AGENDA
ITEM
15 BAR AGENDA STAFF REPORT
CALEXICO
DATE: September 14, 2022
TO: Mayor and City Council
APPROVED BY:
PREPARED BY: Liliana Falamir, Public Works Manager - Administrative Tele SUBJECT: Authorize City Manager to Sign Change Order No. 3 with Pyramid Construction & Aggregates, Inc. in the Amount of $133,213.61 for Calexico International Airport Taxiway A Rehabilitation FAA AIP No. 3-06-0034-018-2020; 3-06-0034- 021-2021.
Recommendation:
Authorize City Manager to Sign Change Order No. 3 with Pyramid Construction & Aggregates, Inc. in the amount of $133,213.61 for Calexico International Airport Taxiway A Rehabilitation FAA AIP No. 3-06-0034-018-2020; 3-06-0034-021-2021.
Background:
On September 20, 2021, the City of Calexico Public Works Department requested bids for the Calexico International Airport Taxiway A Rehabilitation FAA AIP No. 3-06-0034- 018-2020; 3-06-0034-021-2021. The project consists of reconstructing the pavement of the full length parallel taxiway and adjacent interfacing pavement areas with a completely new asphalt concrete pavement section, and other incidental improvements such as shoulder and infield grading, installation of drainage improvements, airfield lights and sign relocations, adjustment to grade, pavement markings, perimeter fence relocation, and other miscellaneous items.
On November 3, 2021, the City Council of the City of Calexico awarded a construction contract to Pyramid Construction & Aggregates, Inc. for the above-mentioned project in the amount of $3,129,808.71 plus 15% contingency ($469,471.31). On June 15, 2022, the City Council authorized Change Order No. 1 with Pyramid Construction & Aggregates, Inc. in the amount of $74,617.00.
AGENDA
Discussion & Analysis: ITEM
Pyramid Construction and Aggregates, Inc. is requesting additional compensation due to events that occurred that are out of their control since they bid the project in October 2021 and were allowed to begin construction in April 2022. These events were (1) oil price escalation and (2) bridge closure on Dogwood Road and Second Street (Anza Road):
# Description Change Order Amount
1 Oil price escalation and bridge closures impact on $15,100.80 aggregate base course
2 Oil price escalation and bridge closures impact on $116,950.49 asphalt surface course
3 Oil price escalation and bridge closures impact on $1,162.32 temporary fuel truck access road
Public Work staff is requesting that the City Council of the City of Calexico approve the above-mentioned items. With Change Order No. 3 the new contract amount will be $3,484,320.62
Fiscal Impact:
Capital Improvement Program Budgeted Item for FY 2022-2023 Federal Grant - Federal Aviation Administration $133,213.61 Fund No. 525-90-983-56003-000
Total $133,213.61
Coordinated With:
City Manager's Office.
Public Works Department.
Attachments):
Taxiway A Rehabilitation Project Summary.
2. Pyramid Construction & Aggregates, Inc. Change Order No. 3.
3. Memo from AE Consulting, Inc. dated June 17, 2022.
ATTACHMENT #1
CITY OF CALEXICO
PUBLIC WORKS DEPARTMENT
CALEXICO INTERNATIONAL AIRPORT
TAXIWAY A REHABILIATION PROJECT
REVENUE ( 100 % FEDERAL GRANT)
AGENCY DESCRIPTION AMOUNT
*FAA Grant Office AIP: No. 3-06-0034-018-2020 $1,649,430.00 *FAA Grant Office AIP: No. 3-06-0034-021-2021 $2,563,135.00 $4,212,565.00
* In accordance with 49 U.S.C. 47108(b), as amended, the maximum obligation of the United States, as stated in Grant Offer may be increased by not more than 15%
EXPENDITURE
VENDOR DESCRIPTION AMOUNT
City of Calexico Administrative Fees $ 5,000.00
AE Consulting, Inc. Construction Management $ 368,635.00 Pyramid Construction and Aggregates, Inc. Construction Services $ 3,129,808.71 Pyramid Construction and Aggregates, Inc. Change Order No. 1 74,617.00 Pyramid Construction and Aggregates, Inc. Change Order No. 2 $ 146,681.30 $ 3,724,742.01
