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'<IFORN� City Council Staff Report
DATE: March 2, 2016 CONSENT CALENDAR
SUBJECT: APPROVAL OF CONTRACT CHANGE ORDER NO. 1 IN THE AMOUNT
OF $135,398 WITH ATOM ENGINEERING CONSTRUCTION INC., FOR
THE PALM SPRINGS ENTRY SIGNS, CITY PROJECT NO. 13-31
FROM: David H. Ready, City Manager
BY: Public Works & Engineering Department
SUMMARY
Award of a construction contract to Atom Engineering Construction, Inc., for the Palm
Springs Entry Signs, City Project No. 13-31, excluded a fourth entry sign on Ramon
Road given the high cost of that sign related to extending utility services to the sign
location. Staff has identified utility services closer to the sign location which has allowed
for a reduction in cost. Approval of Contract Change Order No. 1 in the amount of
$125,398 adds the Ramon Road entry sign to the scope of the awarded construction
contract.
RECOMMENDATION:
1. Authorize an additional appropriation from Measure J Unscheduled Capital Projects
in the amount of $130,000 for the Palm Springs Entry Signs; and
2. Approve Contract Change Order No. 1 in the amount of $135,398 with ATOM
Engineering Construction Inc., for a revised total contract amount of$498,398 for the
Palm Springs Entry Signs, City Project No. 13-31; and
3. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
As part of the Fiscal Year 2013/2014 budget, the City Council appropriated $150,000
from the Measure J Capital Improvement Fund (Fund 260) for the installation of two
new "Palm Springs" entry way signs.
On March 6, 2013, the City retained Jeffrey Jurasky & Associates, Inc., ("JJX) through
a Professional Service Agreement ("PSK) to develop designs for the two entry way
ITEi° NO.�v
City Council Staff Report
March 2, 2016 -- Page 2
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
signs, identified as the Palm Springs Entry Signs, City Project No. 13-31, (the 'Project').
The locations of these two entry way signs are on Ramon Road at San Luis Rey Drive
and East Palm Canyon Drive at Gene Autry Trail for visitors coming into Palm Springs
from Cathedral City. The scope of work is to install the signs in existing/proposed
median islands within the roadway. Each sign consists of two independent aluminum
bridges with the word PALM on one and SPRINGS on the other, three differently
colored acrylic panels, vault for structural mountings, concrete foundations, and LED
strip lighting. The installation includes modifying/new irrigation and planting as well as
electrical services connections.
On September 17, 2014, the conceptual design for the two entry way signs was
presented to the City Council, and received approval. A representation of the
conceptual design for the entry way signs is shown in Figure 1:
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Figure 1
At that time, the City Council directed staff to add another two entry signs for locations
entering Palm Springs from N. Indian Canyon Drive and Dinah Shore Drive.
Subsequently, on December 3, 2014, the City Council approved Amendment No. 1 to
the PSA with JJA to prepare designs for the two additional entry way signs. A total of
four entry way signs are proposed within the City and their locations are identified on
the exhibits on the following pages. The detail for the sign is shown on the following
pages.
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City Council Staff Report
March 2, 2016-- Page 3
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
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City Council Staff Report
March 2, 2016-- Page 4
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
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City Council Staff Report
March 2, 2016 -- Page 5
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
Entry Way Sign #1
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City Council Staff Report
March 2, 2016 -- Page 6
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
Entry Way Sign #2
Dinah Shore Dr.
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City Council Staff Report
March 2, 2016 -- Page 7
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
Entry Way Sign #3
Ramon Road
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City Council Staff Report
March 2, 2016--Page 8
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
Entry Way Sign #4
N. Indian Canyon Dr.
Location Map
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08
City Council Staff Report
March 2, 2016 -- Page 9
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
The construction drawings for the Project were completed by JJA, and on July 1, 2015,
the City Council approved the plans, specifications and estimate and authorized staff to
advertise and solicit bids the Project. On September 3, 2015, a low bid was received
from ATOM Engineering Construction Inc., ("AToM"), in the amount of $567,398 for the
four entry signs, which identified separate bid amounts for the four entry signs as
follows:
Bid Schedule A (E. Palm Canyon Drive): $125,000
Bid Schedule B (Dinah Shore Drive): $126,000
Bid Schedule C (Ramon Road): $204,398
Bid Schedule D (Indian Canyon Drive): $112,000
Total Bid: $567,398
On October 21, 2015, the City Council awarded a construction contract to AToM
Engineering Construction Inc., ("AToM"), in the amount of $363,000 for the Project
which excluded the fourth entry sign located on Ramon Road given the higher cost for
that sign. At that time, it was reported to Council that staff will discuss with AToM the
basis for the bid item price for the Ramon Road entry sign, and if possible, negotiate a
reduced price for approval as a Change Order to the contract, and if not possible,
consider bidding the Ramon Road entry sign separately in the near future.
In discussions with AToM staff was advised that the bid price of $204,398 for the
Ramon Road entry sign was higher given extensive utility extensions for electrical
service from the originally proposed feed point located at the southwest corner of Gene
Autry Trail and Ramon Road approximately 1,250 feet away from the sign location. Staff
has since investigated and found a closer electrical meter pedestal providing service to
the landscape median lighting system within Ramon Road, significantly reducing the
costs to extend electrical service to the lighting for the new entry sign.
