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HomeMy WebLinkAboutHA29410B - CO1 - COV 825-11 - Optimus Contract No. HA29410B PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: RATIFY CHANGE ORDER NO. 1 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: October 9, 2014 CONTENTS: Executive Director's Approval Memo Change Order No. 1 Recommendation By Minute Motion that the Authority Board: 1. Ratify Change Order No. 1 to Contract No. HA29410B in the total amount of $10,194.53 for the Carlos Ortega Villas (Project No. 825-11); 2. Authorize the transfer of$10,194.53 from contingency to base; and 3. Authorize the Chairman to execute Change Order No. 1. Funds are available in Housing Authority Capital Improvements Account No. 871-8691-466-4001. Commission Recommendation The Housing Commission reviewed the recommendation at the regularly scheduled meeting of October 8, 2014. Staff will provide a verbal report upon request of the Authority Board. 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 by 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. Seepaqe Pit and Septic Tank During required over-excavation of the project site, the contractor encountered a septic tank and seepage pit from a previous residence at the southern portion of the site. In order to achieve the required soil compaction, the septic tank had to be pumped, removed, and then the soil had to be re-compacted. The seepage pit had to be partially removed and then backfilled in accordance \\srv-fil2k3\groups\PubWorks\PROJECTS\825-11 Carlos Ortega Villas\Staff Reports\SR-Optimus OCO 1\SR-HA294106 OCO No 1.doc Staff Report Approve CO No. 1 to Contract No. HA29410B (Optimus) for the Carlos Ortega Villas project Page 2 of 3 October 9, 2014 with the soils report recommendations. On September 30, 2014, the Executive Director approved Optimus' change order request for removal of an existing septic tank. This was an unknown site condition and Optimus has requested $10,194.53 for this work. Fiscal Analysis The initial contract amount was $15,423,351.39. The costs associated with Change Order No. 1 total $10,194.53 and will increase the contract amount to $15,433,545.92. The funding for this change order is available in the project contingency ($1,542,335.13) 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 will 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. Additionally, staff has been working with the California Advanced Homes Program to secure financial incentives for energy efficiencies currently designed into the project. The CAHP is a statewide, residential new construction energy-efficiency program, funded by utility customers through the Public Purpose Programs surcharge. The potential incentive for this project is upwards of$125,000.00. Staff will provide updates on reserved funding as available. Submitted By: ,� ,.�.�X�' �� 1-�:�-c,.� Heather Buck, Project Coordin �`ane . Moore, Director of Housing � Martin Alvarez Rudy costa, Assistant City Manager Director of Economic Development �� k��2��� ,h�.�`�"�i � "� vie ed: j�i _�,�, ��� ��q.�,..-��..�.:�.,..�� �-� .,�,,..�m �l��$s�s��::� ��'":o.���-.�,��,,,� ��`'" aul S. Gibson, Director of Finance ��'6g�r��cl t�n ���� �if�� t;�:y ��� ��;, �-;r�; �;s"�. a.. —, Approval: ���5.`}�j'?.�C'�1 , �1!")I�'�����t�2�e�,����-z'Y�C�i7/Y�/�i ,����s:�l�>'r.� ) J M. Wohlmuth, Executive Director �"��� PALM DESERT HOUSING AUTHORITY � � INTEROFFICE MEMORANDUM To: John M. Wohimuth, Executive Director From: Heather Buck, Project Coordinator Date: September 30, 2014 Subject: PROJECT NO. 825-11 - CARLOS ORTEGA ViLLAS OPTIMUS CHANGE ORDER REQUE5T(COR) NO. 002 On July 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 Orciers approved by the Execu�ve Director will be brought to the Authority Board at the next regularly scheduled meeting for infarmational purposes. Optimus COR No. OQ2 is for removal of an existing septic tank and seepage pit from a previous residence at the southem portion of the site. The septic tank had to be pumped, removed and then