a contingency of $115,125 for the remainder of the project—resulting in an increase to the total contract authorization of $221,220 to $1,986,470. Sufficient appropriations exist within the overall project budget for this amendment.

BACKGROUND: In June 2008, the City solicited formal public bids for the tenant improvements at 1333 South Bon View Avenue and nineteen (19) bids were received. GC Builders of Rancho Cucamonga submitted the lowest bid ($1,535,000) and met all the required specifications. The bid amount was approximately 35% less than the Architect’s estimate of $2,335,000.

The original scope of work for the proposed tenant improvements and rehabilitation of a 10,000 square foot office building for the Revenue and Administrative Services office relocation includes parking lot improvements, a public entrance vestibule, ADA compliance, structural, mechanical, electrical and plumbing system upgrades, a secure counter area for payment collection, staff work areas, public and staff restrooms, a vault room, new energy efficient HVAC units, and telecommunications, fire and security systems.

During the demolition phase of the building rehabilitation, several unforeseen limitations to the existing building and the rehabilitation plans have been identified. It has been determined that the existing roof and the original plans for the new roof design are not adequate to accommodate the new HVAC units, while allowing for proper water-proofing and drainage. Additionally, the re-design of the roof and the placement of the new HVAC units require changes to be made to the interior HVAC duct work. The existing telecommunication conduits as well as the main water feed line to the building are inadequate to provide necessary utility services. Additional telecommunications conduit will need to be installed and a new copper main water service feed is required as a result of excessive corrosion within the existing galvanized water service line. An extension of the exterior building stucco beyond the areas originally planned is also recommended in order to provide enhanced security and better environmental control through weather-proofing.

STAFF MEMBER PRESENTING: Ken Jeske, Director of Public Works/Community Services