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HomeMy WebLinkAbout1986-03-18; City Council; 8119-19; Carlsbad Safety and Service Center: Project Review & UpdateCIT OF CARLSBAD — AGENC BILL 11 or- ((.el 3-t,-8t> AR# <f//V--*V9 MTG 3/18/86 DEPT CM TITLE: CARLSBAD SAFETY AND SERVICE CENTER - PROJECT REVIEW AND BUDGET UPDATE DEPT. HD. l^ CITY ATTY l/^R CITY MGR. ^^- <J V Vex. Q LU ID £ O O Oz oo RECOMMENDED ACTION: City Council to receive report from staff and Construction Manager on the status of the Carlsbad Safety and Service Center. ITEM EXPLANATION Since the fall election of 1983 in which the Carlsbad Safety and Service Center was approved with a budget of $15.2 million dollars, the City has commenced with the first phase of construction of that project including the construction of the buildings specified in Phase I plus the improvement of the total site. Prior to this report, you were presented with a modified budget for the total project as follows: NOV., 1983 MAY, 1985 ELECTION ARCHITECT Phase Phase Phase I II III ORIGINAL PROPOSITION 9.00 4.60 1.60 CONTRACT BUDGET 9.40 4.30 1.50 JULY REV. 10. 3. 1. 1985 BUDGET 25 40 55 MARCH 1986 BUDGET 10.2i> 3.40 1.55 PROJECTED SEPT. 1986 BUDGET 10.25 3.40 1.55 TOTAL 15.20 15.20 15.20 15.20 15.20 The attached report from your Construction Manager, the Koll Company, shows you the progress of the project including the awarded contracts, estimated total expenditures to date, and balance available for the work to be completed. Our best projections for the final cost of the first phase of construction are that we will be within the revised budget figure of 10.25 million dollars. We project completion of first phase activities in September of 1986. EXHIBIT 1. Koll Co. Progress Report No. 8 2. Summary of Estimated Construction Costs 6 JL PROJECT MANUAL PUBLIC SAFETY AND SERVICE CENTER PROGRESS REPORT NO. 8 FEBRUARY 25, 1986 KOLL ROLL CONSTRUCTION COMPANY CARLSBAD SAFETY CENTER Progress Report Number 8 February 25, 1986 TABLE OF CONTENTS Section Title I Design Progress and Review II Purchasing III Construction Costs and Value Engineering IV Payments V Job Progress & Schedule VI Quality Control and Safety VII Progress Photos 3 ROLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 L DESIGN PROGRESS AND REVIEW SITEWORK The landscape design with the exception of the atrium inside of the building has been completed by the City Parks and Recreation Department with the assistance of an outside consultant. We have not received these drawings for review and we are anxious to do so since we will be starting the remaining sitework shortly. POLICE/FIRE ADMINISTRATION BUILDING The only change of significance since our last report has been the deletion of the six small skylights in the atrium area and the addition of larger skylights to allow as much light as possible into the area below. This is required for the proposed planting for this area. ROLL CONSTRUCTION COMPANY CARLSBAD SAFETY CENTER Progress Report Number 8 February 25, 1986 IL PURCHASING The revised bidding schedule is enclosed with this report indicating our final group of items noted in Bid Package #7 will bid on February 27, 1986. This will complete our bidding and purchasing effort with the exception of any additional scope of work required by the City or for resolutions of construction problems. The landscape and irrigation work is being handled by the City's Park and Recreation Department and the bidding and contracting of this work is now