-

--

FOREST THEATER RENOVATION

PHASING AND CONCEPT COST PLAN
September 8, 2009

Prepared for the City of Carmel-by-the-Sea

William J. Camille
PO Box 221208
Carmel, CA 93922
and
5

mack
1900 Powell Street
Suite 470
Emeryville, CA 94608

FOREST THEATER RENOVATION

Phasing and Concept Cost Plan
September 8, 2009

The purpose of this report is twofold. First, the City requested an assessment of options
for a phased renovation of Forest Theater as defmed in the schematic design documents
prepared by R.F. McCann & Company, Architects. The phasing options should consider:
1) the logical construction sequence, 2) the City's desire to focus on the ADA and
restroom improvements, and 3) limiting project expenses to $1.5 to $2 million dollars.
Secondly, the City requested an independent, comprehensive development cost estimate
identifying all expenses likely to be incurred to complete the project including
construction costs not identified in estimates provided by R.F. McCann & Company as
part of their schematic design services and other necessary supplemental project costs.
Such supplemental costs, frequently referred to as soft costs, include additional design
consultant fees, project management fees, permit fees, utility fees, testing and inspection
fees, furniture, fixture, and equipment (FFE) costs, telecommunication and data service
costs, and other miscellaneous costs specific to the project.

CONTEXT
For the purposes of this report, phasing recommendations and the construction cost
estimates are based on the scope of work defmed in the schematic design drawings.
Broadly defined, the scope of work includes: 1) demolition and reconstruction of all of
the stage area except the existing understage concrete structure which currently houses
the Children's Experimental Theater, dressing rooms, storage space, etc.; 2) demolition
and reconstruction of the audience seating area; 3) demolition and reconstruction of a
show production booth with a new subterranean level; 4) demolition and reconstruction
of the concession building, restrooms, box office, and pathways to the various buildings,
audience seating, and stage so all are ADA compliant; and 5) demolition and
reconstruction of the parking area. Of particular significance is the fact that the scope of
work at the stage area includes a new orchestra pit, a new secondary exit path from the
understage concrete structure, and new exiting and habitable spaces at the lower level of
the left and right wing structures of the stage as well as reconstruction of some of the
spaces within the existing understage structure.
When considering the cost estimate, it is important to understand the conceptual nature of
the design and attendant lack of specificity that necessitates broad assumptions by the
cost estimators about the ultimate development of the design. The cost estimate as
presented includes greater detail than can be discerned from the schematic drawings.
Many of the detailed line items in the estimate are assumptions made by the cost
estimators based on their experience with the designs of similar projects. In addition,
because the entirety of the scope cannot be known at this time, a contingency of 20% has
been included to cover the additional cost of design elements that have not been
anticipated in the estimate.

FOREST THEATER RENOVATION

Phasing and Concept Cost Plan
September 8, 2009

PROCESS
The phasing recommendations and cost estimates were developed not only from the
schematic design drawings, but also from a fairly thorough review of site conditions. Site
review participants included Benny Martino of the City , whose background and historical
knowledge of the existing facility and services proved very valuable, Mark Kelley of
MACKS, and Dennis Buskirk, a thirty-year employee of Otto Construction, who
volunteered his construction expertise to validate construction phasing and methodology.
Subsequently, telephone conversations with Richard McCann were initiated to validate
design and construction assumptions.

SUMMARY
Phasing

Given the design and apparent site restrictions, the project can logically be segmented
into two primary phases. The necessary phasing approach, however, will achieve neither
of the City's desired initial goals of providing ADA access and updated restroom
facilities, nor accomplishment of the first phase of work within the budget parameter of
$1.5 to $2 million . Construction logistics dictate that the fust phase of the project consist
of demolition and reconstruction of the stage, the audience seating area, and the show
production booth. The logical second phase is the ADA access path from the parking
area to the stage and audience seating area, the new restroom/box office and concession
buildings, and the parking area. There are components of both phases that can be
segregated and accomplished at later dates based on budgetary constraints , but none of
those segregations will alter the basic phasing approach summarized above.

