HomeMy WebLinkAboutHA29410B - CO 3-4-5 - COV 825-11 Contract No. HA29410B
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: APPROVE CHANGE ORDER NOS. 3 AND 5, AND RATIFY CHANGE
ORDER NO. 4 TO CONTRACT NO. HA29410B WITH OPTIMUS
CONSTRUCTION, INC., FOR CONSTRUCTION OF THE CARLOS
ORTEGA VILLAS (PROJECT NO. 825-11)
SUBMITTED BY: Heather Buck, Project Coordinator
CONTRACTOR: Optimus Construction, Inc.
440 Western Avenue, Suite 202
Glendale, CA 91201
DATE: December 11, 2014
CONTENTS: Change Order No. 3
Change Order No. 4
Change Order No. 5
Recommendation
By Minute Motion that the Authority Board:
1. Approve Change Order No. 3 to Contract No. HA294106 in the total amount
of$35,001.48 for the Carlos Ortega Villas (Project No. 825-11);
2. Ratify Change Order No. 4 to Contract No. HA29410B in the total amount of
$16,622.46 for the Carlos Ortega Villas (Project No. 825-11);
3. Approve Change Order No. 5 to Contract No. HA29410B in the total amount
of $3,373.65 for the Carlos Ortega Villas (Project No. 825-11);
4. Authorize the transfer of$54,997.59 from contingency to base; and
5. Authorize the Chairman to execute Change Order Nos. 3, 4 and 5.
Funds are available in Account No. 871-8691-466-4001, Housing Authority Capital
Improvements.
Commission Recommendation
The Housing Commission reviewed the recommendation at the regularly scheduled meeting of
December 10, 2014. Staff will provide a verbal report upon request of the Authority Board.
Staff Report
Approve CO Nos. 3 & 5 and Ratify No. 4 to Contract No. HA29410B (Optimus) for the COV project
Page 2 of 3
December 11, 2014
Backqround
On July 10, 2014, the Authority Board authorized award of the contract for construction of the
Carlos Ortega Villas to Optimus Construction, Inc. The Notice to Proceed was issued on
September 4, 2014. Construction is anticipated to be completed in November 2015. Also on
July 10, 2014, the Housing Authority granted the Executive Director the authority to approve
change orders up to the amount of$100,000.00 per occurrence with ratification by the Housing
Authority required at the next meeting.
Chanqe Order No. 3
The additional costs associated with this change order are due to the required import of
approximately 1,700 cubic yards of compacted fill to provide elevations consistent with the
approved plans. The primary reasons for additional import soil are:
• The aerial survey (topography map) conducted in 2010 and included in the bid
documents did not match the actual conditions when the contractor began construction.
• Shrinkage of soil was greater than anticipated in the Geotechnical Report provided in
the bid documents.
• An unknown quantity of soil was lost during the September 8, 2014, rain event.
Optimus is requesting $35,001.48 for this work and has provided invoices for expenses
incurred.
Chanqe Order No. 4
Staff is working with Southern California Gas on the possible installation of solar hot water
heating on other City/Authority properties and was alerted to the potential for rebates for
installation of such a system at the Carlos Ortega Villas. Staff has received a proposal for this
work from Optimus in the amount of $16,622.46 with potential rebates of$10,059 for a net cost
of $6,563.46. Staff has reviewed the potential maintenance of such a system with the Director
of Housing.
In order to lock-in rebates for this system, staff requested approval of this Change Order
Request (COR) from the Executive Director to speed up the process. On November 17, 2014,
the Executive Director approved Optimus' COR for the solar hot water heating for the pool.
ChanQe Order No. 5
Part of the Carlos Ortega Villas project includes removal and replacement of the existing
reciprocal access driveway shared between the project and the Palm Desert Country Club
Villas (PDCCV), and the adjacent PDCCV parking area. After demolition of the existing
driveway/parking stalls unexpected conditions were encountered. In order to provide a
uniform finish to the driveway and correct non-conforming accessibility conditions, staff
recommends approval of a change order in the amount of$3,373.65.
Staff Report
Approve CO Nos. 3 & 5 and Ratify No. 4 to Contract No. HA29410B (Optimus) for the COV project
Page 3 of 3
December 11, 2014
Fiscal Analvsis
Below is a summary of the approved and proposed change orders:
Descri tion Contin enc Contract
Ori inal Contract $1,542,335.13 $15,423,351.39
Previousl A roved Chan e Orders $14,908.35 $14,908.35
Chan e Order No. 3: Soil Im ort $35,001.48 $35,001.48
Chan e Order No. 4: Solar Hot Water Heatin for Pool $16,622.46 $16,622.46
Chan e Order No. 5: PDCCV/Reci rocal Drivewa $3,373.65 $3,373.65
Revised Contract Total $1,472,429.19 $15,493,257.33
If Change Order Nos. 3, 4, and 5 are approved/ratified, total Change Orders to date represent
0.45°/o of the contract. The funding for these changes is available in the project contingency
and requires a transfer of contingency to base.