On this basis, staff requested and received a revised price of $135,398 from AToM for
construction of the fourth entry sign on Ramon Road, a reduction of $ $69,000 from the
original bid price. Staff recommends that the City Council approve Contract Change
Order No. 1 in the amount of $135,398; a copy of Contract Change Order No. 1 is
included as Attachment 1.
ENVIRONMENTAL IMPACT:
Section 21084 of the California Public Resources Code requires Guidelines for
Implementation of the California Environmental Quality Act ("CEQA"). The Guidelines
are required to include a list of classes of projects which have been determined not to
have a significant effect on the environment and which are exempt from the provisions
of CEQA. In response to that mandate, the Secretary for Resources identified classes
of projects that do not have a significant effect on the environment, and are declared to
be categorically exempt from the requirement for the preparation of environmental
documents. In accordance with Section 15301 "Existing Facilities," Class 1 exemptions
09
City Council Staff Report
March 2, 2016-- Page 10
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
consist of the minor alteration of existing public structures, facilities, mechanical
equipment, or topographical features, involving negligible or no expansion of use
beyond that existing at the time of the lead agency's determination; therefore, the
Project is considered categorically exempt from CEQA, and a Notice of Exemption has
been prepared and filed with the Riverside County Clerk. A copy of the Notice of
Exemption is included as Attachment 2.
FISCAL IMPACT:
A total of $150,000 was previously budgeted for the Project from the Measure J Capital
Improvement Project Fund (Fund 260) for two entry way sign installations. On
September 17, 2014, the City Council directed staff to add two more entry way sign
installations, for a total of four entry way signs. After deducting incurred expenditures for
administrative and design costs, a balance of $128,646 remained available for the
Project with an estimated construction cost of $270,000. As reported to the City Council
on July 1, 2015, an additional appropriation of approximately $173,000 was anticipated
to fully fund the Project.
On September 24, 2015, the Measure J Commission reviewed the status of several
pending capital projects funded through the Measure J Capital Improvement Fund. At
that time, staff reported a budget shortfall of $366,354 to include sufficient budget for
award of the contract and construction support/administration services. The Measure J
Commission did vote to recommend that the City Council appropriate an additional
budget of $366,354 from the contingency reserve fund held in the Measure J
Unscheduled Capital Projects for the Project.
Staff recommends that the City Council approve an additional budget of $130,000 from
the Measure J Capital Fund contingency (current balance of $259,573) to be
appropriated to the Project in Account No. 260-4500-59439. On the basis of this
additional appropriation, the Project budget and estimated expenditures are identified in
Table 1 on the next page.
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City Council Staff Report
March 2, 2016-- Page 11
Approve CCO#1 for CP13-31, Palm Springs Entry Signs
Table 1
Table of Project Costs Amount
FY 13/14 Measure J Fund $150,000
FY 15/16 Measure J Fund $280,000
FY 15116 Measure J Fund Additional $130,000
Design Services $22,215
Project Administration (through 2/23/16) ($5,691
Project Administration Estimated $2,500)
Construction Inspection Estimated ($5,000)
Construction Contract ($363,000)
Change Order No. 1 ($1.35,398
Construction Contingency $25,000)
Remaining Budget $1,196
With the City Council's approval of an additional budget appropriation of $130,000 from
the Measure J Capital Improvement Fund contingency, sufficient funding will be
available in Account No. 260-4500-59439 to approve Contact Change Order No. 1.
SUBMITTED:
5j
Marcus L. Fuller, PA, P.E., .S. David H. Ready, Esq.,
Assistant City Manager/City Engineer City Manager
Attachments:
1. Contract Change Order No. 1
2. Notice of Exemption
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ATTACHMENT 1
12
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a CITY OF PALM SPRINGS
CONTRACT CHANGE ORDER
Cq<tFORa�P
To: Atom Engineering Construction, Inc. Date: March 4, 2016
40410 Vista Rd. Project No: 13-31
Hemet, CA 92544 Project: Entry Way Signs
(951)766-2806
Change Order No: 01
Purchase Order 16-0649
Attn: Larry Boyer Account 260-4500-59439
CHANGES IN WORK/COST:
This Contract Change Order No.1 adds the scope of work identified as Bid Schedule C, Entry Sign No. 3,
Ramon Road at San Luis Rey Drive, as generally defined as follows:
The Work includes the fabrication and installation of a new 'Palm Springs" monument sign within an existing
median island, modification of existing irrigation system, installation of new landscaping, lighting and electrical
system improvements identified for "Sign No. 3," located on Ramon Road west of San Luis Rey Drive, as
identified on Sheets L-2.2, L-3.2, E1.0, E2.0, S-1, SU, and S-2 of the Drawings, and all other applicable
General Notes, details, and associated information shown on the Drawings. The Work shall include
import and installation of planting soil within the existing median island to construct a 12" landscape mound,
and installation of five (5) various sized landscape boulders as shown on the Drawings.
