CITY OF SUNSET VALLEY 11. AGENDA DATE: May 15, 2018
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1 CITY OF SUNSET VALLEY 11 AGENDA DATE: May 15, 2018 SUBJECT: Consider approval of Contingency Modification Number 1 for the Sunset Valley Police and Public Works Facilities Construction project and approval of authorization for the City Administrator and Mayor to approve future reallocations of contingency allowances, not to increase the total contract or schedule for the project without approval of the City Council. (Mayor Cardona/ Administration) BACKGROUND: The Contract with CHASCO for the Police and Public Works Facilities Construction project includes two contingency line items which total $380,000, which is approximately 5% of the Total Contract amount of $7,402,270. One line item is Contractor contingency in the amount of $190,000 and the other is Owner s Betterment Allowance in the amount of $190,000. In Street and Utility construction projects, there is typically a contingency amount included and when the contract is approved by the Council some authorization is given to city staff to manage this contingency. Rather than address this when the contract was approved, staff did not request this approval, but wanted to get the project underway and then once there was some activity to report, bring this item to the Council for consideration. As reported at each City Council meeting since the notice to proceed was given in January, the project is on schedule and under budget; however, there have been a number of relatively small reallocations within the contingency allowances. Attached is Contingency Modification Number 1. The report details the changes. Owner s Betterment Allowance There has been a net increase in the Owner s Betterment Allowance of $3, This means that there is a current unobligated balance of $193, available for use during the balance of the project. The details for these 9 items is attached. Here is a brief summary/justification: o Item 1. CP 001 Storm Offsite add $2,736 due to a conflict with a water line, the elevation of the new storm drain on Lone Oak had to be extended to allow it to drain correctly. This is the cost for additional 12 inch pipe. o Item 2. CP 005 Utility Revisions add $9,208 these were a number of water meter/bypass/and backflow revisions that staff requested during the GMP negotiations but were not able to be incorporated due to the need to finalize the contract. Staff was aware that there was going to also be a large deduct (see item 9 below, so these revisions were delayed until after the GMP was established) o Item 3. CP 006 Sales Tax for Job Trailer add$2, the contract requires that CHASCO provide a new temporary portable building for the Police Department during the project. Although this is not a job trailer this is how it is treated by the Comptroller for sales tax purposes. CHASCO did not include sales tax in their proposal and any additional taxes get passed on to the City by the terms of their proposal on the portable building. City staff, the City Attorney and CHASCO evaluated revising the contract to delete the portable building from CHASCO s contract and have the city directly lease the new temporary portable building; however, the cost
2 of the temporary building rental and set up exceeded $25,000, so it would have required bidding and Council approval, in addition to the time and expense to modify the contracts. This would have potentially been a two month delay in getting the Police Department relocated and would have caused a number of delays in the project. Agreeing to reimburse CHASCO for the Sales Tax was determined to be the only cost effective option to keep the project on schedule. o Item 4 CP 007 Electrical Circuits add $1, These were additional circuits not on the plans that are required for the operation of the generator in the Police Facility o Item 5 CP 008 Split face CMU at Generator Enclosure add $ There was one side of the generator enclosure that did not show to have split face CMU on the plans. o Item 6 CP 009 Grade beam Changes add $1, The structural engineer made some additions to the size of the grade beams o Item 7 CP 010R1 Meter Vault Change add $2, Due to the location of adjacent trees on Lone Oak, a smaller vault was shown on the plans, but once the area was excavated, it was determined that the correct size vault could be placed in this location which will allow for future servicing of the backflow and meter if needed. o Item 8 CP 12 Remove abandoned Septic tank add $ During excavation for the new Public Works building, an old abandoned septic tank was discovered, believed to have served the old City Hall building on Lone Oak that was demolished in CHASCO was requested to pump, crush and fill this to allow work to continue. o Item 9 CP 004 Deduct for Quantity reductions deduct $23, These are quantity revisions due to actual quantities for some of the site work being less than included in the contract. Although this is listed as the last item on this Contingency Modification, most of this savings was known before the other items on the list, however, it took longer to finalize the amounts. Contractor Contingency Allowance There has been one change to the Contractor Contingency of $6,142 for cost increases and adjustments following the approval of contract, which leave a balance of $183,858 available for use during the balance of the project. These items were price increases that occurred from the time of preparation of the GMP budget to the time that contracts were put in place with subcontractors. All major subcontractors and suppliers are under contract so no further price increases of this nature are anticipated. These changes have all been submitted by the Contractor, reviewed and approved by the Architect and/or Engineer, and reviewed and recommended for approval by city staff. This agenda item also addresses future Contingency Modifications. The Council could provide authorization for the City Administrator to approve any individual changes up to $5,000 and the Mayor to approve any individual changes up to $25,000, that does not increase the total contract amount or schedule for the project. Any changes that are approved within these limits will be reported to the City Council on a monthly basis for the balance of the project. If this above listed approvals are granted, then any changes that are: 1) greater than $25,000, 2) increase the total contract, or 3) adjust the schedule, must be presented to the City Council for consideration. RECOMMENDATION: Approve Contingency Modification Number 1 and authorization for the City Administrator and Mayor to approve future contingency modifications as outlined in this agenda item.
3 Requesting Department: Administration For More Information Contact: Clay Collins
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