HomeMy WebLinkAbout14-Development Services
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CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From:
James Funk, Director
FileNo.
4.7255
Subject: Authorization for the Director of Development
Services to Execute Change Order No. Three to
Contract with Guzman Construction Company
for Storm Drain Improvements in Rialto Avenue
from Rancho A venue to Pennsylvania A venue
(SD04-09) and to install Palm Avenue Catch
Basin, per Plan No. 10311 and authorization for
the Director of Finance to amend the FY 05/06
Budget and cancellation of the contract for the
reasons explained in the staff report.
MCC Date: November 21, 2005
ODePt:
Date:
Development" Services
November 3, 2005
o
Synopsis of Previous Council Action:
09/15104 Approved 2004/2005 CIP. (SD04-09) Rialto Avenue Storm Drain.
10/04/04 Resolution 2004-309 awarding contract to Guzman Construction Company for Storm Drain
Improvements in Rialto Avenue from Rancho Avenue to Pennsylvania Avenue (SD04-09). per Plan.
No.1031!.
02/07/05 Authorized the Director of Development Services to execute Change Order No. One in the amount
of $96.970.80 to contract with Guzman Construction Company for Storm Drain Improvements in
Rialto Avenue Irom Rancho A venue to Pennsylvania A venue and to install Palm Avenue Catch
Basin; and authorized the Director of Finance to appropriate $39,000 from the Storm Drain fund
balance to account number 248-368-5504-7255 (Rialto Avenue Storm Drain) and appropriate
$49,000 from the Storm Drain fund balance to account number 248-368-5504-7553 (Palm Avenue
Storm Drain and Catch Basin).
10/03/05 Authorized the Director of Finance to amend the Fiscal Year 2005/2006 budget by transferring
515.000 from Account No. 248-368-5504-7316 "SD04-08 State Street Storm Drain"to Account No.
248-368-5504-7255 "Storm Drain in Rialto A venue from Rancho A venue to Pennsylvania A venue
(SD04-09);"and authorized the Director of Development Services to Execute Change Order No. Two
in the amount of $14.398.39 to contract with Guzman Construction Company for Storm Drain
Improvements in Rialto Avenue from Rancho Avenue to Pennsylvania Avenue (SD04-09) and to
install Palm Avenue Catch Basin, per Plan No. !O31!.
Recommended Motion:
!. Authorize the Director of Finance to amend the Fiscal Year 2005/2006 budget by transferring $134,000
from Account No. 248-368-5504-7316 "SD04-08 State Street Storm Drain" to Account No. 248-368-5504-
7255 "Storm Drain in Rialto Avenue from Rancho Avenue to Pennsylvania Avenue (SD04-09)"; and
2. Authorize the Director of Development Services to Execute Change Order No. Three in the amount of
$114,000 to contract with Guzman Construction Company for Storm Drain Improvements in Rlalto Avenue
from Rancho Avenue to Pennsylvania Avenue (SD04-09) and to install Palm Avenue Catch Basin, per Plan
No. 10311: and
3. That the Mayor and Common Council cancel the Contract with Guzman Construction Company for
construction of Storm Drain Improvements in Rialto A venue from Rancho A venue to Pennsylvania
A venue (SD04-09) per Plan No. !O311 for the reasons explained in th~ staff report. \..,
1:"-'l\.>J'1 ~~,-x:\......-
( James Funk
Contact Person: Michael Grubbs, Eng. Manager/Field Engineer
Mark Lancaster, Deputy Dir./City Engineer
Supporting data attached: Staff Report, CCO #3
O FUNDING REQUIREMENTS: Amount: $134.000.00
Source: (AcctNo.)
Acct. Description: SD04-09
Finance:
Phone:
Ward:
5179
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248-368-5504-7255
Rialto Avenue Storm Drain,
Agenda Item No.
CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
Staff Report
Qsubiect:
Authorization for the Director of Development Services to Execute Change Order No. Three to Contract
with Guzman Construction Company for Storm Drain Improvements in Rialto Avenue from Rancho Avenue
to Pennsylvania Avenue (SD04-09) and to install Palm Avenue Catch Basin, per Plan No. 10311 and
authorization for the Director of Finance to amend the FY 05/06 Budget and cancellation of the contract for
the reasons explained in the staff report.
Backl!round:
On October 4, 2004, the Mayor and Common Council adopted Resolution 2004-309 awarding a contract to
Guzman Construction Company for Storm Drain Improvements in Rialto Avenue from Rancho Avenue to
Pennsylvania Avenue (SD04-09), per Plan No. 10311.
