HomeMy WebLinkAbout14-Development Services
CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From:
J ames Funk, Director
Subject:
Authorization for the Director of
Development Services or his
Designee to Execute Change Order
No. Three to Contract with
Matich Corporation for construction
of Campus Parkway (SS 04-01)
and installation of a traffic signal
at Kendall Drive and Campus
Parkway (TC 04-07) per Plan Nos.
10952 & 10232.
Dept:
Development Services
Date:
March 28, 2006
File No.:
1.7007
MCC Date:
April 3, 2006
Synopsis of Previous Council Action:
07/15/02 Mayor and Common Council approved the CIP Budget for FY 2002/03 and increased
the allocation to $500,700 for design, property acquisition, and partial construction for Phase I
extension of Pepper Linden (now known as Campus Parkway) from Kendall Drive to Northpark
Blvd.
05/19/03 Resolutions of Necessity were adopted for acquisition of three parcels relative to the
extension of Pepper Linden Drive (now known as Campus Parkway).
5/19/03 The Negative Declaration was adopted for street improvements to Pepper Linden Drive
(now known as Campus Parkway) from Kendall Drive to Northpark Blvd. and installation of
traffic signal at Pepper Linden Drive and KendallDrive.
06/02/03 Redevelopment Agency adopted CDC/2003-20, approving the purchase of certain
property by Watson & Associates and approving that certain Disposition and Development
Agreement between the Redevelopment Agency and Watson & Associates; and adopted
Resolution No. 2003-120, approving that certain Purchase and Sale Agreement between the City
of San Bernardino and the Redevelopment Agency of the City of San Bernardino relating to
property located at the northwest corner of University Parkway and Northpark Boulevard.
10/06/03 Mayor and Common Council approved 2 Resolutions (Items #R31); Redevelopment
Agency adopted CDC/2003-32. .
01/20/04 Mayor and Common Council adopted 2 Resolutions (Item #37) Community
Development Commission.
04/05/04 Mayor and Common Council adopted Resolution No. 2004-95 authorizing an
Agreement with Watson & Associates for grading of Campus Parkway between Kendall Drive
and Northpark Blvd.
01/1 0/05 Mayor and Common Council adopted Resolution No. 2005-7 awarding contract in the
amount of$2,181,877.00 to Matich Corporation for construction of Campus Parkway (SS 04-01)
and installation of a traffic signal at Kendall Drive and Campus Parkway (TC 04-07) per Plan
Nos. 10952 & 10232.
11/21/05 Mayor and Common Council authorized the Director of Development Services to
execute Change Order No. One to contract with Matich Corporation for construction of Campus
Parkway (SS 04-0 I) and installation of a traffic signal at Kendall Drive and Campus Parkway
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CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
(TC 04-07) per Plan Nos. 10952 & 10232 in the amount $82,032.00 and authorized the Director
of Finance to amend the FY 2005/06 budget.
12/05/05 Mayor and Common Council (1) approved Amendment No.1 to Grading Agreement
with Watson & Associates for grading of Campus Parkway between Kendall Drive and
Northpark Blvd., (2) authorized the Director of Development Services to execute Change Order
No. Two to contract with Matich Corporation for construction of Campus Parkway (SS 04-01)
and installation of a traffic signal at Kendall Drive and Campus Parkway (TC 04-07) per Plan
Nos. 10952 & 10232 in the amount of $347,900.94, and (3) authorized the Director of Finance to
amend the FY 2005/06 budget.
Recommended motion:
1. Authorize the Director of Development Services or his designee to execute Change Order
No. Three to Contract with Matich Corporation in the amount of $330,000.00 for
construction of Campus Parkway (SS 04-01) and installation of a traffic signal at Kendall
Drive and Campus Parkway (TC 04-07) per Plan Nos. 10952 and 10232.
2. Authorize and direct the Director of Development Services or his designee to allocate
$330,000 in the 2006/07 Capital Improvement Program Budget under Account No. 129-
367-5504-7007 to pay for the costs associated with Change Order No. Three.
-he~
Contact person: Mark Lancaster. City Engineer
Phone: 3305
Supporting date attached: Staff Report and Change Order No. Three
Ward: ~
FUNDING REQUIREMENTS: Amount: $330.000.00
Source: (Acct. No.) 129-367-5504-7007
Acct. Description: Campus Parkway Construction and
Traffic Signal
Finance:
Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
ST AFF REPORT
Subiect:
Authorization for the Director of Development Services or his designee to execute Change Order
No. Three to Contract with Matich Corporation for construction of Campus Parkway (SS 04-0 I)
and installation of a traffic signal at Kendall Drive and Campus Parkway (TC 04-07) per Plan
Nos. 10952 & 10232.
