REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:June 24, 2025
Subject:Change Order No. 3 to Public Works Construction Agreement for SAS Construction, Inc. Concrete Footings and Foundation, Bid Set A, on the New City Hall Project (CIP Project No. Z20006)
Recommendation
Approve and authorize the City Manager to execute Change Order No. 3 with SAS Construction, Inc. for the concrete footings and foundation, bid set 'A,' on the new City Hall Project (CIP Project No. Z20006) in the not to exceed amount of $219,500.00 in such final form as approved by the City Attorney; authorize the City Clerk to record the notice of completion once the entire scope of work is complete; and return withheld retention to the contractor.
Background
On March 26, 2024, a public works construction contract was awarded to SAS Construction, Inc. for $2,690,000.00 for the City Hall concrete footings and foundation (Attachment 1).
On August 22, 2024, the City posted a notice on PlanetBids inviting bids for the City Hall Bid Set "D"- Metal Stud Interior Wall Framing. During the open bid time frame (14), prime contractors reviewed the bid document; however, on the bid date deadline of September 25, 2024, no bids were submitted. On October 30, 2024, the City re-opened the City Hall Bid Set "D" Metal Stud Interior Wall Framing. During the second open bid timeframe, (9) prime contractors reviewed the bid document; however, on the bid date deadline of October 9, 2024, no bids were submitted. It was determined through discussions with some of the known PlanetBids registered prime vendors that the reasons why the contractors did not submit a qualifying bid were due to multiple factors.
Of these multiple reasons, the most common were due to the project's physical location, timing, and additional contractor commitments.
After two attempts to receive bid proposals and a discussion with the City Attorney, the staff negotiated a change order with SAS Construction, Inc. for the metal stud framing the scope of SAS Change Order No. 3 New City Hall Project
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work. On October 22, 2024, Change Order No. 1 (Attachment 2) was approved for the not-to- exceed amount of $1,024,850.00 approved for the metal stud interior wall framing.
On May 21, 2025, a 10% contingency Change Order No. 2 (Attachment 3) was prepared and executed by the City Manager in the amount of $275,000.00 to expand the scope of work for metal stud framing to include exterior walls and additional structural provisions required for building drift and seismic movement. In this change order, specific design requirements for the windows, stucco, brick, and drywall are closely coordinated by three structural engineers through detailed shop drawings. Each system must be designed to work with each other to satisfy the superstructure specifications.
Discussion
As the metal stud framing is completed and the window structural shop drawings are in the final stage, the building is ready to receive the exterior sheathing. The budget for this scope of work was estimated at $250,000.00. The staff has negotiated a not-to-exceed amount of $219,500.00 with SAS Construction. This change order with a current on-site contractor is necessary to keep the project on-schedule by expediting the construction of the sheathing scope of work and is cost- effective for the project. The cost analysis of the change order amount demonstrates that the amount is nearly equal to the contractor's cost to provide the material and labor to complete the work. The key elements of this scope of work are listed below:
– Placement of 15"/32" plywood around the entire exterior of the building – Placement of 2 layers of construction paper over the plywood – Installation of metal wire mesh in preparation for stucco and brick exterior finishes – Installation of expansion and drift joints as instructed by the structural engineer Fiscal Impact
Funding costs are included in the Fiscal Year 23/24 – 27/28 Capital Improvement Plan (CIP) budget, CIP Project Z20006.
Attachments
Attachment 1 - Agreement SAS Construction, Inc.
Attachment 2 - SAS Change Order No. 1
Attachment 3 - SAS Change Order No. 2
Attachment 4 - SAS Change Order No. 3
City Manager's Office