HomeMy WebLinkAbout4.4 Shannon Community Ctr Renovation CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 9, 1990
SUBJECT: Final Release: Shannon Community Center Renovation
0 (Report by Paul S. Rankin, Assistant City Manager)
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EXHIBITS ATTACHED: Resolution Approving Execution of Mutual Release
Agreement and an Additional Appropriation
RECOMMENDATION: Adopt Resolution
FINANCIAL STATEMENT: See Below
DESCRIPTION: At the regular City Council meeting on May 29, 1990,
the City Council authorized the filing of a Notice of Completion on the
Shannon Community Center renovation. The Notice was filed with the County
Clerk on May 30, 1990. The City did not receive any stop notices from
subcontractors and therefore, it is appropriate to proceed with the release
of the final payment to the contractor, Hodgson Construction Inc. (HCI) .
Staff has worked with HCI to develop a final agreement which will assure
that two minor remaining punch list items are handled. The agreement
authorizes the release of the final payment to Hodgson and authorizes the
City to withhold monies for outstanding punch list items. If the items are
not completed in 30 days, the Contractor will forfeit the monies and the
City may complete the work.
Financial
The following breakdown identifies the final construction costs associated
with the HCI agreement:
Original Contract Amount $674,475
Change Orders as adjusted by Final Agreement 51 ,888
Total HCI $726,363
This represents changes totaling approximately 7.7%, which is considered
reasonable for a renovation of this scope. Industry standards would
consider up to 10% in changes to be reasonable on a renovation project of
this size.
The agreement with HCI was only one element of the Capital Project. Costs
associated with the project were first incurred in Fiscal Year 1987-88.
The initial expenses involved the preparation of baseline data on the
existing building followed by the design phase. The actual construction
was carried out in the later portion of 1988-89 and 1989-90. The City
undertook two minor modifications independent of the HCI agreement. These
involved moving the pay telephone and modification to the aluminum
storefront doors in the downstairs A/B Room. These expenses are shown as
part of the improvement expenses for the total project. The following
breakdown identifies the estimated final project costs:
1987-88 19.88-89 Est 1989-90 Total
Project Bidding (Ad/
Printing & Postage) 0 3,177.17 0 $ 3,177.17
Design & Inspection $1,326.00 $ 59,451 .20 $ 26,716.00 87,493.20
Improvements 0 456,593.00 270,932.25 727,525.25
Total By Year $1,326.00 $519,221 .37 $297,648.25
GRAND TOTAL $818,195.62
COPIES TO:
Mike O'Malley, HCI
ITEM NO. '6
The Fiscal Year 1990-91 Budget had estimated the Fiscal Year 1989-90
Expenses at $295,521 . As shown above, the actual expenses are estimated to
exceed this amount by approximately $2, 127.25. In addition, the total
project cost exceeds the original project estimate of $800,500 contained in
the Fiscal Year 1989-90 update to the Five Year Capital Improvement
Program. The primary area of additional costs were the design and
inspection phases. The CIP had estimated improvement costs of $740,570.
As shown in the chart above, the estimated total improvement expense is
approximately 1 .8% below the original CIP figure.
The additional inspection costs were primarily attributable to the extended
construction period. This includes expenses for Taugher & Associates,
which provided Construction Management Services, and API, the Project
Architect. This work was performed on an hourly basis. Therefore, the
total cost continued to increase as the project duration was extended.
Therefore, supplemental appropriation for Fiscal Year 1989-90 is required.
The resolution provides a General Fund Appropriation in an amount
sufficient to cover estimated expenses of approximately $297,650 in Fiscal
Year 1989-90.
Staff recommends that the City Council approve the resolution accepting the
improvements, approving the agreement, and authorizing an additional
appropriation.
