City Council Report
City Council Meeting: November 13, 2012
Agenda Item: 3-A
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Change Order for City Hall Seismic Retrofit Project
Staff recommends that the City Council:
On October 27, 2009, Council approved a construction contract with West Valley Investment Group, Inc., (West Valley) in the amount of $3,834,325 for the City Hall Seismic Retrofit/Jail Tenant Improvement Project. The project has experienced four change orders related to code compliance and non-conforming conditions and has exhausted the original project contingency. The project requires additional contingency funds to complete the project. Staff recommends a fifth change order in the amount of $150,000 to Construction Contract No. 9143 (CCS) with West Valley for a new contract total of $4,663,478. The project will be completed in early 2013.
On October 27, 2009, Council approved Contract No. 9143 (CCS) in the amount of $3,834,325 with West Valley for construction of the City Hall Seismic Retrofit/Jail Tenant Improvement project. Construction began in March 2010. The first change order was issued, within budget authority previously approved by Council, for unforeseen conditions, added scope, and upgrades to meet current codes.
On March 22, 2011, Council approved a second change order in the amount of $679,153 related to an updated building code. Due to delays in the environmental review process, the plan check application expired and a new plan check application was submitted. The new submittal required upgrading the design to meet the 2007 Uniform Building Code. Change orders three and four were issued, within budget authority previously approved by Council, for unforeseen conditions, added scope, and non-compliant code conditions.
The City Hall Seismic Retrofit/Jail Tenant Improvement Project began in March 2010. The Jail Tenant Improvement portion of the project was completed in August 2011. Throughout the course of construction, the project has encountered many non-conforming conditions and conditions that do not meet current code. Non-conforming conditions are areas where the original construction deviates from plans or past remodels have either added or removed elements and finished surfaces from the original construction. Examples include:
The non-conforming conditions and non-compliant code conditions have resulted in change order costs in excess of the 10% contingency amount that is considered standard on typical tenant improvements or new construction projects. Based upon the non-conforming conditions and code violations discovered to date, staff recommends a 20% contingency amount ($150,000) to remedy similar conditions likely to occur in the remaining scope of work for the project ($750,000). This authorization would allow a fifth change order to correct these anticipated non-conforming conditions and non-compliant code conditions without encountering long delays.
The contractor is currently 80% complete with the Seismic Retrofit scope of work and plans to complete the project in February 2013.
The change order amount to be awarded to West Valley Investment Group, Inc., is $150,000, for a total contract amount of $4,663,478. Funds are available in the FY2012-13 Capital Improvement Program budget in the following accounts:
E130748.555010, City Hall Seismic Retrofit $130,000
C010162.589000, Tenant Improvements $ 20,000