HomeMy WebLinkAboutC31040A - CA1 - CO1 - Sec 29 Rtntn Basin 627-11 Contract No. C31040A
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: APPROVE AMENDMENT NO. 1 AND CHANGE ORDER NO. 1 TO
CONTRACT NO. C31040A WITH KIP, INCORPORATED FOR THE SECTION
29 RETENTION BASIN REPAIR PROJECT (PROJECT NO. 627-11)
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
CONTRACTOR: KIP, Incorporated
25740 Washington Avenue
Murrieta, CA 92562
DATE: March 14, 2013
CONTENTS: Amendment No. 1
Change Order No. 1
Recommendation
By Minute Motion:
1. Approve Amendment No. 1 to Contract No. C31040A;
2. Approve Change Order No. 1 to Contract No. C31040A in the total amount
of $127,427.58 for the Section 29 Retention Basin Repair Project;
3. Authorize the transfer $80,231.15 from contingency to base;
4. Appropriate $47,196.43 from Unobligated Fund 469, Assessment District
2004-02, to Account No. 469-4350-433-4001; and; and
5. Authorize the Mayor to execute said Amendment No. 1 Change Order No. 1.
Backqround
On December 13, 2012, City Council awarded Contract No. C31040A in the amount of $802,311.50
to KIP, Incorporated of Murrieta, California, for the Section 29 Retention Basin Repair Project to
improve the capacity to convey storm water into the basin, relocate a sewer line, and construct a
stronger spillway slope protection. Prior to the commencement of some of the major construction
activities, staff discovered two items that require change.
During a review of the contract documents, an error was discovered. The contract was bid as a
non-prevailing wage project when in fact, due to the project funding coming through an assessment
district, the project should have been bid as subject to the prevailing wage requirements. Staff
Staff Report
Approve Amendment No. 1 and Change Order No. 1 (Contract C31040A)
March 14, 2013
Page 2 of 2
examined several options to bring the contract into compliance, and has concluded that the best
option is to issue Amendment No. 1 to properly identify the project as being subject to prevailing
wage requirements. The City Attorney has reviewed this plan and has determined that the City has
the authority to execute an amendment to subject the project to the prevailing wage rate
requirements. The additional cost to the contractor for additional labor costs is $97,027.58.
The second item is related to a concrete box used to convey storm water to the bottom of the basin.
The concrete box runs over the top of a twelve-inch Coachella Valley Water District (CVWD) sewer
line. Subsequent to CVWD's approval of the plan, they determined that their sewer line must be
protected by a steel casing. The cost of installing the casing is $30,400.00 and also includes the
removal and replacement of a live sewer line. This change and the additional labor costs associated
with the Amendment No. 1 is covered by Change Order No. 1
Funding for these changes exceeds the approved contract contingency. Staff is requesting that
Council authorize moving the full contingency amount of $80,231.15 to base and appropriate
$47,196.43 from Unobligated Fund 469, Assessment District 2004-02, to Account No. 469-4350-
433-4001.
Fiscal Analysis
The initial contract amount was $802,311.50. The costs associated with the amendment and
change order total $127,427.58 and will increase the contract amount to $929,739.08. The funding
of these changes will come from funds set aside for the construction of the retention basin. No
General Funds will be used on the project. This project will repair an existing facility, so there is no
fiscal impact beyond the change order amount.
Pr ed B Departme t He d:
Rya Gayler, r ject Administrator Mark Green oo , P.E.
Director of Public Works
Paul S. Gibson, Director of Finance David J. Erwin, City Attorney
Ap,p�oval: CITY COUNCILA�ION
/ APPROVED.�..�...�.,,,...,_,DEN�ED
� RECEYVED OTHER
J n M. Wohlmuth, City Manager �ET G DA ��
AYES: ���1 r �rJ
NOES:
ABSENTs
ABSTAIN:
YERIFIED BYs
Original on File with City erk's Oftice
G:1Pub WorkslStaH Reports120131March 14105 CO 1 /or KIP to C31040A Section 29 Retention Basin Repairs P627-111SR Approve COl lor KIP Inc C31040A.docx
Contract No. C31040A
AMENDMENT NO. 1
THIS AMENDMENT (the "Amendment") is made and entered into this
14th day of March , 2013, by and between City of Palm Desert, California, hereafter
called "CITY" and KIP, Incorporated hereinafter called "CONTRACTOR".
RECITALS
WHEREAS, the CITY and CONTRACTOR entered into an agreement for the
SECTION 29 RETENTION BASIN REPAIR, PROJECT NO. 627-11, CONTRACT NO.
C31040A, on December 13, 2012 (the "Agreement").
NOW THEREFORE, the CITY and CONTRACTOR agree to amend the
Agreement as follows:
1. Paragraph 5 of the Notice Inviting Bid is hereby deleted in its entirety and
replaced with the following:
In accordance with California Labor Code Sections 1770, 1773, 1773.1,
1773.6 and 1773.7 as amended, the Director of the Department of
Industrial Relations has determined the general prevailing rate of per diem
wages in accordance with the standards set forth in Section 1773 for the
locality in which the Work is to be performed. In accordance with City
Ordinance No. 859, this project shall require prevailing wage payments.