the soil had to be re-cc�mpacted. The seepage pn had to be partially removed and then backfilled in accordance with the soils report recommendations. This was an unknown site condition and Optimus is requesting $10,194.53 for this work wfiich had to be completed for establishment of the pad heights. Staff recc�mmends approval. Funds are avaitable in the project contingency. Please sign below if you concur with staff's recommenda�on and retum to me for processing. If there are any questions, please let me know. iewed and Approved: , � H ather Buck ohn M. Wohlmuth, City Manager Project Coordinator Attachments(as noted) cc: Paul Gibson, Director of Finanoe Mark Greenwood, Director of Public Works Martin Alvarez, Director of Economic Development Janet Moo�e, Director of Housing Veronica Tapia, Management Anatyst Cora Gaugush, Capita! fmprovement Project Tec;hnician cn � Q n� (") W (Jl A W N -a O m � � r o � � � � O T1 � �7 � G� G� G� �n � °' � Z Z Z n� o � D D D � � � r r r � � c� � C� C) O O v, " a D n n�i � r- Z � nSi � 0 � � n c�o � n Z � Z Q m ,� � � c� � � � o �1 m -1 `n C � n O � � _ " � � N D � Z C v � � � � 3 � � y = D � �� D c� 3 � � N -� � � 0 � n c � n � � oo �� '� npD p � � � � � _ � � � � 'v, � p0 � W w � Z � p � -I O O = � � Z o o � n m O o o „ � -i D � o o v ° � (� t!� � v � � 2 < 0 m � o D r= z v nzr � � � mcDn � � (� � v, o -_�-I O m Wo � < r�v `n � v � �. v � v �, � W � c� m � � � � ; � z �' r�v G' o � � � 2 m � � v' D c7 �� � ° o' cNo � � O � a Q � o ? � a� °" N � o W D o � � W �p n�i -� 2 � � � � Q. � � � N C W 0. � (p O Z � � v � _ �° � Z � , c, � � _ � � � � � IWv � �,�° c�n � o cn D o � �� rn � � N i� O �j CITY OF PALM DESERT Contract#/P.O.tt HA294106 P019255 Change Order No. 1 CONSTRUCTION CHANGE ORDER Contingency: YE No �ontract Purpose Carlos Ortega Villas Account No. $71-8691-466-4001 Consultant's Name Optimus Construction Inc. Pro�ect rvo. 825-11 Address: 440 Western Avenue, Glendale, California 91201 ver,dor rvo. 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. 002- In Contract Price In Contraci Price Pump out, remove and back-fill abandoned septic tank discovered during excavation. Remove the top rings of sepage pit and backfill the void 10,194.53 in accordance with the soils report. TOTALS: - 10,194.53 NET CHANGE IN CONTRACT PRICE: 10,194.53 JUSTIFICATION: Due to the discovery of an abandoned septic tank and seepage pit and response to Request for lnformation No. 14, contents of the septic tank were pumped out, the tank removed. The seepage pit removed and the void was back-filled in accordance with the soils report recommendations. TOTAL BUDGET FOR PROJECT: + 15,433,545.92 CONTINGENCY: Less: Expend. & Encumb. To Date: - 15,423,351.39 Amount Approved by Council: + 1,542,335.13 Less: This Change Order Amount: - 10,194.53 Less: Prior Change Order(s): - - BALANCE OF BUDGET Less: This Change Order: - 10,194.53 REMAINING FOR PROJECT: 0.00 Balance Remainin of Contin enc : 1,532,140.60 The amount of the Contract will be Increased by the Sum of: Ten Thousand One Hundred Ninety-Four pollars and 93/00 ($10,194.53). \�srv-fd2k3�groups�Pu6WorksWROJECTS�A25-11 Cahos Ortega Vdlasl.Statf Reports\SR-Optlmus OCO 11Contract Change Order No.1.docx SQe f@VeCSB ... Contract HA294106 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 Palm Desert Housing Authority, otherwise referred to as Owner. Contract Time Extension -0- Days. Revised Contract Total $15,433,545.92. The undersigned Contractor approves the foregoing Change Order No. 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 No. 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 ihe 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 sub}ect 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 VAN G. TANNER, CHAIRMAN Date Approved NOTE: No payments will be made prior to Executive Director and Housing Authority approval EXECUTIVE DIRECTOR Date Approved \\srv-fi12k3k�roups�PubWorksWROJECTS�825-71 Cados Ortega Villas�,Staff ReporlslSR-Opumus OCO t\Contract Change Order No.1.docx See reverse ...