Back2round:
On January 10, 2005, the Mayor and Common Council awarded a contract in the amount of
$2,181,877.00 to Matich Corporation for construction of Campus Parkway (SS 04-01) and
installation of a traffic signal at Kendall Drive and Campus Parkway (TC 04-07) per Plan Nos.
10952 & 10232. This left approximately $200,000.00 for contingencies (including possible
future change orders, as necessary).
The project consists of the following: construction of a new 4-lane divided arterial roadway
known as Campus Parkway between Kendall Drive and Northpark Boulevard; widening
Northpark Boulevard to 4-lanes between Campus Parkway and University Parkway; installation
of a new traffic signal at the intersection of Campus Parkway and Kendall Drive; installation of
curbed medians in both Campus Parkway and Northpark Boulevard; installation of street lights,
landscaping and irrigation systems in the medians; and installation of grouted river rock at
selected locations in the medians.
At the time of approval of the Grading Agreement on April 5, 2004, the City Engineer, Watson
& Associates (developer), and the Engineer of Record estimated that the cost to the developer
and benefit to the City for the developer to provide engineering design, soil and compaction, and
grading of the entire right-of-way for Campus Parkway from Kendall Drive to Northpark
Boulevard would be approximately $630,000; and, in exchange for said benefit, the City granted
a fee waiver credit to the developer in an amount not to exceed $275,000.00 for Fair Share
Traffic Improvement Fees and Traffic Systems Fees, which may result from development of the
134 acres known as University Park (Tentative Tract No. 16509), which included possible future
commercial development of 22 acres at the northwest corner of University Parkway and
Northpark Boulevard.
At the time of the award it was anticipated that grading for Campus Parkway, which was being
undertaken by University Park LLC in connection with the development of Tract No. 16509,
would be completed in February of 2005. However, heavy rains and problems installing several
large water pipelines to serve the development delayed completion of the grading until late
summer of 2005. A Notice to Proceed was issued to Matich Corporation on August 24, 2005,
with a start date of September 6, 2005.
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
ST AFF REPORT - Continued
On November 21, 2005, the Mayor and Common Council approved Change Order No. One in
the amount of $82,032.00 which authorized the following changes: Installation of an additional
catch basin and connector pipe on Campus Parkway near Kendall Drive; Modification of
foundations for streetlights; Construction of parallel parking on Campus Parkway; and
Relocation of a 6" waterline along the north side of Kendall Drive.
On December 5, 2005, the Mayor and Common Council (1) approved Amendment No.1 to the
Grading Agreement with Watson & Associates whereby the developer agreed to participate in
the cost of additional grading on Campus Parkway and Northpark Boulevard by increasing the
developer's contribution by $200,000.00 towards said additional grading subject to being granted
a waiver credit of Traffic Systems Fee and Fair Share Traffic Impact Fees in the same amount
for various possible future developer projects; and (2) approved Change Order No. Two in the
amount of $347,900.94 which authorized the following changes: Installation of a Campus
Parkway Drain; Construction of a sliver fill and embankment for Northpark Boulevard. near
Campus Parkway; Modification of grading on Northpark Blvd.; Removal of Sandbags along
Northpark Boulevard; Regrading the existing sub grade on Campus Parkway for placement at
curb and gutter; Placement of fill in planter areas; Equipment standby time; Regrading of east
end of Campus Parkway; and Additional surveying.
As a result of the unanticipated delay from the date of the award of contract to Matich
Corporation on January 10,2005, to the issuance of the City's Notice to Proceed on August 24,
2005, with a start date of September 6,2005, Matich Corporation claimed significant increases in
its costs of materials and supplies and, to a lesser extent, labor.
Change Order No. Three in the amount of $330,000.00 reflects an agreed upon negotiated
amount for those increased costs. Further, in return for this lump sum payment, with no interest
to be charged, which will be remitted by the City to Matich Corporation not later than thirty (30)
days after the adoption by the Mayor and Common Council of the 2006/07 CIP Budget but in no
event sooner than July 31,2006. Matich Corporation agrees to abide by and honor and to only
charge the City at the original unit prices set forth in its initial bid for all line items regardless of
the quantity finally determined.
