DATE: FEBRUARY 7, 2023
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E., L.S., PUBLIC WORKS DIRECTOR
THRU: ELISE RAMIREZ, P.E., SENIOR CIVIL ENGINEER
BY: JONATHAN ESTEBAN, ASSISTANT ENGINEER
TITLE: SALINAS FIRE DEPARTMENT CITY HALL TENANT IMPROVEMENT, CIP NO. 9300 RECOMMENDED MOTION:
A motion to approve a Resolution to:
Authorize the City Manager to execute all outstanding contract change orders to Premier Builders Inc. for the Salinas Fire Department City Hall Tenant Improvement, CIP 9300, above the 10% construction contingencies; and Authorize the City Manager to execute all necessary contract change orders up to an additional 6.5% of the original contract price amounting to approximately $45,000 to complete the project.
EXECUTIVE SUMMARY:
On December 14, 2021, City Council approved Resolution 22266 awarding a construction contract to Premier Builders, Inc. for the Salinas Fire Department City Hall Tenant Improvement (TI), CIP 9300 in the amount of $685,924.00. Following execution of the contract and initiation of the project, extensive design revisions were made to the construction plans to accommodate the City’s desire to update existing HVAC conditions within the TI area. Construction of the project commenced on September 13, 2022. Change orders above the 10% construction contingency require council approval, per Policy 75-1.
BACKGROUND:
The Salinas Fire Department City Hall Tenant Improvement (TI), CIP 9300, scope is to provide tenant improvements to the existing office spaces located in the City Hall West Wing that were previously gutted of all non-structural elements and temporarily encapsulated asbestos ceiling.
The Salinas Fire Department City Hall TI commenced on September 13, 2022 with an anticipated completion date of Spring 2023. To date, the contractor has completed approximately 40% of the contract work. The project has executed a total of six (6) contract change orders, for a total of $183,244.00. All contract change orders (CCO) to date (CCO 1 thru CCO 6) have been within the staff’s signing authority as outlined by Department Policy 75-1 (Resolution No. 21528) based on their dollar amounts.
Table 1: Contract Change Order Log
Policy 75-1 states all change orders above $100,000 or above 10% of the contract amount shall be authorized by Council action. Given that the total cumulative change orders exceed the allocated 10% contingency, staff recommends Council approve a resolution authorizing the City Manager to execute all outstanding change orders and authorize the allocation of an additional 6.5%, approximately $45,000 to the contract as an allowance for any additional change orders for project completion.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This project addresses the current City Council’s Goals of “Infrastructure and Environmental Sustainability” and “Public Safety” by improvement City facilities and providing offices for Fire Admin staff.
DEPARTMENTAL COORDINATION:
Public Works staff, Fire Department staff, and Finance staff have collaborated efforts with the budget and execution of this project.
FISCAL AND SUSTAINABILITY IMPACT:
Total balance in CIP 9300 – West Wing Renovations as of January 3, 2023, is as follows:
There is sufficient funding within the project CIP 9300 to approve all outstanding change orders and authorize an allowance of up to 6.5% for necessary change orders to complete the project.
ATTACHMENTS:
Resolution
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