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File Number: 22-438 As in any complex building renovation project , there have been owner requests for changes, unforeseen conditions, and design changes during construction. Additionally, on this project there have also been utility and contractor delays during construction. While these items are commonly encountered, they have had an uncommonly significant impact on the schedule for this project. The exact impact of each category hasn’t yet been determined , but the cumulative impact is known. The project was originally envisioned for completion Summer 2020; the work is now scheduled for completion by Spring 2023, a delay of up to 33 months. DLF will present a complete analysis of the delay for review before their contract is closed out and the City will evaluate that data to determine which party is responsible for delay. It is likely that each party will have responsibility for some portion of the delay. When delay is assigned to a 3rd party , such as a utility company, there is no recourse and each party must cover their own costs. Until responsibility is determined DLF is covering delay costs of the construction team and the City is covering delay costs incurred by the owner’s team , including Indigo. Construction is scheduled to finish up to 33 months later than originally scheduled. The cost for staff to manage and inspect construction averages $13,000/month resulting in additional project costs of $429,000. Over that same period , the increased cost for Indigo, and their sub-consultants, is projected to be $200,000. Additionally, owner requests, unforeseen conditions, and design changes that may have contributed to the construction delay have also contributed to higher than anticipated change orders. At contract award , the project budget contained a change order contingency of 15% for the $6,268,000 construction contract; however, change orders are currently projected to total 20% of the original contract, an increase of 5% or $313,000. A summary of change orders to date is attached to this Staff Report . The sum of the staff costs, consultant costs, and increased change order costs listed above, $942,000, is needed from the CIP budget to complete construction of the project. Analysis Project completion has been significantly delayed and the responsibility for delay has not yet been determined. Indigo continues to attend weekly meetings, review work, and respond to field issues; their assistance is critical to successful completion of the project. Architectural services are needed to complete the work and there is no other architectural firm with the required project knowledge. DLF is likely responsible for and will be assessed liquidated damages for some portion of the delay. The City is also likely responsible and will be required to pay DLF for costs related to some portion of the delay. The magnitude of each of these items is unknown and , therefore, have been excluded from the current project cost estimate in the financial impact section of this report. Staff recommends that additional funding for the project come from two sources, CIP fund balance and existing CIP expenditure accounts. The City has existing appropriations in CIP Page 2 City of San Leandro Printed on 8/31/2022