Cost estimate
The estimated total cost of the project including both construction costs and soft costs is
$8.7 million, which is more than double the construction cost estimate provided by RF
McCann & Company. As a reminder, it was previously noted during Council meetings
that the McCann estimate was missing certain components of work, contractor fees, and
soft costs.

DISCUSSION
From a construction perspective, a contractor must have access to perform the work in a
sequence that will not cause damage and rework to previously accomplished work. For
the purpose of this report, it has been assumed that access to perform the work at the
audience seating area and the stage will be from the west side of the site. Materials and
equipment would enter the site at the comer of Guadalupe and Upper Mountain View and
proceed through the parking area and along the west side of the stage. It is assumed that
direct access for construction from the upper part of Guadalupe immediately east of the

P~o-P.

?.

FOREST THEATER RENOVATION

Phasing and Concept Cost Plan
September 8, 2009

audience seating area is not feasible because of the impact to traffic, the proximity of
residences, and the necessity to remove a significant number of trees on the site to
provide both equipment and material access.

Phase 1
The need to construct the stage first is dictated by the excavation required for the
orchestra pit, the understage flex space, and the exit corridor proposed along the north
side of the 55 seat understage theater. Access for excavation equipment and construction
of the orchestra pit retaining wall immediately adjacent to the first row of audience
seating will necessitate at least partial demolition of the seating are.a. At that point, it is
necessary to reconstruct at least a portion of the audience seating area. Once some
portion of the audience seating area must be reconstructed, it becomes logical to perform
all of the remaining demolition, regarding, and seating replacement work. Because the
seating area wraps the show production booth, which as designed includes a subterranean
component, that building, too, should be excavated and constructed concurrent with the
seating area reconstruction.
The construction cost estimate for demolishing and reconstructing the stage, the audience
seating area, and the show production booth is approximately $4.7 million. This is,
obviously, well above the estimate prepared by Richard McCann and the amount the City
has targeted for the Phase I work. Neither does that amount take into consideration the
soft cost expenditures that would be necessary to allow that work to progress. The
greatest difference between the two cost estimates is associated with the work required at
the stage. This cost estimate contemplates the demolition and reconstruction of the entire
stage, including the understage area.
The design calls for the replacement of the entire stage floor and its supporting structure.
In addition, because of the work required at the lower level of both the stage left and right
wings, it will be most economical to demolish and reconstruct both of those wings in
their entirety. The only salvaged portion of the stage that will remain at that point is the
four-sided concrete understage structure that houses the Children's Experimental Theater,
dressing rooms, etc. Given the complexities and the cost of retaining that existing
structure, performing structural remediation, and bringing it up to current code standards,
a better allocation of funds would seemingly be to reconstruct the understage area in its
entirety. The cost estimate assumes that approach. If the understage structure were not
to be demolished and rebuilt, the estimated stage reconstruction cost could be reduced by
slightly more than $200,000. The estimated cost of the improvements to just the interior
of the understage area is approximately $800,000.

Phase2
After the stage, audience seating area, and show production booth work is complete, the
second phase of the work, consisting of an ADA access path west of the stage, new
restroom/box office and concession structures, and a new parking lot, could commence.
The existing box office, restroom and the concession stand will need to be demolished,

FOREST THEATER RENOVATION

Phasing and Concept Cost Plan
September 8, 2009

rough grading must be performed, and the locations of the new replacement buildings
identified. Work can then commence on those buildings. After those buildings are
constructed, the ADA path can be installed. The demolition and reconstruction of the
parking lot will likely overlap the end of the ADA path installation.
The construction cost estimate for this Phase 2 work is approximately $1.3 million . The
cost estimates for the two buildings and for the parking lot are close to the estimates
prepared by Richard McCann when contractor mark-ups for general conditions and fees
are applied to the McCann estimate. These costs were excluded from the McCann
estimate. There is a significant difference, however, between the estimates for the cost of
the ADA paths and associated site work. The reason for that difference is likely
attributable to varying assumptions about the need .for handrails, retaining walls, storm
drainage, and tree removal and replacement.

