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From: James Funk, Director
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Subject: Authorization to execute Change Order
No. One to contract with Matich Corporation for
Street Improvements of Del Rosa Drive and 3rd
O ,.... . .,- . .<< LStreet at the San Bernardino International
, , Airport per Plan No. 10494 and authorization for
i . , "', . · · rI the Purchasing Manager to increase the Project
contingencies.
MCC Date: 12/02/02
Development Services
Dept:
Date:
November 6, 2002
File: 7.30-14B
Synopsis of Previous Council Action:
05/5/97 Resolution No. 97-121 was adopted authorizing the Mayor to execute a Grant application to The United
States Department of Commerce, Economic Development Administration for the improvement at Mill Street from
Lena Road to Tippecanoe Avenue, Otto Gericke Drive and Art Townsend Drive.
06/5/97 Allocated $1,287,500 for Mill Street improvement in Account No. 242-362-5504-7106.
07/10/00 Allocated $634,800 for Art Townsend, Otto Gericke Drives realignment as part of the FY 2000/01 CIP
budget.
10/01/01 Rejected all bids for Street Improvements of Art Townsend Drive and Otto Gericke Drive per Plan No.
9479A and directed staff to rebid the project (newly defined).
02/19/02 Adopted Resolution approving Agreement for Professional Services with David Evans and Associates, Inc.
for design of the widening of Del Rosa Drive and Third Street at the San Bernardino International Trade Center.
06/17/02 Adopted resolution no. 2002-170 approving Amendment No. I to Agreement for Professional Services
with David Evans & Associates, Inc. for additional design services associated with the widening of Del Rosa Drive
and 3"' Street at the San Bernardino International Airport.
08/19/02 Adopted resolution no. 2002-276 awarding contract to Matich Corporation in the amount of $499,499.00
for Street Improvements of Del Rosa Drive and 3"' Street at the San Bernardino International Airport per Plan No.
10494 and authorized the Finance Director to establish a project budget in the amount $604,500.
Recommended Motion:
1. Authorize execution of Change Order No. One in amount of $79,769.84 to contract with Matich
Corporation for Street Improvements of Del Rosa Drive and 3rd Street at the San Bernardino
International Airport per Plan No. 10494.
2. Authorize the Finance Director to increase the project budget (and related reimbursement revenue) by
$25,000 to reflect additional funding needed. ~ ~
ames Funk
Contact person:
Ray Casey, City En~neer
Phone: 5125
Supporting data attached: StafIReport and CCO #1
Ward(s):
1
FUNDING REQUIREMENTS:
Amount:
$79769.84
Source:
(Acct. No's.) 242-362-5504-7339
Acct. Description:
Del Rosa Drive & 3rd Street Widening requirements
Finance:
1J1)..JDd-
Agenda Item No. IJ-.
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
1. Authorize execution of Change Order No. One in the amount of $79,769.84.16 to contract with
Matich Corporation for Street Improvements of Del Rosa Drive and 3'd Street at the San Bernardino
International Airport per Plan No. 10494.
2. Authorize the Purchasing Manager to increase the project contingencies by $25,000.00 from
$65,000.00 to $90,000.00.
Back~round:
Bids for the construction of Street Improvements of Del Rosa Drive and 3'd Street at the San Bernardino
International Airport per Plan No. 10494 were received on August 6, 2002, and a contract in the
amount of $499,499.00 was awarded to the lowest bidder, Matich Corporation on August 19, 2002.
During the design process preliminary potholing was done to locate the existing 6-inch fuel line in 3'd
Street which had been installed in the 1950's for the Air Force. Based on the potholing information it
was estimated that the line would be approximately 18 inches below the surface. The consultant design
engineer included a reinforced concrete cap over the line to protect it from traffic loads.
During construction the contractor, while doing the required and more comprehensive field potholing,
discovered that the depth and alignment of the jet fuel line was highly variable and, in fact, was only 11
inches below the surface of the finished pavement in some areas. Staff, in cooperation with Kinder
Morgan Energy Partners (the owner of the line), Matich Corporation and the Inland Valley
Development Agency (IVDA), determined that the best way to protect the line from traffic loads and
assure that the line can be reactivated in the future is to lower it to provide at least 36 inches of cover
over the line.
We feel the cost of this change order to Matich Corporation, in the amount of $95,950.00, is fair and
reasonable based on the work involved. A credit is being given, in the amount of $41,075.00, for
deletion of bid item no. 17 "Concrete Cap for Fuel Pipe Protection per Detail, and as directed by
Kinder Morgan" giving a net change order amount of $54,875.00.
The details of this change order are described in the attached Change Order No. One.
