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
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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
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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
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Forwarded to Council:
Elaine Polachek
Interim City Manager
Reference:
Contract No. 10027
(CCS)