Cost estimate
Included as a part of this report is the schematic design conceptual estimate prepared by
MACKS, which is defmed as a Cost Model Manager (CMM). The CMM attempts to
identify all potential costs that might be associated with the renovation process, including
both "soft costs" as defined above and construction costs, from inception through
commissioning. Since it is impossible at this schematic design stage to identify all costs
that will ultimately be associated with the project, a 6% contingency has been applied to
all identified costs to cover any unanticipated costs. This contingency is in addition to
contingencies included within individual cost components of the CMM. The CMM
projects the total cost of the renovation at $8.7 million, of which $6 million is for
construction costs and the remaining $2.7 million for "soft costs."
Cost estimate and phasing assumptions
As with any project at this stage of design, key assumptions must be made which serve as
the foundation for the cost estimate. MACKS's estimate assumes that the project will be
publicly bid, will commence construction in 2010, and will be completed within a oneyear period. As a result, no cost escalation has been included. If the project start were to
be delayed, the impact of cost escalation would need to be considered at that time. The
estimate further assumes that, once commenced, the construction can occur during
regular work hours over a reasonable period of time without the need for premium or
shift time. Costs are not included for compression or acceleration of the construction
schedule, nor are costs included for limiting the contractor's access to the work to keep
the understage area or any other area functional during portions of the demolition and
reconstruction.
Additionally, it is important to identify work that is not included in the estimate. The
construction estimate is confined largely to the scope of the project defined on the
drawings. The estimate does not include rock removal (should rock be encountered at
any of the areas of excavation) or dewatering (if ground water is encountered at
excavated areas), slate shingle roofing (asphalt shingles are estimated instead),

P:H:rf'.

FOREST THEATER RENOVATION

Phasing and Concept Cost Plan
September 8, 2009

landscaping (beyond tree removal and replacement), irrigation, replacement of the entry
arch, replacement of the perimeter fence or edge retaining walls at the south end of the
site, or a new parking area trash enclosure.
Lastly, key assumptions that affect project phasing are that no construction access across
form the stage and audience seating area will be allowed from the upper portion of
Guadalupe and that no tree removal on the east side of the site will be allowed for
construction access or material storage. If that assumption is invalid, phasing could be
reconsidered with the likely result being that much of the ADA access pathway and new
restroom buildings could be constructed in advance of the work on the stage and seating
being performed.

ALTERNATIVE APPROACHES

While the estimated costs presented are well beyond the amount that the City has
demonstrated a willingness to allocate to this project, it is important to remember that the
estimate is based on the scope of the project as shown on the schematic design drawings.
With a reasonably detailed conceptual estimate now available, the City and the architect
can begin to assess adjustments to the project scope that might bring the project cost back
to a more acceptable level. Modifications in scope may also allow for a different phasing
approach.
Key areas of the schematic design affecting costs that the City may want to reconsider are
the areas that require significant excavation. Those areas include: 1) the entirety of the
new understage areas that include the orchestra pit, the flex area, the exit corridor, and the
lower levels of the stage left and right wings; and 2) the subterranean level of the show
production booth.
Additionally, the City may want to consider the level of investment it is willing to make
to upgrade the existing understage area. Does either the rental return or the community
benefit return validate the improvements necessary to retain the small understage theater
in lieu of using that space for other purposes?
Further, the City may want to consider whether a new concession stand is necessary or
whether the existing concession stand can be retained and relocated with only a minor
facelift that is compatible with a new restroom and box office structure.