needed. We intend to continue with the remaining sitework construction in the near future and we must have the piping installed for the sprinkler system prior to installing the asphalt work. KOLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 Bid Description Package of Number Work CARLSBAD SAFETY CENTER BIDDING SCHEDULE Council Mail Notice Approval to Documents Prebid. To Bid Bidders Available Conf.Bid Due Council Contract Award 1 Sitework 2 Structural Steel Metal Deck 3 See Attached 3£ Electrical(Rebid) 3F Service Station (Rebid) 4 See Attached 5 See Attached 6 See Attached 7 See Attached 01-22-85 01-23-85 02-19-85 02-20-85 04-02-85 04-04-85 05-21-85 05-22-85 06-04-85 06-05-85 04-02-85 04-18-85 04-02-85 09-30-85 04-02-85 11-04-85 04-02-85 02-05-86 01-28-85 02-14-85 02-26-85 03-19-85 02-21-85 03-13-85 03-21-85 04-02-85 04-08-85 04-23-85 05-02-85 05-14-85 05-22-85 06-04-85 06-13-85 06-25-85 06-05-85 07-23-85 08-01-85 08-13-85 04-22-85 05-16-85 05-30-85 06-11-85 09-30-85 10-10-85 10-16-85 10-22-85 11-04-85 11-21-85 12-04-85 12-10-85 02-05-86 02-19-86 02-27-86 03-11-86 ROLL CONSTRUCTION COMPANY CARLSBAD SAFETY CENTER Progress Report Number 8 February 25, 1986 PROJECT BID PACKAGES BID PACKAGE #1 a. Grading b. Site Concrete c. Gunite d. Sewer, Water, Storm Drain e. Electrical, Telco, Gas, CATV f. Asphalt BID PACKAGE #2 a. Structural Steel b. Metal Deck BID PACKAGE #3 a. Elevators b. Plumbing c. Fire Sprinklers d. H.V.A.C e. Electrical f. Service Station Equipment and Vehicle Wash g. Finish Hardware and Gate Operators BID PACKAGE #4 a. Concrete (Rejected vehicle maintenance and car wash only, rebid with B.P. #5) b. Reinforcing Steel c. Architectural Precast Concrete d. Masonry (Rejected and rebid with B.P. #5) e. Miscellaneous Iron f. Landscape and Irrigation g. Steel Doors and Frames BID PACKAGE #5 a. Concrete (Vehicle maintenance and car wash) b. Masonry c. Metal and Acoustical Ceilings 7 ROLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 BID PACKAGE #6 a. Aluminum entrances, storefronts, glass b. Canopy/sunscreens c. Lath and Plaster d. Steel studs and drywall e. Roofing, waterproofing, insulation f. Sheet metal, louvers, roof access and skylights g. Building insulation h. Coiling grills, doors and fire curtains, sectional doors i. Pneumatic tube system j. Finish carpentry and wood doors (hardware/wood and std. door installation) k. Site maintenance contractor BID PACKAGE #7 a. Cabinets and fixtures b. Ceramic and quarry tile c. Glass block d. Painting/ waterproof ing and vinyl wallcovering e. Floor covering and marlight panels f. Access flooring g. Folding partitions h. Flagpoles i. Toilet partitions and accessories j. Security gates/operators, chain link fencing, mesh partitions k. Metal lockers 1. Sealants m. Levolors (window coverings) CITY PURCHASE ORDER a. Floor mats b. Fire extinguishers ROLL CONSTRUCTION COMPANY CARLSBAD SAFETY CENTER Progress Report Number 8 February 25, 1986 III. CONSTRUCTION COSTS AND VALUE ENGINEERING Due to some actual and unanticipated cost overruns to the project budget, there have been a number of changes and modifications made to the Safety Center buildings as follows: 1. Raised roof over the atrium has been deleted. 2. Large canopies on the west and south elevations have been substantially reduced in size and have been eliminated on the vehicle maintenance building. 3. Glass handrail around the atrium at the second floor has been changed to an open metal railing. 