HomeMy WebLinkAboutInformation Item C31810 Highway 111 Resurfacing 752-13Contract No. C31810
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
I
STAFF REPORT
REQUEST: RECEIVE AND FILE INFORMATION RELATED TO THE HIGHWAY
111 RESURFACING PROJECT (PROJECT NO. 752-13)
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
CONTRACTOR:
DATE:
CONTENTS
Recommendation
Matich Corporation, Inc.
P.O. Box 10
Highland, CA 92346
September 27, 2012
Vicinity Map
By Minute Motion, Receive and File information related to the Highway
111 Resurfacing Project
Background
On July 12, 2012, City Council awarded Contract No. C31810 in the amount of
$3,109,000 to Matich Corporation, Inc., of Highland, California, for the Highway 111
Resurfacing Project. The project will repave the street by grinding off the top two inches
of asphalt, and recycling the next three inches by cold -milling the existing asphalt
concrete, pulverizing it and reusing it as base paving. After placing the base paving, a
two-inch surface course will be paved.
The project was scheduled to fit in a very tight timeframe before the seasonal residents
return to the City. The schedule slipped a little when the subcontractor indicated that
the mix -design for the recycled asphalt would take longer than anticipated to develop.
Another factor that may cause the schedule to extend into the winter season is
inclement weather.
The City Manager is sensitive to performing construction work which would require
major traffic control along a business corridor, especially in light of the Cook Street
Intersection Improvement project that ran through the winter season last year.
The City Manager and the Director of Public Works met with Matich Corporation, Inc. to
discuss the prospect of moving the construction of the street improvements to early next
summer. Matich brought up concerns with delaying the construction, namely, potential
Staff Report
Authorize the CM to Negotiate and Execute a Change Order (Contract No. C31810)
September 27, 2012
Page 2 of 2
increases in asphalt oil prices, potential increases in fuel prices for trucking asphalt in
and out of the valley, increases in labor costs set to increase in July 2013, and
overhead costs related to the inability to replace the work scheduled for September and
October 2012.
The meeting resulted in the City Manager agreeing to compensate the contractor for
legitimate cost increases. To account for the change in asphalt oil prices, the Caltrans
Paving Asphalt Price Index, or some other method to be agreed to by both parties, will
be used. For the other cost increases, Matich has offered to open the books, revealing
the methodology and breakdown of the bid items to determine how the changes in price
will affect the contract.
The contractor was asked to calculate an estimated worst -case scenario for the cost
increase. The contractor provided an estimate of $300,000 in potential cost increases
as a result of delaying the project. A change order will be brought before Council for
approval when the actual figures are available
Fiscal Analysis
There is no fiscal impact associated with this action.
Paul S. Gibson, Director of Finance
n M. Wohlmuth, City Manager
DepartmAtp,ead:
Mark Gr�wood, P.
Director o Public Wor.
CITY COUNCIL ACTION
APPROVED_ DENITD
RECEIVED OTHER
MEETING DATE a 2 - )-G I �
AYES: d0f6 K
NOES: -
ABSENT: n11ne
ABSTAIN:
VERIFIED BY:
Original on File with City Clerk's dfrice
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