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Item # 3.

Council Meeting

Meeting Date:	08/23/2022
Department:	City Manager
Pillars:	Optimize the Addison Brand
Milestones:	Continue development and implementation of the Long-Term Financial Plan

AGENDA CAPTION:

Present and Discuss an Update on the Addison Athletic Club Renovation Project.

BACKGROUND:

On October 12, 2021, Council approved a construction contract in the amount of $4,035,083 with Northridge Construction Group, LLC for renovation work at the Addison Athletic Club (AAC) with an original substantial completion period of 195 days. Council also established a total project budget in the amount of $5,077,631 to allow for owner's contingencies, bid alternates, construction management, design services, and other third party services.

Renovation work began on November 29, 2021. As was anticipated, demolition revealed previously unknown conditions that required Change Orders to resolve. To date, staff has issued 12 Change Orders totaling $335,325.37 and adding 78 days to the project. The major changes include the need to replace or update plumbing and electrical services to meet current code, replacing building components in areas impacted by previously unknown water damage, and performing additional work identified to renovate the facility with a long term philosophy in mind. Correcting these previously unknown conditions consumed the contingency funding and thereby limited Staff's ability to authorize alternate bid items except for the replacement of the Community Room cabinets. There was only one supply chain issue that impacted the schedule. This related to a critical component of the indoor pool dehumidification system and represented 31 of the total days added to the project.

Staff is currently working to resolve several remaining issues with the project. The most pressing issue is the need to replace the entire indoor pool deck tile. It was originally planned to replace only portions of the pool deck using attic stock tile. As the project progressed, it was determined that additional tiles were damages randomly across the pool deck and needed to be replaced. There was an insufficient quantity of attic stock to replace all the needed tiles. Despite efforts to find matching tile or to create a combination of existing and new tile, no plausible solution was found that would maintain the aesthetic expectations of the facility.

Other remaining project issues relate to the outdoor pool splash feature and shade structure. The splash feature did not work properly and is being disputed with the manufacturer. The feature was removed for safety. A shade structure was scheduled for installation in May. During excavation for the piers needed to support the shade structure columns, the contractor encountered undocumented utilities in most of the 5 pier locations. There was not enough time to determine a solution and complete the associated work without delaying the opening of the outdoor pool for a month or more. Staff directed the contractor to fill in the pier holes and delay the work until after the pool closes in September. We could not have open excavations adjacent to the pool and be open to the public. We agree this delay would not be counted against the substantial completion schedule. The exact solution will not be known until after the pool closes.

The bid contained alternate items that the community hoped may be included in the project if the funding was available. These include replacing all of the ceiling tiles and grid structure throughout the facility, replacing the skylight panels above the indoor pool, painting additional areas, and other improvements. Staff will inform Council of the status of these alternates and seek Council direction on their preference on what action to take on these items.

Since the contingency funds are exhausted, Staff will be brining Council at least two proposed Change Orders to address these issues once the solutions are is determined and the cost to correct them is known.

The Town's Chief Financial Officer has indicated that investment income earned on bond proceeds and project savings from other bond projects could be used for the Addison Athletic Club Renovation Project. Council could also authorize use of the Self Funded Special Project Fund to allocate additional funding toward the Addison Athletic Club Renovation Project. Staff will seek Council direction regarding the AAC Renovation Project.

RECOMMENDATION:

Staff seeks Council direction.

Attachments
Presentation - Addison Athletic Club Renovation Project Update