Remaining Balance of FAA Grants $ 487,822.99
TIMELINE
MILESTONE DATE
Advertisement 9/20/2021
Bid Opening 10/12/2021
City Council Award Contract 11/3/2021
Pre-Construction Meeting 1/12/2022
Issuance of Notice to Proceed 1/12/2022
Phase I - Submittal and Procurement Process (75 days) 1/12/2022 Phase II - Begin Construction (140 days + 180 days) 4/4/2022 Estimated date of Completion 2/17/2023
BRIDGE CLOSURE
LOCATION JURISDICTION DATE
Dogwood Road Bridge County 01/2022
Second Street Bridge City 01/2022
ATTACHMENT #2
City of Calexico
Calexico International Airport
Taxiway A Rehabilitation
FAA AIP No. 3-06-0034-018-2020; 3-06-0034-021-2021
New Difference
Item Spec. Estimated Original Unit Proposed (Proposed Change No. Ref Quantity Description Unit Price Order)
32 P-208(i) Aggregate Base Course $226,512.00 $ 38.40 $241,612.80 15,100.80 P-401(I) Asphalt Surface Course $874,288.32 $ 109.93 $991,238.81 116,950.49 36 p-401(ii)| Ton Temporary Fuel Truck Access Road $ 17,400.00 $ 213.36 $ 18,562.32 1,162.32 133,213.61
CITY OF CALEXICO
PUBLIC WORKS DEPARTMENT
CHANGE ORDER NO. 3
CALEXICO Name of Project: Taxiway A Rehabilitation
FAA AIP No. 3-06-0034-018-2020; 3-06-0034-021-2021
Name of Contractor: Pyramid Construction and Aggregate, Inc.
Date: 09/14/2022
# Description Price Price Time
Increase Decrease Extension
1 Oil price escalation and bridge closures impact on
aggregate base course $ 15,100.80
2 Oil price escalation and bridge closures impact on
asphalt surface course $ 116,950.49
3 Oil price escalation and bridge closures impact on
temporary fuel truck access road $ 1,162.32
Sub-Total $ 133,213.61 -
Total $ 133,213.61
Contract Amount $ 3,351,107.01
Total Contract Amount (Contract + Change Order
No. 1,2 and 3) $ 3,484,320.62
Esperanza Colio Warren, City Manager
City of Calexico, 608 Heber Avenue, Calexico, California Peter Bonello, Principal Civil Engineer
AE Consulting, Inc., 143 Yorba Street, Tustin, California Archie Abeyta, Project Manager
Pyramid Construction and Aggregates, Inc., 839 Dogwood Road, Heber, California ATTACHMENT #3
AE Consulting, Inc.
AIRPORT ENGINBERING
143 Yorba St.
Tustin, CA 92780
(714) 573-0211 Tel
PROJECT: CALEXICO INTERNATIONAL AIRPORT TAXIWAY A REHABILITATION SUBJECT: PYRAMID'S CLAIM FOR OIL PRICE ESCALATIONS AND BRIDGE CLOSURES TO: LILLIANA "LILY" FALOMIR, PUBLIC WORKS MANAGER - ADMINISTRATIVE COMPANY: CITY OF CALEXICO
DATE: June 17, 2022
Attached please find a letter and back up documentation from Pyramid Construction and Aggregates, Inc., requesting additional compensation due to events that occurred that are out of their control since they bid the project in October 2021 and were allowed to begin construction in April 2022.
These events were (1) Oil Price escalation and (2) Bridge Closures.
For the first event Pyramid is claiming increased cost for the Asphalt Concrete material. This material is included under two bid items that were in the Bid Schedule as follows:
Item Spec. Estimated Unit Total
Unit Description
No. Ref. Quantity Price
35 p-401 (i) 9,017 Ton Asphalt Surface Course $96.96 $874,288.32 P-401 (ii) Temporary Fuel Truck Access $200.00
36 87 Ton Road $17,400.00
The cost of liquid asphalt to Pyramid increased from $505/ton to $700/ton making the price difference $195/ton. The Asphalt Surface Course includes 5.8% liquid asphalt while the Temporary Fuel Truck Access Road included 6% liquid asphalt. The percentage of liquid asphalt content multiplied by the price difference equates to the unit price difference for each bid item thus affected, so that:
Item 35: 0.058 x $195/ton = $11.31/ton
Item 36: 0.060 x $195/ton = $11.70/ton
Pyramid's trucking cost is $125/hr. For asphalt concrete where a truckload consists of 25 tons this translates to $5/hr/ton. The additional 20 minutes per trip, as explained in Pyramid's letter, increases the cost per ton by 33% or $1.66/ton.
