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Home My WebLink AboutR21180B CO2 Temco - Country Club Village Sewer & Street ImprovementsPALM DESERT REDEVELOPMENT AGENCY OFFICE OF THE EXECUTIVE DIRECTOR STAFF REPORT REQUEST: COUNTRY CLUB VILLAGE SEWER AND STREET IMPROVEMENTS CHANGE ORDER NO.2 CONTRACT NO. R21180B TEMCO SUBMITTED BY: PAT CONLON, SPECIAL PROJECTS ADMINISTRATOR DATE: FEBRUARY 10, 2005 CONTENTS: CHANGE ORDER NO. 2 LETTER FROM TEMCO LETTER FROM PALM CANYON CONTRACTORS Recommendation: By Minute Motion: 1. Ratify Change Order No. 2 for the above contract in the amount of $27,051.13 for the cost increase on rubberized asphalt paving material used on the new street overlay. 2. Authorize the Director of Finance to transfer $27,051.13 from the project contingency to the base contract. Discussion: Due to events beyond the control of the contractor, TEMCO, the cost of asphalt material used in this project increased in January from $46.00 per ton to $51.95 per ton, which represents a 12%, or additional $5.95 per ton increase. There are 4,546 tons required for the street overlay on this project, and with the $5.95 per ton increase, there equals a difference of $27,051.13 from the original contract. Attached are letters from TEMCO and Palm Canyon Contractors explaining this cost increase. The cause of delay in the street overlay was due to Coachella Valley Water District (CVWD) installing new water lines and fire hydrants in the neighborhood. The completion of this work was necessary before the City's contractor, (TEMCO) begun repaving the streets. CVWD's contractors suffered delays in December due to the weather, which in turn delayed the start of the street -paving overlay. CITY OF PALM DESERT STAFF REPORT FEBRUARY 10, 2005 No additional funds are needed for this change order and money is available in the project contingency account. Please contact me with any questions. Submitted by: P/J-0c.rV,�," Pat onion Special Projects Administrator \Miz. / J i McCarthy tlkssi ant City Manager Redevelopment Carlos L. Ortega Executive Director ah Approval: Dave Yrigoye Director of development Paul S. Gibson Director of Finance r. ,02102f2005 08:56 6612911742 Fab-111-05 03:53PM From -PALM DESERT CITY CLERK zX DEURT 09O��` AGM -ff-IRUCTION C TEMCO PAGE 02f 02 7803400574 T-962 P.01l01 F-492 Contract # / P.O. # R211 SOB I 11397 Change Order No. 2 Contingency: YES X .I NO Contract Purpose: Country Club Village Sewer & Street Improvements Account No. 853.459"33-4001 Contractors Name: TOMCO Project No. 'ou are hereby reauested to v MDIV with the followlnq chsncin from the contract plans and specificavons: DESCRIPTION OF CHANGES DECREASE INCREASE (Supplemental Plans and Specifications Attechad) In Contract Price In Contract Price Adjustment in asphalt cost per ton $27,051.36 TOTALS: NET CHANGE IN CONTRACT PRICE: JUSTIFICATION: $27.051,36 TOTAL BUDGET FOR PROJECT; + CONTINGENCY: Less; Expend, & EnCUrflb. To Date: - Amount Approved by Council: + 114,214.00 Lass: Tnis Change OrderArnvunk - Less: Prior Change Order(s): 79,94,00 BALANCE OF BUDGET Loos: This Change order, - 27,031.36 REMAINING FOR PROJECT: - Balance Remalnina ofContinaencv: 7.214.64 The amount of the Contract Will be (B.. : ,:, 1) Increased by the Sum of: Twentvaeven Thouss ad -I Dollars ($ 27,0151.38 ). This document will deoome a supplement to the Contract and all provisions Will apply hereto, all Items included above must have required signatures as per the purchase resolution, I. REQUESTED BY: 2. ACCEPTED BY:,% I EXECUTIVE DIRECTOR CONTRACTOR 3. CERTIFIEP FUNDS AVAILABLE: 4. APPROVED BY: FINANCE DIRECTOR BUFORD A. CRITE5, CHAIRMAN Date Approved NOTE; No P®yntenta will be made prior to Exec, Dir. and Agency Board approval th".M WA SECRETARY Date Approved Received Feb-02-05 08:00am From-6612911742 To -PALM DESERT CITY CLE Page 02 02/01/2005 16:20 6612911742 TEMCO PAGE 01101 ED IMMCO RECEIY I � � �� DESERT, C a Ne:whali, CAS FE 2440o t9 S3 tc C-goo P 2405 FEB - I PH 3= 25 �Paxx) 8i,9 367-? 40 or 66or 6 291 17422 February 1, 2005 Mr. Pat Conlon, Special Projects Administrator Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, CA 92ZW2578 VIA FACSIMILE 760-340-0574 RE: Contract No. R21180-8 -- Country Club Village Sewer Installation Change Order #2 Change Order #2 Asphalt material increase effective January 1, 2005. From $46.00 per ton to $51.95 per ton ; 4,546 tons @ $5.95 per ton Totaling $ 27,051.36 Carlos Ortega City Manager 7) � �61C � �[ � V � � California Contractor's License # 313571 Received Feb-01-05 03:24pm From-6612911Z42 To -PALM DESERT CITY CLE Page O1 01/26/2005 09:19 FAX 19510534073 STAPLES 01/Z4/20a5 13;36 5055350433 PALM CANYON R 002 PAGE 01 Islon co,, tpr.n► . General Engineering P. O. BOX 656, Yucaipa, CA 92399 • (909)307.6101 - Fax (909)353.0433 Llcenscs �823761? January 24, 2006 To: Temco Inc. Attn: Jim Cooper Re: Country Club Village Sewer and Street Improvements Project City of Palm Desert Dear Jim: As you know materials prices have escalated abruptly over the past few months. The price of asphalt is no exception. Although we had prices good through the end of the year, your project was not ready for the ARHM surface course until recently. After our meeting on the fourth I contacted the supplier whose price we used at bid time and was informed that they were no longer Interested in shipping the ARHM. It is their position that the price quote expired at the end of the year and they have no obliga- tion to honor it beyond that time, As we have discussed, all other suppliers in the area have been contacted to see if they would honor their previous quotes. None of them Would. The following is a breakdown on the price per ton we re- ceived at bid time and the current pricing for this job: Matich Corp. Granite Constr. Aggregate Prdts. Bid Time Price $46.00 $.49,95 $46.39 Current Pricing -0- $61.96 $58.90 YeagerlSkanska .0- $56.25 As you can see, based on the current prices being quoted the Granite price is the lowest number by far. We have discussed the situation with them and can secure an ample amount product with the proper amount of notice. In using their price we would need to increase our prim to you by $5.95 per ton. This represents the difference between NlOO'S price used in compiling our proposal at bid time and the current pricing from Granite. We are sorry for that this situation has developed. Please Know that we are only trying to increase our price by the exact amount of increase we are facing. No additional mark-up or surcharge is being added . Please acknowledge XpAer acceptance of the price increase below and return this memo to us. Upon receiving your acre ce we will schedule the work to be done. Yours trul George Moyer Temco, Inc. Accepted By: Date: Name: Title; Received Jars-26-05 09:19am From-19516534673 To -PALM DESERT CITY CLE Page 02