Loading...
HomeMy WebLinkAboutresolution.council.058-11 RESOLUTION # —' (Series of 2011) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING TWO CONTRACT CHANGE ORDERS FOR REMODEL WORK IN THE WHEELER OPERA HOUSE, BETWEEN THE CITY OF ASPEN AND MILLS & SCHNOERING ARCHITECTS AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CHANGE ORDER ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council two contract change orders for remodel work in the Wheeler Opera House, between the City of Aspen and Mills & Schnoering Architects, a true and accurate copy of which is attached hereto as Exhibit "A" and noted Amendment 006 and 007; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves those Contract Change Orders for remodel work at the Wheeler Opera House, between the City of Aspen and Mills & Schnoering Architects, noted Amendment 006 and 007, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 22 " day of August 2011. x/17 ichael C reland, Mayor I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held August 22, 2011 Kate n S. Koch, City Clerk o M +Sa COPY uAIA Document G802" - 2007 E p Amendment to the Professional Services Agreement Amendment Number: 006 TO: Steve Bossart (Owner or Owner's Representative) In accordance with the Agreement dated: January 12, 2009 BETWEEN the Owner: (Name and address) City of Aspen 130 South Galena Street'. Aspen, CO 81611 andthe Architect (Name and address) ' Mills + Schnoering Architects, LLC 200 Forrestal Road, Suite 3A Princeton, NJ 08540 fortheProject: (Name and address) M +Sa # 0901.5 Wheeler Opera House Expansion 320 East Nyman Avenue Aspen, CO 81611 Authorization is requested Z to proceed with Additional Services. S to incur additional Reimbursable Expenses. As follows: Customized tenant fitout and multiple permit submissions. See attached Proposal dated May 16, 2011 The following adjustments shall be made to compensation and time. (Insert provisions in accordance with the Agreement, or as otherwise agreed by the parties) Compensation: Compensation shall be a Fixed Fee of Ninety One Thousand, Five Hundred Dollars ($91,500) plus reimbursable expenses at 1.0 times cost. Compensation shall be hourly to investigate existing stair. HPC/P &TlCouncil (if required) - Hourly rates at standard rates. Time: Services will be completed by January 1, 2012 AR Document GB02 — 2007 (formerly 0606' — 2000). Copyright a 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: ThIs NA° Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AMA Document, .1 or any portion of It, may result In severe dull and criminal penalties, and wilt be prosecuted to the maximum extent possible under the law. This . document was produced byAIA software at 15:06:54 on 05/17/2011 under Order No.9870143667 1 which expires on 09112/2011, and is not for resale User Notes: (1918120275) • • SUBMITTED: AGREED TO: ' --\\ (Sigt rldre) (Signature) Michael R. Schnoering, AIA, Partner ia7s12..0 l 'S93N2j.r 'Th J - r a .'wj4 . (Printed name and title) (Printed name and title) (26. 11. It s - tl (Date) (Date) • • i . AIA Document G802° — 2007 (formerly G606i° — 2000). Copyright @ 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This Alt Document Is protected by U.S. Copyright Law and InternationalTreaties. Unauthorized reproduction or distribution of this AIA Document, 2 or any portion of II, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:06:54 on 05/17/2011 under Order No.9870143667 1 which expires on 09/12/2011, and is not for resale. User Notes: (1918120275) p T \ / J + Sa ( .c Mills+ Schnoeing.Architects, LLC Architecture a Historic Precc:vation Address May 16, 2011 1 — 200 Forrestal Road, Suite 3A • Princeton, NJ 0S540 Mr. Steve Bossart Project Manager Telephone Capital Asset Department 609.6812480 City of Aspen 130 South Galena Street Facsimile Aspen, Colorado 81611 609.681.2481 Re: Wheeler Opera House Interior Alterations Web Project No. 0901.5 • www.msarchnectslIc.com Dear Steve, Partners Michael J. Mils, FAI A Mills + Schnoering Architects, LLC (M +Sa) requests consideration of our proposal NJ Lcense 0A1008 29 for additional services related to the more extensive work required for a Michael R. Schncedng. AIA complete tenant fit -out of the restaurant and retail spaces at the Wheeler Opera NJ license itAIO12IE4 House and for some additional exterior work. Anne E. Weber, FAIR Our original base proposal included professional services for interior renovations Meredith anus 13zdal:, PhD to both the basement Wheeler administrative and support spaces and for first • floor tenant spaces. Several changes to the original terms of the contract have created the need for additional services. Senior Associates Mison L. Baxor. AIA • It was assumed that the tenant spaces would involve only minimal changes to layout, finishes and systems particularly in the bar and kitchen. The City had agreed to provide the tenant(s) with a basic Associates interior shell, while the tenant(s) would be responsible for any required Anelle Dieisto, AIA, LEED AP customization, special finishes, equipment and furniture. cndsta J. Ga1lL0an. aLa, LEED AP • It was also assumed that the design and construction work for the first floor would be done simultaneously with that in the basement for the • Wheeler administrative and support spaces, including permit applications. The final tenant selection is now complete. To simplify coordination and construction as we move forward, it would be desirable for the City to provide the special design work to customize each of the individual spaces using the same team already in place for the base project. This approach would involve the following additional scope of work not originally part of our proposed design • services. For a more complete description please see the attached proposals from Rowland + Broughton (R +B) and Resource Engineering Group (REG). 