The location for electrical service is hereby revised from the original location approximately 1,250 feet from the
location of Entry Sign No. 3, to an existing electrical meter pedestal providing service to the Ramon Road
median landscaping.
NEW ITEMS
Item Description Price Quantity Total
A Ramon Road Entry Sin $135,398.00 1 $135,398.00
CHANGE ORDER TOTAL $135,398.00
CHANGES TO CONTRACT TIME:
15 working days will be added for door fabrication.
SOURCE OF FUNDS:
The following account will be utilized:
Item Description Amount Account Utilized
A Ramon at San Luis Rey Entry Sin $135,398.00 260-4500-59439
13
CP 13-31 Palm Springs Entry Signs
Contract Change Order No. 1
March 4, 2016
Page 2
REASONS FOR CHANGES:
Item A: The Ramon Road at San Luis Rey entry sign was part of the original project at the time of bidding.
When bids were opened this sign was significantly more expensive than other locations due to the need to
provide power from a remote location. The original bid was $204,398.00. Due to this higher than anticipated
cost, the Ramon Road location was not included in the project award. Since that time, it has been determined
that an existing source is available nearby that will be sufficient to provide power for the sign. The Contractor
was asked to re-bid the work utilizing the existing power source. This Change Order No. 1 will add the Ramon
Road location to the Entry Sign project at the Lump Sum/Agreed Price of$135,398.00.
SUMMARY OF COSTS:
Original Contract Amount: $363,000.00 Original Completion TBD
This Change Order: $135,398.00 Days Added 15
Previous Change Order(s): $ 0.00 Previous Days Added: 0
Revised Contract Amount: $498,398.00 Revised Completion TBD
SIGNATURES ON NEXT PAGE
14
CP 13-31 Palm Springs Entry Signs
Contract Change Order No. 1
March 4, 2016
Page 3
1 have received a copy of this Change Order and the above AGREED PRICES are acceptable to Contractor
Atom Engineering Construction
Signature Date
Printed Name and Title
City of Palm Springs
Recommended By:
Marcus Fuller Date
Assistant City Manager/City Engineer
Approved By:
David H. Ready, City Manager Date
Attest By:
James Thompson, City Clerk Date
Distribution:
Original Conformed Copy: Conformed- File Copy:
Contractor (1) Engineering Pay File (1)
City Clerk (1) City Project File (1)
Purchasinq (1)
Finance (1)
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ATTACHMENT 2
16
NOTICE OF EXEMPTION
To: ❑ Office of Planning and Research From: City of Palm Springs
1400 Tenth Street,Room 121 3200 E.Tahqultz Canyon Way
Sacramento,CA 95014 Palm Springs,CA 92262
® Clerk of the Board
County of Riverside
P.O.Box 751
Riverside,CA 92502-0751
Project Title: Entry Way Sian Improvements,City Protect No. 13-31
Project Applicant: City of Palm Springs
Project Location (Specific): Entry way signs at four (4) locations; S. Gene Autry TrJE. Palm Canyon Dr., Dinah Shore
DrdCrossley Rd.,E.Ramon RdJSan Luis Rey Dr.,and N.Indian Canyon Dr./W.Tramview Rd.
Project Location(City): City of Palm Springs Project Location(County): Riverside
Project Description: The scope of work is to install four(4) entry way signs on existing/proposed median islands within the
roadway. Each sign shall consist of two(2)independent aluminum bridges with the word PALM on one and SPRINGS on the
other,three(3)differently colored acrylic panels,vault for structural mountings,concrete foundations,and LED strip lighting.The
Installation will comprise of modifying/new irrigation and planting as well as electrical services connections.
Name of Public Agency Approving Project: City of Palm Springs
Name of Person or Agency Carrying Our Project: City of Palm Springs,Public Works&Engineering Department
3200 E.Tahquitz Canyon Way,Palm Springs,CA 92262
Exempt Status:(check one)
❑ Ministerial(Sec.21080(b)(1);15268);
❑ Declared Emergency(Sec.21080(b)(3);15269(a));
❑ Emergency Project(Sea 21080(b)(4);15269(b)(c));
® Categorical Exemption. State type and section number. 15303 Existing Facilities(Class 1),Minor alteration of
existing public facilities;(c)—(Existing highways and streets)
❑ Statutory Exemptions.State code number.
Reasons why project Is exempt Class 1 consists of the minor alteration of existing public structures, facilities, mechanical
equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead
agency's determination. Therefore, the Entry Way Sign Improvements, City Project No. 13-31. is considered categorically
exempt from CEGA.
Lead Agency Contact Person: Savat Khamohou.P.E. Area Code/Telephone/Extension: (760)323-8253,ext.8744
Nfiled by applicant:
1.Attach certified document of exemption finding.
2.Has a Notice��off Exemption be lad by the public agency approving the project?❑Yes ❑No
Signaturerf /ut t t Date;W/9Is: Asst Director of Public Works/Asst.City Engineer
® Signed by Lead Agency❑Signed by Applicant
Authority cited: Sections 21083 and 21110,Public Resources Code Date received for filing at OPR:
Reference: Sections 21108,21152,and 21152.1,Public Resources Code.