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Convention Center Expansion and Renovation Project 'Page 2
<br /> In early summer of 2012, Turner began demolition work and other construction activities after a
<br /> Notice to Proceed was issued by the City and construction plans were approved by the City's
<br /> Building and Safety Department. Currently, Turner has completed approximately 30% of the total
<br /> construction work. The existing elevated plaza has been demolished and removed, and the rough
<br /> grading has been completed. Rough grading, concrete foundations and structural steel work for the
<br /> building expansion is in progress at different areas of the project site.
<br /> During the initial phase of the project (demolition, grading and structural steel work), Turner
<br /> encountered numerous unforeseen conditions, including but not limited to:
<br /> • Additional asbestos abatement required to demolish the existing plaza deck
<br /> • Additional hazardous material abatement at flooring, duct work, and transite piping
<br /> • Additional building seismic retrofitting
<br /> • Repair Chiller mechanical equipment and replace all heating building system piping and
<br /> insulation
<br /> • Repair building air handling equipment
<br /> • Repair underground drainage and sewer piping systems, lift station and provide additional
<br /> booster pumps
<br /> • Replace existing kitchen walls, flooring, cleanout drains, grease duct leaks, hood and ansul
<br /> system
<br /> The unforeseen conditions encountered amount to approximately $3,000,000 which does not
<br /> exceed City Council's approved 15% contingency in the amount of$5,110,500. However, based on
<br /> the extent of unforeseen conditions encountered during the initial phase and current owner-driven
<br /> changes, the contingency is reduced to approximately $1.3 million. The owner changes primarily
<br /> consist of raising the ceiling height of the pre-function areas from between 8 - 12 feet to 22 feet.
<br /> Additionally, costs were incurred for the plaza design.
<br /> Staff can deliver a finished project working within the current budget; however, it would lack the
<br /> interior "Wow" factor that the Mayor, City Council and community members championed for the
<br /> exterior. Again, the interior renovations and finishes can be completed within the budget parameters
<br /> but staff believes it will fail to meet expectations as was experienced with the exterior design.
<br /> FISCAL IMPACT:
<br /> The additional resources requested total $3,000,000, for a revised project budget of$43,630,000,
<br /> as follows:
<br /> Original Amended
<br /> July 26, 2011 June 26, 2012 Proposed Budqet
<br /> Design Build Agreement $30,750,000 $34,818,890 $34,818,890
<br /> Project Contingency 4,612,500 5,110,500 8,110,500
<br /> Permits, Inspection and Testing 300,000 300,000 300,000
<br /> Staff Administration 337,500 400,610 400,610
<br /> Design Build Project Costs $36,000,000 $40,630,000 43,630,000
<br /> 20-2
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