The URL can be used to link to this page

Home My WebLink About23A - TERM CONTRACT 17TH WATER MAIN IMPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 15, 2015 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED TERMINATE CONTRACT FOR SEVENTEENTH ❑ As Recommended STREET WATER MAIN IMPROVEMENTS ❑ As Amended BRISTOL TO BROADWAY ❑ Ordinance on 1" Reading (PROJECT 11 -6416) El Ordinance on 2nd Reading El {STRATEGIC PLAN NO. 6, 1B} E] SetlP Public l on Hearing For — I d CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER 1. Authorize the Executive Director of Public Works to terminate for convenience the contract extended to Paulus Engineering for construction of the Seventeenth Street Water Main, originally awarded in the amount not to exceed of $1,832,571, but now closing the contract for a $1,287,167.64 total. 2. Approve Change Order No. 2 in the amount of $178,184.15 which is a contract increase to pay for remaining inventory of water main materials. 3. Approve Change Order No. 3 which is a final closeout credit, reducing the contract by $818,547. DISCUSSION On December 2, 2014, the City awarded a construction contract to Paulus Engineering, Inc., to replace the water main in Seventeenth Street from Bristol to Broadway for a total not to exceed amount of $1,832,571. The water main being replaced was installed in the 1930's and had begun to experience a number of breaks and leaks. Based on critical factors such as age, history of breaks, size, location, and system redundancy, this water main was the highest priority for replacement. During the first phase of construction between Broadway and Flower (Exhibit 1), the contractor encountered a number of utilities that were not identified in the contract documents. The interfering utilities made it necessary either to realign the water main or to relocate the interfering utilities. Either option resulted in major project delays and additional costs, some of which would be the City's responsibility. Generally, record information, such as that provided in the contract documents, is sufficiently accurate to account for minor realignment and adjustments. However, the variation encountered for this project was too great to proceed without potholing, which is an accurate and cost - effective method of establishing utility alignments. In preparation for the second phase of construction between Flower and Bristol, staff directed the contractor to pothole the existing utilities to verify underground alignments and soil conditions. After reviewing the pothole information, staff confirmed that the water main would require numerous realignments and adjustments resulting in substantial additional costs. Therefore, staff recommends the 23A -1 Approve Change Orders for Seventeenth Street Water Main Improvements: Bristol Street to Broadway December 15, 2015 Page 2 current contract be terminated for convenience pursuant to the Contract, specifically the provisions found in the Standard Specifications for Public Works Construction, which is incorporated into the City's standard construction contracts. As part of the recommendation, the second phase of construction would be rebid so that competitive pricing would apply to the realigned improvements. It is staff's opinion that pricing for the second phase will be more competitive if it is rebid compared to the current contract which would rely on change orders to establish prices. The change order process to establish prices is inherently a non - competitive method and exposes the City to inflated costs compared to bidding. Staff has directed Paulus Engineering to complete the first phase of the project so that it would be completed as a stand -alone project. While all costs related to the first phase have been established and mutually agreed upon, there were construction materials, however, which were acquired at bulk prices by the contractor for the entire project. Consequently all of the material remaining for the second phase has been inventoried and accounted for, and is under storage at the City Corporate Yard. Staff