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HomeMy WebLinkAboutAgenda - 09-02-2010 - 4qot~~- ao~o- 08~ ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 2, 2010 Action Agenda Item No. _~ SUBJECT: Justice Facility -General Contractor Extended Overhead Request and Approval of Budget Amendment # 2-B DEPARTMENT: Asset Management & Purchasing Services (AMPS) Financial Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): A: Project Sources and Uses Summary B: Extended Overhead Request Letter INFORMATION CONTACT: Pam Jones, AMPS, 919-245-2652 Jeff Thompson, AMPS, 919-245-2658 Michael Talbert, Financial Services, 919-245-2153 PURPOSE: To consider: 1. Approving a negotiated amount related to requested by the General Contractor; and 2. Approving the attached Budget Amendment 2 project. extended construction overhead costs B that captures all costs in one capital BACKGROUND: The Justice Facility reached substantial completion in May 2010. As a result of a significant delay due to a major fire rating re-design in the summer and fall of 2009, the General Contractor, Bordeaux Construction, has requested additional compensation related to the costs of the extended overhead costs related to the necessary, iterative re-design. These costs exceed the costs associated with the fire assembly change order G-10 presented to the Board in December 2009. Attachment A, "Project Sources and Uses Summary" illustrates the revenue and expense categories as they relate to both Board and Manager approvals (in the case of change orders). Items darkly tinted refer to expenses encumbered and paid for through operating funds due to their unrelated nature to the capital project. These expenses included new District Attorney office refurbishment costs, interstitial space repair, concurrent programmed refurbishment within the existing Justice Facility (restroom renovations, paint & carpet replacement), and extended asbestos testing/abatement processes. FINANCIAL IMPACT: Staff has negotiated an extended overhead compensation of $40,000 (see Attachment B, "Extended Overhead Request Letter"). Board approval of this action will effectively allow the closeout of the capital project. Both the New Courthouse Project and the River Park Development Project have been considered as part of the Justice Center Facility Project. The Justice Center Facility Project has a shortfall of $161,217 and these funds are available in both the New Courthouse Project and the River Park Development Project. To 2 insure accurate project accounting and asset recognition for the Justice Center Project, a total of $161,217 would be transferred to the Justice Center Project. There would be $87,440 transferred from the New Courthouse Project, $50,000 transferred from the River Park Development Project, and $23,777 appropriated from the Town of Hillsborough for the River Park Development Project. The revenue was received in 2009 but never appropriated. The approval of Budget Amendment # 2 - B will effectively allow the closeout of all three Capital Projects: Justice Center Facility, New Courthouse, and the River Park Development. All funds are currently encumbered in the County Capital Projects Fund and no additional capital is required. Budget Amendment #2 - B Justice Center Facility: Project # 10013 Revenues for this project: Through FY 2009-10 FY 2010-11 Amendment FY 2010-11 Revised Alternative Financin $10,200,000 $10,200,000 2/3rds Net Debt Bonds 190,000 $87,440 277,440 Sales Tax 1,726,112 1,726,112 Transfer General Fund 50,000 50,000 