DRAFT FOR REVIEW AND COMMENT

:
_,

r--

Forest Theater
COST MODEL MANAGER
September 8, 2009

Page

Commentary ...... .. ................................ .... ............. ... ............... ... ...... ........ .
Cost Model Manager. ........... ................... .. .................. ............... .. .............. 2 -10

DRAFT for COMMENT and REVIEW

cost model

manager . cmm)

The Cost Model Manager (CMM) includes project costs identified to date
including both the costs of construction and soft costs. This CMM is
conceptual and meant to be used as a basis for work from for project
f)tanning and budget management.
The CMM is divided into the following categories: Land Acquisition,
Construction, Design Planning and Management, Fixtures/Furnishings
and Equipment, Owner Costs, Data/Telecom and Project Contingency.
The CMM is meant to establish and manage project cost from project
inception through commissioning.
The CMM does not include operating costs.

land acquisition

There are no costs identified for land acquisition.

construction

In addition to the cost of 'bricks and mortar', Construction Costs also

includes a change order contingency, permits, hazardous material
abatement and other related items.

design, planning
and management

This section includes the range of design and management

professionals required for the project plus incidental expenses.

fixtures, furnishings
and equipment

The FF&E budget includes furnishings to make the building usable by

the intended occupants. Existing theater equipment is assumed to be
reused.

data/telecom

This budget includes telephone and data systems, both infrastructure

and functional components.

project contingency

While the CMM includes contingencies related to specific items, this

contingency is the allowance for unforeseen and as yet unidentified
increases in the scope of the project resulting in additional funding
requirements.

development costs

This budget includes costs associated with fundraising, accounting,

moving and other costs most often engaged by the Owner.

Page 1

Pt-.ase 1

Comments

EXECUTIVE SUMMARY

Land I Acquisition Costs

Construction Costs

6,893

5,397

1,495

Desi~n .

1,178

847

331

Development Costs

44

28

16

Data, Telecommunications and Security

61

41

19

503

390

114

8,680

6,703

1,977

Planning and Management

Furniture, Fixtures and Equipment

Project Contingency

TOTALS

!. _ _ _ _ _ _ _

Dollars x $1 ,000

-- - - - -

9.0G,

8,000

7 ,000

6,000

5,000

4.000

3,000

2,000

1,000

Total

Phase 1

Phase 2

Page 2

DRAFT for
Review and

Comment
hAse 1

EXECUtiVE SUMMARY

BUDGET

BUDGET

BUDGET

as of

as of

as of

1-Sep-09

1-Sep-09

1-Sep-09

Comments

Dollars x $1,000
Land I Acquisition Costs

Construction Costs

6,893

5,397

1,495

Design, Planning and Management

1,178

847

331

61

41

19

Project Contingency

503

390

114

Development Costs

44

28

16

8,680

6,703

1,977

Furn iture, Fixtures and Equipment

Data , Telecommunications and Security

Page 3

DRAFT for
Review and
Comment
Phase 1
LAND I ACQUISITION COSTS

Property Acquisition

BUDGET

BUDGET

as of

as of

as of

1-Sep-09

1-Sep-09

1-Sep-09

BUDGET

Comments

0 No cost allocated for land acquisition, real estate

commissions, legal and accounting fees, due

diligence on property, etc.

Subtotal - Land I Acquisition Costs

_______]

Page 4

DRAFT for
Review and
Comment
Phase 1
CONSTRUCTION COSTS

BUDGET
as of
1-Sep-09

BUDGET
as of
1-Sep-09

BUDGET
as of
1-Sep-09

Comments

1,300,000 Allow for two phases; budgets are based on the

MackS Cost Plan, and rounded
130,000 10% of construction cost

6,000,000

4,700,000

600,000

470,000

Allow for minor hazardous remediation

47,500

40,000

7,500 0.75% of construction cost in Phase 1 and a

lump sum allowance for Phase 2

Builders risk insurance

45,000

35,250

9,750 0.75% of construction cost

Fees and Taxes

Building permit and Plan Check

60,000

47,000

13,000 Construction permit, 1%

50,000

25,000

25,000 Allow for Planning review

Environmental review

20,000

10,000

10,000 Assume a negative declaration

Traffic mitigation

10,000

10,000

0 Assume minor cost allocated to mitigation of

traffic problems

PG&E

25,000

25,000

0 Allow for gas meter only

Water meters

35,000

35,000

0 Allow for upgraded water meter based on

increase in fixtures

6,892,500

5,397,250

Construction hard costs

Change order contingency

Planning Fees
Planning Fee

Utility Fees

r
L.

