HomeMy WebLinkAboutSR - HA25760 CO3 - Laguna Palms ApartmentsPALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: APPROVE CHANGE ORDER NO. 3 TO CONTRACT NO. HA-25760
(PORTRAIT HOMES, INC.) IN THE CUMMULATIVE AMOUNT OF
$16,085.95 FOR STRUCTURAL UPGRADES TO THE TWO-STORY
BUILDING AND VARIOUS INTERIOR FIXTURES FOR THE HOUSING
AUTHORITY PROPERTY KNOWN AS LAGUNA PALMS
SUBMITTED BY: MARTIN ALVAREZ, REDEVELOPMENT MANAGER
CONTRACTOR: PORTRAIT HOMES, INC.
265 N. JOY ST., STE. 200
CORONA, CA 92879
DATE: SEPTEMBER 13, 2007
CONTENTS: CHANGE ORDER NO. 3 TO CONTRACT HA-25760
Recommendation:
By Minute Motion, that the Housing Authority:
1. Approve Change Order No. 3 to Contract No. HA-25760 with Portrait
Homes, Inc., in the cumulative amount of $16,085.95 (includes an additive
amount of $128,578.95 and a deductive amount of $112,493.00) to
structurally upgrade the two-story building, backfill discovered septic tanks,
as well as to purchase and install additional interior fixtures that are not part
of the original contract;
2. Authorize the Chairman to execute the said documents; and
3. Authorize the Finance Director to transfer $16,085.95 from contingency to
base for Change Order No. 3.
Executive Summary:
Approval of staff recommendation will authorize necessary structural upgrades to the two-story
building at Laguna Palms, which will include a new Toad beam, post and footings to support the
second level up to current standards; allow the proper fill in of the discovered septic tanks: and
to allow the Contractor to purchase and install necessary interior fixtures which were not part of
the original contract.
Staff Report
Approve Change Order No. 3 to Contract No. HA-25760 — Laguna Palms Renovations
Page 2 of 3
September 13, 2007
Below is a breakdown of the costs:
Not -to -exceed amount for costs related to new beam, post, and
footing installation on two-story building
Interior fixtures not part of original contract
Sewer/water heater modifications/backfill of abandoned septic
tanks
Deduction resulting from re -engineering on all one-story buildings
Total
Discussion:
79,251.00
39,108.30
10,219.65
(112,493.00)
$16,085.95
The Laguna Palms renovation is underway and still scheduled for completion in early 2008.
The rehabilitation project consists of 11 single -story buildings and one two-story building
constructed in the 1960's. When the contractor removed the existing stucco and exposed the
framing as part of the demolition stage, the contractor discovered that the upper floor was not
supported with a structural beam to carry the building's load. The current Building Code does
not accept this method of construction. The engineered solution will provide the installation of a
new structural beam with 18 footings and posts to properly support the upper floor. The total
cost to perform this work will not exceed $79,251.
Originally, the Housing Authority renovated 18 units within the Laguna Palms project. Prior to
starting construction, it was the intention of staff to salvage the interior fixtures (i.e. toilets, light
fixtures, fans, garbage disposals) within these units and re -use them as part of the rehabilitation
project. During the project's demolition, some of these fixtures and cabinets were damaged by
the contractor. The Contractor has taken responsibility for a portion of the damages and agreed
to cover the cost of replacing the cabinets in all 48 units, provided the Authority replaces the
other damaged fixtures. Staff and the Construction Manager negotiated this proposal and are
recommending approval. The total cost is $39,108.30.
In Tight of this, staff saw an additional opportunity to place those items that were not damaged
into inventory for immediate repairs at other properties (Neighbors and One Quail Place), and
replace the fixtures at Laguna Palms to maintain consistency. In addition, this change order will
allow staff to keep all warranties and finishes in the Laguna Palms units consistent throughout
the property.
The third item in the change order will allow for minor sewer and water heater modifications
required to properly retrofit the plumbing system, and the backfilling of three abandoned septic
tanks discovered to be improperly filled during the 1994 sewer line connections. The total cost
for this work is $10,219.65.
As a result of the re -engineering on the project's single -story buildings, the Housing Authority is
being credited $112,493 for utilizing more cost effective structural upgrades on all the single -
story structures. The structural upgrades being implemented comply with the Building Code
and were approved by the structural engineer. As such, there is a deductive change order in
the amount of $112,493.
G \rda&Maria Hunt \WPDATA\HOUSING\conway\stfrpts\091307CO3PortraitHomesLP.doc
Staff Report
Approve Change Order No. 3 to Contract No. HA-25760 — Laguna Palms Renovations
Page 3 of 3
September 13, 2007
Therefore, staff is requesting approval of Change Order No. 3 in the cumulative amount of
$16,085.95. The proposed change order will allow the project to continue to move forward
without any additional delays. The amount of this change order will be applied against the
contingency, which will leave a contingency balance of $199,581.21.
Submitted by:
Martin Alvarez, Redevelopment Manager
Department Head:
4"d-At
J ne M. Moore, Director of Housing
Approval:
Department Head:
e Yri6y n, Dirt of fed./Hausing
elopment
, Executive Director PauiS. Gibson, Director of Finance
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