There will be additional change orders due to past engineering problems and current issues with
the levee and the County Flood Control District, as well as repair/replacement work due to
compaction problems and reconfiguration of the traffic signal at Campus Parkway and Kendall
Drive. The current estimated cost of these adjustments may approach $100,000.00, but will be
considerably offset due to approximately $80,000.00 in savings on grading work that should be
realized from Change Order No. Two. A final balancing change order will be necessary when all
the final quantities of excavation and concrete and asphalt are known and the quantities are
applied against the original unit cost.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT - Continued
Financial Impact:
Funding for Change Order No. Three will be from the approved 2006/07 Capital Improvement
Program Budget under Account No. 129-367-5504-7007.
Recommendation:
1. Authorize the Director of Development Services or his designee to execute Change Order
No. Three to Contract with Matich Corporation in the amount of $330,000.00 for
construction of Campus Parkway (SS 04-01) and installation of a traffic signal at Kendall
Drive and Campus Parkway (TC 04-07) per Plan Nos. 10952 & 10232.
2. Authorize and direct the Director of Development Services or his designee to allocate
$330,000 in the 2006/07 Capital Improvement Program Budget under Account No. 129-
367-5504-7007 to pay for the costs associated with Change Order No. Three.
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DEVELOPMENT SERVICES DEPARTMENT
'"
300 North "D" 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.sbcity.org
CONTRACT CHANGE ORDER NO. THREE
(PRICE ADJUSTMENT CHANGE ORDER)
FILE NO.
1. 7007
W.O. #7007
DATE: APRIL 3, 2006
PROJECT:
CONSTRUCTION OF CAMPUS PARKWAY (SS 04-01) AND
INSTALLATION OF A TRAFFIC SIGNAL AT KENDALL DRIVE
AND CAMPUS PARKWAY (TC 04-07) PER PLAN NOS. 10952 &
10232.
TO:
MATICH CORPORATION
P.O. BOX 50,000
SAN BERNARDINO, CA 92412
GENTLEMEN:
You are hereby compensated in the following agreed upon negotiated amount of $330,000.00 as
full and complete satisfaction for any increased costs of materials, supplies and labor incurred
directly or indirectly by Matich Corporation in connection with the above-referenced Project,
including all changes orders related to the above referenced Project, arising out of or in any
manner related to delays, regardless of the reasons for any such delays, in issuing of the requisite
notice to proceed by the City for the commencement of construction where such delays were
experienced from the date of the award of the contract by the City to Matich Corporation on
January 10, 2005, to the start date of September 6, 2005, as referenced in the City's Notice to
Proceed dated August 24, 2005.
The amount of this Change Order No. Three shall be equal to $330,000.00, for which no interest
will be charged or assessed at anytime thereon, and will be paid by the City of San Bernardino to
Matich Corporation no later than thirty (30) calendar days after the date of the final adoption by
the Mayor and Common Council of the 2006/07 Capital Improvement Program Budget but in no
event sooner than July 31, 2006.
In consideration of the agreements of the City as contained in the above set forth two paragraphs,
Matich Corporation agrees to honor the original unit prices as set forth in the initial bid of the
Matich Corporation to the City, and to only charge the City at the original unit prices, set forth in
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CONTRACT CHANGE ORDER NO. THREE
(PRICE ADJUSTMENT CHANGE ORDER)
its initial bid for this Project for all line items regardless of the quantltIeS as are finally
determined for the applicable line items. The final prices which shall be paid by the City to the
Matich Corporation for those particular line items that are based upon the quantity of materials
actually used for the Project, shall be based in all instances upon the initial bid unit price
amounts multiplied by the finally determined quantities for the applicable line items for which
the unit prices pertain.
SUMMARY OF CONTRACT COSTS:
The estimated revised contract cost is as follows:
Revised Construction Contract Cost..........................................
$ 2,181,877.00
$ 82,032.00
$ 347,900.04
$ 330,000.00
$ 2,941,809.04
Original bid amount. . . . . . . . . . . .. . . . . . . . .. . .. . .. . . . . .. . .. . .. . . . . .. . . . . . . . . . . . . . ...
Contract Change Order No. One...............................................
Contract Change Order No. Two..............................................
Contract Change Order No. Three.............................................
This change order represents 15.12% of the original contract amount.
Accepted and Approved
as to all terms and conditions
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES
Accepted and Approved
as to all terms and conditions
MATICH CORPORATION
By:
By:
Title:
JAMES FUNK
Director of Development
Services
Date:
Date:
APPROVAL BY CITY COUNCIL
Item No.
Approval Date: April 3. 2006
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