A notice to proceed was given to Guzman Construction Company on December 13, 2004.
On February 7, 2005, Change Order No. I was approved in the amount of $96,970.80 to compensate the
contractor for delays due to unrecorded utilities and for the addition of a storm drain in Palm A venue to
protect the new Verdemont Fire Station.
On October 3, 2005, Change Order No.2 in the total amount of $14,398.39 was approved for various items
as follows: Breaking out and removing an existing pipe stub, chipping out of an existing manhole to
Oflowline, additional work related to the installation of a storm drain system for the new Verdemont Fire
Station located on Palm Avenue, breaking out a concrete obstruction which was discovered after start of
construction, providing slack in a Verizon duct by excavating a distance in each direction, removal of a 6-
inch steel pipe that was discovered after start of construction, removal of some temporary asphalt concrete
pavement, and re-routing of an existing street light conduit that was found to conflict with the storm drain.
This proposed Change Order No.3 is to compensate the contractor for additional costs incurred due to delays
awaiting the relocation of a 900-pair Verizon communication cable which was discovered to be in conflict
with the alignment of the proposed storm drain.
Verizon was notified of the conflict and directed to relocate in November of 2004, however, due to the cost
of the work, approval had to be obtained from Verizon headquarters. After significant follow up effort by
City staff, the Verizon local office finally received approval to proceed in late June of2005. The project was
bid out in June 2005 and construction was started in July of 2005.
During the early part of the delay, Guzman Construction Company was kept busy with Contract Change
Order No. One, which provided for the installation of a storm drain lateral on Palm Avenue for the new
Verdemont Fire Station. It was anticipated that Verizon would complete their cable relocation work during
the time Guzman Construction was involved in the installation of the Palm Avenue storm drain.
Guzman Construction completed the Palm Avenue storm drain on July 18, 2005, and expected to resume
work on Rialto Avenue and Rancho Avenue storm drain project. Unfortunately, the complexities involved in
relocating and splicing the 900-pair Verizon communication cable were much greater than originally
Oanticipated by Verizon. Guzman Construction Company was requested by City staff to stand by based on
estimates by Verizon that the work would be completed in a few weeks. Unfortunately, the delays continued
through September 2005.
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11114/05 8:37 AM ",
CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
Staff Report (Continued)
o During the standby time, Guzman Construction Company was continuing to incur additional direct costs for
maintaining traffic control and steel plates used to bridge an open excavation. Being a small company,
Guzman Construction had most of its bonding capacity tied up on this project and was unable to bid other
public works projects. This resulted in the idling of much of its company-owned equipment. As a result,
Guzman Construction Company submitted a bill to the City in the amount of $3, I 74.98 per day for its direct
cost for traffic control, steel plate rental and the indirect cost associated with its company-owned equipment
being required to remain idle. Guzman Construction Company's bill for cost associated with its idle
equipment was based on local rental rates for the equipment. Staff reviewed the costs compared to Caltrans
standard rental rates for similar types of equipment.
After some negotiation at a meeting on October 5, 2005, between City Staff and Guzman Construction
Company, Ralph Guzman and Mark Lancaster agreed that $2,000 per day is a fair and reasonable price tor
the direct and indirect costs incurred by Guzman Construction Company during the standby period. Mr.
Guzman and Mr. Lancaster also agreed that October 5, 2005, would be the last day of standby and that
Guzman Construction would restore the affected streets to a safe condition and the contract would be
cancelled. A letter dated October 5, 2005, from Mark Lancaster to Guzman Construction Company
confim1ed that City staff was recommending cancellation of the contract as of October 5, 2005.
Staff counted 57 working days between July 18, 2005 and October 5, 2005, during which time Guzman
Construction was required to stand by. Therefore, staff is recommending that the contract be cancelled and
O that Guzman Construction Company be paid a total of 57 day x $2,000 per day = S 114,000 as compensation
for direct and indirect costs incurred due to being required to stand by.
Staff believes that Verizon is 100% responsible for the standby cost incurred"by the City due to delays by
Verizon completing the relocation of their communication cable. We will be submitting a request for
reimbursement of the full $114,000 to Verizon.
Staff is proposing to re-bid the project upon completion of the relocation work by Verizon. We have no firm
date for the completion of Verizon's work at this time, but expect to be able to re-bid the project early next
year. The cost to complete the project is estimated to be an additional $50,000. A funding source for this
work will be identified at time of award of the new contract.
