CITY COUNCIL STAFF REPORT
Meeting Date: May 02, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 AUTHORIZING THE CITY
MANAGER TO EXECUTE A CHANGE ORDER FOR BHM
CONSTRUCTION INC.'S CONTRACT FOR ADDITIONAL SCOPE OF
WORK FOR THE NEW PLEASANT HILL LIBRARY
SYNOPSIS
Adopt a resolution to authorize the City Manager to execute a Change Order (Exhibit A) in the amount of $743,616 for BHM Construction Inc.’s contract for additional scope of work to support the installation of a solar power system by Tesla, Inc., low voltage systems, utility work, shelving in the reading room and sculptural log artwork for the new Pleasant Hill Library.
DISCUSSION
Background
In August 2020, City Council awarded a construction contract to BHM Construction Inc. for the new Pleasant Hill Library Project No. 06-20 in the amount of $21,252,282. This includes a base bid of $20,917,282 and bid alternates of $335,000. Addition of the construction contingency of ten percent, or $2,125,228, brings the total project cost to $23,377,510.
On February 7, 2022, the City Council approved the request to purchase the solar power system and authorized staff to facilitate procurement and installation of the low voltage systems, the library move-in and allocation of utility funds to cover ongoing utility services and tie-in expenditures.
Analysis
Additional Scope of Work:
Photovoltaic System Support by BHM $117,246:
The budget amount of $513,038 for the new solar panel system was approved at the February 7, 2022 City Council Meeting. The City has engaged Tesla, Inc. for the purchase and installation of the photovoltaic solar panels with a contract amount of $372,418.
BHM performed installation support of the solar panel system in the amount of $117,246. The total cost of procurement and installation of the solar panel system was $489,664, which is $23,374 below the approved photovoltaic system budget.
Low Voltage System $294,524:
The low voltage systems include video surveillance, intrusion detection, access control, assisted listening, audio-visual video conference, and public address systems. The approved technology budget is $523,750. To minimize time and cost impact of procurement by the City, BHM procured and installed the low voltage equipment for $294,524. With anticipated equipment purchased by the County Library for $100,000 and City purchased equipment of $75,000, the total cost for Low Voltage is forecast to be $469,524, which is $54,226 below the approved technology budget.
Utilities $106,544:
The City Council authorized allocation of $250,000 to cover the ongoing utility services and tiein expenditures. During the site improvement phase of the library project, BHM performed work to support additional scope required for agency requirements for connections and tie-ins. Of the allocated budget for these ongoing services, BHM’s work totaled $106,544.
Installation of Shelving in Reading Room $125,302:
The heating and cooling system for the library is a radiant floor system with tubing that spans throughout the main reading room floor. The tall shelving in the main reading room must be anchored to the floor. Location of shelving anchors requires coordination among the shelving installer, BHM, and the mechanical contractor. The cost of the installation of the shelving is $125,302.
Installation of Sculptural Log Artwork $100,000:
BHM estimates the cost of installing the sculptural log artwork, which includes delivery of the artwork and the pouring of footings, is approximately $100,000.
FISCAL IMPACT
The FY 2020/2025 CIP (Project MK-4) allocated a total of $33,569,103, which is a combination of local Measure K funds ($31,086,103), Private Sources/Friends of the Library ($1,500,000), Public, Educational, and Governmental (PEG) Access funds ($680,000), and Unified Lighting District funds ($303,000). Total Project Budget allocated $523,750 for Technology (Low Voltage Systems), and $1,000,000 for Utilities.
BHM Construction Inc. Base Contract $21,252,282
Construction contingency of ten percent (10%) $2,125,228 Total Construction Cost by BHM $23,377,510
Additional Scope of Work
Photovoltaic System $117,246
Low Voltage Systems $294,524
Utilities for Tie-in during Site Improvement $106,544
FFE-Tall Shelving $125,302
Sculptural Log Installation $100,000
Total Additional Scope Cost $743,616
Revised Maximum BHM Construction Inc. Contract $24,121,126 Though the additional scope of work described above represents an increase of $743,616 in BHM’s total contract cost, the library project as a whole remains within the overall budget approved by City Council. The remaining balance of the budget after the change order is executed will be $1,045,014.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution to authorize the City Manager to execute a Change Order (Exhibit A) in the amount of $743,616 for BHM Construction Inc.’s contract for additional scope of work to support the installation of a solar power system by Tesla, Inc., low voltage systems, utility work, shelving in the reading room and sculptural artwork for the new Pleasant Hill Library.
The revised total contract amount will be $24,121,126.
ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the proposed resolution and provide direction to staff.
ATTACHMENT(S):
Proposed Resolution
Exhibit A – Change Order
Prepared by: Nimone Li-Hardisty, Swinerton Management and Consulting Reviewed by: Ananthan Kanagasundaram, City Engineer
Approved by: June Catalano, City Manager