4. Both the Vehicle Maintenance and Car Wash structures have been changed from tilt-up concrete to block masonry. 5. Operable windows in the Police and Fire Administration building have been reduced fron 100% to approximately 25%. We are affirming the Phase I budget total of $10,250,000 as noted in the attached budget analysis. We have a small contingency remaining (approximately $80,000) and we will know better the total anticipated cost of the project once the final bids are received on February 27, 1986. ROLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 BUDGET ANALYSIS 1. Awards 2. Est. to Complete 3. Communications 4. F.F. & E. 5. Landscaping 6. Field Engineer (Survey) 7. General Conditions 8. City Miscellaneous Expenses 9. Contingency SUB TOTAL 10. C M Fee SUB TOTAL 11. Testing and Inspection 12. Soils Testing 13. A & E Fees (Including approved change orders) Estimated Changes Remaining TOTAL Revised Estimate 6,615,949 1,119,273 200,000 636,000 326,000 48,000 50,000 50,000 80.278 9,125,500 500.000 9,625,500 30,000 31,000 523,500 40.000 $ 10,250,000 /O CARLSBAD SAFETY CENTER KCC JOB NO. 3223 BUDGET REPORT INTERMEDIATE LEVEL 24-Ftb-86 1A IB 1C ID IE IF 2A SB 3ft 3B 3C 3D 3E 3F 36 3H 4A 48 4C 40 4E if SA SB SO 6A 6B 6C/6D 6E 6F £6 6H 6! 6J 7 LINE ITEM DESCRIPTION CITY OF CARLSBAD NO. 3006 GRADING SITE CONCRETE BUNITE SEUER, WATER, STORM DRAIN ELEC, TELE, GAS, CATV ASPHALT STRUCTURAL STEEL METAL DECK ELEVATORS PLUMBING* IN ITEM 30-COMB) FIRE SPRINKLERS HVAC 1 PLUMBING ELECTRICAL SERVICE STATION EQUIP VEHICLE HASH FINISH HARDWARE CONCRETE (POLICE BLD6) REINFORCING STEEL ARCH. PRECAST MASONRY (SEE 5b> MISCELLANEOUS METAL STEEL DOORS 1 FRAMES CONCRETE (VEHICLE MAINT) MASONRY ACOUSTIC/METAL CEILINGS ALUM ENTRANCES t WINDOWS CANOPIES t SUNSCREENS LATH/PLASTER, STL STDS/DR ROOFING t WATERPROOFING SHEET METAL INSULATION COILING 1 SECT. DOORS PNEUMATIC TUBE SYSTEM FINISH CARPENTY I DOORS FUTURE AWARDS t MISC. CONTRACT CO 11 CO IS AMOUNT £68,95* 6,437 86,564 94,171 Mil 19,647 <7,71i) 394,787 12,130 18,183 136,292 « 273,067 814 17,758 444,047 102,293 6,586 59,821 49,352 892 760,204 664,900 243,235 57,200 63,236 296,631 (2,635) 97,910 (13,318) 438,900 141,850 60,560 253,821 372,421 86,230 158,264 132,530 4v4) tnH 140,358 45,338 14,767 62,700 13,092 106,401 REVISED CONTRACT CO 13 CO *4 COI5 CO 16 CO 17 AMOUNT 3,570 3,744 4,380 3,063 316,717 91,281 11,937 5,625 4,730 4,000 3,963 250 443,589 136,292 2,744 294,377 444,047 108,879 59,821 0 50,244 760,204 664,900 243,255 57,200 63,236 293,936 84,592 438,500 0 141,850 60,560 253,821 372,421 86,250 156,264 132,530 464,600 140,358 45,338 14,767 62,780 13,092 106,401 0 ESTIMATED COST TO COMPLETE I07S0" 3,500 2,580 3,300 1,500 2,000 41,200 4,380 10,160 1,500 20,802 41,081 0 0 5,100 1,000 1,000 22,000 33,000 17,000 3,000 2,500 3,350 0 0 19,115 6,000 9,000 1,665 0 0 3,700 850,000 TOTflL ""326^707" 94,781 14,437 446,889 137,792 296,377 485,247 113,179 69,981 e 51,744 781,606 705,981 243,255 57,200 68,336 294,936 85,592 4otff 3H 0 174,850 77,560 256,821 374,921 89,600 158,264 132,530 483,715 146,358 54,338 16,432 62,700 13,092 110,101 850,000 TOTAL 6,513,135 6,615,949 1,119,273 7,735,222 KOLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 IV. PAYMENTS The following payments have been approved: Professional Services a. Ruhnau McGavin Ruhnau/Associates - (Appl. #10 through October 10, 1985) Complete Contract Through Design Development and Construction Document phases * Construction Administration Phase Change Orders $ 416,003.00 $ 14,169.00 $ 53.500.00 Total to Date $ 483,672.00 b. Roll Construction Company - (Appl. #18 through January 31, 1986) $Schematic Design (100%) Design Development (100%) Construction Document (100%) Bidding (95%) Construction Phase (40%)i. 30,000.00 30,000.00 40,000.00 19,000.00 152.000.00 Total to Date $ 271,000.00 c. GeoCon. Incorporated - (Soils Investigation through November 24, 1985) Geotechnical Report and Bidding Clarifications Construction Services Total to Date $ 4,848.00 26.102.00 $ 30,950,00 d. Testing Engineers - (Materials Testing & Inspection through January 31, 1986) Construction Services $ 22,233.00 e. Rick Engineering - (Surveying through November 30, 1985) Construction Services Construction Services See attached Payment Application Breakdown #9 through January 31, 1986 Less Retention Total to Date $ 41,039.00 $ 3,387,822.00 268.988.00 $ 3,118,834.00 ITrs 2 — zc _ — •c e> c & cc</> u3w7.C *^AIA DOCUMENT C702HzUJ ^>^ i cs>o U. UJ U u. fi£APPLICATION AND CEIee 5-2c y y = 2 — 2liazC S a O*J ^ ^? f 17 w < vj o 3 3 3 D n vO vD • ^H!H ° ^5 P^ ^_?\\ £ rH rH o «z <z .. </i a c 3 Q f_ § £ 5 Q t U ^ S 2 x — z 5" OC S O Q^S UJ ™" QC J'j du M « a>0) C 4J m O OS CO QO 0) O 0 > tN • » CN >1 -H CTV C %« O* «£* a**•s ,6 3 nSM •-! « «» • s i -irt Qi *O iH iQ5 a1 a - « 3^ w J3 3 Oi A» n 23rH O H C r^ Hu co u £ m HIB T 10 3 r- iq0 01 0 Q! m 0 Ry ^ U '•" i 0 < a. > nOle •0r-l ca _ 09 CO ,0 0 J«O • O M TO (OWNER):City of Carlsbad1200 Elm Ave.Carlsbad, CA 92FROM Construction Manager :2237 Faraday AveCarlsbad, CA 92CONTRACT FOR: Ph*se I - Sitewoi 3— o^^U in | 3' ^: i- ~~ _3 S if 5 »J3 CN vOi-t vCc ^ ^r* CO* <N %cn ,H VO VO ^ «% W* *P w _j p £ * 5S - "™ jj ^ S i^l J fV • « 09 vf-i <NrMCO r^co n w u11Ji 1 ^s ""'3 *"• Cs S 3 21. J 0o • CO CO(A/ COvO «,» - g CJ « .= Q _c i •* ti =1 M:^Applicnliiin is made (or PaymciCunlinuallon Sheet, AIA Docu1. ORIGINAL CONTRACT SUA2. Nel change by Change Ord3. CONTRACT SUM TO DATE4. TOTAL COMPLETED & STOf(Column C on G7U3)5. RETAINAGE:a. JjQ. % ol Completed WoZ LU g g JjJ Ou. o £ZS CONTRACTOR'S APPLH1 CHANCE ORDER SUMMARY••n O p'J aa zo 1 9 ^«(Change Orders approved inprevious months by Owner• 31 S < 0^ <3-'" ncc m H r- M mo en '*!^*nin« (N «A<A •• 4 cn o CD \O -t *& ^L "1 TJi Oco om in m *« *» J U. 1 ^^ o t-kU kb k; ^ C r* 3 *** "C Si*"» » ^_ W g» iA i Hiiiipi * IlSllI|ij . iTi'si"| Approved this Month jO ft O OO CO O O• • • • O ro N Oin ^* cn m<N r» co n Dale Approved1 NumbertN <"> n in in vo0 CO CO CO1 1 1 13 0\ O -9t H fl fMIII!N (M CN i-l -4 ^H i-H O ^ ft i-i *-4 III! Q b U QH -H ft m ft 00 rr rs r-^ na irr» " tr 5 tf S u >. s n 1 •? » 2• ^ ^i .. "5>•c3 O IAIE aiE Sk Stale of:Subscribed and sworn to befoNotary Public:My Commission expires:1 V C fll II •^ ir ii — "S! £~— £ OP-* c «•. >. c-' 2 c S >•5 ;» 2 w 3. 9 W i1 i"i- J^" EJ -5 : -2 — ^ «• - s 1 "~^ • 3 i ~^2 - ~ —S -s •• "w W~ 3 j K JS ^|}|ji 2 IJ.The undersigned Conlrntlor certifies that 1information and belief Ihe Work covered^ ^ ^w £ BJ ^l|i^J I1! i* s * £ Sf 2 -*i 3 •> "^5HI; • — 3iiir^ i-l-g^V A'S; — £ *N>-^ _^' 1 Ml! " .S IB '• V >-3 C..2X S "5vg•gw §- ^| ^ = — 'g° -x i I •= z — i fc- £' >• ti — c.^ .£ T* ' «* c .. 5 £ ?• _si £ Z ?-=. §** ^a sS T3•o •;;£u AMOUNT CERTIFIEDMl Inch explanation if amountARCHITECT:llvij u t r™ "™ Zl -R — s 250 * S- - — c. t-r~ » "* C) ^ ^3 S O Iliis Certificate is nol nogolialConlraclor named herein. Issu,prejudice lo any rights of Ihe8J ft* JJ T3 Hi!= — S — z|||i ^T w * r •?< j O^ _ . >- •§ J"| s2a* s I § 1 p T £ ^ ^ 2 Of § 5~ - u Sllill ^U H "™. C O 5 ?