PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.C
SUBJECT/TITLE:
AUTHORIZATION FOR CHANGE ORDER WITH JACK HANDLEY CONSTRUCTION
SERVICES AND CONTRACT AMENDMENTS WITH HUNTER SMITH &
ASSOCIATES, INC. AND MDN ENGINEERING, LLP FOR THE CHAPMAN ESTATE
ADA RESTROOM REMODEL AND ADDITION PROJECT
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to:
1. Execute Change Order #2 with Jack Handley Construction Services in the amount of $120,000 for the Construction of the Chapman Estate ADA Restroom and Remodel Project ; and
2. Execute Amendment #1 with Hunter Smith & Associates, Inc. in the amount of $20,000 for Construction Management Services for the Chapman Estate ADA Restroom and Remodel Project; and
3. Execute Amendment #1 with MDN Engineering, LLP in the amount of $20,000 for the Chapman Estate ADA Restroom Remodel and Addition Project.
BACKGROUND:
The Chapman Estate is a unique property that was accepted by the City Council in 2013.
Since that time, the City has been performing work to make the Estate available for event rentals, including a new roof, electrical repairs, railing installation, ADA walkway construction and some siding repairs. On January 17, 2023 the City Council awarded a contract to Jack Handley Construction Services (Jack Handley) for the construction of an ADA Restroom at the Estate. Contracts with Hunter Smith & Associates, Inc. (Hunter Smith) for construction management and MDN Engineering, LLP (MDN) for engineering support services were executed under the City Manager’s authority.
Construction
Construction of the project is ongoing, and over the course of the project several issues have arisen. On May 15, 2023 Change Order #1 was executed with Jack Handley adding 40 working days to the contract time due to an extended lead time on obtaining doors and floor tiles. In addition, it was determined that three existing gas lines needed to be repaired or abandoned, the sewer line needs to be replaced, and dry rot was discovered that needs to be addressed. The total estimated cost to address these additional items is $120,000.
Staff is recommending the proposed Change Order #2 (Attachment 1.A) in the amount of $120,000 be executed to complete these repairs. This will bring the total construction contract amount to $447,950.
Construction Management and Engineering Support
Due to the extended construction schedule as well as the additional time required by Hunter Smith and MDN to identify and coordinate design and repairs, both consultants have provided cost proposals to cover the increased work required for the project. Hunter
12.C-1Council Agenda 8-1-2023
Smith’s proposal is for $20,000, bringing the total contract cost to $60,000. MDN’s proposal is for $20,000, bringing the total contract cost to $40,000.
Conclusion and Recommendation
Staff recommends the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Change Order #2 (Attachment 1.A) to the existing Jack Handley construction contract, Amendment #1 (Attachment 1.B) to the existing Hunter Smith contract, and Amendment #1 (Attachment 1.C) to the existing MDN contract.
FISCAL IMPACT:
The fiscal impact of adopting the attached Resolution is an additional $160,000 from the Chapman Estate Fund, supported by a transfer from the General Fund. The current Fiscal Year (FY) 2024 budget is $535,387 in the Chapman Estate Fund. The current budget included contingency funds for the ADA Restroom Remodel and Addition project as well as $506,500 for the window replacement at the Chapman Estate. Because the windows are no longer being donated, that project is not moving forward and those funds are available to support the ADA Restroom Remodel and Addition project.
Current Project Funding
Current Project Budget $991,363
Estimated Project Costs
Expenditures to date $106,760
Outstanding purchase orders $348,605
Subtotal of Estimated Project Costs $455,364
Remaining Budget $535,387
Proposed FY 2024 Costs
Proposed Jack Handley Change Order #2 $120,000
Proposed Hunter Smith Amendment #1 $20,000
Proposed MDN Amendment #1 $20,000
Subtotal of proposed new costs $160,000
Remaining Available Budget $375,998
ALTERNATIVES:
1. Do not authorize all or a portion of the recommended items; provide staff with direction on how to proceed.
ATTACHMENTS:
1. Resolution
1.A Exhibit A to Resolution: Proposed Jack Handley Change Order #2
1.B Exhibit B to Resolution: Proposed Hunter Smith Amendment #1
1.C Exhibit C to Resolution: Proposed MDN Amendment #1
12.C-2Council Agenda 8-1-2023
Prepared by: Meeting Date: August 1, 2023
Erin Olsen, Senior Management Analyst
Submitted by: Benjamin A. Fine, P.E. Director of Public Works/City Engineer Interim City Manager Approval:
12.C-3Council Agenda 8-1-2023
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO:
1. EXECUTE CHANGE ORDER #2 WITH JACK HANDLEY CONSTRUCTION SERVICES IN THE AMOUNT OF $120,000 FOR THE CONSTRUCTION OF THE CHAPMAN ESTATE ADA RESTROOM AND REMODEL PROJECT; AND
2. EXECUTE AMENDMENT #1 WITH HUNTER SMITH $ ASSOCIATES, INC. IN THE AMOUNT OF $20,000 FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE CHAPMAN ESTATE ADA RESTROOM AND REMODEL PROJECT; AND
3. EXECUTE AMENDMENT #1 WITH MDN ENGINEERING, LLP IN THE AMOUNT OF $20,000 FOR ENGINEERING SUPPORT SERVICES FOR THE
CHAPMAN ESTATE ADA RESTROOM REMODEL AND ADDITION PROJECT WHEREAS, the Chapman Estate was accepted by the City Council in 2013 and since that time, the City has been performing work to make the Estate available for event rentals; and
WHEREAS, on January 17, 2023 the City Council awarded a contract to Jack Handley Construction Services for the construction of an ADA Restroom at the Estate; and WHEREAS, construction of the project is ongoing and over the course of the project several issues have arisen; and
WHEREAS, the total estimated cost to address these additional items is $120,000 over the current approved construction contract amount; and
WHEREAS, the extended construction schedule, as well as the additional time required by the engineering and construction management consultants to coordinate design and repairs, is above the current scope of work for both consultant contracts; and WHEREAS, Hunter Smith & Associates, Inc. and MDN Engineering, LLP have provided cost proposals to complete the additional scope of work.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Change Order #2 with Jack Handley Construction Services in the amount of $120,000 for the construction of the Chapman Estate ADA Restroom and Remodel project (Exhibit A).
