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SR-02-10-2015-3FCity Council Meeting: February 10, 2015 Agenda Item: ::3—F To: Mayor and City Council From: Susan Cline, Interim Director of Public Works Subject: Construction Contract Change Order for the City Hall HVAC Replacement & Public Works Tenant Improvement Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a second change order to Contract #4021 in the amount of $50,000 (includes a 10% contingency) with Ramco General Engineering Contractors, a California -based company, to provide additional construction services for the City Hall HVAC Replacement & Public Works Tenant Improvement Project. This would result in an amended contract with a new total amount not to exceed $221,163. 2. Authorize the Director of Public Works to issue any necessary change orders to complete the work within budget authority. Executive Summary On July 15, 2014, the City entered into contract #4021 with Ramco General Engineering Contractors in the amount of $148,100 for the demolition, framing, and electrical portions of the construction for the City Hall HVAC (Heating, Ventilation, and Air Conditioning) Replacement & Public Works Tenant Improvement Project. Staff issued a first change order within budget authority in the amount of $23,063 for a total contract amount of $171,163. Unanticipated site conditions have resulted in the need for design changes and additional construction services in the amount of $50,000. Staff recommends a second contract change order in the amount of $50,000 to Contract #4021 with Ramco General Engineering Contractors for a new contract total in an amount not to exceed $221,163. The project would be completed in summer 2015. Background The Santa Monica City Hall building has a number of aging HVAC package and split system heating and cooling units that are in need of replacement. This project includes the replacement of various HVAC units and associated mechanical systems throughout the building in a three phased process to minimize disruption of City services. This 1 project includes installation of a new split multi- system air - cooled heat pump system and all associated mechanical work. In order to reduce construction - related impact at City Hall, the project was planned in three phases: ® Phase One — new mechanical units for a portion of the ground floor and a remodel of the Public Works office area • Phase Two —improvements for the Mayor and City Manager offices • Phase Three —improvements for Rent Control and the City Attorney offices Vendor Selection On May 12, 2014, the City solicited qualifications to establish a pre - qualified list of general contractors for City projects. A Request for Qualifications (RFQ) was posted on the City's online bidding site and staff identified and approved a pre - qualified list of general contractors. Staff solicited informal bids from three pre - qualified contractors for the City Hall HVAC Replacement & Public Works Tenant Improvement Project construction scope, in accordance with the City Charter and Municipal Code provisions. On June 3, 2014, three bids were received: Contractor Bid Amount Omega Construction Company, Inc. $97,900 Ramco General Engineering Contractors $148,100 Fast -Track Construction Corporation $286,700 Bids were reviewed by Public Works staff and evaluated on an understanding of the project's scope, direct experience on similar projects, technical capabilities, cost of services and the ability to meet the desired time frames. During the review, the bid from Omega Construction Company, Inc, was deemed non - responsive and disqualified. Based on the selection criteria, staff selected Ramco General Engineering Contractors as the best bidder and entered into an agreement within budget authority and below the threshold requiring Council approval. `a On May 27, 2014, Council authorized a contract with Bon Air, Inc. in the amount of $871,200 for the mechanical systems portion of the construction of the City Hall HVAC Replacement Project. On July 15, 2014, the City entered into a contract with Ramco General Engineering Contractors in the amount of $148,100 for the demolition, framing, and electrical portions of the construction. Staff issued a first change order in the amount of $23,063 for a total contract amount of $171,163 within budget authority and under Council threshold for unanticipated design changes. Discussion The City Hall HVAC Replacement & Public Works Tenant Improvement Project is a three phase project that began construction in June 2014. Portions of the project were bid as allowance items to be billed as the scope of construction work was finalized. This approach allowed some flexibility to account for the limited availability of as -built documentation for City Hall, which is common in historic buildings. Unforeseen site conditions encountered during renovations of the ground floor and Public Works offices resulted in expenditures of these allowances while construction limitation to nights and weekends further impacted the project cost and schedule. As the project proceeded into the Mayor /City Council and City Manager offices on the second floor, a number of unforeseen conflicts were discovered above the ceilings during demolition. Existing structural members and electrical conduits necessitated design changes that incurred additional construction costs. Acoustic ceiling tile was added in order to better mitigate the impacts of the construction on historically sensitive portions of the building. These unforeseen conditions and scope changes require additional funding in the amount of $50,000. Staff recommends a second change order in the amount of $50,000 to minimize further delays and accommodate the additional work authorized to date, as well as any future unforeseen conditions and scope changes. There is an anticipated ii three month schedule impact due to the cumulative effect of all the issues associated with these change orders. Construction Schedule Construction is currently 50% complete and the project is estimated to be completed in summer 2015. Financial Impacts & Budget Actions The contract change order to be awarded to Ramco General Engineering Contractors is $50,000 (includes a 10% contingency) for an amended contract total not to exceed $221,163. Funds are available in the FY 2014 -15 Capital Improvement Program budget in account M010085.589000 (Facility Renewal Program). Prepared by: Christopher Dishlip, Civil Engineer Approved: pit Susan Cline Interim Director of Public Works 51 Forwarded to Council: Elaine Polachek Interim City Manager Reference: Contract No. 10027 (CCS)