•• — •= ra ^ <<«f > o "O «_ - T: ^ •— t jz ARCHITECT'S CElblFICIn accordance with Ibe Contract Documerdata comprising the above application, thebest of Ibe Architect's knowledge, Informalindicated, Ibe quality of the Work is in acccthe Contractor is entitled lo payment of 11 fN r>. 'O r i^ «r« ; u < ~ ?S 23 = z "" ?• j| §| * uJ - 3 1^sB— > ?I AIA DOCUMENT C.7IIJ • AI'I'IICAIION AND OKIIfKllli AMIKICAN INSIIIUIl OF AKC.HMIC1S. IMS 113 s ra s 2 -§ fc Q ^°(H U. 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Ul , a u - <BALANCE TOCCiMP_ETE[G-KJUl i -I UJ *-» 2 7 WORK CDHPLETEITHISAPPLICATION1PREVIOUSAPPLICATIONS1u? 13 S,WSE ORDERSAMOUNT1S a m \t •OBCRIPTIW OF KORKIs O O o 0.0 0 OJ rH m<7> o cy\in ^* a* v0 vo r^j O rH rH rH 0 00 0 o o' oin 0 ° o o oO 1 0m m% ^ vO <O 0 00 0 0 00 0m " md ^ 1C t£ ' 1 O 1 O O Oo o o O T. 9 P) \Q O\ rH O rH O O Oo o o r*l rH rnen o en O Tf ^ m \Q o*» rH O rH rH rH C « i•H CrH u §,p mU O* "if o 3 rt•H u id4J JJ S O) 4J •H fl 9) C 3 G -H UlO< fcl -• H I-J\o kO r- rj OO COCOc^ to (N CO CO (O m inr» p-envo m 3 n I" tN rH rgU3r- co (Nscn *10 r-4 0 r-4 Om rH m iHin < ROLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 V. JOB PROGRESS SFTEWORK The mass grading work is basically complete with some minor work remaining in the parking lots adjacent to the administration building and curb cuts required at the remaining streets and parking lots. The sidewalk, curb and gutter work is 34% complete with the remaining work scheduled to resume in April. The asphalt paving work has been completed with the exception of the final one inch cap at Orion Street and Orion Way plus continuation of Orion Street down to Faraday and all of the parking lots. This work is 36% complete. POLICE/FIRE ADMINISTRATION BUILDING The structural steel and metal deck is completed with the exception of some very minor pieces to complete the structural frame of the building. All of the precast concrete which forms the exterior skin of the building has been delivered and erected with the exception of a few miscellaneous small pieces. Most of the building has been aligned and welded into place. This work should complete totally within the next week. The heating, ventilating and air conditioning systems, as well as the plumbing is moving along rapidly, especially on the first floor and is continuing in the meeting wing and second floor. This work is approximately 55% complete. The electrical work is also being installed as anticipated being approximately 25% complete. The pneumatic tube system has also been roughed in and is 50% complete. The metal framing for the interior partitions is now well underway and drywall will start to be installed shortly. The block masonry work forming the interior mechanical rooms as well as the detention area has been completed as has been the mechanical central plant, located adjacent to this building. VEHICLE MAINTENANCE/CAR WASH The foundations work for the vehicle/maintenance buildings are complete as is the extensive underground piping and electrical systems. We are ready to pour the concrete slabs for these buildings, weather permitting. n ROLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 SCHEDULE There have been a number of delays to the project due to postponement of the Bid/Award program. These were required to allow the Architect additional time to complete his plans and specifications. Some of the critical trades delayed were: 1. Metal framing 2. Plaster and Dry wall 3. Windows and Entrances 4. Metal and Acoutical Ceiling. 