Financial Impact:
The required project funding requirement is as follows:
Original bid amount. ....... ...... .............. ....... ..... ......... $ 74,090.00
Contract Change Order No. One .................................. $ 96,970.80
Contract Chan2e Order No. Two .................................. $ 14,398.39
Contract Change Order No. Three........................ ......... $ 114,000.00
Revised Construction Contract Cost .............................. $ 299,459.19
Staff is recommending that $114,000 to cover the cost of Change Order No.3 be transferred from Account
O No. 248-368-5504-7316 "SD04-08 State Street Storm Drain". The City is paying SANBAG for its share
of the cost of State Street Storm Drain. which is currently under construction. Sufficient funds are
available for this transfer from the FY 2005/06 carryover in Account No. 248-368-5504-7316. After
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11/14105 8:37 AM
CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
Staff Report (Continued)
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completion of the transfer, sufficient funds will remain in the State Street Storm Drain account to meet all
contractual obligations with SAN BAG for the construction of the State Street Storm Drain.
The Director of Finance has advised that the account is currently $20,000 short. Therefore, the total transfer
necessary to close out the account is $134,000.
Recommendation:
1. Authorize the Director of Finance to amend the Fiscal Year 2005/2006 budget by transferring
$134,000 from Account No. 248-368-5504-7316 "SD04-08 State Street Storm Drain" to Account No.
248-368-5504-7255 "Storm Drain in Rialto Avenue from Rancho Avenue to Pennsylvania Avenue
(SD04-09)"; and
2. Authorize the Director of Development Services to Execute Change Order No. Three in the amount of
$114,000 to contract with Guzman Construction Company for Storm Drain Improvements in Rialto
Avenue from Rancho Avenue to Pennsylvania Avenue (SD04-09) and to install Palm Avenue Catch
Basin, per Plan No. 10311; and
3. That the Mayor and Common Council cancel the Contract with Guzman Construction Company for
construction of Storm Drain Improvements in Rialto Avenue from Rancho Avenue to Pennsylvania
A venue (SD04-09), per Plan No. 10311, for the reasons explained in the staff report.
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11/14/05 8:37 AM
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DEVELOPMENT SERVICFS DEPARTMENT
300 North ''0'' Street. San Bernardino. CA 92418-0001
Planning &: Building !109.384.50S7 . Fax: 909.384.5080
Public WorksIEngiDeering !lO9.384.5111 . Fax: 909.384.5155
www.sbcity.org
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CONTRACT CHANGE ORDER NO. THREE
FILE NO. 4.7255
PROJECT:
TO:
GENTLEMEN:'
W.O. #7255
DATE: NOVEMBER 21, 2005
STORM DRAIN IMPROVEMENTS PROJECT IN RIALTO AVENUE
FROM RANCHO A VENUE TO PENNSYLVANIA AVE (SI>04-09) PER
PLAN NO. 10311.
GUZMAN CONSTRUCTION COMPANY
1264 S. Waterman Avenue
San Bernardino, CA 92408
You are he~~by compensated for performing the additional work as follows:
ITEM NO: DESCRIPTION OF CHANGE UNIT COST COST
3-1 Standby time for utility delays $ 57 days @ $ 114,000.00
(57 davs @ $2,000/dav) $2,000/day
Total Cost For Contract Change Order #3 $ 114,000.00
JUSTIFICATION
Standby time for utility delays
3-1 Standby time for delays caused by Verizon relocation of 900 pair cable. Total standby
time is 57 working days.
SUMMARY OF CONTRACT COSTS:
The estimated revised contract cost is as follows:
Original bid amount ............................................................................... $
Contract Change Order No. One ................................................................ $
Contract Change Order No. Two ................................................................ $
Contract Change Order No. Three ............................................................... $
Revised Construction Contract Cost ....................................... ..................... $
74,090.00
96,970.80
14,398.39
114,000.00
299,459.19
Additional time to complete contract due to this change order.............................. 60 days
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Change Order No. Tbree
Storm Drain Improvements Project in Rialto Avenue from Rancho Avenue to Pennsylvania Ave (5004-09) Per Plan No.
1031!.
GUZMAN CONSTRUCTION COMPANY
Accepted
By:
Title:
Date:
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES
Approved
By:
JAMES FUNK
Director of Development Services
Date:
APPROVAL BY CITY COUNCIL
Item No.
Approval Date: November 2 I. 2005
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