therefore recommends approving a change order to cover the cost of materials which will be used to complete the second phase. The inventory of materials will reduce the construction bid for the second phase by an amount equivalent to this recommended change order. At this point, if authorized by the City Council, the contractor would be informed that the City is terminating the contract for convenience and order them to demobilize. The completion of the first phase as a stand- alone project will reduce any potential clams by the contractor. The table below summarizes the status of the construction contract City Council Authorized Expenditures Construction Contract $1,593,540.00 Construction Contingency $239,031.00 Maximum Authorized $1,832,571.00 Staff Approved Work Contract (Bid Quantities) $1,593,540.00 Change Order 1 $333,990.49 Change Order 2 $178,184.15 Change Order No. 3 (Quantity Adjustments) ($818,547.00) Total Approved Work $1,287,167.64 LEGAL REVIEW Our City Attorney has analyzed the contract, change orders, and cost summary, and has asserted that Change Order No. 1 in the amount of $333,990.49, representing a 20.96 percent increase in the contract, is within the 25 percent change order umbrella contained in the Contract Standard Specifications for Public Works Construction, known as the "Green Book," which was previously approved by the City Council when the contract was awarded. This change order by itself does not exceed the maximum authorized expenditure. However, upon adding Change Order No. 2 (Exhibit 2), the new contract total would exceed the 25 percent limit. Moreover, Change Order No. 3 (Exhibit 3) effectively terminates the contract by reducing the 23A -2 Approve Change Orders for Seventeenth Street Water Main Improvements: Bristol Street to Broadway December 15, 2015 Page 3 construction quantities to the completed first phase only. Therefore, for the reasons stated above, staff recommends terminating the contract and carrying the remaining funds from this contract to use on a subsequent contract for the second phase. The second phase would be rebid with a credit of approximately $178,184 in the form of water main inventory available for that project. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users). ENVIRONMENTAL IMPACT There are no environmental impacts associated with the recommended action. FISCAL IMPACT The construction contract awarded for this project is $1,832,571.00, including construction contingency. The cost to complete the first phase including all Change Orders for unforeseen utility conditions and the water main material for the second phase is $1,287,167.64 (Exhibit 4). Remaining funds of $545,403.36 will be carried over in the Water Capital Projects Fund (Account No. 06617620 - 66301, Project No. 11- 6416) for use in the second phase of this project. Executive Director Public Works Agency FM /EWG/TC Exhibits: 1. Vicinity Map 2, Change Order No, 2 3. Change Order No, 3 4. Cost Analysis APPROVED AS TO FUNDS AND ACCOUNTS: "Is�& e IQ 2 V �LV- Francisco Gutierrez Executive Director Finance & Management Services Agency 23A -3 23A -4 !I i LN:., FIRST PHASE - COMPLETED SEVENITEENTH_ � wASnwcrapty r SECOND PHASE —TO BE REBID av J F U.1 c m J CIVIC CENTER u- m D 6035 iL.F. OF 8' AND 12' PVC. � TfJp R, City Council Title SEVENTEENTH STREET os q Agenda Date WVATER MAIN IMPROVEMENTS (PROJECT ll- ,6416) I � - VICINITY MAP Exhibit 1 23A -5 -• CI ii f OF SANTA ANA PUBLIC WORKS AGENCY CONTRACT CHANGE ORDER T Project Number 11 -6416: Seventeenth Street Water Main Improvements Change Order Number 2 To Paulus Englneering Inc. Contractor You are hereby directed to make the herein changes from the plans and specifications or do the following described work not Included in the plans and specifications on this contract. NOTE: THIS CHANGE ORDER IS NOT EFFECTIVE UNTIL APPROVED BY THE CITY COUNCIL OR CITY MANAGER. Unless otherwise stated, rates for rental of equipment cover only such time as equipments actually used and no allowance Wit be made for idle time. Change requested by PUBLIC WORKS