The estimated costs for the project are listed on ROPS lines 171 and 186. Although the
Housing Authority would initially advance the funds for this work, the SARDA may reimburse
the Authority for the costs from bond proceeds. The 2007 Housing Set-Aside bond issuance
included the Carlos Ortega Villas as a project in the bond covenants.
As a requirement of the State Department of Finance, a Bond Proceeds Funding Agreement
was approved to facilitate this purpose by the Oversight Board on October 7, 2013, and by the
Authority Board on October 10, 2013.
Submitted By:
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Heather Buck, oject Coordinator an . Moore, Director of Housing
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Martin Alvarez Ru yd Acosta, Assistant City Manager
Director of Economic Development �
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Revi e : �' �� �
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VERIFIED BY: l�� 1 �� ^
Paul S. Gibson, Director of Finance (')ri in ! on file with ity '�I�, k'� C�ff�-�',
Approval:
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John . Wohlmuth, Executive Director
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CITY OF PALM DESERT �ontract��P.o. # HA29410B P019255
Change Order No. 3
CONSTRUCTIOi�t CHANGE ORDER Contingency: YE N�
ContractPurpose CarlosOrtegaVillas AccountNo. $7�-869�-466-4001
Consultant's Name Optimus Construction Inc. P�oi�ct No. g25-11
,add�ess: 440 Western Avenue, Glendale, California 91201 vendor No. 13425
You are hereby requested to comply with the following changes from the contract plans and specifications:
DESCRIPTION OF CHANGES DECREASE INCREASE
Optimus COR No. 003- In Contract Price In Contract Price
Import of additional soil 35,001.48
TOTALS: - 35,001.48
NET CHANGE IN CONTRACT PRICE: 35,001.48
JUSTIFICATION: 2010 aerial survey (topography map) included in the bid documents did not match actual site
conditions, shrinkage of soil greater was than anticipated in Geotechnical Report provided with the bid documents,
and an unknown quantity of soil was lost during the September 8, 2014, rain storm.
70TAL BUDGET FOR PROJECT: + 15,473,261.22 CONTINGENCY:
Less: Expend. & Encumb. To Date: - 15,438,259.74 Amount Approved by Council: + 1,542,335.13
Less: This Change Order Amount: - 35,001.48 Less: Prior Change Order(s): 14,908.35
BALANCE OF BUDGET �ess:This Change Order: - 35,001.48
REMAINING FOR PROJECT: 0.00 Balance Remainin of Contin enc : 1,492,425.30
The amount of the Contract will be Increased by the Sum of: Thirty-five Thousand One Dollars and 48/00
($35,001.48).
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Contract HA29410B Change Order No. 3 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 $15,473,261.22.
The undersigned Contractor approves the foregoing Change Order No. 3 as to the changes, if ar►y, 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 No. 3. 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, alt 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 VAN G. TANNER, CHAIRMAN Date Approved
NOTE: No payments will be made prior
to Executive Director and Housing
Authority approval EXECUTIVE DIRECTOR Date Approved
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CTI'Y OF PALM DESERT Coniract a�P O.a HA29410B P019255
Change Order No. 4
CONS'1'RUCTION CHANGE ORDER Contingency: YE rvo
Contract Purpose Carlos Ortega Villas Account No. 871-8691-466-4001
Consultant's Name Opt1171US COf1StfUCtI0t1 If1C. Project No. $25-��
,add�ess: 440 Western Avenue vendor►vo. 13425
Glendale, California 91201
You are hereby requested to comply with the following changes from the contract plans and specifications:
DESCRIPTION OF CHANGES DECREASE INCREASE
Optimus COR No. 007- In Contract Price In Contract Price
Solar water heating for therapy pool 16,622.46
TOTALS: - 16,622.46
NET CHANGE IN CONTRACT PRICE: 16,622.46
JUSTIFICATION: Addition of solar water heating for the therapy pool.
TOTAL BUDGET FOR PROJECT: + 15,489,883.68 CONTINGENCY:
Less: Expend. & Encumb. To Date: 15,473,261.22 Amount Approved by Council: + 1,542,335.13
Less: This Change Order Amount: - 16,622.46 Less: Prior Change Order(s): 49,909.83
BALANCE OF BUDGET Less: This Change Order: 16,622.46
REMAINING FOR PROJECT: 0.00 Balance Remainin of Contin enc : 1,475,802.84
The amount of the Contract will be Increased by the Sum of: Sixteen Thousand Six Hundred Twenty-two and
46/00 ($16,622.46).
G.WubWorks\PROJECTS�825-t t CaAos Ortega ViltaslStatl Repons12014�12�11 SR�OpUmus OCO 384�Contract Change Order No.4.tlocx See reverse ...
Contract HA29410B Change Order No. 4 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 $15,489,883.68.
