HomeMy WebLinkAboutResolution 2023-126 N.C.S. 08/07/2023 Resolution No. 2023-126 N.C.S. Page 1
Resolution No. 2023-126 N.C.S.
of the City of Petaluma, California
AUTHORIZING A CHANGE ORDER TO THE CONTRACT FOR THE COMMUNITY BASEBALL DIAMOND PROJECT, PUBLIC CONTRACT NO. C14501607
WHEREAS, City staff prepared construction bid documents and advertised for construction of the Petaluma Community Baseball Diamond Project (“Project”); and WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code,
California Public Contract Code Section 20162, and other applicable law, City staff solicited
bids for the Project; and WHEREAS, bids were received and opened on March 17, 2022, in accordance with applicable law; and
WHEREAS, on April 18, 2022, the City Council awarded the contract to construct the Project to the lowest responsible bidder, O.C. Jones & Sons, Inc. (“OCJ”) for a base bid of $4,838,311.00 (“Contract”); and
WHEREAS, during construction, a dispute arose as to OCJ’s performance of a portion of
the work, in particular the lime treatment of soils; and WHEREAS, OCJ halted work on the Project as the City considered the necessity of additional testing of lime treated soils to determine OCJ’s compliance with Contract requirements;
and
WHEREAS, OCJ submitted a claim for $198,862.29 in extra costs related to the delay to the Project and demanding and requesting a time extension of 79 days; and
WHEREAS, pursuant to its obligations under Public Contract Code section 9204, OCJ
and City staff met and conferred; and WHEREAS, City Staff issued a written statement determining that portions of OCJ’s claim were meritorious and other portions remained disputed; and
WHEREAS, City Staff and OCJ engaged in further negotiations to resolve the remaining disputed portion of OCJ’s claim; and WHEREAS, settlement under the proposed terms would be the most expeditious and cost
effective path forward to completing the Project; and
WHEREAS, compliance with the California Environmental Quality Act (CEQA) for this project was completed on October 18, 2010, when City Council adopted the Initial Study and
DocuSign Envelope ID: 2D9F4186-6164-4203-A6BA-C9AD0DD0AD59
Resolution No. 2023-126 N.C.S. Page 2
Mitigated Negative Declaration for East Washington Park (MND) and the MND included and analyzed the impacts of this project and determined that this project will not have a significant
adverse effect on the environment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 1. Declares that the above recitals are true and correct and are incorporated into this Resolution as
findings of the City Council.
2. Finds that staff has determined that the reasonable value of the undisputed portion of OCJ’s claim is $85,042.59.
3. Finds that the cost of continuing litigation of the disputed portion of OCJ’s claim will likely
exceed the amount of OCJ’s compromise offer for the disputed portion of its claim. 4. Finds that settlement under the proposed terms will avoid the cost of further litigation which poses some risk of an adverse judgement against the City.
5. Finds that it is in the best interest of the City to resolve the entire dispute by issuing a lump sum payment of $104,509.36 to OCJ and extending the Contract Time by eighty-three (83) working days to November 20, 2023 as stated in Exhibit A, Contract Change Order #3.
6. Approves the project budget to increase the Contract Price by $104,509.36, and to extend the
Completion Date to November 20, 2023. 7. Authorizes and directs the City Manager to execute a Change Order on behalf of the City of Petaluma to effectuate the foregoing.
Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 7th day of August 2023, by the following vote:
Approved as to form: __________________________ City Attorney
AYES: McDonnell, Barnacle, Cader Thompson, Healy, Nau, Pocekay, Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: ______________________________________________ City Clerk ______________________________________________ Mayor
DocuSign Envelope ID: 2D9F4186-6164-4203-A6BA-C9AD0DD0AD59
Contract Change Order
(iManage #1158738) March 2013
CITY OF PETALUMA
PUBLIC WORKS AND UTILITES DEPARTMENT
CONTRACT NO. C14501607
CONTRACT CHANGE ORDER NO. 3 Sheet [1] of [2]
PROJECT NAME: Petaluma Community Sports Fields Baseball Diamond Project (C14501607)
To: O.C. Jones & Sons, Inc.
1520 Fourth Street
Berkeley, CA, 94710
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 of Petaluma.
SCOPE OF WORK:
Resolution of OC Jones (Contractor) Claim dated January 12, 2023 seeking a total cost of $198,862.29 and 79
additional working days (Claim) regarding the Petaluma Community Sports Fields (PCSF) Baseball Diamond
Project for lime retreatment of a section of the baseball field.
Final Settlement Agreement Terms concerning the Claim:
1. The City will pay the Contractor $104,509.36.
2. The Contractor agrees to waive:
• Overhead related to extra costs and days: $59,250
• Remainder of Contractor's claimed direct costs: $35,102.66
3. Other settlement terms include:
• City will waive liquidated damages related to this change through July 21, 2023, granting eighty-three (83)
additional working days to complete the Project on or before November 20, 2023.
• Effective date of this settlement is July 21, 2023.
• This settlement fulfills the City’s Public Contract Code Section 9204 obligations.
• Contractor hereby waives its rights under Section 1542 of the California Civil Code, and any similar law,
statute, provision or policy of any other state, as to the Claim that is resolved by this settlement. California Civil
Code Section 1542 provides: A general release does not extend to claims that the creditor or releasing party
does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him
or her, would have materially affected his or her settlement with the debtor or released party.
• Contractor agrees to defend, indemnify and hold the City and its officials and employees harmless from
any and all subcontractor claims or demands for payment related to this settlement, expressly including Granite’s
claim for $19,280.75 pursuant to PCO 22.
• The increase in cost for all work provided by this change order is $104,509.36, for a new construction
contract project total of $5,132,398.09
The City and the Contractor hereby agree and acknowledge that execution of this change order constitutes a
mutual accord and satisfaction as to the Claim and the work and/or time extension covered herein and Contractor
specifically waives and releases any and all claims, rights, or interest, including but not limited to, those for impact,
disruptions, loss of efficiency, ripple, or other extraordinary or consequential costs arising directly or indirectly out
of the work or time extension described in this change order except as specifically included herein. Contract
DocuSign Envelope ID: 2D9F4186-6164-4203-A6BA-C9AD0DD0AD59
Contract Change Order
(iManage #1158738) March 2013
C14501607 is amended with respect to the above only and all other terms and conditions of the contract remain
unchanged and in full force and effect.
METHOD OF PAYMENT: Options: Lump Sum, Extra Work at Force Account, Increase Unit Price,
Decrease Unit Price, Agreed Unit Price
Estimated Cost: Decrease $ 0.00 or Increase $ 104,509.36
By reason of this order, the time of completion will be adjusted as follows: 83 Work 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
DocuSign Envelope ID: 2D9F4186-6164-4203-A6BA-C9AD0DD0AD59