1.' Assistance with the negotiation and preparation of lease agreements for the tenants including lease exhibits. 2. Design and coordination to comprehensively develop and detail a customized layout for each tenant including all architectural components and MEP systems. 3. Separate meetings with each tenant to review progress and design decisions. 4. Code review and documentation for the tenant spaces. 5. Coordination of design, systems and code among all the proposed users. 6. Review of each tenant's proposed design with the City to obtain approvals. 7. Multiple submissions for building permits. This Includes separate demolition and construction permits for each user group space the restaurant, the retail space and the Wheeler basement space. 8. Construction administration including separate site visits, progress meetings, review of pay applications, punchlists and response to contractor questions to cover each of the individual tenants. Additionally the City has asked us to explore some envelope and exterior issues at the Wheeler and to propose design solutions. These issues include: • Addressing the issue of water infiltration beneath the entry stairs which will likely involve the reconstruction of the existing stone and the installation of handrails. It is assumed that no additional structural work will be required to perform an investigation and detail any waterproofing and the reinstallation of the steps. • Incorporating snow melt at the sidewalks around the building is not included at this time. We propose to use Rowland + Broughton and Resource Engineering Group to assist in this work. At this time we do not anticipate that any structural or acoustics consulting will be required. No additional time will be required from Katz, the kitchen consultant. M +Sa will continue to serve as team leader for the project, providing project oversight, administrative support, design review and historic building issue review including design for the new steps. We propose to perform this work for the following fees: Tenant Fitout Fixed Fee of $91,500 Exterior Improvements Hourly for the investigation of conditions only. Fixed fee to be determined after the scope is better understood. Reimbursable expenses for travel, reproduction, long distance communication, etc. will be invoiced at 1.0 times cost as under the base contract. Please do not hesitate to call if you have any questions. Sincerely, )1, Michael R. Schnoering, AIA Partner Cc: Alison Baxter, AIA Attachments P: \09 \01 Wheeler Opera House Expansion \ Correspondence \Client \Letters \Bossart Proposal Tenant Fit -out 051611.docx O nw • 0 y - D ry (Si ^ 0 * y * �J g f. rowland +broughton Fo architecture and urban design m y Q� n c 16 May 2011 =4 go- ? Mike Schnoering o m v Mills + Schnoering Architects, LLC 3 0 = 200 Forrestal Road, Suite 3A o ^ o Princeton, NJ 08540 m rn p N - Re: Wheeler Restaurant Tenant Improvement — Additional Services 0 + Dear Mike, Qo ° ca C W A Thank you for the opportunity to present you with a proposal for additional services for the coordination and 0- o assistance of the tenants for the Wheeler Opera House tenant finish. These additional services listed below = o rn build on the base contract which is to provide a vanilla box to the tenants of both the Art Gallery Retail Space 3 + and the Restaurant. These additional services allow the spaces to be completed through construction with the selected tenants to ensure that there is full documentation and coordination between all the parties. w • Deliverables and Scope of Work - Scope of work below includes meetings with the City and tenant and p 1 ca coordination with consultants. v 4) 01 Lease Negotiations • Review and edits of lease agreements. • Creation of lease exhibits. • Preparation of separate permit packages and construction documentation for the Retail Space, Restaurant and Basement. Lease Scope - Restaurant • Coordination of architectural drawings for Landlord approval. • Coordination of punch list for Landlord prior to tenant occupation. • Specification and coordination of finish material selections and preparation beyond the base vanilla box finishes. • Coordination of kitchen specifications for infrastructural upgrades. Lease Scope - Retail • Coordination of architectural drawings for Landlord approval. • Coordination of punch list for Landlord