Financial Impact:
Funding for this change order is available in Account No. 242-362-5504-7339 (Del Rosa Drive & 3'd
Street Widening); however, the cost exceeds the $65,000.00 contingency amount approved by the
Mayor and Common Council as part of the contract award on August 19, 2002. Therefore, staff is
requesting that the Purchasing Manager be authorized to increase Purchase Order No. 996382 to
include contingencies in the amount of $90,000.00. Several other contractor claims remain unresolved,
therefore, and the revised contingency amount will be used to cover those claims.
Staff Report continued
The revised project costs are as follows:
Original bid amount.......................................................................... .$499,499.00
Contract change order no. one........................................................... 79,769.84
Revised Construction Contract cost...................................................... 579,268.84
Construction Inspection and Administration....................................... 40,000.00
Balance of contingencies after CCO #1 ($90,000 less CCO #1)............... 10,230.16
Revised Estimated Total Project Budget.............................................. $629,499.00
Approximately $436,730.00 remains in the budget from the original grant, which includes
funding from the Federal Economic Development Agency (FedEDA). The remaining balance
of approximately $192,769.00, which includes the cost of this change order, will be
reimbursed by IVDA. It is not anticipated that any City funds will be used to finance any
portion of these improvements.
Recommendation:
1. Authorize execution of Change Order No. One in the amount of $79,769.84 to contract with
Matich Corporation for Street Improvements of Del Rosa Drive and 3" Street at the San Bernardino
International Airport per Plan No. 10494.
2. Authorize the Finance Director to increase the project budget (and related reimbursement revenue)
by $25,000.00 to reflect additional funding needed.
DEVELOPMENT SERVICES DEPARTMENT
300 North "0" Street. San Bernardino' CA 92418-0001
Planning & Building 909.384.5057 . Fax: 909.384.5080
Public Works/Engineering 909.384.5111 . Fax: 909.384.5155
www.ci.san-bernardino.ca.us
'"
CONTRACT CHANGE ORDER NO. ONE
FILE NO. 7.30-14B
DATE: DECEMBER 2, 2002
PROJECT:
STREET IMPROVEMENTS OF DEL ROSA DRIVE AND 3an STREET
AT THE SAN BERNARDINO INTERNATIONAL AIRPORT PER PLAN
NO. 10494. FEDERAL EDA PROJECT NO. 07-49-02680.02.
TO:
MATICH CORPORATION
P.O. BOX 50,000
SAN BERNARDINO, CA 92412
GENTLEMEN:
You are hereby compensated for performing the additional work as follows:
ITEM NO: DESCRIPTION OF CHANGE COST
Lower approximately 1,900 linear feet of 6-inch fuel line in
1 3'. Street to provide 36 inches of cover below subgrade per $
attached letter from Matich Corporation dated October 24. 95,950.00
2002.
2 Credit for use of compacted fill instead of sand-cement slurry $ (3,150.00)
for backfill around the 6-inch fuel line.
Credit for deletion in its entirety of original bid item no. 17
3 "Concrete Cap for FUEL PIPE PROTECTION per Detail, $ (41,075.00)
and as directed by Kinder Morgan" .
Charge for fabricated reinforcing steel that could not be
4 returned for credit after deletion of the Concrete Cap. See $ 1,092.41
attached credit voucher from RMD Rebar. Inc. dated
10/29/02.
5 Extra Work as described in the table in the following pages. $ 26,952.13
TOTAL COST CCO #1 $ $79,769.54
Change Order No. One
Street Improvements of Del Rosa Drive and 3'd Street at the San Bernardino International Airport.
JUSTIFICATION:
Item 1:
During the construction of this street widening project it was discovered that a 6 inch jet fuel line,
which was constructed in 3'd Street in the 1950' s, would only be 11 inches below the surface of the
finished pavement, as designed, and will need additional protection to prevent damage to the line from
traffic loads. A reinforced cap had been previously designed to help protect the line but that design
required the line to be at least 18 inches below the surface. The fuel line is owned by Kinder Morgan
Energy Partners of Orange, CA and was used for approximately 40 years to convey jet fuel from
Bloomington to Norton Air Force Base when the Base was active. The line was deactivated in 1994
when the Air Force closed Norton Air Force Base and has not carried fuel since that date.
In order for significant levels of flight activity to resume at the San Bernardino International Airport
(SBIA) the line will need to be reactivated. Currently fuel is being hauled in by tanker truck, however,
the SBIA is negotiating with a user who will require quantities of fuel which cannot be practically
delivered by tanker truck. Kinder Morgan Energy Partners has indicated alarm at the shallowness of
the line and has insisted that, prior to completion of the street work, measures be taken to assure that
the line will have protection equivalent to 36 inches of cover (compacted dirt over the line).
