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Home My WebLink About6/20/2007 - STAFF REPORTS - 2.I. 1p�F A LM$.. G u �n C, *•owe.=o• P" 910 CITY COUNCIL STAFF REPORT DATE: June 20, 2007 Consent Agenda SUBJECT: CONSTRUCTION ADMINSTRATION PARAMETERS — OWNER"S REPRESENTATIVE FROM: David H. Ready, City Manager BY: City Manager SUMMARY This action would rescind previously authorized Construction Administration Parameters for the Airport Construction Administrator, approve new construction project administration parameters for the Owner's Representative and approve special change order authority for the City Manager. RECOMMENDATION: Adopt Resolution No. , 1) rescinding Resolution No. 21800 and 2) establishing construction administration parameters for the Facility Construction Owner's Representative to work under when representing the City on construction projects and 3) establishing special change order authority for the City Manager. STAFF ANALYSIS: Recently the City has experienced some difficulty in having its facility construction projects run as smoothly as desired. To help alleviate this problem the City Manager, through the Office of Procurement and Contracting, has circulated a Solicitation for Qualifications seeking an experienced municipal construction project Owner's Representative to work for the City. The result of the solicitation was the hiring of the firm of Allen F. Smoot & Associates to carry out the function of Owner's Representative. Many of the projects that the City carries out are at the airport and involve the remodel of existing facilities. In many cases these projects are very complicated and must run on a tight timeline to ensure that end users are able to continue to conduct their business, which in most cases is of vital interest to the Palm Springs tourism economy. No matter how good the design firm may be, in complicated remodel projects everything Item 2 . 1 . City Council Staff Report June 20, 2007 - Page 2 Construction Administration Parameters-Owner's Representative that will be run across in the project can never be included on the drawings. That means changes occur in the course of construction that must be dealt with immediately or the work will come to a halt. These type change issues do not lend themselves to the normal change order processing as each change could add two to three weeks of delay to the project depending upon which City Council agenda deadline is met. The attached Resolution, if adopted, would authorize the Owner's Representative to prepare and execute all construction project paperwork, be it permit applications or utility change applications. The Resolution would also allow special change order authority be granted to the City Manager. The City Manager, after consultation with the Owner's Representative, may approve change orders up to 5% of the project awarded construction contract amount. If the cumulative change orders exceed that percentage then additional change order authority would need to be granted or all further changes would be approved by the City Council. Further, all change orders approved by the City Manager, up to the 5% limit, will be submitted to Council as a "Receive and File" item at the next regularly scheduled council meeting. FISCAL IMPACT: IFinance Director Review: When construction project budgets are approved by the City Council they usually include a contingency amount equal to 10% of the estimated project construction cost. The 5% allowance being granted under this proposed Resolution would be well within the total project budget. David H. Ready, City ana Attachments: Resolution RESOLUTION NO. OF TI4E CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA RESCINDING RESOLUTION NO. 21800 AND ESTABLISHING CONSTRUCTION ADMINISTRATION PARAMETERS FOR THE FACILITY CONSTRUCTION OWNER'S REPRESENTATIVE TO WORK UNDER WHEN REPRESENTING THE CITY ON CONSTRUCTION PROJECTS AND ESTA13LISHING SPECIAL CHANGE ORDER AUTHORITY FOR THE CITY MANAGER. WHEREAS the City Council approved Resolution No. 21800 on January 3, 2007 which among other things established construction administration parameters for the newly appointed Airport Construction Administrator; and WHEREAS the temporary assignment of the Airport Construction Administrator has expired and the City Manager, via the Office of Procurement and Contracting, has circulated a Solicitation of Qualifications, in a search for a new Owner's Representative for facility construction projects carried out by the City; and WHEREAS the City has contracted with Allen F. Smoot & Associates to carry out the Owner's Representative duties on facility construction within the City; and WHEREAS the City Council, in an effort to ensure timely completion of it's construction projects, is desirous of establishing construction administration parameters under which the Owner's Representative shall work and to establish special change order authority for the City Manager. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs as follows: SECTION 1. That Resolution No. 21800, adopted on January 3, 2007, is hereby rescinded effective immediately_ SECTION 2. That the Owner's Representative contracted with under SOQ 10-07, in consultation with the City Manager, is hereby authorized to prepare and execute all necessary construction documents on behalf of the City. The City Manager, after consultation with the Owner's Representative, is authorized to approve cumulative change orders on City Council awarded construction projects that the. Owner's Representative is coordinating, up to 5% of the awarded construction contract amount for any particular project, subject to reporting back to the City Council. When ,the' amount of 5% is exceeded, additional authority will be required by the City Council or all additional change orders thereafter shall be approved by City Council. 0033 ADOPTED THIS 20t' day of June, 2007. David H. Ready, City Manager ATTEST.- James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that Resolution No. _ is a full, true and correct copy, was duly adopted at a regular meeting of the City Council of the City of Palm Springs on June 20, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of palm Springs, California