Report to Mayor and City Council
Tuesday, June 06, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 1 TO PUBLIC WORKS AGREEMENT WITH JJJ FLOOR COVERING, INC., AND APPROVAL OF RESOLUTION NO. 23-092 “A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2022-23 BUDGET" PROVIDING FUNDS FOR MATERIAL REVISIONS AND ADDITIONAL WORK FOR THE SECOND FLOOR OF THE CITY HALL BUILDING - PROJECT NO. 1666: CITY HALL CARPET IMPROVEMENTS (CITY COUNCIL)
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I. SUMMARY
Project No. 1666: City Hall Carpet Improvements is one of the City’s Capital Improvement Program (CIP) projects and the project is in the final stage of construction, pending the installation of revised materials and completion of added project scope. This project includes carpet installation throughout the 2nd floor of City Hall, 1st floor lobby, and upgrades to tile finishes.
On June 7, 2022, a construction contract was awarded to the lowest responsive/responsible bidder JJJ Floor Covering, Inc. in the amount of $111,354.29, and a construction contingency of $22,270.86 was also authorized (Exhibit No. 1). The contract under section 1.12 Additional Work and Change Orders item (b), requires any increases greater than ten percent (10%) of the contract sum to be approved by City Council. The total expended contingency to date is $6,562.31 (5.9% increase over the contract sum), which includes change order #1 for asbestos testing services ($1,200.00) and change order #2 for added project scope ($5,362.31), which included floor tile and base tile procurement and installation at the City Council office break room.
There are other items added to the original scope of work which require additional funding to complete them, and they are as follows:
1. Furnish and install alternate wall base at all newly carpeted areas in the amount of $9,179.71. (Exhibit 05)
2. Furnish alternate carpet material at the 1st floor lobby in the amount of $10,822.96. (Exhibit 05)
3. City Council Restroom Renovation - Added Scope to Project in the amount of $45,705.88. (Exhibit 06)
Staff requests that the City Council approve Amendment No. 1 to the Agreement to increase the contract sum from $111,354.29 to $183,625.15 that accounts for all change orders, expands the scope of work for the construction component of the project, and extends the performance schedule for completion of all work (Exhibit No. 2).
II. RECOMMENDATION
Recommendation
TAKE the following action:
1. AUTHORIZE and REAFFIRM the expenditure of the full project contingency totaling $22,270.86 previously budgeted during the contract award per staff report 2022-431 (Exhibit No. 3).
2. APPROVE Amendment No. 1 to Public Works Agreement with JJJ Floor Covering, Inc.
3. AUTHORIZE the Mayor to execute Amendment No. 1 following approval as to form by the City Attorney.
4. ADOPT Resolution No. 23-092, “A Resolution of the City Council of the City of Carson amending the fiscal year 2022-23 budget” appropriating $50,000 to cover pending change orders for Project No. 1666: City Hall Carpet Improvements (Exhibit No. 4) and added project scope which includes renovating the City Council bathroom.
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III. ALTERNATIVES
1. DO NOT APPROVE the above recommendations.
2. TAKE another action the City Council deems appropriate consistent with the requirements of the law.
IV. BACKGROUND
On June 7, 2022, the City Council awarded a construction contract to JJJ Flooring for Project No. 1666: City Hall Carpet Improvements in the amount of $111,354.29 and authorized a construction contingency, in the amount of $22,270.86 (20%) for unforeseen construction work. Project No. 1666: City Hall Carpet Improvements is one of the City’s Capital Improvement Program (CIP) projects and the project is in the final stage of construction, pending the completion of material revisions and additional project scope. The revisions and the added scope of work results in the depletion of the construction contingency allocated to this project which necessitates the request for additional funding.
There were some unforeseen conditions discovered during construction which required changes in the original scope of work, requiring additional compensation to the contractor. As a result, JJJ Floor Covering, Inc. submitted change orders requesting additional payment for the following services:
1. Change Order No. 1: Testing services for asbestos materials - - - - $1,200.00
2. Change Order No. 2: Floor tile and base tile finishes at City Council Break Room - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$5,362.31
Total- - - - - - -$6,562.31
Staff executed Change Orders No. 1 and 2 in the amount of $6,562.31 and issued the Notice to Proceed to the contractor for the testing services and tile finishes.
As the contractor continued to move forward with the completion of the project, several changes and additions to the original scope of work were requested and they are listed as follows (Exhibit No. 5):
1. Change Order No. 3: Furnish alternate wall tile at 2nd floor lobby bathroom alcove fountain wall (zero cost for change) - - - - - - - - - - - - - - - - - - - - - - - $00.00
2. Change Order No. 4: Furnish and install alternate wall base at all newly carpeted areas - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$9,179.71
3. Change Order No. 5: Furnish alternate carpet material for the 1st floor lobby - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $10,822.96
4. Change Order No. 6: City Council Restroom Renovation - - - - - - - -$45,705.88
With a remaining available contingency fund of $15,708.55, the additional funding necessary to execute Change Orders 3-6 is $50,000.00. All six changer orders listed above total $72,270.86.
Staff requests that the City Council reaffirm the use of the remaining contingency balance of $15,708.55 as required per contract documents. Staff also requests that the City Council approve Amendment No. 1 to the Agreement to increase the contract sum from $111,354.29 to $183,625.15 that accounts for all six change orders, expands the scope of work for the construction component of the project, and extends the performance schedule for completion of all work (Exhibit No. 2).
V. FISCAL IMPACT
Funds for the proposed changes were not included in FY 2022/23 budget, therefore, if Amendment #1 is approved, the contract and budget will need to be increased by $50,000.00. Funds should be appropriated from CIP Project No. 1695 to CIP Project No. 1666 account no. 101-99-999-904-8008.
Contingency funds in the amount of $22,270.86 were approved during the award of the construction contract, staff report 2022-431 recommendation 2. Funds should be appropriated from the unreserved, undesignated general fund balance to account no. 101-99-999-904-8008.
VI. EXHIBITS
1. Public Works Agreement with JJJ Floor Covering (pgs. 5 - 57)
2. Amendment No. 1 to Public Works Agreement with JJJ Floor Covering (pgs. 58 -85)
3. Staff Report 2022-431 - Award Construction Contract (pgs. 86-89)
4. Resolution No. 23-092 (pgs. 90-91)
5. Summary of Project Modifications (pgs. 92-94)
6. City Council Bathroom Renovation Plan (pg. 95)
Prepared by: Victor Lopez, P.E. Associate Civil Engineer, and Gilbert Marquez, P. E., City Engineer