The undersigned Contractor approves the foregoing Change Order No. 4 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 No. 4. 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, acce4eration, {oss of productivity, and stacking of lrades, as we11 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 VAN G. TANNER, CHAIRMAN Date Approved
NOTE: No payments will be made prior
to Executive Director and Housing
Authority approval EXECUTIVE DIRECTOR Date Approved
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��� PALM DESERT HOUSING AUTHORITY
� �
INTEROFFICE MEMORANDUM
To: John M. Wohlmuth, Executive Director
From: Heather Buck, Project Coordinator
Date: November 17, 2D14
Subject: PROJECT NO. 825-11 - CARLOS ORTEGA VILLAS
OPTIMUS CHANGE ORDER REQUEST (COR) NO. 007
On .Suly 10, 2014, the Housing Authority granted the Executive Director the
authorization to approve Change Orders up the amount of $100,000.00 per occurrence
in the amount not to exceed 100 percent of the contingency ($1,542,335.13). Refer to
attached staff report. A report of Change Orders approved by the Executive Director
will be brought to the Authority Board at the next regularly scheduled meeting for
informational pucposes.
Optimus' COR No. 007 is for the addition of solar hot water heating for the pool. Staff is
working with Southem Califomia Gas on possible installation of solar hot water heating
on other City/Authority properties and was alerted to the potential for rebates for
installation of such a system at the Ca�los O�tega Villas. Staff has received a proposal
for this work from Optimus in the amount of $16,622.46 with potential rebates of
$10,059 for a net cost of $6,563.46. In order to lock-in rebates for this system, staff is
requesting approval of this COR by the Executive Director to speed up the process.
Staff has reviewed the potential maintenance of such a system with the Director of
Housing and recommends approval. Funds are available in the project contingency.
Descri tlon Contin enc Contract
Ori inal Contract $1,542,335.13 $15,423,351.39
Previousl A roved Chan e Orders $14,908.35 $14,908.35
Proposed Contract Change Order No. 3 for soil
im ort to Housin Authorit on December 11, 2014 �$35,001.48) $35,001.48
Proposed Contract Change Order No. 4 (enclosed)
for solar hot water heatin for ool ($16,622.46) $16,622.46
Revised Contract Total a1,475,802.84 �15,489,883.68
If Change Orders 3 and 4 are approved, total Change Orders to date represent O.G3%
of the contcact.
Interoffice Memo —Carlos Ortega Villas Optimus COR 007
November 17, 2014
Page 2
Please sign below if you concur with staff's recommendation and retum to me for
processing. If there are any questions, please let me know.
Reviewed and Approved:
. �
, �.___ ,
_--- ` ,i �,�,�:�,� �: ,_.� ;
`� V
Heather Buck Jo ;'M. Wohlmuth, City Manager
Project Coordinator �
Attachments (as noted)
cc: Paul Gibson, Director of Finance
Mark Greenwood, Director of Public Works
Martin Alvarez, Director of Economic Development
Janet Moore, Director of Housing
Veronica Tapia, Management Analyst
Cora Gaugush, Capital Improvement Project Technician
CITY OF PALM DESERT Con►ract#/P.O.# HA29410B P019255
Change O�de�No. 5
CONS�`RUCTION CHANGE ORDER Contingency: YE No
Contract Purpose Carlos Ortega Viilas Account No. 871-8691-466-4001
Consu�tant's Name Optimus Construction Inc. P�oiecr rvo. 825-11
a,dd�ess: 440 Western Avenue vendor No. 13425
Glendale, California 91201
You are hereby requested to comply with the following changes from the contract plans and specifications:
DESCRIPTION OF CHANGES DECREASE INCREASE
Optimus COR Nos. 009 & 010 In Contract Price In Contract Price
Chip out and remove concrete at carport posts in the Palm Desert Country 824.67
Club Villas parking lot prior to pouring new parking lot surface
Remove and replace existing handicap ramp for Palm Desert Country Club 2,548.98
Villas that was not shown on the original plans for the reciprocal driveway work
TOTALS: - 3,373.65
NET CHANGE IN CONTRACT PRICE: 3,373.65
JUSTIFICATION: Additional work related to the reciprocal driveway that adjoins the Palm Desert Country Club Villas
development.
TOTAL BUDGET FOR PROJEC7: + 15,493,257.33 CONTINGENCY:
Less: Expend. & Encumb. To Date: 15,489,883.68 Amount Approved by Council: + 1,542,335.13
Less: This Change Order Amount: 3,373.65 Less: Prior Change Order(s): 66,532.29
BALANCE OF BUDGET Less: This Change Order: 3,373.65
REMAINING FOR PROJECT: 0.00 Balance Remainin of Contin enc : 1,472,429.19
The amount of the Contract will be Increased by the Sum of: Three Thousand Three Hundred Seventy-three
and 65/00($3373.65).
G:WubWorks\PROJECTS�825-t 1 CaAos Ortega Villas�.Sta��Reports�2014�72�t 1 SR�Opumus OCO 3&485�Contract Change Order No.5.docx See reverse ...
Contract HA29410B Change Order No. 5 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 $15,493,257.33.
The undersigned Contractor approves the foregoing Change Order No. 5 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 No. 5. 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, Voss 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 , CHAIRMAN Date Approved
NOTE: No payments will be made prior
to Executive Director and Housing
Authority approval EXECUTIVE DIRECTOR Date Approved
G�WubWorks\PROJECTS1825-17 CaAos Ortega Vdlas�.Stafl Repor1s12074�t2�11 SR�OpUmus OCO 3&485�Comract Change Order No.5.docx See reverse ...