prior to tenant occupation. • Specification and coordination or finish material preparation, i.e. flooring and wall finishes. Demolition Permit Application on or around 26 May 2011 for both tenant spaces (this is based on the spaces being vacated on 6 June 2011). Permit Application on or around 21 June 2011 for both tenant spaces • Assemble and prepare required documentation for both tenant spaces: o Architectural Drawings including existing plans, demo plans, proposed plans, existing and proposed reflected ceiling plans, existing and proposed power plans, interior elevations, door and window schedules, finish schedule, plumbing schedule o This scope overlaps both the City of Aspen and the tenant scopes. R +B will serve as a mediator and keep the tenant on task for compiling the appropriate documentation. o City of Aspen Scope: Page 1 of 4 Wheeler Restaurant Architectural Agreement 16 May 2011 • Occupancy Load Diagrams • Egress Diagrams • Repair of building infrastructure: threshold and entry stair • MEP Drawing Coordination of any base building upgrades Construction Documents by 25 July 2011 • Coordination between tenant design and code requirements. • All final coordination with tenants to ensure proper documentation of the spaces. Construction Administration, 15 July 2011- 31 December 2011: • One site meeting a week during construction. There is added time for this weekly site meeting for multiple tenant spaces and the phasing of the overall project. • Review of contractor pay applications. Each space will have their own pay application for review. • Issuance of RFI and ASI as required. Each space will require their own paperwork to be processed. • Separate punch list for each tenant space and one punch list follow -up meeting. Restaurant TI, Coordination and Documentation to ensure a well coordinated vanilla box with all rough - in planned for final build -out by tenant: Schematic Design, through 31 May 2011: • Three design meetings. • Refinement of the restaurant layout. • Interior elevations. • On -going coordination with consultants. Design Development, through 21 June 2011: • Five design meetings. • Interior elevations. • On -going coordination with consultants. Construction Documents, through 25 July 2011: • Three design meetings. • Architectural Drawings, ready for construction including o Proposed Floor Plan o Proposed Dimension Plan o Proposed Furniture Plan o Proposed Reflected Ceiling Plan o Proposed Power Plan o Interior Elevations o Interior Details as required • On -going coordination with consultants. Professional Fee The professional services described in this document will be provided for a fixed fee of $63,500.00 plus the cost of reimbursable expenses. The following rates are based on today's proposal date and can be subject to change after six months from today. Schedule of Hourly Rates: Principal $205.00 Associate $175.00 Sr. Project Manager $140.00 Project Manager $130.00 Project Architect/Designer $120. Project Coordinator $95.00 Designer $75.00 Page 2 of 4 Wheeler Restaurant Architectural Agreement 16 May 2011 Consultants The following consultants are required for this scope of work. There is a separate contract for this scope of services. Resource Engineering Group — MEP Engineering and ComCheck for lighting Schedule • Pre- Design by 18 April 2011 • Demo Permit Application on or around 26 May 2011 • Permit Application on or around 21 June 2011 • Construction Documents by 29 July 2011 • Construction Administration starting 15 July 2011 through 31 December 2011 Instruments of Service Drawings, specifications and other documents, including those in electronic form, prepared by us and our consultants are Instruments of Service for use solely with respect to this project. Rowland +Broughton and its consultants shall be deemed the authors of their respective Instruments of Service and shall retain common law, statutory and other reserved rights, including copyrights. Assignment The Owner and Architect, respectively, for and in good and valuable consideration, the sufficiency of which hereby is acknowledged by the Parties, agree that the above - referenced Agreement involves a relationship for services which are sufficiently unique and personal that neither party wishes the other to be able to assign their rights and obligations without the written consent of the other. Insurance The Architect shall maintain the following insurance for the duration of this Agreement. If any of the requirements set forth below exceed the types and limits the Architect normally maintains, the Owner shall reimburse the Architect for any additional cost: • Professional Liability $2,000, 000.00 Each Claim / $2,000,000.00 Annual Aggregate Agreed Remedy To the fullest extent permitted by law, the total liability, in the aggregate, of Architect and Architect's officers, directors, employees, agents, and consultants to Client and anyone claiming by, through or under Client, for any and all Injuries, claims, losses, expenses, or damages whatsoever arising out of or in any way related to the Architect's services, the Project or