Subtotal Construction

1,495,250

-~
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DRAFT for

Review and
Comment
Phase 'i

DESIGN, PLANNING AND MANAGEMENT

Architect and Consulting Engineers

BUDGET
as of
1-Sep-09

BUDGET
as of
1-Sep-09

BUDGET
as of
1-Sep-09

Comments

156,000 Allow 10% for AlA, Structural, M&E engineering

on large project, 12% on smaller

626,000

470,000

Acoustical consultant

50,000

25,000

Theatrical consultant

Audio-Visual Consultant

10,000

10,000

0 For non theatrical equipment and systems

Civil and Geotechnical engineers

50,000

30,000

20,000 Civil drawings; Soils test and foundation design

5,000

5,000

15,000

10,000

Security Consultant
Landscape Architect

0
30,000

0
10,000

Signage and graphic consultant

15,000

10,000

Testing and Special Inspections

45,000

30,000

Reimbursable Expenses
Environmental Impact Report
Fixtures, furnishings and Equipment
Project Management

56,080
0
20,000
200,000

41,600
0
15,000
150,000

Contingency for additional services

56,104

40,330

1,178,184

846,930

Renderings
Waterproofing Consultant
Traffic Consultant

r----s~bt~i~~: o~ig;,-:-Pi;;;;;~r;g-a-;d

Management
...~-~~"~~-----'-'"',.._...,,_,.,.....- . ....-...."--

'...~-------~-~....._ .... ,_~,

25,000
0 Included in base fee for Architect

0 Allowance for presentations

5,000 Establish criteria and inspect water proofing
systems
0 Assumes no impacts
0 Not required per City 09/08/2009
20,000 Allowance for Landscape design
5,000 Interior and exterior signage
15,000 Construction testing, nailing, concrete, steel, etc.
14,480
0
5,000
50,000

8% of Design Professional Fees

Not included
Allowance
Project and Construction Management, Cost
Planning and Estimating & Scheduling

15,774 5% of Design Professional Fees

---...1

331,254

___I

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DRAFT for

Review and
Comment

FURNISHINGS, FIXTURES & THEATRICAL EQUIPMENT

BUDGET
as of

BUDGET

1.Sep-09
Office Furniture
Work stations
Systems furnishings
Tables, small
Chairs
File cabinets
Lobby
Miscellaneous items

BUDGET
as of

as of
1-Sep-09

Comments

1-Sep-09
Assumes all furnishings are owner provided

0
0

0
0
0
0
0

0
0
0
0
0

0
0

0
0
0
0

0
0
0

Theatrical Equipment
Overhead rigging
Stage draperies
Theatrical and lighting controls
Theatrical light fixtures
Sound, video and communications
Box Office
Refrigerator
Disposer
Window blinds

Subto.t al ~ Fixtures, Furnishing and

Theatrical Equipment

0
0

0
0

0
0
0

0
0
1,500

0
0
0

0
0

0
0
0
0

None anticipated
None anticipated
Reuse existing
Reuse existing
0 Reuse existing

0 Assumes owner provided

0 Assumes owner provided
1,500

-- ,

1,500

1,500

~--------

-----~---J

Page 7

DRAFT for
Review and
Comment
Pha se 1

DATA, TELECOMMUNICATIONS AND SECURITY

BUDGET
as of
1-Sep-09

BUDGET
as of
1Sep-09

BUDGET
as of
1-Sep-09

Comments

Telecom, prima'ry and ancillary systems

25,000

17,500

7,500 Phone switch and new handsets

Cabling- telecom & data

15,000

10,000

5,000 Cabling within the facility

Desktop computers

0 Assumes tenant provided

Central SeNer

Security system

0 Not required per City 09/08/2009

15,000

10,000

5,500

3,750

60,500

41 ,250

Public address system

Contingency

Subtotal -Data, Telecommunications and

Security

5,000 Allow for theater public address, back of house;

