HomeMy WebLinkAboutC21200 CO1 - PetroChem Marketing - Citywide Slurry Seal Program 751-03CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Approve Change Order No. 1 to Contract No. C21200 with
Petrochem, Inc., for the Citywide Slurry Seal
SUBMITTED BY: Mark Greenwood, P.E.
City Engineer
APPLICANT: PetroChem Marketing, Inc.
505 No. Tustin Avenue, Suite 280
Santa Ana, California, 92705
DATE: June 10, 2004
CONTENTS: Change Order No. 1
Photos
Vicinity Map
Recommendation:
By Minute Motion:
1. Move Contingency for Contract No. 21200 in the
amount of $14,910.00 to the base amount.
2. Allocate $51,490.00 from un-obligated funds in
account No. 110-4311-433-3320.
3. Approve Change Order No. 1 for Petrochem, Inc., in
the amount of $66,400.00.
Discussion:
On November 13, 2003, City Council awarded Contract No. 21220 to Petrochem,
Inc., for the City Wide Slurry Seal Program, in the amount of $149,100.00.
The City's specifications for this year's slurry seal called for a specific spread
rate. Petrochem, Inc., submitted their bid accordingly and was the winning
bidder. At construction time Petrochem suggested a different spread rate
resulting in a better -finished product. The thicker rubberized slurry application
Staff Report
Approve Change Order No. 1 to Petrochem, Inc., Contract No. 21200
Page 2 of 2
June 10, 2004
reflective cracking appearing through the sealing coat and provides an increased
wear rate, reducing the maintenance frequency.
This new spread rate increased the amount material needed for this project. The
decision to increase the spread rate was made at the time of construction. The
original bid called for 70,000 gallons of oil, which is the pricing factor. The new
spread rate would require an additional 55,000 gallons of oil.
To offset the increase in cost,
• Petrochem supplied their own manpower for spreading the
material. The original contract had city forces doing the work.
• Petrochem added an additional 15,000 gallons of material to the
order at no extra cost
• Petrochem reduced the per gallon price by 0.65 cents from $2.13
per gallon to $1.68 per gallon for the 40,000 gallons of remaining
slurry that was over the contract quantity.
As you can see with the attached photos this new product from Petrochem is far
superior to any other slurry product the city has used.
Photo one shows the typical slurry product used in previous projects. Photo two
shows this year's product one week after application. Photo three shows the
thickness and high quality of this slurry product.
Therefore, staff recommends that City Council, by minute motion, move
$14,910.00 of contingency to base, allocate $51,490.00 from un-obligated funds
in account No. 110-4311-433-3320 to this project, and approve Change Order
No. 1 in the amount $66,400.00 to Contract No. C21200.
Submittal By.
Mark Greenwood, P.E.
City Engin-er
App
M for nt Services
City Manager
/cls
Depa t Hea
Michael - rrante, P.E.
Director of Public Works/
Finance Director
G:IPubWorks1PROJECTS1751-031Staff ReportISTAFF REPORChange Order No. 1. dot
CITY OF PALM DESERT
CONSTRUCTION CHANGE ORDER
Project Description:
Contractor Name
Street Address
City, State, Zip
Slurry Seal Program
PetroChem Marketing, Inc.
505 No. Tustin Avenue
Santa Ana, California 92705
P.O. #
Contract # C21200
Project # 751-03
Contractor
Vendor # 8223
Contract Change Order # 1
Pursuant to the terms of the original contract Agreement, you are hereby directed to make the herein described
changes or do the following described work not included in the plans and specifications for this Contract. Unless
otherwise stated, all work shall conform to the terms, general conditions, and special provisions of the original contract.
DESCRIPTION OF CHANGE
Increase quantity of material for project
Contingency used? (circle one)
If yes, amount moved to base:
Yes No
$14,910.00
Increase/Decrease in Amount
$66,400.00
Contract Amount (include past change orders)
149,100.00
Plus/Minus Current Change Order
66,400.00
Revised Total Contract Amount
$ 215,500.00
1. ORDERED BY:
Department Head
3. APPROVED BY:
City Manager
Date
Increase/Decrease in Days
Contract Date of Completion
Plus/Minus Current Change Order
Revised Date of Completion
2. CERTIFIED FUNDS AVAILABLE
Director of Finance
4. APPROVED BY:
Date
City Council
Date
We, the undersigned Contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we
will provide all materials, perform all labor, except as may be noted above, and perform all services necessary to complete the above specified
work, and hereby accept as full payment the amount shown above, which includes all direct and indirect overhead expenses fort any delays.
ACCEPTED BY:
ContractorNendor
Date
2004 SLURRY SEAL PROGRAM
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