RESOLUTION NO. - 90
• A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVING THE FINAL ACCEPTANCE OF SHANNON COMMUNITY CENTER RENOVATION
NO. 89-1 AND A MUTUAL RELEASE AGREEMENT WITH HODGSON CONSTRUCTION, INC. ,
AND AUTHORIZING STAFF TO MAKE AN ADDITIONAL APPROPRIATION
WHEREAS, the Shannon Community Center Renovation was constructed
under an agreement with Hodgson Construction, Inc. (HCI) ; and
WHEREAS, the City Council authorized the filing of a Notice of
Completion, which was recorded with the County Clerk on May 30, 1990; and
WHEREAS, a Mutual Release Agreement with HCI has been developed; and
WHEREAS, the Agreement will authorize the final acceptance of the
project and establish a procedure for all amounts payable to HCI; and
WHEREAS, an additional appropriation will be necessary for Fiscal
Year 1989-90.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Dublin does hereby take the following actions:
1. Accept the Shannon Community Center Project Improvements in
accordance with the Mutual Release Agreement, attached hereto and by
reference made a part hereof.
2 . Approve the Mutual Release Agreement and authorize the Mayor to
execute said Agreement on behalf of the City.
3. Authorize the City Treasurer to issue all payments due Hodgson
Construction, Inc. , pursuant to the Mutual Release Agreement.
4. Authorize the Finance Director to make a supplemental appropriation
of funds to the Shannon Community Center Renovation Project for Fiscal
Year 1989-90. Said supplemental appropriation shall be based upon final
project costs and shall be made from any General Funds necessary to close
the project. The supplemental appropriation shall not result in a total
project expense for Fiscal Year 1989-90, greater than $297, 650.
PASSED, APPROVED AND ADOPTED this 9th day of July, 1990, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
SHANNON COMMUNITY CENTER RENOVATION
MUTUAL RELEASE AGREEMENT
This agreement is entered into by and between the City of Dublin
("City" ) , a municipal corporation and Hodgson Construction, Inc.
("HCI" ) , a California Corporation.
RECITALS
A. On or about February 13, 1989, the City and HCI entered into
an agreement ( "Contract Documents" ) for the construction of improvements
related to the Shannon Community Center Renovation ( "project" ) . In
order to fulfill its responsibilities and obligations under the Contract
Documents, HCI subcontracted out portions of the work required by the
Contract Documents to various subcontractors .
B. The project is complete, the City accepted it on May 29, 1990
and recorded a Notice of Completion on May 30, 1990 .
C. During the project, disagreements have arisen between the City
and HCI regarding their rights and responsibilities under the Contract
Documents ..
D. The parties to this agreement desire to resolve their present
disputes, settle their differences regarding the same, provide for final
payment and provide for mutual releases, with certain specific
exclusions, upon final payment.
NOW, THEREFORE, in consideration of the mutual promises and
forbearances set forth herein, the parties agree as follows:
1 . The City currently controls the sum of $73, 926 as retention
held on the project. In addition, the City owes HCI the full value of
Contract Change Orders #26, and #2.7 . The total value of said change
orders totals $1 , 876. The City agrees to pay to HCI on July 10, 1990,
and HCI agrees to accept, the sum of $75, 802 as and for final payment
for the project through Change Order #27 less the sum of $6,275 for the
agreed value of the punch list items set forth in Exhibit "A" attached
hereto and incorporated herein and less the sum of $5, 775 . The City
agrees to release the sums set forth in Exhibit "A" as each punch list
item is completed. HCI agrees to complete the work as stated in Exhibit
"A. " If any punch list item remains uncorrected in the reasonable
determination of the City by August 10, 1990, the sum attributable to
its correction shall be forfeited by HCI and HCI shall have no further
liability to the City for its completion subject, however, to exceptions
in paragraph 2 hereof.
2 . Except as set forth below, the City, its respective officers,
agents, predecessors, successors, assigns and related entities ( "First
Releasors" ) agree to release and fully discharge HCI from all known and
unknown claims that could be asserted by First Releasors, past, present
or future, which relate to the project. Except as set forth in the
following sentence, the First Releasors expressly waive their rights
under California Civil Code Section 1542 which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING
THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.