The bridge closures likewise affected the trucking of aggregate base from Pyramid's yard to the Airport which is covered under Bid Item 32 as indicated below:
www.airportengineering.com
Calexico International Airport Taxiway A Rehabilitation Page 2 of 2 Additional Costs due to Oil Price Escalation and Bridge Closures June 16, 2022 Item Spec. Estimated Unit
Unit Description Total
No. Ref. Quantity Price
32 P-208 (i) 6,292 CY Aggregate Base Course $36.00 $226,512.00 For aggregate base where a truckload consists of 17 CY the trucking cost of $125/hr per load translates to $7.35/hr/CY. The additional 20 minutes per trip, as explained in Pyramid's letter, increases the cost per ton by approximately 33% or $2.40/CY.
Therefore the total additional cost using the estimated quantities is as follows:
($11.31 + $1.66)/ton x 9,017 tons + ($11.70 + $1.66)/ton x 87 tons + $2.40/CY × 6,292 CY = $116,950.49 + $1,162.32 + $15,100.80
= $133,213.61
AE Consulting has reviewed Pyramid's claim in detail and agrees with the basis of the claim in that the oil price escalation as well as the bridge closures that occurred after they bid the project will result in a significant increase in cost that was out of their control.
It is recommended, therefore, that the City approve the increased unit prices as described above with the total fiscal impact expected to be in the order of $133,213.61. Note that the actual cost will be based on the actual installed quantities that are within construction tolerances.
AE Consulting, Inc.
Peter D. Bonello, P.E.
Principal Civil Engineer
Attachment: Pyramid Letter dated June 16, 2022
www.airportengineering.com
PYRAMID
CONSTRUCTION
AND AGGREGATES, INC. General Engineering Contractor
Stote Contractor Lic. No. 866533
June 16, 2022
Attn: Peter Bonello
A E Consultant Inc
RE: Calexico International Airport
Taxiway A Rehabilitation
3-06-0034-018-2020,3-06-0034-
021-2021
Subject: Oil Price Escalation Detour
Peter,
Pyramid Construction and Aggregates Inc, after bid time, has seen a change in ability to access the project the way we did at bid time. We would like to open the discussion of additional costs bared on the contractor, not due to contractors doing. There are 2 things that glare at us when discussing upcoming costs.
The first is liquid asphalt. Attached is the cost from World Oil from the bid date in October to this month's rate.
October was $505 per ton
April 2022 is $700 Per ton
Difference of $195 per ton
Tons on the project is approx. 9104 tons, oil content for the mix design is 6%, 9104 x.06 = 546.24 liquid tons to the project.
546.24 X $195 per ton = $106,516.80
If we apply that to the line items, per ton, that would be $11.70.
Adjusted price per tons for two line items:
Line item 35
Bid time price $96.96 per ton
Adjusted for oil escalation $108.66 per ton
Line item 36
Bid Time Price $200.00
Adjusted for oil escalation $211.70
The second item concerning Pyramid is the emergency bridge closures that were done in the last couple months. Leaving Pyramid's yard at 839 Dogwood Rd in Heber, CA the route has changed significantly. Anza Rd has been closed at the canal West of the project. Dogwood Rd is now closed by Imperial County due to a failed bridge at Dogwood and Willoughby. Both affect deliveries of Aggregate Base and Asphalt. Attached is a map and driving times that add an addition 20 minutes a round to each load of material delivered.
9,104 tons of asphalt
Trucking $125 PH / 25 T = $5.00 per ton
$5.00 per ton / 60 = .0833
.0833x20 Min =$1.66 Per ton
delivered 9,104 X $1.66 =$15,113
If we apply that to the line items, per ton, that would be $1.66.
Adjusted price per tons for two line items:
Line item 35
Bid time price $96.96 per ton
Adjusted for Detour Issues $98.62 per ton
Line item 36
Bid Time Price $200.00
Adjusted for Detour Issues $201.66
6292 Aggregate Base Course
Trucking $125 PH / 17 CY = $7.35 per cubic yard
$7.35 per CY / 60 = 12
.12x20 Min =$2.40 Cubic Yard
delivered 6292 X $2.40 =$15,101
If we apply that to the line items, per CY, that would be $2.40.
Adjusted price per CY for two line items:
Line item 35
Bid time price $36.00 per CY
Adjusted for Detour Issues $38.40 per CY
Regards,
CHC
Archie Abeyta
Pyramid Construction and Aggregates, Inc.
Project Manger
Exhibit A
WORLD OIL.
WORLD OIL
CORP 9302
Garfield Ave, South Gate,
Ca 90280
www.worldoilcorp.com
Customer Effective Date: 4/1/2022
PYRAMID CONSTRUCTION AND AGGREGATES, INC.
