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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). e�tLNAgp�N 0 Y� C I T Y O F J h �G't'DED Ily 101 15an bernardino 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 .3 0 0 N O R T H ' D' S T R E E T, S A N B E R N A R D I N O, C A L I F 9 2 4 1 8 - 0 0 0 1 ( 9 0 9 ) 3 8 4 - 5 3 5 7 • F A X : 3 8 4 . 5 0 8 0 / P U B L I C W O R K S FAX: 384.5155