this Agreement, from any cause or causes whatsoever, Including but not limited to, negligence, strict liability, breach of contract or breach of warranty shall not exceed the total compensation received by the Architect under this Agreement, or the total amount of $100,000.00, whichever is greater. Payments to Rowland +Broughton Payment for fees and expenses are normally billed monthly and shall be due upon receipt of Rowland +Broughton's invoice. Disputes or questions regarding an invoice shall be brought to Rowland +Broughton's attention within ten days following receipt of invoice, and shall not be cause for withholding payment for the undisputed portion of the Invoice. A service charge of 1.5% per month, in addition to reasonable collection expenses, shall be added to balances unpaid 30 days after invoice date. Rowland +Broughton reserves the right to suspend or terminate its services, or withhold its Documents and /or Data without notice, if payment in full is not received within 30 days after invoice date, of which Rowland +Broughton shall not be held liable for any claims or losses that may result there from. In the event Rowland +Broughton commences any arbitration or litigation, including the filing of a mechanic's lien foreclosure action, in order to collect any fees owed by client to Rowland +Broughton, then Rowland +Broughton shall be entitled to recover all costs of collection, including attorneys fees, in the event Rowland +Broughton prevails in recovering any such fees. Page 3 of4 Wheeler Restaurant Architectural Agreement 16 May 2011 Reimbursable Expenses The following Reimbursable Expenses Incurred by Rowland +Broughton in connection with the Project are not included in the Fee, unless specifically stated in the Agreement: Authorized transportation and out -of town living expenses; voice and data telecommunications; reproduction, shipping and delivery of drawings, specifications, CAD plots and other documents; renderings, models and photography; sales and other transactional taxes; and shall be billed at 1.15 times the amounts invoiced to Rowland +Broughton, or where incurred as in -house costs, at Rowland +Broughton's standard rates, unless otherwise stated In this Agreement. Vehicular travel will be billed as a reimbursable expense at the current federal standard mileage rate. Agreement: This proposal is being provided also as an agreement between the parties as to the scope of work and compensation to be rendered on your behalf and to initiate work. If this proposal suits your needs, please sign below and retum. We are looking forward to working with you on this project! Please be in touch with any questions. Sincerely, Sarah Broughton, AIA 1 have read this proposal and agree to the scope and fees outlined. Mike Schnoering Date Sarah Broughton, AIA Date Page 4 of 4 R Resource Engineering Dana Ganssle Rowland + Broughton Architecture and Urban Design • 970.544.9006 dana @rowlandbroughton.com April 15, 2011 Contract Amendment B: Wheeler Renovation Tenant Improvement MEP Design Dana: Per your request, I am writing to define additional scope and fee for the tenant improvements at the Wheeler Opera House. Per the Owner's direction, our original scope and fee did not include design time for the tenant improvements required for the restaurant, bar, kitchen and retail spaces located on the first floor. To address this additional design time and complexity we propose the following scope of work and fee as an amendment to our existing contract: Scope of Work • Provide mechanical, electrical and plumbing (MEP) engineering for the tenant improvements. This includes the restaurant, bar and retail spaces. • Specification of kitchen ventilation systems. • Construction assistance (CA) for kitchen and retail spaces, including two site visits. • • Electrical power plans for tenant spaces, including coordination with the lighting plans. • Plumbing plans (including kitchen specific issues) for tenant spaces. • Permit documents for tenant spaces, including Comcheck. • This work will be in addition to the scope of work as previously defined in our existing contract and will comply with the requirements of that contract. Fee: We propose to perform this as a fixed fee with the following split: design fee of $15,000 ($5,000 billed during DD and $10,000 billed during CD), and $6,000 for construction assistance. Please have this letter signed and dated by the appropriate party to serve as an addendum to our existing contract. Sincerely, / August Hasz, P.E. Approved: Signer Title Date P.O. Box 3725 • Crested Butte CO 81224 USA • tel (970) 349 -1216 fax (970) 349 -1218 • info @reginc.com • www.reginc.com v = IA Document G802TM — 2007 Amendment to the Professional Services Agreement Amendment Number: 007 TO: Steve Bossart (Owner or Owner's Representative) In accordance with the Agreement dated: January 12, 2009 BETWEEN the Owner: (Name and address) City of Aspen 130 South Galena Street Aspen, CO 81611 and the Architect: (Name and address) Mills + Schnoering Architects, LLC 200 Forrestal Road, Suite 3A Princeton, NJ 08540 for the Project: (Name and address) M +Sa # 0901.5 Wheeler Opera House Expansion 320 East Hyman Avenue Aspen, CO 81611 Authorization is requested ® to proceed with Additional Services. ® to incur additional Reimbursable Expenses. As follows: Redesign of the Mechanical Mezzanine. See attached proposal dated September 14, 2011 The following adjustments shall be made to compensation and time. (Insert provisions in accordance with the Agreement, or as otherwise agreed by the parties.) Compensation: Compensation shall be a Fixed Fee of Fifteen Thousand Dollars ($15,000) plus reimbursable expenses at 1.0 times cost. Compensation shall be hourly to investigate existing stair. HPC/P &Z/Council (if required) - Hourly rates at standard rates. Time: Services will be completed by January 1, 2012 AIA Document G802 — 2007 (formerly G806TM - 2000). Copyright ® 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This NA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this NA Document, .1 or any portion of it, may result In severe civil and crlminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 10:33:10 on 07/27/2011 under Order No.9870143667_1 which expires on 09/12/2011, and is not for resale. User Notes: (1213356625) SUBMI7ED : AGREED TO: (Sig ture) - (Signature) Michael R. Schnoering, AIA, Partner (Printed name and title) (Printed name and title) 01 /IA. u (Date) (Date) • • • AIA Document G802°' —2007 (formerly G606Te — 2000). Copyright © 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, 2 or any portion of it, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 10:33:10 on 07/27/2011 under Order No.9870143667_1 which expires on 09/12/2011, and is not for resale. User Notes: (1213356625) ♦ i 1 s a • July 14, 2011 Mr. Steve Bossart Project Manager Capital Asset Department City of Aspen 130 South Galena Street Aspen, Colorado 81611 Re: Wheeler Opera House Interior Alterations Project No. 0901.5 Dear Steve, Mills + Schnoering Architects, LLC (M +Sa) requests consideration of our proposal for additional services related to the replacement of the existing ductwork and unit serving the second floor of the Opera House and for the structural mezzanine support for the equipment. Our original fee was able to accommodate the City's request to replace the mechanical equipment in the kitchen mezzanine serving the first floor, as there were certain efficiencies to clearing out the mezzanine and starting with a clean slate. However, as the design has progressed, it appears that the mezzanine also accommodates equipment and ductwork serving the second floor; the design for this more complex replacement will require additional time. We had previously submitted a proposal for the mechanical work alone, but we had withdrawn that proposal when it became clear that it would be preferable to wait until after the first floor demolition phase to get a clear understanding of the existing conditions and the exact scope of work required. The recent demolition has revealed that the second floor mechanical system cannot be reused because of the tenant layout needs and the heating and cooling for the second floor is more complex than had been originally assumed. Additionally the existing structural supports are cast iron which cannot be modified to accommodate the new equipment. The proposed new system with its variable speed fan will provide greater operator control and comfort for the occupants and will also reduce energy use. The existing exhaust fan should be included in the system (or replaced) in order to maximize efficiency. The proposed new scope includes equipment specification, duct layout, hydronic piping and control integration for the replacement of the second floor HVAC air - handling equipment and coordination with other work in the base contract. It also includes design of a new 2000 sf mezzanine, which will July 17, 2011 Mr Steve Bossart Page 12 maintain the existing kitchen ceiling height, but provide additional clearance for the proposed new equipment. As part of the scope for the mechanical mezzanine redesign, REG had suggested the preparation of a detailed 3 -D model of the mezzanine area showing: equipment, ductwork and piping; waste and vent lines; electric service; and fire sprinkler lines. This model would provide guidance to the mechanical contractor in the preparation of his shop drawings. However, we understand that the City is not interested in pursuing this option at this time and we have not included the costs ($12,000) to cover this work in this proposal. We propose to perform this work for a fixed fee of $ 15,000, half to be billed during Design Development and half during Construction Documents. We do not anticipate any increase to the other phases of the work. Reimbursable expenses for travel, reproduction, long distance communication, etc. will be invoiced at 1.0 times cost as under the base contract. Attached please find the proposals from REG and KLA for their portions of the work. M +Sa will continue to serve as team leader for the project, providing project oversight, administrative support, design review and historic building