HomeMy WebLinkAboutHA29410B CO6 Carlos Ortega Villas 825-11 Contract No. HA29410B
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: APPROVE CHANGE ORDER NO. 6 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: January 8, 2015
CONTENTS: Change Order No. 6
Recommendation
By Minute Motion that the Authority Board:
1. Approve Change Order No. 6 to Contract No. HA29410B in the total amount
of$11,101.00 for the Carlos Ortega Villas (Project No. 825-11);
2. Authorize the transfer of$11,101.00 from contingency to base; and
3. Authorize the Chairman to execute Change Order No. 6.
Funds are available in Account No. 871-8691-466-4001, Housing Authority Capital
Improvements.
Commission Recommendation
This item will be presented to the Housing Commission as an informational item at the
regularly scheduled meeting of January 14, 2015.
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. 6:
The contractor encountered unexpected underground conditions, which will require the water
lines to the project on Dudley to be rerouted around existing utility conduits and will also
Staff Report
Approve CO No. 6 to Contract No. HA29410B (Optimus)for the COV project
Page 2 of 2
January 8, 2015
require the installation of additional components (water siphon and air vacuum) to
accommodate the re-routing. Costs for the additional work and materials are $11,101.00 and
are within industry standards.
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 $69,905.94 $69,905.94
Chan e Order No. 6: Water si hon/air vac. on Dudle $11,101.00 $11,101.00
Revised Contract Total $1,461,328.19 15,504,358.33
If Change Order No. 6 is approved, total Change Orders to date represent 0.53% 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:
i
He�ather Buck, Pro'ect Coordinator Janet M. Moore Directo of Hou n �
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��s'f ��l./S'�(/��;E2 � o
Mart n Alvarez Rud Acosta, Assistant City Manager
Director of E nomic Development
Reviewed:
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'�" � �� s�r ��usG r�u-rH
Paul S. ibs n, r or of Finance
ON I�8-«
Appro al: , VERI�1�[� �Y:�Z���„
(�rigir�al on fiil� �nrith �ity Clerk'� Uffic��
Jo M. Wohlmuth, Executive Director
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C'1'rY OF PALM DESERT Contract#/P.O.# HA294106 P019255
Change Order No. 6
CONSTRUC'�ION CHANGE ORDER Contingency: YE No
Contract Purpose Carlos Ortega Villas Account rvo. $71-$691-466-4001
ConsultanYs Name Optll'11US COf1StfUCtlOfl IfIC. Project No. SZ5-�1
,address: 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 No. 011 In Contract Price In Contract Price
Reroute water lines to the project on Dudley around existing utility conduits 11,101.00
and install water siphon and air vacuum
TOTALS: - 11,101.00
NET CHANGE IN CONTRACT PRICE: 11,101.00
JUSTIFICATION: Additionaf work related to providing water to the project site.
TOTAL BUDGET FOR PROJECT: + 15,504,358.33 CONTINGENCY:
Less: E�end. & Encumb. To Date: - 15,493,257.33 Amount Approved by Council: + 1,542,335.13
Less: This Change Order Amoun� - 11,101.00 Less: Prior Change Order(s): - 69,905.94
BALANCE OF BUDGET Less: This Change Order: - 11,101.00
REMAINING FOR PROJECT: - Balance Remainin of Contin enc : 1,461,328.19
The amount of the Contract will be Increased by the Sum of: Eleven Thousand One Hundred One and no/100
Dollars ($11,101.00).
G:�PubWorks�PROJECTS1825-7 7 Carlos Ortega Villas�Staff Reports�2015-01-OB SR-Opbmus OCO 6\Contract Change Order No.6.docx See reverse ...
Contract HA29410B Change Order No. 6 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 $15,504,358.33
The undersigned Contractor approves the foregoing Change Order No. 6 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. 6. 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 SUSAN MARIE WEBBER, CHAIRMAN Date Approved
NOTE: No payments wilt be made prior
to Executive Director and Housing
Authority approval EXECUTIVE DIRECTOR Date Approved
G:�PubWorks�PROJECTS�B25-11 Carfos Ortega Villas�.Staff Reports�2015-01-08 SR-Oprimus OCO 6lContract Change Ordar No.6.docx See reverse ...