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HomeMy WebLinkAboutStaff Report 3.D 10/17/2017Agenda Item #3.D DATE: October 17, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, F.ASCE — Director, Public Works & Utilities (_ Larry Zimmer, P.E. — Deputy Director, Public Works & Utilities SUBJECT: Resolution Authorizing Approval of a Contract Change Order to the Community Center Roof Overlay and HVAC Replacement Project to Overlay Fire Station 2 Roof RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Authorizing Approval of a Contract Change Order to the Community Center Roof Overlay and HVAC Replacement Project to Overlay Fire Station 2 Roof. BACKGROUND The adopted fiscal year 2016 -2017 CIP budget includes funding for roof overlays on the Community Center, all three fire stations, and City Hall. On August 1, 2016, the City Council awarded the construction contract to Henris Roofing Company and authorized a budget adjustment for the Community Center Roof Overlay and HVAC Replacement Project C16201306, which is about to begin. The contract documents for the other roof overlays are advertised for bid; however, timing is such that the rainy weather is likely to start before the contract is awarded. Because Fire Station 2 has the most significant leaks it would be advantageous to complete the roof overlay prior to the winter rains. The roof overlay projects for both the Community Center and Fire Station 2 involve the installation of a 60 -mil thermoplastic polyolefin single -ply membrane over the roof area and parapet walls. The overlay will eliminate leaks during winter rains and reduce the ongoing repair and maintenance costs. The lowest, and only, responsive bidder to the Community Center project, Henris Roofing Company, has performed similar projects for the City of Petaluma, including a previous phase of the Community Center and the Police Department. The Community Center Roof Overlay and HVAC Replacement project bid was higher than estimated due to HVAC costs, but it was determined that the roofing costs were very close to the engineer's estimate. The Council approved the transfer of funds from the Community Center Interior Repairs project, with the understanding that staff would attempt to reduce the HVAC cost if possible. The not yet scheduled interior repairs are necessary due to water damage from the prior roof leaks and therefore it was determined appropriate that some of these funds be expended to assure that the existing leaks stop. Following the award of contract, City Staff negotiated the HVAC costs for the Community Center and reduced the contract total by approximately $55,000. DISCUSSION There is clear benefit to overlaying the Fire Station 2 roof prior to this season's rain to prevent potential water damage. Since the roof overlay material and placement process is identical to the work already awarded, and due to the negotiated cost savings in the Community Center Roof, project staff requested a quote from the roofing contractor to overlay the Fire Station 2 roof by contract change order. Henris Roofing has submitted a proposal for $43,444.00 to overlay the roof of Fire Station 2. The bid cost that Henris Roofing submitted for the Community Center is $9.15 per square foot. The per square foot cost proposed for the Fire Station 2 overlay is $8.07 since there are fewer roof sections and obstructions to work around. The proposed action meets Council Goal: "Plan for and implement priority capital projects as funding permits ". FINANCIAL IMPACTS The Fire Station 2 Roof Overlay project is included in the FY 16/17 CIP Budget as C11201707 in the current fiscal year with an approved total project budget of $70,000. The Community Center Roof Overlay and HVAC Replacement Project C 162013 06 total project budget is $214,000, but because of the higher than expected HVAC costs, the Council has approved $121,000 to be transferred from the Community Center Interior Repairs project, 016201304, to this project. Since staff has negotiated the costs of the HVAC equipment lower than originally bid, the Community Center Roof Overlay and HVAC Replacement project is projected to return $55,000 to the Community Center Interior Repairs project. The Fire Station 2 roof overlay is proposed to cost $43,444.00, for construction cost only, so the change order to the Community Center Roof Overlay and HVAC Replacement project shall fit within the construction contract awarded amount and no budgetary action is required along with approval of this change order. 2 Community Center Community Center Project Roof Overlay and Fire Station 2 Roof Interior Repairs HVAC Replacement Overlay C 11201707 C 162013 04 C16201306 Total Budget FY $214,000 $70,000 $514,000 16/17 Change Per 8/1/16 $121,000 - - $121,000 Resolution 2 Current Total Budget $335,000 $70,000 $393,000 Estimated Expenses at $278,000 $61,000 unknown Project Completion Estimated Budget $57,000 $9,000 Remaining at Roofing Project Completion Budget Transfer from - $57,000 - $9,000 +$66,000 Roofing Projects to Community Center Interior Repairs Estimated Project $459,000 Balance at Completion When both the Community Center and Fire Station #2 roofing projects are complete, the construction costs specifically for the Fire Station 2 along with the remaining funds in the Community Center Roof and HVAC project shall be transferred to the Community Center Interior Repairs project. Staff time will be charged directly to the Community Center or Fire Station 2 projects respectively. ATTACHMENTS 1. Resolution 2. Change Order Attachment 1 RESOLUTION AUTHORIZING APPROVAL OF A CONTRACT CHANGE ORDER TO THE COMMUNITY CENTER OVERLAY AND HVAC REPLACEMENT PROJECT TO OVERLAY FIRE STATION 2 ROOF WHEREAS, Henris Roofing Company has been awarded the contract to overlay the Community Center