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 with Hunter Smith & Associates, Inc. in the amount of $20,000 for construction management services for the Chapman Estate ADA Restroom and Remodel project (Exhibit B).
Attachment 1
12.C-4Council Agenda 8-1-2023
BE IT FINALLY RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 with MDN Engineering, LLP in the amount of $20,000 for engineering support services for the Chapman Estate ADA Restroom Remodel and Addition Project (Exhibit C).
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 1st day of August 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Attachment 1
12.C-5Council Agenda 8-1-2023
No 2
Project:
Date of Issuance
Contractor:
Change in Contract Price
Original Contract Price:
$80 days
No.1 to No.1 to
No.1 No.1
$40 Days
Contract Time Prior to this Change Order:
$120 days
Net change of this Change Order:
$0 days
$120 days
Recommended:Recommended:
by by
Michael D. Nickerson, P.E.
Approved:Approved:Approved:
Benjamin A. Fine, P.E.Jorge Garcia Contractor
Director of Public Works/Interim City Manager
City Engineer
Previous Change Orders:
additonal sewer line, gas line, and mold remediation/dry rot. Correct typo on CO#1 for working days. 447,950.00
Previous Change Orders:
Jack Handley Construction
The amount and time provided in this contract change order are a full and final accord and satisfaction of all costs and time directly and indirectly related and all other claims related hereto are herby waived. The Contractor has reviewed the plans and specifications related to this change order and all changes thereto are accounted for in the attachment labeled "Attachment A". 327,950.00
0.00 Net increase (decrease) of this Change Order
Contract Price with all approved Change Orders
Contract Price Prior to this Change Order
120,000.00
Contract Time with all approved Change Orders:
CHANGE ORDER
327,950.00
(Instructions Follow)
You are directed to make the following changes in the Contract Documents.
Description:Additional Extra Work At Direction of City Engineer and correct working days from CO#1 Purpose of Change Order:Increase the budget for extra work at direction of City Engineer to account for Change in Contract Time:
Original Contract Time:
Attachments: (List documents supporting change)
Chapman Estate ADA Bathroom Project
Attachment 1A
12.C-6Council Agenda 8-1-2023
AMENDMENT # 1
to the
FEBRUARY 17, 2023 AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND HUNTER SMITH & ASSOCIATES, INC.
Pursuant to the February 17, 2023 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Hunter Smith & Associates, Inc., hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1.Additional services shall be performed as set forth in the proposal dated July 6, 2023, which is attached hereto and by this reference made a part hereof.
2.Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of twenty thousand dollars ($20,000), without prior written approval of the City.
3.The revised fee under the February 17, 2023 contract, plus this addendum, is sixty thousand dollars ($60,000).
4.All other provisions of the Construction Management Services – Chapman ADA Restroom agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Benjamin A. Fine, P.E.
Title: Director of Public Works/City Engineer
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: Interim City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
Hunter Smith & Associates, Inc.
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Scope/Cost Proposal
Attachment 1B
12.C-7Council Agenda 8-1-2023
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12.C-8Council Agenda 8-1-2023
AMENDMENT # 1
to the
MAY 23, 2023 AGREEMENT BETWEEN THE CITY OF PISMO BEACH
AND MDN ENGINEERING, LLP
Pursuant to the May 23, 2023 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and MDN Engineering, LLP, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1. Additional services shall be performed as set forth in the proposal dated July 8, 2023, which is attached hereto and by this reference made a part hereof.
2. Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of twenty thousand dollars ($20,000), without prior written approval of the City.
3. The revised fee under the May 23, 2023 contract, plus this addendum, is forty thousand dollars ($40,000).
4. All other provisions of the Chapman Estate ADA Restroom Project Support agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Benjamin A. Fine, P.E.
Title: Director of Public Works/City Engineer
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: Interim City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
MDN Engineering, LLP
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Scope/Cost Proposal
Attachment 1C
12.C-9Council Agenda 8-1-2023
MDN Engineering, LLP
780 La - Teena Place
Arroyo Grande, Ca 93420
805-550-6545
[email protected]
July 8, 2023
Benjamin A. Fine, Director of Public Works / City Engineer City of Pismo Beach
760 Mattie Road
Pismo Beach, Ca 93449
Subject: Amendment for Consulting Services
Chapman Estate Improvements Project Support
Dear Mr. Fine:
While constructing the planned improvements, differing site conditions have impacted the work area and utility systems. Additional time was required to identify and coordinate design and repairs to the natural gas service, sewer system, termite damage, mold mitigation, roof water damage to interior and exterior walls, and dry rot at interior and exterior sill plates. The current contract summary and requested amendment amount are shown below:
Current Account Summary:
Initial P.O. Amount: $ 20,000
Total to Date : $ 11,500
Remaining Amount: $ 8,500
Amendment Amount: $ 20,000
Sincerely,
MDN Engineering, LLP
Michael D. Nickerson, P.E.
Partner
MDN
Attachment 1C
12.C-10Council Agenda 8-1-2023