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Home My WebLink About11/2/2005 - STAFF REPORTS (15) ;o QpLMgpQ iy c V N • x * �40RFiEE ,A, x O'Q41FOVtON City Council Staff Report CITY COUNCIL NOVEMBER 2, 2005 CONSENT CALENDAR Subject: APPROVAL OF CHANGE ORDER NO. 2 TO INTERNATIONAL PAVEMENT SOLUTIONS, INC. (IPS) FOR CITY PROJECT NO. 04-01, 2004 CITYWIDE ARHM OVERLAY From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department SUMMARY City Project 04-01 ARHM Overlay initially began work in January of 2005. Prior to the start of the project, the Engineering Department was informed by Desert Water Agency (DWA) that some of the intended overlay areas were scheduled to have a reclaimed water line installed. This included the areas in bid schedules A and B (Araby Drive, Barona Road and Anza Trail). Due to the proposed construction, these areas were not paved as part of the original project. The contractor was asked if they would be willing to hold the contract open until after the DWA water line work was completed and they agreed. Over the past several months the cost of Asphalt-Rubber Hot Mix material has increased significantly. The delay in the construction of Bid Schedules A and B was due to the above mentioned DWA work and was not the fault of the Contractor. Therefore, the Contractor is entitled to compensation for the difference in cost from when the work was originally to be performed and today. RECOMMENDATION: 1) Adopt Minute Order No. "AUTHORIZING CHANGE ORDER NO. 2 TO AGREEMENT NO. 4989 WITH INTERNATIONAL PAVEMENT SOLUTIONS, INC., FOR THE 2004 CITYWIDE ARHM OVERLAY PROJECT, CITY PROJECT NO. 04-01, IN THE AMOUNT OF $24,685.96 FOR A TOTAL REVISED CONTRACT AMOUNT OF $358,425.96. 2) Authorize the City Manager to execute all necessary documents. Item No. 2 . K . City Council Staff Report November 2, 2005- Page 2 CCO#1 2004 ARHM Overlay(CP 04-01) STAFF ANALYSIS: City Council approved an agreement with IPS for Asphalt Rubber Hot Mix Overlay of city streets on November 3, 2004. The Public Works Department oversees the maintenance of the City's street system. Each year, the Department assembles a capital project to continue its ARHM Overlay Program on various City streets. The approval of this Change Order would allow the 2004 project to finish without once again putting the work out to bid. DWA originally informed staff that their waterline work was scheduled to be complete in September 2005. At this time, the DWA waterline work is continuing and they have now informed us that they are expected to complete construction in early November 2005. Approval of Change Order No. 2 would allow the continuation of the overlay work to begin shortly after the completion of the DWA work. FISCAL IMPACT: IFinance Director Review The original bid price for this work was $0.86/SF. The ,td al increase in price per this change order would be $0.30/SF and is inclusive of increases in the cost of ARHM material, tack oil and additional overhead. Including some corrections in the original contract quantities, the total estimated increase in cost is $45,902.20. When combined with savings of $21,216.24 from the initial phase of the work (Movie Colony area), the net increase is estimated at $24,685.96. Change Order No. 1 was approved during the original phase of the work and included additional grinding and base paving to Alejo Road between Indian Canyon Drive and Palm Canyon Drive. This Change Order totaled $7,848.00. 'The net result of Change Orders 1 and 2 is an increase of $32,533.96 to the original contract amount of $325,892.00 for a total of $358,425.96; an approximate increase of 10%. Funding for this project will be available through local Measure A revenue, in an account budgeted as part of the 2004 Citywide ARHM Overlay capital improvement project, account 134-4 98-50225 (ARHM Overlay). 0J-"- AAQ David J. Barakian Thomas J. Wil n Director of Public Works/City Engineer Assistant City Manager David H. Ready, Ci y I n e�r ATTACHMENTS: 1. Minute Order MINUTE ORDER NO, AUTHORIZING CHANGE ORDER NO. 2 TO AGREEMENT NO. 4989 WITH INTERNATIONAL PAVEMENT SOLUTIONS, INC., FOR THE 2004 CITYWIDE ARHM OVERLAY PROJECT, CITY PROJECT NO. 04-01, IN THE AMOUNT OF $24,685.96 FOR A TOTAL REVISED CONTRACT AMOUNT OF $358,425.96 I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order Authorizing Change Order No. 2 To Agreement No. 4989 with International Pavement Solutions, Inc., for the 2004 Citywide ARHM Overlay Project, City Project No. 04-01, in the amount of $24,685.96 for a total revised contract amount of $358,425.96, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the day of , 2005. James Thompson, City Clerk CITY OF PALM SPRINGS CONTRACT CHANGE ORDER To: IPS,Inc. Date: October 18,2005 P.O.Box 10458 Project No.: 04.01 San Bernardino,CA 92423 Project: ARHM Overlay Change Order No.: Two (2) Contract Purchase No.: 516586 Account Numbers: 134.4498.50225 261.4491.50235 420-6800-50000 Minute Order No.: 7581 Agreement No.: 4989 CHANGES IN WORK/COST: DECREASE TO CONTRACT QUANTITIES Bid Schedule C Item No.: 4. 