roof, and WHEREAS, the City of Petaluma desires to add a second roof overlay at Fire Station 2; and WHEREAS, the materials and methods to overlay the Fire Station 2 roof to be added by change order is identical to the materials and methods to overlay the Community Center roof; and WHEREAS, Section 68 of the Charter of the City of Petaluma requires public works projects that exceed a cost of $25,000 to be competitively bid; and WHEREAS, the purpose behind competitive bid requirements is to obtain the best economic result for the public and to protect against favoritism, corruption, waste of public funds (see e.g., Cal. Pub. Cont. Code, § I00); and WHEREAS, there is a well- established rule that competitive bidding will be excused where competitive bids "work an incongruity and are unavailing as affecting the final result" or "do not produce any advantage" (Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631, 636); and WHEREAS, delaying the Fire Station 2 roof overlay may cause additional interior damage; and WHEREAS, the Project is categorically exempt pursuant to California Environmental Quality Act ( "CEQA ") and Title 14, the California Code of Regulations ( "CEQA Guidelines "), Section 15301, because the project consists of the operation, repair, maintenance or minor alteration of existing public structures involving negligible or no expansion of use beyond that previously existing; and WHEREAS, City staff negotiated an acceptable cost and schedule to overlay the Fire Station 2 in lieu of bidding the project during the current unfavorable bid timing to the existing construction contract to take advantage of a favorably negotiated price; and WHEREAS, the City has negotiated a Contract Change Order to overlay the second roof at Fire Station 2 for a cost of $43,444.00 which represents a decrease in the unit price per square foot of roof overlay from $9.15 per foot for the Community Center to $8.07 per square foot for Fire Station 2; and WHEREAS, the FY 16/17 budget for the Community Center Roof Overlay and HVAC Replacement Project, project C16201306, has sufficient funds to pay the change order. rd NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: Incorporates the foregoing recitals herein as findings. 2. Directs staff to issue a Notice of Award to Henris Roofing Company. 3. Authorizes the City Manager to execute all necessary documents for the approval of a contract change order for $43,444 to overlay a second roof at the Fire Station 2 site to the project. CITY OF PETALUMA PUBLIC WORKS AND UTILITIES DEPARTMENT CONTRACT NO. C16201306 CONTRACT CHANGE ORDER NO. 2 PROJECT NAME: Petaluma Community Center Roof Overlay and HVAC Replacement To: Henris Roofing Company 741 Petaluma Boulevard South Petaluma, CA 94953 -0138 Sheet [1 ] of [1 ] You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not included in the plans and specifications on this contract. Upon execution by representatives authorized to bind the parties, this Change Order will become a part of the contract. The consideration specified in this Change Order (whether an adjustment of the contract price, an adjustment of time, and /or other consideration) is the full and sole compensation owed to the contractor as a result of the changes and issues described in this Change Order. Such consideration includes, but is not limited to, any and all direct and indirect costs incurred by the contractor as a result of the changes and issues described in this Change Order for any labor, equipment, materials, overhead (additional, extended, field and home office), profit, or time adjustments. By signing this Change Order the contractor waives and releases the owner from any and all claims for additional compensation concerning any of the changes and issues specified in this Change Order. NOTE: This Change Order is not effective until approved by the Director. To follow is the description of work to be performed, estimate of quantities and prices to be paid, segregated between additional work at contract price, agreed price and force account. Unless otherwise stated, rates for rental of equipment cover only such time as equipment is actually used and no allowance will be made for idle time. Change requested by City. SCOPE OF WORK: This change order provides for the full roof overlay, including parapet walls, for the Fire Station 2 roof per the attached detailed Technical Specification Section IV as included in the Community Center Roof Overlay and HVAC Replacement Project C16201306. This change order also includes the removal of the west facing wall of the equipment enclosure and the installation of two hundred (200) linear feet of walkway pad. Contractor's summary of change order work and costs are attached as Henris Roofing Company proposal dated September 20, 2016. The agreed upon lump sum price includes all costs directly and indirectly related to complete Fire Station roof overlay and no additional payment will be made therfor. METHOD OF PAYMENT: Options: ® Lump Sum, ❑ Extra Work at Force Account, ❑ Increase Unit Price, ❑ Decrease Unit Price, ❑ Agreed Unit Price Estimated Cost: Decrease $ or Increase $ 43,444.00 By reason of this order, the time of completion will be adjusted as follows: twenty (20) days We, the undersigned contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment the prices shown above. By: Title: Date: Contractor Prepared by: Project Manager; Date: Approval Recommended by: Division .Manager; Date: [PW, Parks, other] Funding Authorized by: [Other Funding Dept] Date: Approved by (up to $20,000): Dept. Director; Date: Approved by (over $20,000): City Manager; Date: Originals: Contractor, City Clerk cc: City Manager S:\CIP\Projects \Community Ctr Roof C16201306 \Construction \05.02 FS2 roof Contract Change Order (iManage #1158738) March 2013