issue review. Please do not hesitate to call if you have any questions. Sincerely, k L y Michael R. Schnoering, AIA Partner Cc: Alison Baxter, AIA P: \09 \01 Wheeler Opera House Expansion \ Correspondence\ Client \Letters \Bossart-Proposal HVAC Mezz R- 071411.doc Ar KL &A, Inc. � St u Biifi l rs � Agreement between Client and Structural Engineer For Professional Services Page 1 of 1 KL &A, Inc., ( "Structural Engineer ") 1717 Washington Avenue, Suite 100 Golden, Colorado 80401 Telephone: (303) 384 -9910 Facsimile: (303) 384 -9915 Date: July 7, 2011 Submitted to: Mills + Schnoering Architects 200 Forrestal Road, Suite 3A Princeton, NJ 08540 Attention: Michael Schnoering, AIA Project: Wheeler Opera House Expansion 320 East Hyman Avenue Aspen, Colorado 81611 Ref Job No: FMG #0901.5 Description of Additional Service: The additional service consists of design and documentation of a 2000 square foot mechanical mezzanine between the existing first and existing second floors. New load paths for the mezzanine will need to be created because the existing structure supports consist of cast iron columns that cannot be modified. Services: Services include design and documentation of the mezzanine structure sufficient to obtain a permit and construct. Construction administration services is included. Engineering Fees: Compensation for our Base Services shall be: A lump sum fee of $4000 dollars ($Four Thousand Dollars) plus reimbursable expenses. I estimate reimbursable expenses will not exceed $250. Terms and Conditions: The terns of the original contract apply. JREG roup Resource Engineering Alison Baxter Mills + Schnoering Architects, llc 609.6814.2480 alisonb @msarchitectsllc.com July 11, 2011 Contract Amendment A: Wheeler Renovation- Mechanical Loft Redesign Alison: Per your request, I am writing to define additional scope and fee as it relates to the mechanical loft space redesign at the Wheeler Opera House. Per the Owner's direction, our original scope and fee assumed that the majority of the existing ductwork and equipment in the mechanical loft above the first floor would be reusable. However, as design has progressed it has become clear that this is not the most cost effective approach for the project and most of the equipment in the space is near or past the end of its useful life. There are certain design efficiencies starting from a relatively clean slate, so we are not asking for additional fee to specify new equipment and design new ductwork for the first level. However, this mezzanine area also includes equipment and ductwork for the second floor. As demolition has progressed a few key points have become clear: • The second and third floor air handling system cannot be effectively re -used in the scope of this remodel due to the required equipment layout for the remodeled kitchen and tenant spaces and configuration of existing ductwork. • Providing heating /cooling for the second and third floors is more challenging then we had first anticipated (in a previous version of this contract amendment). The existing duct network for these spaces is relatively complex and does not provide for a single point of attachment, but rather requires a `web' of new supply branches. In fact, this unit is the most complicated of the three air - handling units (lower level, first floor and now second/third floor). None of this effort was included in our original proposal. • The new system as currently designed (permit level drawings) will allow the building operators greater control and should provide reduced energy use and improved comfort. This is primarily due to variable speed fan control. • To achieve maximum efficiency gains, the existing exhaust fan serving these areas will need to be part of the revised system from a controls perspective. This may be possible with existing equipment, or it may need to be replaced. We will determine this during our next phase of work. To address this additional design time and complexity we propose the following scope of work and fee as an amendment to our existing contract: Scope of Work • Provide equipment specification, duct layout, hydronic piping and control integration for the replacement of second floor HVAC air - handling equipment located in the first floor mezzanine area. • This work will be in addition to the scope of work as previously defined in our existing contract and will comply with the requirements of that contract. P.O. Box 3725 • Crested Butte CO 81224 USA • tel (970) 349 -1216 fax (970) 349 -1218 • info@reginc.com • www.reginc.com Fee: We propose to perform this work for the fixed fee of $10,000, half of this amount will be billed during Design Development and the other half will be billed during Construction Documents. We do not anticipate an increase in Construction Assistance Billings. Please have this letter signed and dated by the appropriate party to serve as an addendum to our existing contract. Sincerely, August Hasz, P.E. Approved: Signer Title Date P.O. Box 3725 • Crested Butte CO 81224 USA • tel (970) 349 -1216 fax (970) 349 -1218 • info @reginc.com • www.reginc.com