1.5"ARHM Overlay 6211 SF @ $0.75/SF ($4,658.25) 6. Adjust Sewer Manhole 2 EA @ $450/EA ($900.00) Bid Schedule D Item No.: 4. 1.5"ARHM Overlay 6240 SF @ $0.75/SF ($4,680.00) 6. Adjust Sewer Manhole 1 EA @ $450.00/EA ($450.00) Bid Schedule E Item No.: 3. Cold Planing 7614 SF @$0.20/SF ($1,522.80) 4. 1.5"ARHM Overlay 6902 SF @ $0.75/SF ($5,176.50) .5. Adjust Water Valve 10 EA @$120.00/EA ($1200.00) ]Bid Schedule F Item No.: 3. Cold Planing 1518 SF @ $0.35/SF ($531.30) 4. 1.5" ARAM Overlay 1851 SF @ $0.89/SF ($1,647.39) ]Bid_ Schedule G Item No.: 3. Adjust Sewer Manhole 1 EA @ $450.00/EA ($450.00) SUBTOTAL OF DECREASES TO THE CONTRACT ($21,216.24) INCREASE TO CONTRACT QUANTITIES :Bid Schedule B Item No.: 4. 1.5"ARHM Overlay 14920 SF @$0.86/SF $12,831.20 New Item A. Bid Correction 1 LS @$800.00 $800.00 B. Increase Material Cost 107570 SF @ $0.30/SF $32,271.00 SUBTOTAL OF INCREASES TO THE CONTRACT $45,902.20 TOTAL (NET INCREASE AMOUNT) $24,685.96 Contract Change Order No.2 International Pavement Solutions,Inc. City Project#04-01,2004 Citywide ARIIM Overlay Page 2 of 3 REASONS FOR CHANGES: The increase to Bid Schedule B, Item No. 4, is required in order to complete the overlay of Barona Rd. as indicated on the approved contract drawings. Following the award of the contract and after the project had begun,it was discovered that a portion of the work was not included in the original quantity estimate. This increase allows for the payment of the additional quantity as indicated on the project drawings and in accordance with the originally intended scope of work. Item A above corrects a math error in the original bid/contract. This overlay project initially began work in January of 2005. Prior to the start of work, The Engineering Department was informed by Desert Water Agency that some of the intended overlay areas were scheduled to have a reclaimed water line installed. This included the areas in bid schedules A and B (Araby Drive,Barona Rd. and Anza Trail). Due to the proposed construction, these areas were not paved as part of the original project. The Contractor was asked if they would be willing to hold the contract open until after the waterline work was completed. Item B represents an increase in the square footage price for the placement of the overlay material. Over the past several months the cost of Asphalt-Rubber Hot Mix material has increased significantly.The delay in the construction of Bid Schedules A and B was due to the above mentioned D WA work and was not the fault of the Contractor. Therefore,the Contractor is entitled to compensation for the difference in cost from when the work was originally to be performed and today. This item is inclusive of the additional costs of tack oil,trucking,and Contractor's overhead and is considered an agreed price per square foot. The total square footage indicated in this item is an estimate and the Contractor is aware that the final quantity could be higher or lower than what is indicated. In either case the Contractor will only be entitled to the increase in price per square foot for the actual quantity placed. All decreases indicated above are due to savings in the work that has been completed to date. These result from the actual quantifies placed in the field being less than the original estimate. Contract time on this project has been deferred. Start date for bid schedules A and B is to be determined at a future date. No additional mark ups will be added to any item on this Change Order.All costs are final. SOURCE OF FUNDS Funds are available in the following account: Account No. 134-4498-50225 ARHM Overlay/Measure A Contract Change Order No.2 International Pavement Solutions,Inc. City Project#04-01,2004 Citywide ARHM Overlay Page 3 of 3 Summary of Costs _ Contract Time Original Contract Amount: $325,892.00 Original Completion Date: March 18,2005 This Change Order: $24,685.96 Days Added for this C.C.O.: --0-- Previous Change Order(s): $7,848.00 Previous Days Added: —2-- Revised Contract Amount: $358,425.96 Revised Completion Date: to be determined I have received a copy of this Change City Approval: Order and the above AGREED PRICES are acceptable to the Contractor. Submitted by Date Field Engineering Manager By Approved by"/ Date City-Engineer Date Approved by Date City-Manager Distribution: Original Conformed Copies Conformed-File Coov Contractor (1) Engineering File (1) City Clerk (1) Engineering Field Inspector (1) Engineering Field Supervisor (1) Purchasing Agent (1) Engineering (1) Finance (1)