AGENCY LUMP SUM AGREED PRICE 1. The City and PEI have agreed to a lump sum amount of $165,184.15 for material that was not incorporated into the project and delivered to the City's Corporate Yard, AGREED PRICE $165,184.15 2. The City and PEI have agreed to a lump sum amount of $13,000.00 to vacate their rented construction yard and transport all material that was not incorporated into the project to the City's Corporate Yard. This change order finalizes all compensation due PEI for all work completed as of the PEI's accepted date of this change order. AGREED PRICE $13,000 Page 1 of 2 Exhibit 2 23A -6 CITY OF SANTA ANA PUBLIC WORKS AGENCY ♦ CONTRACT CHANGE ORDER Project Number 11.6416: Seventeenth Street Water Main Improvement. Change Order Number 2 To Paulus Engineering, Inc. Contractor You are hereby directed to make the herein changes from the plans and spechicadans or do the following described work not Included In the plans and specifications on this contract. NOTE: THIS CHANGE ORDER Is NOT EFFECTIVE UNTIL APPROVED BY THE CITY COUNCILOR CITY MANAGER. Unless olhenvise staled, rates for rental of equipment cover only such time as equipment is actually used and no allowance will be made for Idle time. Change requested by PUBLIC WORKS AGENCY The compensation both time and cost set forth In this change order comprises the total compensation due the Contractor, all Subcontractors, and all Suppliers for all work performed per this change order, Including Impact on unchanged work. By signing this change order, the Contractor acknowledges and agrees on behalf of himself, all Subcontractors, and all Suppliers, that the stipulated compensation Includes payment for all work contained in this change order, plus all payment for Interruption of schedules, extended field overhead, home office overhead, profit, delay, and all impact, ripple effect or cumulative Impact on all other work under this Contract, The signing of this change order constitutes full mutual accord and satisfaction for all changes and work performed on this project, and that the time and cost paid per this change order constitutes the total equitable adjustments owed the Contractor, all Subcontractors, and all Suppliers for all work performed on this project. The Contractor on behalf of himself, all Subcontractors, and all Suppliers agrees to waive all rights, without exception or reservation of any whatsoever to file any further claim related to this project. TOTAL COST THIS CHANGE ORDER: DECREASE $ e.._�. INCREASE $ 1%6,1$4.155 By reason of this order the CONTRACT TIME completion will be adjusted as follows: None We the undersigned contractor hem given careful consideration to the change proposed and hereby agree, If this proposal Is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all service necessary for the work above specified, and will accept as full payment therefor the prices shown above. Accepted, Date >j.. s.., p�,g""canhaaor Paulus Engineering, Inc. By file I �pproval recommended by i Date P e IC 0 KSA CYEXECUTIVE DIRECTORI' / �vl.� i L Date�Ll� Approved by -- - -�,�y ITYMANAGER 9 '— Page 2 of 2 bit 23i�1 7 2 CITY OF SANTA ANA PUBLIC WORKS AGENCY CONTRACT CHANGE ORDER Project Number 11 -6416: Seventeenth Street Water Main Improvements Change Order Number 3 To Paulus Enaineerina. Inc. Contractor You are hereby directed to make the hemin changes from the plans and specifications or do the following described work not included in the plans and specifications on this contract. NOTE, THIS CHANGE ORDER IS NOT EFFECTIVE UNTIL APPROVED BYTHE CITY COUNCIL OR CITY MANAGER. Unless otherwise stated, rates for rental of equipment cover only such time as equipment is actually used and no allowance will be made for idle rime, Change requested by PUBLIC WORKS AGENCY REDUCED CONTRACT QUANTITIES Bid Item ITEM UNIT ORIGINAL CONTRACT QUANTITY DELETED QUANTITIES UNIT PRICE TOTALAMOUNT 1 8" Class 200 AWWA C900 P.V.C. Water Main LF 1,050.00 (545,50) $140.00 ($76,370.00) 2 12" Class 200, AMA C900 P.V.C. Water Main LF 4,.,00 98500 2,768.00 ( ) $189 ($523,152.00) 