Phase 2 is for Control Room
1,750 10% of above cost

19,250

_______]

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DRAFT for
Review and

Comment
Ptmse 1
CONTINGENCY

Scope change contingency

BUDGET
as of
10-Sep-03

503,303

BUDGET
as of
10-Sep-03

389,697

BUDGET
as of
10-Sep-03

Comments

113,606 Allowance for expansion of scope, about 6% of

project costs

Subtotal - Contingency

503,303

389,697

113,606

_j

Page 9

DRAFT for
Review and

Comment
Phase 1
DEVELOPMENT COSTS

BUDGET

BUDGET

BUDGET

as of

as of

as of

1-Sep-09

1-Sep-09

1-Sep-09

Comments

Internal project management

0 Not required per City 09/08/2009

Move coordinator

0 Not required per City 09/08/2009

10,000

2,000

5,000

5,000

Moving
Public Notification

8,000
0 Allow for business cards, public notification,
stationary

Bonds, associated legal and accounting fees, capital

campaign costs, etc.
Contingency

Subtotal - Department Costs

20,000

15,000

8,750

5,500

43,750

27,500

5,000
3,250 Allow 25% of above costs

16,250

Page 10

DRAFT FOR REVIEW AND COMMENT

J=

GFA
Forest Theater Replacement

6,210

TOTAL CONSTRUCTION AND SITEWORK

Alternate
Alternate
Alternate
Alternate
Alternate
Alternate
Alternate
Alternate

No.1:
No.2:
No.3:
No.4:
No.5:
No.6:
No.7:
No.8:

Retain the Understage Level Structure

ADA Pathway
Seating
Control Booth
Concessions
Audience Center
Parking Lot
Deduct the Understage Level Fit Out

&r

$/SF

506

&0

$,000

3,144
3,144

(206)

322
1,101

448
141
669
196
(798)

Page 8

.. ..

,_._

,_

<

~ .... ~

' +r

t.

. . . ...

( ~~

.'S I

' .:0. "

...

''

'':.

'~

"(>

3%
3%
11%

Interior Construction
Stairs
Interior Finishes
,_ 1.;. '.c.

' I'

,,

I,;; .':.. ~o,

0%
3%
6%
2%
5%

Conveying
Plumbing
Heating, Ventilation, and Air Conditioning
Fire Protection
Electrical
'. :. <J ,.

r.

"

,:J',/

._ r l

.,,

' .

. :'il:

'l .

Special Construction
Selective Building Demolition

-I

tr. .
t,.

'

1.;

.
- r.,. .

i~ ...... j

-=-

.. .. :,; : :. , f~ :.._

r :. '

,I :;

i~-::.

'

'

- i t'".J

'

w;. u,; .. r 'i

'

129
43
564
160
60

.;)

16.67
13.45
56.76
~,:.

104
84
353

0.00
16.76
29.75
8.00
26.50

0
104
185
50
165

.: '2' r

108
0

0%
3%

0.00
15.00

0
93

0%
0%
1%
1%
0%

~~(

'

r .. ;.,-,.

..

Contingency for Design Development

Cost Escalation

ITOTAL CONSTRUCTION BUDGET

'- '

'

0.00
0.00
4.51
3.26
0.00
I .

0
0
28
20
0

'i

'' ; . !

11.00%
5.00%

8%
4%

20.00%
0.00%

'
17%
0%

84.39
0.00

100%

506.35

NOTE: Inclusions and Exclusions.

17.39
0.00
' .

'

General Conditions
Contractor's Insurance, Overhead & Profit

<

,)

~-

~~'~

20.73
7.00
90.88
25.68
9.70

3%
0%
. ,

Site Preparation
Site Improvement
Site Mechanical Utilities
Site Electrical Utilities
Other Site Construction
--

$,000

Equipment
Furnishings
-'

$/SF

%
4%
1%
18%
5%
2%

Foundations
Basement Construction
Superstructure
Enclosure
Roofing
'"' L (.) .

.- , S- ::....
: ~

39.82
20.09

247
125

-;

524
0

3,144

DRAFT FOR REVIEW AND COMMENT

Page 9