SR-08-13-2013-3QVA
City of City Council Report
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City Council Meeting: August 1a 2013
Agenda Item:
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Third Contract Modification with R.C. Construction for the Pico Branch
Library Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a third modification to
Contract No. 9587 (CCS) in the amount of $363,000 (includes additional
contingency) with R.C. Construction Services, Inc., a California -based company,
to provide additional construction services for the new Pico Branch Library. This
would result in an amended contract with a new total amount not to exceed
$7,278,020.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete the work within budget authority.
Executive Summary
On May 22, 2012, Council authorized a contract with R.C. Construction Services, Inc. in
the amount of $6,915,020, for the construction of the Pico Branch Library Project. Two
change orders have been issued within budget authority related to unforeseen
conditions and added scope due to the completion of design after the bidding process.
Staff recommends a third contract modification for additional construction services,
unforeseen conditions and the rainwater harvesting system in the amount of $363,000
to Contract No. 9587 (CCS) with R.C. Construction Services, Inc. for a new contract
total in an amount not to exceed $7,278,020. The project will be completed in early
2014.
Background
On May 22 2012, Council authorized a contract with R.C. Construction Services, Inc. in
the amount of $6,915,020 for the construction of the Pico Branch Library Project, which
included an allocation of $105,600 for the construction of a rainwater harvesting system.
Two contract modifications were issued via change orders within budget authority for
unforeseen conditions, added scope and design changes.
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Discussion
The Pico Branch Library Project began construction in August 2012. The project was
awarded prior to the completion of the permitting process, resulting in final corrections
and plan revisions at substantial cost. These corrections and revisions were addressed
via two separate change orders amended to the original contract within budget
authority. The project has also encountered unforeseen conditions including: rerouting
previously unknown fiber optic data, power, and gas lines outside of the building
footprint and removing buried remnants of previous buildings and underground
obstructions.
Design for the rainwater harvesting system was also concluded after the start of
construction. The original allocation of $105,600 was a conceptual estimate based upon
preliminary design. Now that the design has been completed and permitted, additional
funding in the amount of $253,000 is necessary to proceed with the rainwater
harvesting system. The cost of the rainwater system would be paid for by the Pico
Branch Library project account. Savings in the direct owner costs for the project are
sufficient to absorb these additional design and construction costs associated with the
rainwater harvesting system; however these funds may be needed at final project
closeout. Staff looked into funding the rainwater harvesting system with water demand
mitigation fees collected from new development in the City. Resolution No. 8196
pertaining to water demand mitigation fees only allows funds to be used to retrofit water
inefficient plumbing fixtures. Staff is proposing to return to Council this year with an
amendment to Resolution No. 8196 to allow the use of water demand mitigation fees for
other water efficiency projects such as this. If use of water demand mitigation fees is
approved by Council, the Pico Branch Library project account would be reimbursed for
the full cost of the rainwater harvesting system.
These unforeseen conditions and additional scope changes have resulted in change
order costs exceeding the 10% contingency amount that is considered standard on new
construction projects. Based upon the status of the work to date, staff recommends
providing an additional contingency amount of $110,000 from the Pico Branch Library
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fund to address future changes in the scope of work or unforeseen conditions, and
$253,000 for the installation of the rainwater harvesting system for a total contract
modification amount not to exceed $363,000. This change order would address future
issues without encountering long delays or additionally impacting the General Fund.
Construction Schedule
The contractor is currently 50% complete with the construction and plans to complete
the project in early 2014.
Financial Impacts & Budget Actions
The contract modification amount to be awarded to R.C. Construction Services, Inc. is
$363,000, (includes additional contingency) for an amended contract total not to exceed
$7,278,020. Funds are available in the FY2013 -14 Capital Improvement Program
budget in account C014032.589000.
Prepared by: Christopher Dishlip, Civil Engineer
roved: Forwarded to Council:
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Rod Gould
City Manager
Reference:
Contract No. 9587 (CCS)