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HomeMy WebLinkAbout12-Development Services Date: CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Subject: Authorization to execute Change Order No. One to contract with Nikola Construction Corporation d. b.a. Nikola Corporation for Sewer Improvements on Court Street between "E" Street and "D" Street per Plan No 10561 and authorization for the Finance Director to amend the FY 02/03 Budget. Development Services From: James Funk, Director Dept: FIle: 1. 7314 ORJGINAL April 22, 2003 MCC Date: 05/05/03 Synopsis of Previous Council Action: 07/15/02 Allocation of $80,000.00 in the 2002/03 Capital Improvement Program (CIP) sewers: Court Street between "E" Street and "D" Street. (Account No. 245-365-5504-7314). 02/18/03 Adopted Resolution No. 2003-45 awarding contract to Nikola Construction Corporation d.b.a. Nikola Corporation for sewer improvements on Court Street between "E" Street and "D" Street per Plan No 10561 Recommended Motions: 1. Authorize the Director of Finance to amend the FY 02/03 budget by appropriating $50,000 from the Sewer Line Construction Fund's available fund balance to account number 245-365- 5504-7314 (Court Street Sewer Main Replacement from "E" Street to "D" Street). 2. Authorize execution of Change Order No. One in the amount of $50,565.27 to contract with Nikola Construction Corporation, d.b.a. Nikola Corporation for sewer improvements on Court Street between "E" Street and "D" Street per Plan No. 10561. ~k~. Contact person: Michael Grubbs, Field Engineer Phone: 5179 Supporting data attached: Staff Report and CCO #1 Ward(s): 1 FUNDING REQUIREMENTS: Amount: $50 565 27 Source: (Acct. No's.) 245-365-5504-7314 Acct. Description: Court Street Sewer Main Replacement from "E" Street to "D" Street Finance: Council Notes: S/~/()3 Agenda Item No. /2. CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subject: Authorize the execution of Change Order No. One to contract with Nikola Construction Corporation, d.b.a. Nikola Corporation, for sewer improvements on Court Street between "E" Street and "0" Street per Plan No. 10561, and authorize the Finance Director to amend the FY 02/03 Budget. Back~round: Bids for sewer improvements on Court Street between "E" Street and "0" Street per Plan No. 10561 '" ere received on December 3, 2002, and a contract in the amount of $56,562.80 was awarded to the IGwest bidder, Nikola Corporation on February 18, 2003. During the construction of this project, certain changes were necessary to assure a satisfactory finished project. These changes are as follows: 1. During the design process the sewer main in Court Street was video inspected and two sags were found in the existing line approximately mid-block between "E" Street and "0" Street. Staff designed a replacement sewer main to eliminate the sags. After start of construction, Public Services performed some additional video inspection and found another low spot in the existing line near Molly's Cafe. The newly discovered low spot was downstream of our construction project; therefore, it was necessary to extend the sewer an additional 123 feet easterly to provide positive flow to a manhole in "0" Street. This change was necessary to correct the reverse grade condition that was discovered by the second video inspection. Staff directed the contractor to proceed with the extension on an extra work basis to avoid delaying the contractor and to minimize the possibility offensive odors would still exist after completion of construction. 2. Delays and additional potholing resulted in extra cost to the contractor due to conflicts with unanticipated subsurface conditions. The primary cause of the conflicts was underground utilities lines that were not identified during the utility search which was conducted prior to bidding. Additionally, concrete pavement was encountered underneath the asphalt pavement resulting in additional cost of the contractor to break through the concrete. These problems are commonly encountered while excavating in downtown streets and are difficult to identify during the design process. This change order, in the amount of $50,565.27, represents a reasonable cost for the items of extra work identified in the attached Change Order No. I. This change order exceeds 25 % of the contract amount, therefore, in accordance with Section 3-2.1 "Changes initiated by the Agency" of the Standard Specifications, changes exceeding 25% of the contract amount "shall be by written Supplemental Agreement between the Contractor and Agency, unless both parties agree to proceed with the change by Change Order". The Contractor's signature on the attached change order indicates its acceptance of the changes and the prices indicated. 