SR-11-13-2012-3A19®
City of City Council Report
Santa Monica
City Council Meeting: November 13, 2012
Agenda Item:
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Change Order for City Hall Seismic Retrofit Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a fifth change order to
Construction Contract No. 9143 (CCS) in the amount of $150,000 with West
Valley Investment Group, Inc., a California -based company, to correct
unanticipated non - conforming conditions and non - compliant code conditions for
the City Hall Seismic Retrofit Project. This will result in an amended contract with
a new total amount of $4,663,478.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
Executive Summary
On October 27, 2009, Council approved a construction contract with West Valley
Investment Group, Inc., (West Valley) in the amount of $3,834,325 for the City Hall
Seismic Retrofit/Jail Tenant Improvement Project. The project has experienced four
change orders related to code compliance and non - conforming conditions and has
exhausted the original project contingency. The project requires additional contingency
funds to complete the project. Staff recommends a fifth change order in the amount of
$150,000 to Construction Contract No. 9143 (CCS) with West Valley for a new contract
total of $4,663,478. The project will be completed in early 2013.
Background
On October 27, 2009, Council approved Contract No. 9143 (CCS) in the amount of
$3,834,325 with West Valley for construction of the City Hall Seismic Retrofit/Jail Tenant
Improvement project. Construction began in March 2010. The first change order was
issued, within budget authority previously approved by Council, for unforeseen
conditions, added scope, and upgrades to meet current codes.
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On March 22, 2011, Council approved a second change order in the amount of
$679,153 related to an updated building code. Due to delays in the environmental
review process, the plan check application expired and a new plan check application
was submitted. The new submittal required upgrading the design to meet the 2007
Uniform Building Code. Change orders three and four were issued, within budget
authority previously approved by Council, for unforeseen conditions, added scope, and
non - compliant code conditions.
Discussion
The City Hall Seismic Retrofit/Jail Tenant Improvement Project began in March 2010.
The Jail Tenant Improvement portion of the project was completed in August 2011.
Throughout the course of construction, the project has encountered many non-
conforming conditions and conditions that do not meet current code. Non - conforming
conditions are areas where the original construction deviates from plans or past
remodels have either added or removed elements and finished surfaces from the
original construction. Examples include:
• Where structural elements have been removed or altered, the contractor has had
to install additional structural members to replace them. Often this is many times
more difficult than the original scope of work for which the contractor was hired.
• Where building wiring or plumbing that was installed during the original
construction or past remodels was not known or is more extensive than
anticipated. This requires the contractor to relocate the building infrastructure,
which adds to the scope and time of the project.
• Where finished surfaces have been removed, the code required fire separation
between spaces which has been eliminated. These non - compliant code
conditions required the contractor to install new finishes where they were
removed in the past.
The non - conforming conditions and non - compliant code conditions have resulted in
change order costs in excess of the 10% contingency amount that is considered
standard on typical tenant improvements or new construction projects. Based upon the
non - conforming conditions and code violations discovered to date, staff recommends a
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20% contingency amount ($150,000) to remedy similar conditions likely to occur in the
remaining scope of work for the project ($750,000). This authorization would allow a fifth
change order to correct these anticipated non - conforming conditions and non - compliant
code conditions without encountering long delays.
Next Steps
The contractor is currently 80% complete with the Seismic Retrofit scope of work and
plans to complete the project in February 2013.
Financial Impacts & Budget Actions
The change order amount to be awarded to West Valley Investment Group, Inc., is
$150,000, for a total contract amount of $4,663,478. Funds are available in the FY2012-
13 Capital Improvement Program budget in the following accounts:
E130748.555010, City Hall Seismic Retrofit $130,000
0010162.589000, Tenant Improvements 20,000
TOTAL $150,000
Prepared by: Alex Parry, Senior Architect
Approved:
Wirth Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager
Amended Contract
No. 9143 (CCS).