Staff investigated two alternatives for protecting the line: 1) leaving the line in place and installing an
inverted u-shaped reinforced concrete cap over the line to convey traffic loads to a level below the line;
and 2) lowering the line to provide 36 inches of cover below subgrade. A proposal for a change order
based on the two alternatives was obtained from Matich Corporation. See the attached letter from
Matich Corporation dated October 24, 2002. Based on the prices for each alternative it was determined
to be most cost effective to lower the line to provide 36 inches of cover below subgrade.
Item 2:
Matich's proposal for lowering the 6-inch fuel line included an item for installation of sand-cement
slurry in the bedding zone of the pipe. At a field meeting with Phil Vasquez of Kinder Morgan Energy
Partners, we were advised that compacted native soil could be used for backfilling the pipe and the
sand-cement slurry was not required. Matich's subcontractor, Doty Bros., elected to eliminate the
sand-cement slurry and use compacted native backfill instead. Based on staff calculations the value of
the sand-cement slurry is $3,150.00, therefore, a credit is being taken in that amount.
Item 3:
Due to the lowering of the 6" jet fuel line, original bid item no. 17 "Concrete Cap for FUEL PIPE
PROTECTION per Detail, and as directed by Kinder Morgan" was no longer needed and was deleted
in it's entirety and a credit taken in the full bid amount of $41,075.
Item 4:
Prior to the deletion of bid item 17 "Concrete Cap for FUEL PIPE PROTECTION per Detail, and as
directed by Kinder Morgan" the contractor had fabricated some bent bars as required by the contract.
Since these bars were specially bent to be used in the concrete cap, the contractor could not reuse the
bars elsewhere and the bars had to be disposed of as scrap metal. Attached is a is a summary invoice
from RMD Rebar, Inc. dated 10/29/02, indicating that some credit was given for the straight bars that
were returned but other charges offset the credit resulting in an additional cost as indicated.
2
Change Order No. One
Street Improvements of Del Rosa Drive and 3'" Street at the San Bernardino International Airport.
Item 5:
This item consists of extra cost to accomplish work, which was not identified in the original
construction contract:
DescriDtion of Extra Work Cost
Removal of extra large fence post footings not shown on plans per
1 attached Extra Work reports dated 09/25/02, 09/27/02, 10/08/02 $4,163.74
and 10/25/02.
Removal of concrete under existing pavement at the intersection of
2 Del Rosa Drive and Art Townsend Drive. See attached Extra $1,745.30
Work report dated 09/27/2002.
3 Additional potholing for the jet fuel line as directed by the $1,294.69
Engineer. See Extra Work report dated 10/08/02.
Additional grading on 3'" Street due to survey correction - Remove
4 and replace approximately 150 cubic yards of fill per attached $4,465.32
Extra Work report dated 11-07-02.
5 Additional work due to survey correction. See attached Extra $2,081.78
Work report dated 10/10/02.
6 Additional grading on 3'" Street as directed by the Engineer. See $1,899.32
attached Extra Work report dated 10/24/02.
Remove concrete pavement in Del Rosa Drive for installation of
7 irrigation service lateral (Stanley Yelich, subcontractor) per $2,558.71
attached Extra Work report dated 10/11/02.
Additional paving mobilization costs due to delays in moving the
fuel line. The paving on Del Rosa Drive had to be done on a
8 separate date from the paving on 3'" Street resulting in additional $2,992.74
mobilization costs. See attached Extra Work report dated
10/31/02.
9 Remobilize grading equipment per attached Extra Work report $632.50
dated 11-07-02.
Additional cost to maintain traffic control as directed by the
10 Engineer. See attached Extra Work report for period 10/10/02 $2,554.00
through 10/23/02.
11 Additional work connecting irrigation system as directed by the $996.53
Engineer per attached Extra Work report dated 11/19/02.
12 Additional work by electrical subcontractor (Sierra Pacific) and $1567.50
remobilization. See attached Extra Work renort dated 10/24/02.
TOTAL COST ITEM 5 $26,952.13
3
Change Order No. One
Street Improvements of Del Rosa Drive and 3'" Street at the San Bernardino International Airport.
SUMMARY OF CONTRACT COSTS
The estimated revised contract cost is as follows:
Original Bid Amount ......................................................................................
Increase due to CCO HI
.................................................................................
Total Project Cost ......................... ....... .................................... ..... ..................
$ 499,499.00
$ 79,769.54
$ 579,268.54
Additional time to complete Contract due to this Change Order ............... 10 Working Days
This change order represents 16.0% of the original contract amount and the amount of the change order
exceeds the contingency amount approved as part of the contract award by the Mayor and Common
council at their regular meeting of August 19, 2002. On December 2, 2002, a request was submitted to
the Mayor and Common Council to increase the contingency amount to cover the cost of this change
order.