2 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Financial Impact: There is approximately $7,500 currently available for this project (account 245-365-5504-7314). The cost of this change order is estimated to be approximately $56,565, which is $43,065 more than available. A budget amendment of $50,000 is requested to cover the remaining $43,065 needed for this change order. The remaining $6,935 will cover minor future project costs such as an additional anticipated change order of less than $5,000 and inspection and testing costs. The $50,000 will be appropriated from the Sewer Line Construction Fund balance. Recommendation: I. Authorize the Director of Finance to amend the FY 02/03 budget by appropriating $50,000 from the Sewer Line Construction Fund's available fund balance to account number 245-365- 5504-7314 (Court Street Sewer Main Replacement from "E" Street to "D" Street). 2. Authorize execution of Change Order No. One in the amount of $50,565.27 to contract with Nikola Construction Corporation, d.b.a. Nikola Corporation for sewer improvements on Court Street between "E" Street and "D" Street per Plan No. 10561. 3 DEVELOPMENT SERVICES DEPARTMENT 300 North "0" . San Bernardino. CA 92418-0001 Public Works/Engineering 909.384.5111. Fax: 909.384.5155 San Bernar IDO CONTRACT CHANGE ORDER NO. ONE FILE NO. 3.7314 DATE: MAY 5,2003 PROJECT: SEWER IMPROVEMENTS ON COURT STREET BETWEEN "E" STREET AND "D" STREET PER PLAN NO 10561. TO: NIKOLA CORPORATION 4770 VON KARMAN AVENUE NEWPORT BEACH, CA 92660 GENTLEMEN: You are hereby compensated for performing the additional work as follows: ITEM NO: DESCRIPTION OF CHANGE COST Furnish all labor, equipment and material to extend the 1-1 sewer an additional 123 feet easterly in Court Street to $ 21,962.75 provide positive flow to a manhole in "0" Street per attached nronosal from contractor received 04/10/03. Delay and extra cost encountered due to unknown subsurface conditions encountered while trenching for the new sewer 1-2 line per attached letter from contractor dated 04/14/03, and $ 28,602.52 attached Extra Work reports dated 03/18/03 through 04/09/03. TOTAL COST CCO #1 $ 50,565.27 JUSTIFICATION: Item No. 1-1 The purpose of this project was to remove a sag in an existing sewer main in Court Street. After start of construction another low spot was discovered in the existing sewer system adjacent to Molly's Cafe. That portion of the sewer was not indicated on plans to be replaced as part of this contract. After reviewing the new information, staff concluded that in order to minimize the possibility of bad odors the new sewer needed to be extended 123 feet east in Court Street to connect to an existing sewer manhole in "D" Street. We feel this price is fair and reasonable for the work involved. Change Order No. One Sewer Improvements on Court Street between "E" Street and "D" Street Per Plan No 10561. Under the provisions of Section 3-2.2.3 "Agreed Prices" of the Standard Specifications, where modifications are made to items not covered by Contract unit prices, payment for the changes may be determined by agreement between the contractor and Agency. We feel the quoted price for this work is fair and reasonable. Item No. 1-2 After start of excavation for the new sewer, the contractor encountered subsurface conditions that had not been discovered during the design process. These subsurface conditions included unknown underground utilities that were not identified during the utility search conducted prior to receipt of bids. In several instances the unknown utility encountered could not be readily identified. The contractor was required to stand-by while staff contacted the various utilities to assist in identification and disposition of the unknown utility. This resulted in delay cost and extra work costs to the contractor for which he is entitled to additional compensation under the provisions of Section 5-5 "Delays" of the Standard Specifications. The cost of this portion of the work was determined by tracking time and materials. The details of this extra cost is shown in the attached letter from contractor dated 04/14/03, and attached Extra Work reports dated 03/18/03 through 04/09/03. Under the provisions of Section 3-3 "Extra Work" of the Standard Specifications, where the price of extra work cannot be agreed upon, the Agency will pay for the extra work based on the accumulation of actual costs incurred by the Contractor. This method of compensating the Contractor for Extra Work is commonly known as Time and Materials (T & M). SUMMARY OF CONTRACT COSTS The estimated revised contract cost is as follows: Original bid amount ...... ............................................ ........................ $56,562.80 Contract change order no. one ._.............................. ........................... 50,565.27 Revised Construction Contract cost... .......................... ..................... $107,128.07 Additional time to complete Contract due to this Change Order ...............15 Working Days The amount of this change order is 89.4 % of the original contract amount and the total amount of all change orders to date is $50,565.27. The total amount of all change orders to date exceeds the contingency amount approved by the Mayor and Common Council as part of the award of the contract on February 18, 2003, therefore, a supplemental budget appropriation will be necessary. The changes to the work contemplated by this Change Order exceed 25 % of the original contract amount. The Contractor's signature on this document indicates his acceptance of this modification to the contract as a change order rather than a supplemental Agreement as provided by Section 3-2.1 "Changes initiated by the Agency" of the Standard Specifications 2 u..mce 0._ No. Ooc Sewer ~eDM:Db OD Coart SInet ~ "E" SIreet lIIld "D" Street Per PIau No 10561. NIKOLA CORPORAnON ~ CITY or SAN BUNUDlNO DEVELOI'MENT SEllVlCES Approved By: lAMES FUNK Direcroc of Developmelll SelVices Tide: ?;e~-.l~."C^,~~ Dale: ;/2 :y{,..; Dale: Approved by Mayor aad ('nmmon Counc;iI Dale: May 5, 2003 Item No. ) { 1<L" s. NlKOLA SEWER & STORM DRAIN CONTRACTOR CA LIC. # 813357 ffd&@&oIY/@ 4PR I 02003 W Cn'y OF ,~_" DEVELOpl:i~; 3ERN Of 1'.oNr S<~4P.DINO P4Rr"'f;;;V1CES CORPORATION PROPOSAL FOR COURT STREET SEWER IMPROVEMENT ADDITIONAL WORK WORK ORDER NO. 7314 Description: Extend new 8" sewer from station 5+60 approximately 123 feet to existing sewer manhole at the intersection of "0" street and Court Street (as discussed wI Mr. Bill Stevens on April 8, 2003). ITEM EST. DESCRIPTION UNIT TOTAL NO. QUAN. UNIT OF ITEMS PRICE PRICE 1 LS ADDITIONAL OVERHEAD GENERAL LIABILITY EQUIPMENT INS., ETC. LS $ 3,214.00 2 1 LS TRAFFIC CONTROL LS $ 2,500.00 55 I Z,lfTl8?r 3 'J"I.. LF INSTALL 8' VCP MAIN $ 45.25 S 3,484.25 4 46 LF INSTALL 8" VCP MAIN $ 95.00 $ 4,370.00 I 5 ). EA INSTALL SEWER MAN- /I ~3'i'o !'!!i!- HOLE ON EXISTING SEWER $3,390.00 S €i,7&9.99 6 28 CY IMPORTED SLURRY BACKFILL AND EXPORT AND DUMP FEES $ .75.00 $ 2,100.00 I 7 ;& LS DEMOLITION OF 2 1/ 3/qoO~ EXISTING MANHOLES AT "D" AND COURT ST. $3,900.00 $ 7.899.99 - i( 2'/'''2 ~ TOTAL COST.... 0 0 0 0" 0 0........ 0........ 0..... o. o. o. 0 0 0 0 0 0 0" 0 0....0000 ...... ....$ 39,248.25 (949) 794-1868 . FAX (949) 794-1870 ceo #1 -ITEM 1-1 NIKOLA CORPORATION SEWER & STORM DRAIN CONTRACTOR CA LlC #813357 Project Letter - NCC - 002 April 14, 2003 Michael D. Wolff Construction Engineer City of San Bernardino 300 North "D>> Street San Bernardino, CA 92418 RE: CHANGE CONDITIONS - EXTRA WORK- TIME AND MATERIALS COURT STREET SEWER PROJECT - No. 10561 Dear Mr. Wolff, As you are aware, Nikola Corporation has experienced several different changes in field conditions not mentioned in the project specifications. These changed conditions have caused Nikola Corporation delays, downtime and an overall negative impact to the progress of construction. Attached you will find a detailed description of each occurrence documented in writing daily. The following is a summary of the cost of extra equipment, labor and material incurred by Nikola Corporation: Report No. 1 2 3 4 5 6 7 8 10A 10 11 12 13 14 15 16 17 General Description unmarked/unidentified utility line(s) unmarked/unidentified utility line(s) unmarked/unidentified utility line(s) unmarked Edison utility line mis-marked utility line unmarked utility line abandoned utility lines incorrect elevation of existing sewer Date 3/18/03 3/19/03 3/21/03 3/24/03 3/25/03 3/26/03 3/27/03 3/31/03 3/18/03- 3/31/03 unidentified utility in way of new main line 3/18/03- 3/31/03 6>> of PCC concrete (main line) - - 4/01/03 Time and Material (Potholing) 4/02/03 Time and Material (Potholing) 4/03/03 Time and Material (Potholing) 4/04/03 Stand-by for re-design by City 4/07/03 Stand-by for re-design by City 4/08/03 Stand-by for re-design by City 4/09/03 Time and Material (Demo) Total $ 741.28 $ 295.87 $ 562.65 $ 313.85 $ 529.88 $ 2,159.23 $ 1,719.74 $ 1,413.02 $ 1,854.59 $ 4,858.76 $ 3,190.58 $ 3,202.31 $ 3,112.13 $ 682.69 $ 682.69 $ 682.69 $ 2,600.56 Total Extra Work Due to Changed Conditions......... ......................$28,602.52 ceo #1 -ITEM 1-2 o CO CO N G) .!!! z E 0,2 i=~=~ III CD 0.... 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