Contrib From Hillsborou h 0 23,777 23,777 Total Project Fundin $12,116,112 $161,217 $12,277,329 Appropriated for this project: Through FY 2009-10 FY 2010-11 Amendment FY 2010-11 Revised Desi n $1,374,103 $1,374,103 Construction 9,992,009 $161,217 10,153,226 Other 750,000 750,000 Total Costs $12,116,112 $161,217 $12,277,329 River Park Development: Project # 20032 Revenues for this project: Through FY FY 2010-11 FY 2010-11 2009-10 Amendment Revised Contrib From Hillsborou h Transfer General Fund $50,000 $50,000) 3 Total Project Fundin $50,000 $50,000 Appropriated for this project: Through FY 2009-10 FY 2010-11 Amendment FY 2010-11 Revised Construction $50,000 $50,000 Total Costs $50,000 ($50,000) New Courthouse: Project # 10015 Revenues for this ro'ect: Through FY 2009-10 FY 2010-11 Amendment FY 2010-11 Revised 2/3rds Net Debt Bonds $190,000 $87,440 $102,560 Transfer General Fund $167,961 167.,961 Total Project Fundin $357,961 $87,440 $270,521 A ro riated for this ro'ect: Through FY 2009-10 FY 2010-11 Amendment FY 2010-11 Revised Desi n $30,000 $30,000 General Renovations $327,961 ($87,440) $240,521 Total Costs $357,961 $87,440 $270,521 RECOMMENDATION(S): The Manager recommends that the Board: 1. Approve the $40,000 negotiated amount related to the extended construction overhead costs requested by the General Contractor; and 2. Approve the attached Budget Amendment # 2-B consolidating all costs for the Justice Center Facility into one capital project account. Sources and Uses Summary Justice Faclllty u sntl BDCC ApprovedJusUm Fadpy RI0013 BDCC Approved-RNer Puk X20034 BOCC Approved-0kl Countrouse Renovubro pt0016 DOCG Approved•Puab Merkel House 410032 Operadnp Funde peme $357,967 sso,ooa Budget Amendments 5341 142 Opsrothq Fund Bems Total Funds Encumbered ttem Ham Copts (Orgeul Comracp: Bordeaux COs Approved: BA F0-Up Cwb: Asbestos Testing, Daslgn, end Remowl Costs Boil Costs: Hscommanded Addti Ownv Coals: S&2,981 EI ;7,D09 SB,000 54,1({ <B,OAI] sSS,oDp ;4as20 ?if,7B0 F26,aG3 S t 2,527.536 Provldar BOCC Approved BOCC Approved BOCC Approved BOCC Approved BOCC Approved lwcc Approved Iwcc Appmwd Nol BOCC Approved Na tIOCC Approved Not 9OCC Approved Not BOCC Approved Na BOCC Approved Not BOCC Approved Na Bocc Approved f:oel 8ub7otd ta,o7e,e3e 880,178 28,283 7e,2as 1,027,882 1,001,788 otalEncumberedPro(ectCost t27e7a udget Varlence (eurplualehortfalQ dens (p) ao,s: efCBMBge VBfIeDCe depe (%) D 32 8/2/2010 6preedaheet-"6unmvy, Approved County Cepltd Pro(ecb' ~ counhmee Reravadore, 2003 M Fmdc Is Ieelbp, ffiebmeM and ak tryeay leslirq b bwer level, DA rqa n lealin0, ffieromeN end ak quefib IaUnp In bwer level, DA up01 n leslinp, ffiatemem end ek WeHY leelbp In bwer bwl, DA IpIX W apem patch and repek dw b effieabe mmpromiee of exlstbg Rre rated meemhy renovatbn 2nd Odor roslraom rerovukm ronoveUm lower bwl palnUrp 1 mNe T ~I~a1ew.~+[Nr \~`~"` G~ *~~~ ~ r C©IZLE~I' ~EDF'~®'•T SACK ~. A R C H I T H C T S • H N G I N H H R S • P L A N N H R 5 June 14, 2010 ~a Telefax cr.Ersrrn.c°x~.ESr~AIA Mr. Chad Lloyd Chafrtt[ax Bordeaux Construction Co., Inc. . xertxare &)LBDFOOT, AIA~LSan AP Presfdettt 1 QO East Britania Avenue Durham, NC 27704 MICHAEL L. HAMME$SLEY, PR Part[ter - ANDR73WII.CIIUxCICSIfANX,A7A,LHBUAP Re: Orange County Justice Expansion Part[ter GRZ Project # 0417 DAVID M. TA1cLOII~ AIAy r.ESn AP 0~28f10 Extended Overhead Letter Parh[er IIDvIEERLY b. ~. AIM LeSA AP Dear Mr. Lloyd: - .Assuciah LAL[a~[•rcEw•snNCEt~ArA On June 1, 2090[ we received the attached May 2$, 2010 Associate letter from your