HomeMy WebLinkAbout30 Development ServicesCITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
From: MICHAEL E. HAYS, Director
Dept: Development Service ORIGIUML
Date:
Subject: Authorization to execute Contract
Change Order No. 4 to the contract with
Spencer & Jones, General Contractors, for
the removal of contaminated material at the
old fuel station located at the City Yard.
MCC Date: 8/16/99
Synopsis of Previous Council Action:
2/16/98 Contract awarded to Spencer & Jones, General Contractors, in the amount of $537,144.
11/16/98 Contract Change Order No. 1 approved in the amount of $8,627.34.
Recommended Motion(s):
1. Approve Contract Change Order No. 4 to the contract with Spencer & Jones, General
Contractors, for the removal and disposal of contaminated soil discovered during the
removal of the old fuel tanks at the City Yard, at a total cost of $171,393.63, increasing
the current contract total from $553,321.94 to $724,715.57.
2. Authorize the Director of Finance to amend the FY 1999 -2000 Budget and carryover
from FY 1998 -99 to FY 1999 -00 the remaining $27,000 in account # 527- 413 -5502
(Refuse professional /contractual);
3. Authorize the Director of Finance to amend the FY 1999 -2000 Budget and transfer
$120,000 from the Liability Fund's Unappropriated fund balance (629- 000 -3405) to 527-
413 -5502 (Refuse/Professional Contractual).
ichael E. IYays
Contact person: Steve Enna Phone: 5225
Supporting data attached: Staff report/change order Ward: 1 & 3
FUNDING REQUIREMENTS: Amount: $171,393.63
Source: (Acct. No.) 527- 413- 5502(Ref ise /prof /contr) $27,000
629-000-3 405 (Liability fund balance) 120,000
(Acct. Description) 210-376-5504-5034 (Bond proceeds)S24 191 61
Finance:
Council Notes:
Agenda Item No. ••M✓
7//6/99
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
Subject:
Authorization to execute Contract Change Order No. 4 to the contract with Spencer & Jones,
General Contractors, for the removal of contaminated material at the old fuel station located at
the City Yard.
Background:
Spencer & Jones, General Contractors, was issued a Notice to Proceed on 3/09/98 for installation
of the new fuel station and removal of the existing fuel tanks, including any contaminated soils
that were discovered. At the time the project was awarded there was a possibility that
contaminated materials would be found at the old fuel station. Since the extent of the
contamination could not be determined until the tanks were removed and the site was tested, the
City could only estimate what the remedial costs might be. Originally, an amount of
approximately $50,000 was estimated for contingencies including contaminated soil. Now that
construction of the new fuel station is complete and the total costs are determined, the removal
and disposal of contaminated soil has been determined to be $171,393.63.
Changes in the scope of work have resulted in a total of four - contract change orders, including
this one, as follows:
1. Contract Change Order No. 1 was for the installation of a sand /oil clarifier, a 45 KVA step -
down transformer, 2 — 24 -inch catch basins, and the deletion of a portion of the R & R of the
existing asphalt concrete pavement. Council approved this Change Order in the amount of
$8,627.34 on 11/16/98.
2. Contract Change Order No. 2 for the installation of bumper guard post, 12 -foot drainage
culvert, and placing asphalt concrete pavement at the East fence line was for $4,540.60. The
City Administrator on 3/11/99 approved this.
3. Contract Change Order No. 3 in the amount of $3,010, was to upgrade the leak monitoring
system for the new tanks and was also approved on 3/11/99 by the City Administrator.
4. Contract Change Order No. 4 in the amount of $171,393.63 is for removal and disposal of
contaminated material at the old fuel station.
After the fuel tanks were removed, CHJ, Inc. tested the soil to determine if any contamination
existed and the test results were forwarded to the County Environmental Agency for their
review. They determined that a high level of contaminates had infiltrated the soil at the old fuel
station and directed the City to remove and dispose of an estimated 2,000 tons of contaminated
soil.
The contractor was directed to perform the work at the contract bid price of $77 per ton. A total
of 2,110.04 tons of soil were removed before the County Environmental Agency determined that
the site was clean. The total cost to remove and dispose of this material, as well as backfill of the
excavated area, was $171,393.63.
Financial Impact:
In FY 1997 -98, $480,845 in bond proceeds along with $123,000 from the Refuse Fund was
allocated toward all costs related to this project (contract and in -house staff time costs). As of
6/30/99 $27,000 remains in account# 527- 413 -5502 (Refuse- professional /contractual) and
$24,393.63 remains in bond proceeds (account# 210- 376 -5504 -5034) for a total of $51,393.63
available for this change order. A total of $171,393.63 is required for this change order. It is
recommended that the remaining $120,000 required for this change order come from the
Liability Fund's unappropriated fund balance since failure to remove and dispose of the
contaminated soil will result in an even greater liability to the City. It is estimated that after this
transfer is completed, the Liability Fund will have an ending fund balance at 6/30/00 of over $1.5
million.
Recommendation:
Staff recommends approval of the following motions:
Approve Contract Change Order No. 4 to the contract with Spencer & Jones, General
Contractors, for the removal and disposal of contaminated soil discovered during the removal
of the old fuel tanks at the City Yard, at a total cost of $171,393.63, increasing the contract
total from $553,321.94 to $724,715.57;
2 Authorize the Director of Finance to amend the FY 1999 -2000 Budget and carryover from
FY 1998 -99 to FY 1999 -00 the remaining $27,000 in account # 527- 413 -5502 (Refuse
professional /contractual);
3 Authorize the Director of Finance to amend the FY 1999 -2000 Budget and transfer $120,000
from the Liability Fund's Unappropriated fund balance (629- 000 -3405) to 527- 413 -5502
(Refuse /Professional Contractual).
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D E V E L O P M E N T S E R V I C E S D E P A R T M E N T
M 1 C H A E L E H A Y S
D 1 R E C T O R
CONTRACT CHANGE ORDER NO. FOUR
File No. 6.51 -17 DATE: 7/1/99
PROJECT: INSTALLATION OF UNDERGROUND FUEL TANKS AND NEW
FUEL STATION AT CITY YARD, AND REMOVAL OF EXISTING
FUEL TANKS AND CONTAMINATED SOILS.
TO: SPENCER & JONES GENERAL CONTRACTORS
P.O. Box 645
Colton, Ca. 92324
GENTLEMEN:
You are hereby compensated for performing the additional work, as directed by
the Resident Engineer, as follows:
• Remove and dispose of 2,110.04 tons of contaminated material at the
contract bid price of S 77.00 per ton, at a cost of ............................ $ 162,465.38
Fill in the excavated area where the contaminated material and
fuel tanks were removed, on a time and material basis, at a total cost of $ 8,928.25
Total Cost Added to the Contract ................ ............................... $ 171,393.63
Previous Contract Price ........................... ............................... $ 553,321.94
Amended Cost Price ............................... ............................... $ 724,715.57
Additional time to complete Contract due to Change Order .... 0 Working Days
CONTRACTOR
Accepted
By:
Title:
Date:
CITY OF SAN BERNARDINO
Recommended
By:
MICHAEL HAYS DATE
Director of Development Services
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