The changes to the work contemplated by this Change Order do not exceed 25 % of the original contract
amount. 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.
MATICH CORPORATION
CONTRACTOR
Accepted
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES
Approved
By:
By:
Title:
JAMES FUNK
Director of Development Services
Date:
Date:
Approved by Mayor and Common Council
Date: December 2,2002
Item No.
4
r- -
I
Il\\U t:; .
October 24, 2002
mJ~o~~~:~[D)
City of San Bernardino
300 North "D" Street
San Bernardino, Ca 92418-0001
Ci~Y OF SAN BERNAROI~tO
DeVelOPMENT SERVIC~S
DEPARTMENT -.
Subject:
Street Improvements of Del Rosa Drive and 3rd Street at the San Bernardino
International Airport Federal EDA Project No. 07-49-02680.02
Fuel Line Protection
Re:
Attention:
Michael Grubbs
Gentlemen:
At our meeting on October 17, 2002 Matich Corporation was asked to investigate two
options for protecting the exiting fuel line in 3rd Street.
One option requested by the agency was to construct a protective cover as provided by
David Evans and Associates Inc. The unit price to construct this option would be $75.50
per lineal foot or $143,450.00. The second option as requested by the agency was to
low~r the fuel line and provide three (3) foot of cover from subgrade. Matich Corporation
contacted ARB and Doty Bros. Pipeline Contractors, both Kinder Morgan contractors,
and requested a price to lower the existing fuel line. ARB's unit price is $80.50 per lineal
foot, or $ I 52,950.00. Doty Bros. Pipeline Contractors' unit price to is $50.50 or
$95,950.00.
The prices for the second option included lowering the existing fuel line as is. The scope
includes; excavation, Fab & Hydro offsets to Kinder Morgan specs, cut exiting line and
offset to new location, tie in offsets each end~urry backfill 12" above pipe~ackfill
remainder with native material. The above prices do not include dealing wifu any
hazardous or contaminated materials; this would be addressed separately if encountered.
The above prices do not include special permits, engineering, inspection or City fees or
charges.
We await the City's direction. As of today Doty Bros. Pipeline Contractors is available to
begin as early as Monday, October 28,2002. If you have any questions please give me a
call.
~ispectfully ,
MA nCH CORPORA nON
W~
Eugene P. Boisvert
Vice President
/' j?G"
! V -rh
"'& ..--
P.O. BOX 50,000, SAN BI!IINARDINO, CA 92412 . 1371 SOUTH LA CAD~NA DIIIVI!, COLTON. TI!LI!PHONI! (909) 825-9100 . FAX (909) lIZ4-23BO
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CH
RPORATION
P.O. Bcut 50,000 San Bemardino, CA 92-612
Ph_: 909-825-9100 FlIll: 909-825-1780
November 15,2002
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418
Attention: Chris Hayner
Subject:
3n1 and Del Rosa
Chris:
Per our previous discussions, Doty Bros will be issuing a credit 0[$3150.00 to the City of San
Bernardino for not nsing slurry as bacldill when the jet fuel line was lowered on 3n1 Street west
of De I Rosa for approximately 1900 Lineal Feet. .
If you have any further questions please do not hesitate to call me.
Sincerely,
Matich Corporation -/
~.t
1\
-;EO: w"'w :lJc
~T7: oJ.,.:; ~ll': ZC:-3Z-1:IC
RMD REBAR INC.
2280 S. RIVERSIDE AVE
BLOOMIMGTON, CA. 92316
909-874-2811
Invoice No. CREDIT
INVOICE -
ZIP 924;;1 -=
_I Dale
Order No.
Rep
FOB
Customer
Name
Address
CIIy
Phone
MATICH CORPORATION
'i>.O."BOX50,OOO .."--.
SAN BERNARDIN! ---siiite CA ..
10/2912002
DEl ROSA
JET Fuer--
"iNCASEMENT
.-..'
c:iti :=== .:=: DescriPtion'.
6246 6246 Ibs fabencated steel . .
-1 CRldII #4 x30' credit
1 restocking fee #4 x 30'
.1 credn for 1245 # 4 trans X 2' 8"
.1 lI1!ighl end accessories credit
. "T1i"itprice 1_" TorAi.-
- .' ~ii.j350 '--s2.'092.41
i $830.00 ($830.00)
i 598.00 $98.00
$78.00 ($78.00)
$190.00 ($190.00)
J
$;;092.4;-
$0.00
SubTotal
Shipping & Handling
Taxes State
'-.
Payment Details
@ Cash
o Check
o Credit Card
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$1,092.41
Name
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