office in which you are requesting a total of HAnxYM'n~rs~nr Assee[afe $64,922 In extended overhead costs for the time period • from June 17, 2090 thru November 20, 20'!0, a period of H~.SMIrI~ Associate some 1 S6 calendar days. We have reviewed your chronological. listing of issues along • with your wank progress analysis and cost asslgnmerit as . you feel you have been impacted. On the basis of your lefter without beneftfi of time sheets, daily logs, and other supporting paperwork, we feel that yvu have .shown sufficient cause to merit a timely meeting with the Owner to discuss your claim further. By copy of this fetter, we are recommending to the Owner that a meeting be scheduled ro~X236a between Bordeaux Construction 'Company and fhe Owner Chapel Hill, NC 27515-2368 to review the claim letter, table relevant questions, and z22 cioistex ~~ discuss ways of reaching an amicable settlement. • Chapel HiII, NC 27514 2212 Siry~reiy, `~ KES/ices Attachments Cc: Ken Redfobt Pam Jones David Taylor Jeff Thompson (919} 401-8586 Telephone (929) 493-7306 Fax www.eorlepr edfoo tzack.com . - 6 . x .... - COFEF7 ~® R~ E A U. X ~., W~ ~. .. k Construction Company, Inc. _~^N^ ___ - ~^ 1 May 28, 2010 Ken Smith Corley, Redfaot, Zack 222 Cloister Ct. Chapel Hill, NC 27514 RE: Orange County Justice Expansion Mr. Smith, . Bordeaux Construction Company, Inc. is hereby issuing a formal request for extended overhead cost for Orange County Building Inspections imposed code improvement revisions, the schedule impact of asbestos abatement revision and delays as associated with extended overhead cost, per revisions requested,by Orange County Building Inspections ~e~aximent fojr file ebbvb refceclprojec~~gr,your rev~eW and.a~proval. Regtiest~£ox extel~de~.ogerffead cost is bauptili atelays did;inef~cieilcies'as outliuaed in timeline below: :. .. , ... ~ ~ ; • . • 1. June 11~ ; 2009: Bordeaux Consixaction directed to stop ALL work associated with Field Memo #56 by Corley Redfoot Zack based on ongoing concerns with Orange County Building Inspections; BCC proceeding with base bid scope of work. 2. "July 1 S ; 2009: B CC de-mobilization. from project as no father work can be done at this time with regards to base bid renovation completion or proposed change orders pending approval. • ~. July 10~', 2009:.CRZ distributes pdf drawiogs as tbey'r~late to associated revisions to'FM#56 for pricing based ilpon'OCBI comments. - 4. August 31~ ; 2009; BCC returns to site to proceed with work associated with Owner Cltange Order #12 (Restroom Renovations). BCC demo of 1~ and 2na . floor gang bathroom, no other trades on site at this time. • 5. September 9~', 20009: BCC presents proposal to CRZ and OC for additional cost associated with r_ evisions to Field Memo # 56. At this tame OC felt cost were prohibitive anti rea~uested BCC to,putsue solicitation o~bids to spxinkler .. building .. ~ - . ~ ~ . ,.- epte ~'~~: agrees o review provlslons prove. e spy"""°~""° • ,building (existing courthouse) system, BCC to,pxep~re pricing; .. ,.••7.-~~•September.24~;20~9:BCC,providespricingtoCRZ~rom•A$L~S~riillde'rto. • • provide,fully.sprinkled building.system for'owner appxovaL ~ ~ ` PO Box 2435, Durham, NC 27715-2935 100 E. Britania Ave., Tatham, NC 27704 {4I4) 220-2141 tot (414) 220-1147 fax • . titatnvbordeauzconstrucdonco.mm Construction Campnny, Inc. 8. September 28a; 2009: OC canno# move forwaxd with sprinkler approval at this time as ap~rovai~ from board is required • 9. October 5 , 2009: BCC provides proposal to CRZ for cost of sprinklex shop drawing only. To date NO approval has been given with regards to any items' associated with Field Memo #56. l0.October 14~', 2009: CRZ notifies BCC that OCBI has reviewed and approved associated drawing revisions {FM#56 Code Ilnpxovements}; BCC to prepare revised pricing. l 1.October 16a', 2009: CRZ upon approval of OC releases BCC to begin preparations of sprinkler shop drawings. 