5. Roofing 6. Canopies/Sunscreens Many of these items require early rough-in or are long lead for procurement. Additional delays have been noted due to slow approval of submittals by the Architect. The most significant items were the precast concrete, hollow metal door frames, finish hardware and miscellaneous metal. The affect of these various delays will extend the completion of this facility to approximately mid September. Please refer to the enclosed progress schedule indicating progress through January 31, 1986. KOLL CONSTRUCTION COMPANY CARLSBAD SAFETY CENTER Progress Report Number 8 February 25, 1986 VI. QUALITY CONTROL Testing Engineers is performing certain code related inspection and material testing of concrete, masonry, steel, welding and waterproofing. Testing Engineers is subordinate to U.S. Testing who has a facility in Tulsa, Oklahoma and has been able to complete our fabrication inspection needs for the structural steel. The precast concrete is being fabricated in Sacramento and a separate firm, Capital Engineering, is performing the plant inspection under the supervision of Testing Engineers. Daily quality control is performed by Koll personnel and in particular Roll's on site superintendent. No significant quality control problems have been noted to date. City inspection personnel are insuring that materials and installations comply with appropriate building codes including mechanical and electrical. SAFETY On site safety is the responsiblity of Roll's project superintendent and is supported by other Koll staff. Additionally, Koll Construction Company retains the services of Safety Management Services as our safety consultant. Their representative visits the job site periodically and on call to provide their specialized expertise in safety related matters. There are a number of common safety exposures that must be addressed on an almost daily basis such as trenches over five feet in depth requiring a special permit, hardhat requirements, a specific safety program during the erection of structural steel and other similar exposures, elimination of tripping hazards, the installation and maintenance of temporary handrails, railings and toeboards at the perimeter and openings, face guard and goggle requirements for cutting and chipping operations, plus many more construction related and industry hazards. ROLL CONSTRUCTION COMPANY Progress Report Number 8 CARLSBAD SAFETY CENTER February 25, 1986 VII. PROGRESS PHOTOS The City is taking progress photos approximately every month. SUMMARY OF ESTIMATED CONSTRUCTION COSTS Nov. 1983 Facility FACILITY Cost Base Site Dev. & Comm. 1,286,200 Police/Fire Admin. 6,557,900 Veh. Yard Maint Uti 1 i Parks Maint. & Fueling 1,568,500 Offices /1, 771, 400 . Yard & Shops * J 436,500 ^ties Yard & Shops 376,500 Service Yard & Shops 617,000 Purchasing Warehouse 974,500 Fire Conti Station 1,500,100 ngency 111,400 Comm. System Furnishings Landscaping 1984 1985 1986 Contract Amended Current Cost Phase I Budget Budget 700,000 1,851,000 1,860,000 5,900,000 7,213,060~V 6,530,000 ^ / if 1,400,000 1,185, 940 J Awarded to Date Through Bid Pkg. #6 1,771,400^\ 436,500 376,500 V 2,620,000 2,620,000 617,000 974,500^ 1,500,100 1,250,000 1,250,000 148,000 1,080,000 1,080,000 Bids to Be Awarded 985,000 #7 (Finishes) 200,000 — 631,000 500,000 #8 545,000 375,000 #9 TOTAL $15,200,000 $15,200,000 $15,200,000 $15,200,000 *$4,175,900 Site Prep. Mounce $1,994,000 EXHIBIT 2