Price
PG 64-10 PG 64-16 PO 38-22 PG 70-10 SC-800
$700.00 $700.00 $700.00 $700.00 $805.00
SC-250 SC-3000 SC-70
$810.00 $800.00 $815.00
Notes
• Prices and products subject to change withoutnotice. • Overload fee of $100.00 cach occurrence. • The above prices exclude all applicable taxes. • Return handing fee for paving grades $75.00, other products by quotation. • Prices FOB Refinery. • Requests for loads greater than 350 degrees require a 12 hour notice. • For purchases less than 5 tons, add $20.00 perton. • Anti-strip additive is $15.00 per 4% per ton. • This price list supersedes all previous price lists.
Contacts
Matthew Pakkala David Mora
COO / CFO Director of Marketing, Logistics and Special Projects Office: 562-928-7000 Office: 562-928-7000
Cell: 818-723-6288 Cell: 562-833-6308
Email: [email protected] Email: [email protected] WORLD OIL.
WORLD OIL CORP
9302 Garfield Ave, South
Gate, Ca 90280
www.worldoilcorp.com
Customer Effective Date: 10/1/2021
PYRAMID CONSTRUCTION AND AGGREGATES, INC.
Price
PG 64-10 PG 64-16 PG 58-22 PG 70-10 SC-800
$505.00 $505.00 $505.00 $505.00 $610.00
SC-250 SC-3000 SC-70
$615.00 $605.00 $620.00
Notes
• Prices and products subject to change without notice. • Overload fee of $100.00 each occurrence. • The above prices exclude all applicable taxes. • Return handing fee for paving grades $75.00, other products by quotation. • Prices FOB Refinery. • Requests for loads greater than 350 degrees require a 12 hour notice. • For purchases less than 5 tons, add $20.00 per ton. • Anti-strip additive is $15.00 per ¼ % per ton. • This price list supersedes all previous price lists.
Contacts
Matthew Pakkala David Mora
COO / CFO Director of Marketing, Logistics and Special Projects Office: 562-928-7000 Office: 562-928-7000
Cell: 818-723-6288 Cell: 562-833-6308
Email: [email protected] Email: [email protected]
EXHUIL D
www.invarion.com
6.75 miles
1 stop light
1 stop sign
10 Minute drive
10 Minute Return
10 Minute Load/Dump
9 miles
6 stop light
1 stop sign
20 Minute Drive
20 Minute Return
10 Minute Load/Dump
10,000 tons of base
9,104 tons of asphalt
Trucking $125 PH / 25 T = $5.00 per ton
Entrance
Casa de la Cultura
de Mexicali $5.00 per ton / 60 = .0833
H HOSPI .0833x20 Min =1.66 Per ton delivered
19,104 X $1.66 =$31,712.64
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3-904B Payment Adjustments for Price Index Fluctuations Section 9-1.07, "Payment Adjustments for Price Index Fluctuations," of the Standard Specifications specifies payment adjustments for various bid items that contain paving asphalt. The payment adjustment occurs when the California statewide crude oil price index fluctuation exceeds the threshold as described in the contract specifications. Compensation is adjusted when the paving asphalt price fluctuates from the month of the bid date to the month in which the contract item containing paving asphalt was placed. Refer to the example in Section 5-3, "Change Orders," of this manual.
It is important to make timely payments for price index fluctuations. Increases in the cost of paving asphalt may place financial burdens on contractors and can cause projects to exceed allocated supplemental and contingency funds. The resident engineer is responsible for the following:
• Initiating a change order within 30 days of contract approval. • Verifying that monthly payment adjustments for paving asphalt are included in monthly estimates when items that contain paving asphalt are used • Monitoring monthly expenditures and estimating future months of expenditures of payment adjustments for paving asphalt to avoid exhausting the project supplemental funds and contingency balance.
• Notifying the construction engineer and project manager if you anticipate the project contingency balance will be depleted so that appropriate action can be taken. • At the time of bid, the contractor has the option to opt out of payment adjustments for price index fluctuations. Form DES-OE-0102.12A, "Opt Out of Payment Adjustments for Price Index Fluctuations," is included in the bid book. To determine if the contractor has opted out, review the bid book for the project. If the opt out form in the bid book is not completed, then all of the requirements apply to the project. The bid book may be viewed at:
http://ppmoe.dot.ca.gov/des/oe/bidsub/post_bid_archived.php