3 Construct 1" Water Service per City Std, Plan 1401 EA 51.00 (19.00) $1,400.00 ($26,600.00) 4 Construct 2" Water Service per City Std. Plan 1402 EA 24,00 (14.00) $2,900.00 ($40,600.00) 5 4" Service Connection Including 4 "RWGV EA 2.00 (2.00) $3,600.00 ($7,200.00) 6 4" Fire Line Connection Including 4" RWGV EA 200 (2.00) $3,700,00 ($7,400,00) 7 New Fire Hydrant Assembly, Including Gate Valve and Lateral Pipe EA 17.00 (8,00) $6,800.00 ($54,400.00) 8 1" Air Vacuum and Release Valve EA 4.00 (2,00) $4,200.00 ($8,400.00) 10 8" Resilient Wedge Gate Valve EA 12.00 (6.00) $3,100.00 ($18,600.00) 11 12" Resilient Wedge Gate Valve EA 11.00 (4.00) $3,600.00 ($14,400.00) 12 Bore and Jack, Install Steel Casing and PVC Carrier Pipe EA 4.00 (2.00) $18,000.00 ($36,000.00) 13 Traffic Loop Detector EA 45,00 (3.00) $275.00 ($825,00) 14 Striping, and Pavement Markings LS 1.00 (0.50) $9,200.00 84( ,600.001 CONTRACT CREDIT <$818,547.00> Page 1 of 2 Exhibit 3 23A -8 Project Number 11.6416: Seventeenth Street Water Main To Paulus Enaineerina. Inc. CITY OF SANTA ANA PUBLIC WORKS AGENCY CONTRACT CHANGE ORDER Change Order Number 3 Contractor You are hereby directed to make the heroin changes from the plans and speclficotlons or do the following desentedd work not Included In the plane and specifications on this contract. NOTE: THIS CHANGE ORDER IS NOT EFFECTIVE UNTIL APPROVED BY THE CITY COUNCIL OR CITY MANAGER. Unless otherwise stated, rates for rental of equipment cover only such time as equipments actually used and no allowance will be made foridle time. Change requested by PUBLIC WORKS AGENCY The compensation both time and cost set forth in this change order comprises the total compensation due the Contractor, all Subcontractors, and all Suppliers for all work performed per this change order, including impact on unchanged work. By signing this change order, the Contractor acknowledges and agrees on behalf of himself, all Subcontractors, and all Suppliers, that the stipulated compensation includes payment for all work contained in this change order, plus all payment for interruption of schedules, extended field overhead, home office overhead, profit, delay, and all impact, ripple effect or cumulative impact on all other work under this Contract. The signing of this change order constitutes full mutual accord and satisfaction for all changes and work performed on this project, and that the time and cost paid per this change order constitutes the total equitable adjustments owed the Contractor, all Subcontractors, and all Suppliers for all work performed on this project. The Contractor on behalf of himself, all Subcontractors, and all Suppliers agrees to waive all rights, without exception or reservation of any whatsoever to file any further claim related to this project. TOTAL COST THIS CHANGE OROER: DECREASE $ 81 8,547.00 INCREASE By reason of this order the CONTRACT TIME completion will be adjusted as follows: None We the undersigned contractor have given careful consideration to the change proposed and hereby agree, ifthe proposal is approved, thalwe will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all service necessary for the work above specified, and will accept as till payment thereforthe prices shown above. Accepted, Date 11/18115 Contractor Paulus Enaineerina. Inc. By UNILATERAL Title Approval recommended by Approved by PUBLIC WORKS AGENCYEXECUTIVE D /RBcrOR CITYMANAGER Page 2 of 2 Exhibit 3 23A -9 Date Data PROJECT NO. 11 -6416 COST ANALYSIS City Council Authorized Expenditures Construction Contract $1,593,540.00 Construction Contingency $239,031.00 Maximum Authorized $1,832,571.00 Staff Approved Work Contract Quantities $1,593,540.00 Quantity adjustments ($818,547.00) Change Order 1 $333,990.49 Change Order 2 $178,184.15 PP #5 Total Approved Work $1,287,167.64 Contract Payments PP #1 $15,334.00 PP #2 $58,033.20 PP #3 $240,048.00 PP #4 $123,050.00 PP #5 $304,308.00 PP #6 $18,735.00 PP #7 (includes CO 1) $333,990.49 PP #8 Final (includes CO 2) $193,668.95 Total Approved Payments To Date $1,287,167.64 Exhibit 4 23A -10