HomeMy WebLinkAbout2/7/2007 - STAFF REPORTS - 2.J. FpALM Sp4
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CITY COUNCIL STAFF REPORT
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DATE: February 7, 2007 CONSENT AGENDA
SUBJECT: Airport Fire Alarm — Harbor Construction Change Order#3
FROM: David H. Ready, City Manager
BY: City Manager
SUMMARY
This action would rescind the action of January 3, 2007 at which time the City Council
approved an agreement with SimplexGrinnell, Inc. to install a fire alarm system in the
new hold-room, and approve Change Order No.3 with Harbor Construction to install the
fire alarm system for the sum of$85,500.
RECOMMENDATION:
Adopt Resolution No. , rescinding Resolution No. 21799 and approving
Change Order No. 3, to Agreement No. A5257 with Harbor Construction, Inc. adding the
installation of the fire alarm system for the Airport Hold-room Project to their contract
for the sum of$85,500, subject to Federal Aviation Administration approval.
STAFF ANALYSIS:
As part of the airport's Value Engineering effort, to bring the Airport Hold-room project
into budget, the fire alarm system was deleted from the Harbor Construction contract.
On January 3, 2007 the City Council approved a contract with SimplexGrinnell for the
system in the amount of $69,963. This effort was undertaken in an attempt to save
$15,537. SimplexGrinnell was willing to do the work under a non-standard agreement
form that was reported to having been reviewed by the City Attorney and in need of only
a couple of minor corrections. When the minor corrections were presented to the City
Attorney for review it was discovered that the agreement had not been previously
reviewed and had serious problems with the indemnification clauses that
SimplexGrinnell was not willing to change. Since the general contractor on the project
already has a signed agreement in place, with all the needed indemnifications, the City
Attorney recommended that the work be placed back in their contract. Harbor
Construction, Inc. is willing to do the work for the same dollar amount that was originally
in their bid and removed in the Value Engineering effort; $85,500.
ITEM NO. _
City Council Staff Report
I February 7, 2007 - Page 2
Harbor Construction Change Order No. 3
I
The action to restore the fire alarm system to the Harbor Construction contract will result
in the loss of the savings of $15,537 that would have been realized by contracting
directly with SimplexGrinnell. However, the impasse over indemnification language
would have resulted in a prolonged attorney effort to negotiate an acceptable change at
a time that the project can not afford any delays. The contractor on the hold-room
project will need to complete the installation of all conduit for the fire alarm system
within the next two weeks to avoid delaying the project, This can not happen without
the shop drawings from the fire alarm company and that will take at least two weeks to
complete. This action is recommended to avoid a delay that would cost more in
contractor overhead than the savings sought.
FISCAL IMPACT: Finance ❑hector Review: u
While this change order will result in the loss of $15,537 in fire alarm installation
savings, the delays that would occur will cost the project in excess of those savings.
The cost of the change order, $85,500, will be covered by funds from AIP38 grant,
acccoou^nt,number 415-6600-56063.
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Allen F. Smoot, Airport Construction Administrator
David H. Ready, City Ma
Attachments:
Resolution
Change Order
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA,
RESCINDING RESOLUTION NO. 21799 AND
APPROVING CIHANGE ORDER NO. 3 TO
AGREEMENT NO. A5257 WITH HARBOR
CONSTRUCTION CO., INC. IN THE AMOUNT OF
$85,500 ADDING BACK THE INSTALLATION OF THE
FIRE ALARM SYSTEM IN THE. AIRPORT HOLD-
ROOM PROJECT, SUBJECT TO FEDERAL AVIATION
ADMINISTRATION APPROVAL.
WHEREAS, in an effort to bring the Airport Hold-room Project into budget, the City
Council previously approved a value engineering effort that resulted in the 'fare alarm
system being deleted from the general contractor's contract, and
WHEREAS, the City Council approved Resolution No. 21799 on January 3, 2007 which
awarded a contract to SimplexGrinnell for the installation of a fire alarm system as part
of the Airport Hold-room project, and
WHEREAS, an impasse in negotiating the actual contract was reached over
indenmification language and any effort to try and resolve the differences would have
resulted in a delay to the overall project more costly than the original savings sought by
awarding the contract to SirnplexGrinnell, and
WHEREAS, Harbor Construction, Inc., the general contractor on the hold-room project is
willing to have the work added back into their contract for the same amount that was
deleted when the work was previously value engineered out.
THE CITY COUNCIL OF THE CITY OF PALM SPRIINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1, That Resolution No. 21799, adopted on January 3, 2007, awarding a
contract to SimplexGrinnell for the installation of a fire alarm system in the airport hold-
room project is hereby rescinded.
SECTION 2, That Change Order No. 3 to Agreement No. A5257, with Harbor
Construction Co., Inc, in the amount of $85,500, is hereby approved, subject to the
Federal Aviation Administration approval, adding the installation of the airport hold-
room project fire alarm system to the Harbor Construction contract.
ADOPTED THIS 7°' day of February, 2007.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY"OF RIVERSIDE ) ss.
CITY OF ,PALM SPRINGS )
1, James Thompson, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on February 7, 2007, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
CITY OF PALM SPRINGS
SECURITY CHECKPOINT PHASE III
CONSTRUCTION CHANGE ORDER
To: Harbor Construction Co., Inc. Date, February 7, 2007
15550 Rockfield Blvd., Suite B-100 Project No, CP05-010
Irvine, CA 92618 Project Name: Expand Terminal Holdroom (Part 2)
Change Order No.02
Contract Purchase No.616120
Attn: Steven R. Padula, President Contract No,A5257
Description of Change:
Fire Alarm System
Add back the Fire Alarm System previously removed as a VE item, $85,500 add
System as per the plans and specs bid by contractor.
Summa of CostMme
Original Contract Price S 9,278,000,00
Total of all Previous Change Orders $ -780,883.00
Total of this Change Order $ 85,500.00
Total Contract Price $ 8,582,617 00
This Change Order(laereases)(deereases) (unchanged) the contract time by 0 working days.
I have received a copy of this Change Order Construction Administrator
and the above AGREED PRICES are acceptable Approval: Date:
to the contractor.
By.
Aviation Department Approval:
Title:
Approved by Date.
Date: Airport Construction Administrator
City Approval.
Date:
City Clerk
Date:
City Manager
Distribution-
Original Conformed Copies Conformed - File Coov
City Clerk (1)
Contractor (1) Procurement& Contracting (1)
FAA (1) Finance (1)
Airport File (1)
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