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Home My WebLink AboutHA29410B CO7 Carlos Ortega Villas 825-11 Contract No. HA29410B PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVE CHANGE ORDER NO. 7 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 22, 2015 CONTENTS: Change Order No. 7 Recommendation By Minute Motion that the Authority Board: 1. Approve Change Order No. 7 to Contract No. HA29410B in the total amount of$12,029.79 for the Carlos Ortega Villas (Project No. 825-11); 2. Authorize the transfer of$12,029.79 from contingency to base; and 3. Authorize the Chairman to execute Change Order No. 7. 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 January 14, 2015. Staff will provide a verbal report upon request of the Authority Board. Backaround 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. Staff Report Approve CO No. 7 to Contract No. HA29410B (Optimus) for the COV project Page 2 of 2 January 22, 2015 Change Order No. 7: After the project was bid and awarded to Optimus, CVWD required a change in the size of the water meter services feeding the water meters. A total of eleven water meter services are required to be increased in size. Costs for the additional work and materials are $12,029.79 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 $81,006.94 $81,006.94 Chan e Order No. 6: Water si hon/air vac. on Dudle $12,029.79 $12,029.79 Revised Contract Total $1,449,298.40 15,516,388.12 If Change Order No. 7 is approved, total Change Orders to date represent 0.60 percent 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: _ ' �%-��e-{��-f�----i�--t-.-�....—' /,��zG� � Heather Bu , roj t Coordinator M. Moore, Director of Housing i�� a 7 Ma in Alvarez Rudy costa, Assistant City Manager Director of Economic Development R i wed: �� ,� ��c, � " � �Y t-iC��JSG AI�T� aul Gibson, Director of Finance �� `Z2�/tj -��-�;,.,. , A prov V��-�,t-�t�:� �° ;':�.�'_1�.�d�.�... �flC��la� f�fl '��v ��"�,°ai�"3 �� c i'�S`S ��1�� Jo M. Wohlmuth, Executive Director ��'. �l�u�(l,'��y�,�,�� v��:��fl►�;A��cn��,��i;��; �st��/��,�� `� �`.�� '��' Contract#/P.o.# HA29410B P019255 Change Order No. ] C�� ',��i,��i�l Con6ngency: YE NO Contract Purpose Carlos Ortega Villas Acoount No. 871-8691-466-4001 ConsultanYs Name Optimus Construction Inc. P�oie�t No. 825-11 a,ddresS: �0 Western Avenue, Suite 202 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. 013 In Contract Price In Contract Price Increase in water service from 1 inch to 1.5 inches at eleven (11) water meter 12,029.79 services feeding water meters. TOTALS: - 12,029.79 NET CHANGE IN CONTRACT PRICE: 12,029.79 JUSTIFICATION: CVWD required a change in the size of the water meter service after the project was awarded. TOTAL BUDGET FOR PROJECT: + 15,516,388.12 CONTINGENCY: Less: Expend. �Encumb.To Date: - 15,504,358.33 Amount Approved by Council: + 1,542,335.13 Less:This Change Order Amount: - 12,029.79 Less: Prior Change Order(s): - 81,006.94 BALANCE OF BUDGET Less: This Change Order: - 12,029.79 REMAINING FOR PROJECT: 0.00 Balance Remainin of Contin enc : 1,449,298.40 The amount of the Contract will be Increased by the Sum of: Twelve Thousand Twenty-nine and 79/100 Dollars (a12,029.79). G:WubWorksWROJECTS\825-11 Carios Ortega Vilias�.Staff Reports12015-Ot-22 SR-Oplimus OCA TConlract Change Order No.7.docx S@@ f@V@�S@ ... Contract HA29410B Change Order No. 7 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 $15,516,388.12. The undersigned Contractor approves the foregoing Change Order No. 7 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. 7. 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 WEBER, CHAIRMAN Date Approved NOTE: No payments will be made prior to Executive Director and Housing Authority approval EXECUTIVE DIRECTOR Date Approved G:�PubWorksWROJECTS1825-11 Carlos Ortega Yllas\StaN ReQorts�201501-22 SR-Optimus OCO TContract Change Order No.7.docx S@@ fQVBfS@ ... cn Q n �� l � Ul � W N � O � � o -� � � � � � � � 00 O � O v v n �°—� � o � � � � � D � `D c� � � � � G� G� G� � � �� o 0 o v � z Z z � � D3 � °� DD D °' � o � = o- v � r r r � c�' � �' � �- � � �p -� C� C� � � �, o v o. m -o � O O � �, a � � � � � � � Z Z v�i � Dn� cn v .� � � D � � °' Z Z7 � � � � � v � � � � � ° � � 0 � n O m m O � � � � � � � � � ' � a N � c� � a � o � � � � � � v o `` � � � (n � � r. �� 5 Z C `r � c� --I � 3 �n � � = D � a� T c � O � n c � n � v� w r�v � wrn �c�n � o � � � � npD � � � � � c� p 'T1 � D � � � � W N � W � � � 3 n r 3 � � N O � � � W COOC�Ji � OON W = � O n m � � D m � Z � o = -niC� cn O o 0000000 � � y D � � O O O -� f V O O � � n Z (n O Oo �I N � W W �I �;. 2 G � m o 0 0 0 � o 0 o n r zr = z nG) D D v � � mcn � „ � � , , , � o � � O cn cn cn cn cn cn cn n � cn � � � cncn � � � � � � � � � �� v Z rn � w � w � w � _ � w � C) m � W W NOONNCJ� — n N W � � � 00 CJl CJl 00 � Ul � r-r �- CJl D Z N � 00 00 �I W � CO CJl � � O � � . 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