12.October 30a; 2009: BCC provides FM#56 "Code Revisions" revised pricing to CRZ for owner approval. 13. November2"~, 2009: BCC, CRZ and OC meet to discuss change proposal. At this time OC feels as cost are still prohibitive and request BCC to revise pricing again: and remove items that will be performed by the owner. Also addressed at this meeting; Tom Bordeaux (BCC) and Jeff Thompson (OC) discussed the additional cost incurred by BCC during this process of code revision pricing and Mr. Thompson acknowledged that •Bordesu~c had incurred additional cost but requested that BCC separate the extended cost from this CP; Mr, Bordeaux agreed to dolls and both parties agreed to access this'cost upon completion of the contract. ' 14. November Sa; 2009: BCC provide additional revisions requested by OC for approval {CP#57R2). 15. November 14~, 2009: BCC stops drywall subcontractor from concealing all walls and ceilings as No' further work can be done {BB or CO) at this time pending owner approval on code revision. 16. November 16a`, 2009: CRZ notifies BCC that code improvements in the existing building cannot be approved bythe-owner at this~timeg.owner will have to go before BOC for approval. • 17. November 18a; 2009: BCC given stop work notice on code revisions by OC and requested to revise CP#57R to reflect additional cost as sta#ed in CRZ letter "11/18/09 Change Order G-13 Status": 18. November 20s', 2009: BCC demobilizes from project for a second time. 19. November 30a', 2009: BCC provides CRZ with Cl'#57R3 for approval and execution. 20. December 4a ; 2009: BCC receives cover letter for CP-13 for signafiare. ' 21. Dece~~r 2~ , ~0'b3:~Ci/ receives nonce o'f`e~ecu ef`d. ~f'=T3'liy owner {FfCC-`._ .. . ~ signed 1217/CRZ signed 12/10 & OC signed 12/18) ' 22. January 4a', 2010: BCG and associated subcontractors ;remobilize to site to complete associated code revision CO and. building completion. PO Box 2935, Dwham, NC 27725-2935 100 E. Britat~ia Ave., IItuham, NC 27704 _,,, (919) 220-1141 teI (919) 220-1147 C~z • nal~cvbordeuuxconstrncYloncawm 8 ', • •&o'ttstru•ction•• Company, lac. + 23. January 4a', 2010-Apri128ffi: CodQ Revision end associated fiilisl~ work ongoing until. d~.te of substantial. completion April 28~`, 2010. ' • Associated Cost gex above time line: , ~ June' 17~`, 2003-August 31$ ; 2009: On Junk 11 ~', BCC received stop woxk directive •on all work associated with. FM#56, at this~time BCC was working on oxg contract work to the extent possible, Work was limited. to .• ' • selective demolition in areas throughou# the building only. -Sub-contractor work was•halted at this point until resolution could be made to move . ' forward with code revisions. On 3uly 1~, X009 BCC'demobilized•fromthc pxojeCt site. ~ _ • General~Conditions Q $324.00/day (x} 61 days = $19,724.00 • Supervision & Tnsuranees @ $446A0/day (x) 61 days- *$CC allocated supervision and labor forces during this period on various • ~ o#her project sites throughout the company as to not layoff any of our staff allocated for this project. **Upon acceptmsce of this proposal BCC will not seek any further labor or supervision cost incurzed for • this time period. • Sub-Total during this period: $19,724.00 II) August 31~; 2009 November 20~; 2009: During this period BCC maintained an onsite presence of one superintendent and 2 laborers, working on CP-12, site walkway revisions and misc interior up fits associate with~OCBI code i1>~provements; subeont>•actor•workwos rn;nirnal to non-existenx during this period of time as BCC was working under premise tisat ongoing code review pricitlg would•be, approved, Cost is r~ftective•of BCC workixig at MA~45% efficiency; • • General Conditions ~ $324.00/day {x) 81 daps =$26,244.00 • Supervision &-Insurances (a3 $446.00/day (x) 81 days = $36,126.00 . • .Sub-Total during this period: $62,370,00 (-}BCC ongoing work (a3 45% efficiency = $28,Q67.00 • Total for this period = $34,303.00 III} November 20a', 2009-December 28~', 2009: Ola. Novembex 18~', 2009, B CC received letter from CRZ (Change Order G-13 Status) stating the intent of the owner to execute Change Order Cr~13 and that said change order would be executed no Later than December 1.5, 2009 by OCBC. Tn this letter the owner also "request that you stop work on the project on any items which will negatively affect or impact the future woxk of the code PO Box 2935, Durham, NC 27715-2435 I00 B. Britania Ave., Durhazn, NC 27704 (919) 220-1141 tel (919) 220-1147 fax • RRVM.b OrdCanXCOnSCTtlctIOl7Ca.GOm ' ~ Construction Company, Inc: improvements". At this stye BCC defeivvned that'rio work org. contract • or other change orders could proceed without negatively affecting the " • associated work described in the letter and de-mobilized. from the project site on Nov. 20~ 20Q9. • . • *$ordeaux Construation maintains by lio fault bf out own, •that'we were ~orcecl fromthe project•site as no work-dpuld continue'without .:.;,,. negatively effecting the •code improvement items set fortli,in CP~13. , ~~ ~ *xTpon acceptance of this proposal Bordea~ Construction will not . ' seek extended the, extended'overhead and cost incurred during this time • period . IV} BCC Project Management & Estimating Time, (Cbd~ kZ`evisiorf Pricing) Project Manger/Estimator (1:Morith) $9;072.00 • . -. • • Superintendent (R.oom by Room Itemized Code Improvement summation fox` pricing of org. IaMM#SE} (1 Week} - $1,823.00 • Sub-Total of item IV: $I0,89S.00 ' y'} Summation of Items I N: e ' Schedule Impact Total: $64,922.00 Note') All pricing is based on original base bid general condition &'supervisions pricing. TYs~ould be noted that this priciio g is, oven 3 yearn old. . 2.) (lenerai Conditions, Supervision and Insurances are based. on Overhead .. ..bpexatin.g cost~set.forth iiz •khe approved schedule of vahtes for this project. Upon receipt of this~proposal we formally request your xesponse within.ten business days. Please ~o.~+ivtliat we are available to ciiscuss,tiiis matter in persoli at your earliest " convenience. If you. have any questions, do. not hesitste to contact us, . Sincerely, , .. ~ • ~ .. - - .... '- • . • . Borden Cori rtion Company; Inc. .~- - ' Chad~Lloy ., - ' . - - -, . Project Manager . _ .. - , I?O Box 2935, Dtuham, AFC 27715-2935 I00 B. Britnnia Ave., Durban, NC 27704 ' (919} 220-1141 tet (9I9) 220-1147 Eax . tiv}nvbordrauxconstructionco.com 10 ' C o n s t r u c t i o n Company , I n c . ' CC: • •" Project File Tom Bordeaux' • Ken RedfooY • ~ - . ' ~ • .. ~ . David TagZo~ ~ , • ' ' JeffThompson ~ . Pam Jones ' PO Sox 2935, Diu'ham, NC 27715-2935 100 E. Britaiua Ave:, DurhaJn, NC 27704 ' {9I9) 220-1141 te1 (919) 220-1247 fax • svcwvbordeaw:~onstroctionm.cam