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Notwithstanding the foregoing, it is expressly understood between the
parties to this agreement that nothing contained herein shall preclude
the First Releasors from any of the following: (a) asserting a claim
against HCI for guarantee and warranty under the Contract Documents: (b)
asserting a claim against HCI for any "latent deficiency" in the
construction of the project as that term is defined in California Code
of Civil Procedure Section 337 . 15; (c) asserting a claim against HCI for
indemnity for any claim against the City contemplated by Section 1 . 18 of
the agreement or within the scope of insurance coverage or sureties
afforded the City by or through HCI as a condition of the Contract
Documents .
3 . HCI, its respective officers, agents, predecessors,
successors, assigns and related entities - ( "Second Releasors" ) agree to
release and fully discharge the City from all known and unknown claims
that could be asserted by Second Releasors, past, present, or future,
which relate to the project. The. Second Releasors expressly waive their
rights under California Civil Code Section 1542 as set forth in
paragraph 2 above.
4. Each of the parties hereto acknowledges that it may hereafter
discover facts different from or in addition to those it now knows or
believes to be true with respect to the claims, demands, damages, debts,
liabilities, actions or causes of action herein release, and hereby
agrees that these releases shall be and remain in effect in all respects
as complete, general and mutual releases as to the matters to be
released, notwithstanding any such different and additional facts .
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5 . Each of the parties hereto represents and warrants that it has
not heretofore assigned or transferred or purported to transfer or
assign, to any other person, firm or corporation, any claim, demand,
damage, debt, liability, account, action or cause of action herein
released. Each party hereto agrees to indemnify and hold harmless each
other party hereto against any claim, demand, damage, debt, liability,
account, action, cause of action, cost or expense including attorneys'
fees actually paid or incurred, arising out of or in connection with any
such transfer or assignment or purported or claimed transfer or
assignment.
6. This agreement is the result of a compromise and shall never
at any time for any purpose be considered as an admission of liability
or responsibility on the part of the parties herein released, nor shall
the payment of any sum of money in connection with the execution of this
agreement constitute or be construed as an admission of any liability
whatsoever of any of the parties herein released, who continue to deny
such liability and to disclaim such responsibility. The parties further
agree that the negotiations that resulted in this agreement are subject
to California Evidence Code Section 1152 and 1154.
7 . The undersigned hereby represent and warrant to each other
that they have the legal capacity and authority to enter this agreement
and to grant the releases set forth above, and that the undersigned have
the sole right and authority to execute this agreement.
8. This agreement contains the entire agreement between the
parties hereto with respect to the matters set forth herein and shall be
binding upon and shall inure to the benefit of the executors,
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administrators, personal representatives, heirs, successors, and assigns
of each party hereto. This agreement shall not be modified except by
way of a further writing executed by all the parties hereto.
9 . The parties hereto have cooperated in the drafting and
preparation of this agreement and, therefore, this agreement shall not
be construed against any party. The parties expressly waive the
provisions of California Civil Code Section 1654, providing that
ambiguities are to be construed against the drafting parties .
10 . This agreement supersedes all previous agreements between the
parties .
DATED: July , 1990 City of Dublin
By:
Paul C. Moffatt, Mayor
DATED: July , 1990 Hodgson Construction, Inc.
By:
(Print Name/Title)
O
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f.
0
EXHIBIT A
SHANNON COMMUNITY CENTER RENOVATION
Mutual Release Agreement
Item 1 : Social Hall Floor Repairs
Locations where floor is crushed due to knot holes in underlayment need
to be repaired. Locations where staples are backing out need to be
repaired. Contractor shall schedule work and notify. City 72 hours in
advance. Working. hours shall be subject to availability as determined
by City.
Repair Method: City with Contractor present will mark areas to be
repaired. Contractor will remove tiles in marked areas . Crushed debris
or loose staples will be removed. Contractor shall remove loose
staples . Contractor shall patch area and replace loose staples with
nails . Repaired area shall be covered with new tiles adhered as stated
in the original specifications.
Value to Be Withheld: $5, 775 (Five Thousand Seven Hundred and
Seventy-Five Dollars)
Item 2 : HVAC Modifications
Correction of damper installation. Paint sheet metal roof unit.
Value to Be Withheld: $500 (Five Hundred Dollars)_
TOTAL VALUE OF EXHIBIT A: $6,275
(Six Thousand Two Hundred Seventy-five Dollars)
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