Any contract entered into pursuant to this notice will incorporate the
provisions of the State labor Code. A copy of said wage rates can be
obtained by accessing the Department of Industrial Relations website at:
www.dir.ca.gov/DLSR/statistics research.html, or by contacting the
District Office at 464 West Fourth Street, Room 348, San Bernardino, CA
92401, telephone (909) 383-4334.
2. Paragraph 1 of the Wage Rates and Labor Code Requirements in the Generat
Specifications is hereby deleted in its entirety and replaced with the following:
The Contractor and all Subcontractors shall be required to adhere to the
general prevailing rate of per diem wages as determined and published by
the State Director of the Department of Industrial Relations, pursuant to
Section 1770, 1773 and 1773.2 of the California Labor Code. Copies of
these rates and the latest revisions thereto are on file in the Office of the
Secretary of the Board of Directors and are available for review upon
request.
3 Delete Question 4 and answer from Addendum No. 1 in its entirety.
1
Contract No. C31040A
Except as set forth in this Amendment, the Agreement shall continue in full force
and effect in accordance with its terms. If there is conflict between this Amendment and
the Agreement or any earlier amendment, the terms of this amendment will prevail.
IN WITNESS WHEREOF the parties hereto have executed or caused to be
executed by their duly authorized officials, this Amendment which shall be deemed an
original on the date first above written.
CONTRACTOR:
BY: ATTEST BY:
Signature to be notarized
TITLE: TITLE:
CITY:
BY: ATTEST BY:
Signature to be notarized
TITLE: Mavor of Palm Desert, CA TITLE: City Clerk of Palm Desert, CA
APPROVED AS TO CONTENT: APPROVED AS TO FORM:
MARK GREENWOOD, P.E. DAVID J. ERWIN
DIRECTOR OF PUBLIC WORKS CITY ATTORNEY
2
Contract No. C31040A
CONTRACTOR ACKNOWLEDGMENT
State of California )
) SS.
County of )
On , 20_, before me, , a Notary
Public, personally appeared , who proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seaL
Signature (seal)
CITY ACKNOWLEDGMENT
State of California )
) SS.
County of Riverside )
On , 20_, before me, , a Notary
Public, personally appeared , who proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (seal) �
3
" ' Contrect#�P.o.# C31040A �
� . . � �� �.:' .'
. ,
Change Order No. �
, . � ; ���
�'�� . , �� ' . � � . ,
� Contingency: ES NO
Contract Purpose Section 29 Retention Basin Repair Account No. 69-4350-433-4001
Contractor's Name KIP, Incorporated Project No. 627-11
aaaress: 25740 Washington Avenue vendor No. 13094
Murrieta, California 92562
You are hereby requested to comply with the following changes from the contract plans and specifications:
DESCRIPTION OF CHANGES DECREASE INCREASE
Su lemental Plans, S ecifications, and Directives dated Attached In Contract Price In Contract Price
Cost to convert project to prevailing wage requirements pursuant to 97,027.58
Amendment No. 1 dated March 14, 2013
Protect�sewer line with steel casing 30,400.00
TOTALS: - 127,427.58
NET CHANGE IN CONTRACT PRICE: 127,427.58
JUSTIFICATION:
The project funding requires prevailing wage and CVWD requires a steel encasement for the sewer line.
TOTAL BUDGET FOR PROJECT: + $$$2,542.65 CONTINGENCY:
Less: Expend. & Encumb. To Date: - $802,311.50 Amount Approved by Council: + $80,231.15
Less: This Change Order Amount: - $127,427.58 Less: Prior Change Order(s): - $0.00
BALANCE OF BUDGET $0.00 Less: This Change Order: - $80,231.15
REMAINING FOR PROJECT: $47,196.43 Balance Remaining of Contingenc : $0.00
The amount of the Contract will be Increased by the Sum of: One Hundred Twenty-seven Thousand Four
Hundred Twenty-seven and 58/100 Dollars ($127,427.58)
Contract C31040A Change Order No. 1 Continued from front
This Change Order covers changes to the subject contract as described �herein. The Contractor shall construct, -
furnish equipment and materials, and perform all work as necessary or required to complete the Change Order
items for a lump sum price agreed upon between the Contractor and the City of Palm Desert, otherwise referred to
as Owner.
Contract Time Extension 0 Days.
Revised Contract Total $ 929,739.08.
The undersigned Contractor approves the foregoing Change Order # 1 as to the changes, if any, in the contract
price specified for each item including any and all supervision 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 furnish 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 Councit approval CITY MANAGER Date
Approved
G:\PubWorks\Slaff Reports\2013\March 14\OS CO 1 for KIP lo C31040A SecUon 29 Retention Basin Repairs p627-11\C01 tor KIP C31040A.docx See reverse ...