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Home My WebLink AboutC31810 - CO1 - Hwy 111 Resurfacing 752-13 Contract No. C31810 CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: APPROVE CHANGE ORDER NO. 1 TO CONTRACT NO. C31810 WITH MATICH CORPORATION FOR THE HIGHWAY 111 RESURFACING PROJECT (PROJECT NO. 752-13) SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works CONTRACTOR: Matich Corporation, Inc. P.O. Box 10 Highland, California 92346 DATE: June 13, 2013 CONTENTS: Change Order No. 1 Recommendation By Minute Motion: 1. Approve Change Order No. 1 to Contract No. C31810 in the amount of$109,070 for the Highway 111 Resurfacing Project; 2. Authorize the transfer $109,070 from contingency to base; and 3. Authorize the Mayor to execute said Change Order No. 1; Funds are available in Account No. 213-4311-433-3320, Street Maintenance. Backqround 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 in the fall of 2012 before the seasonal residents returned to the City. However, there was concern that any delay in the project could cause it to extend into the season. The City Manager was mindful to avoid any construction work that would have required major traffic control along a business corridor during the shopping season, especially in light of the Cook Street Intersection Improvement project that ran through the winter season a few years ago. Staff Report Approve Change Order No. 1 (Contract C31810) Page 2 of 2 June 13, 2013 The City Manager scheduled a meeting with Public Works staff and Matich Corporation and requested that the contractor postpone the project until the summer of 2013. The result of the meeting was that the contractor agreed to postpone the project if consideration was given to the fact that over the course of a year prices for asphalt oil, trucking, construction materials, and labor would tikely increase. The contractor estimated that the increase over one year in a worst case scenario could be as much as $300,000. This information was provided to Council in an informational item at the September 27, 2012, Council meeting. The City Manager agreed that the City would compensate the contractor for legitimate cost increases using a method to be agreed upon by both parties. The contractor has provided the City with the cost increases for specific cost centers, namely labor, freight, material, and subcontractor costs. Those costs were transferred into bid items and represent an increase of 2 cents per square foot for cold milling, 1 cent per square foot for cotd-in-place recycling, and 4 cents per square foot for warm mix asphalt. The proposed change order of $109,070 equals approximately 3.5 percent of the $3,109,000 contract amount. By comparison, the Caltrans Asphalt Price Index rose approximately 6 percent from the project bid date until now. Fiscal Analvsis The initial contract amount was $3,109,000. This change order will increase the contract amount to $3,208,070. This street resurfacing project is being done as a part of the City's annual Street Maintenance Program. There is no fiscal impact beyond the change order amount. Pre red By: Depart n H ad: .� Ry Gayle roject Administrator Mark Gree w od, P.E. Director of Pu lic Works CiTY COUNCIL ON APPROVED DENiED RECEIVED OTHER Paul S. Gibson, Director of Finance MF,ET DAT '� � AYES: �� Approval� NOCS: AB5ENT: ABSTAIN: VERIFIED BY: U J n . Wohlmuth, City Manager Original on File with City C{le k's Office G:IPubWorkslStaff RepoRs12013Uune 13119 CO 1 to C31810 Matich Corp/or Hwy 111 Resur(acing P752-131SR Approve CO#1 for Matich Corp C31810.docx ��° rA� � ��'� Contract#/P.O.# C31810 18251 \��/i� Change Order No. 1 �� ,�� conengency: E NO Contract Purpose Highway 111 Resurfacing Project nc�o��t n�o. 213-4311-433-3320 Consultant's Name Matich Corporation Prolect No. 752-13 Address: P.O. Box 10 ver,aor No. 279 Highland, CA 92346 You are hereby requested to comply with the following changes from the contract plans and speci�cations: DESCRIPTION OF CHANGES DECREASE INCREASE In Contract Price In Contrad Price Increase unit price forcold mill asphalt by$.02 persquare foot 29,220.00 Increase unit price forcoid-in-plaoe recycling by $.01 per square foot 15,970.00 Increase unit price forwarm-mix by$.04 per square foot 63,880.00 TOTALS: - 109 0 70.00 NET CHANGE IN CONTRACT PRICE: 109 070.00 JUSTIFICATION: Additional cost related to postponing the project approximately ten months. OTALBUDGET FOR PROJECT: + 3,419,900.00 CONTINGENCY: Less: Expend. 8 Encumb.To Dabe: - 3,109,000.00 Amount Approved by Council: + 310,900.00 Less:This Change Orcier Amount: - 109 070.00 Less: Prior Change Order(s): - - BALANCE OF BUDGET Less: This Change Order: - 109 070.00 REMAINING FOR PROJECT: 201 830.00 Balance Remaini of Conti e 201 830.00 The amount of the Corrtract will be Increased by the Sum of: One hundred nine thousand seventv Dollars ($109,070.00). See reverse ... Contract C31810 Change Order No. 1 Continued from front This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, fumish equipment and materials, and perfoRn all work as necessary or required to complete the Change Order items for a lump sum price agreed upon befinreen the Contractor and the City of Palm Desert, otherwise referred to as Owner. Contract Time Extension 0 Days. Revised Contract Total $3,218.070.00 The undersigned Contractor approves the foregoing Change Order# 1 as to the changes, if any, in the contract price spec�ed for each item including any and all supervisian costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order# 1 . The Contractor agrees to fumish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the Change Order items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Change Order shall be effective when approved by the Owner. Execution of this Change Order by the Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the Owner from all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and all consequential damages. This document will become a supplement to the Contract and all provisions will apply hereto, all items included above must have required signatures as per the purchase resolution. 1. REQUESTED BY: 2. ACCEPTED BY: DEPARTMENT HEAD CONTRACTOR Date Accepted 3. CERTIFIED FUNDS AVAILABLE: 4. APPROVED BY: FINANCE DIRECTOR JAN C. HARNIK, MAYOR Date Approved NOTE: No payments will be made prior to City Manager and Council approval CITY MANAGER Date Approved see reverse ...