Agenda Item No. 14
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer V?l Landon Kern, Assistant City Engineer
Todd Gutjahr, Public Works Analyst
FOR: City Council Meeting of February 14, 2022
SUBJECT: Change Order No. 2 -New City Yard Project Unload, Assemble, & Install/Erect City Furnished Steel Buildings and Install Concrete Footings/Foundation Project - Project No. 11147
RECOMMENDATION:
That City Council approve Change Order No. 2 to the contract with Three Peaks Corporation for the New City Yard Project Unload, Assemble, & Install/Erect City Furnished Steel Buildings and Install Concrete Footings/Foundation Project in the amount of $56,053 for a revised total contract in the amount of $510,568.35.
BACKGROUND:
In March 2011, City Council approved the preparation of a Specific Plan and an Environmental Impact Report (EIR) to develop the Wilson Creek Business Park and Flood Control Basin Project.
In September 2011, City Council directed staff to pursue a feasibility analysis for a broader array of development opportunities for the Wilson Creek Business Park site.
On May 13, 2013, City Council approved and authorized the Mayor to execute an MOU between the San Bernardino County Flood Control District (SBCFCD) and the City for the Wilson III Basin Project (Basin Project). The MOU detailed the partnership efforts between the City and SBCFCD, including the understanding that the SBCFCD owned property, which would not be required for the Basin Project, would be deemed "surplus" property and would be transferred to the City for sale as SBCFCD's contribution towards the Basin Project.
On July 11, 2016, City Council selected the "preferred" land use alternative for the Oak Glen Creek Specific Plan as primarily residential with some Innovation Center parcels and renamed the "Wilson Creek Innovation Center Specific Plan" to the "Oak Glen Creek Specific Plan" accordingly. The Innovation Center parcels/areas are located on the north and east sides of the Oak Glen Creek Specific Plan area and were designated for the relocated City maintenance yard.
The area designated for the new City maintenance yard was feasible and appropriate since it was vacant/undeveloped land separated from residential areas, the existing church and existing retail center. In addition, the area is also immediately adjacent to another public facility, Fire Station -124-
City Council Meeting of February 14, 2022
Change Order No. 2 - New City Yard Project Unload, Assemble, & Install/Erect City Furnished Steel Buildings and Install Concrete Footings/Foundation - Project No. 11147
No. 1, . Since the area was vacant and did not have direct access/frontage to a public street, it was difficult to determine the preliminary cost of the infrastructure required to support the proposed City maintenance yard at this location. However, in FY2018/2019 the total estimated cost identified in the City's Development Impact Fee (DIF) Program for the new City Yard Project was $2,297,460.
On February 26, 2018, City Council adopted Resolution No. 2017-47 approving the Oak Glen Creek Specific Plan, including the New City Yard Project.
On June 8, 2020, City Council approved a Purchase and Sale Agreement with SBCFCD (APN 0303-181-19) to acquire an approximately 3.4 -acre portion of the property for the new City Yard in the amount of $94,715.
The City Yard Relocation Project consists of site preparation for the development of the new City maintenance yard, including mobilization, clearing, and grubbing, over-excavation/compaction of the proposed building pads, drainage improvements, final site grading, and the fabrication and installation of the new City Yard buildings and covered storage structure and associated amenities.
On July 13, 2020, City Council awarded a construction contract to Three Peaks Corporation to grade the New City Yard. On January 11, 2021, City Council awarded and authorized the Mayor to execute a contract in the amount of $331,851 with Western Steel Buildings of Park City, Utah, for the fabrication of the new Yucaipa City Yard Steel Buildings and authorized a contract contingency in the amount of $33,000 and the amount of $15,000 for design contract administration and permitting for a total budget of $379,851.
The FY2021/2022 DIF Program identifies the total estimated cost of the new City Yard Project to be in the amount of $2,583,429. The increase in cost is primarily due to the rise in construction costs over the three (3) year period. The total change in the Construction Cost Index (CCI) over the 3 year period was approximately 12.5%.
DISCUSSION:
On June 28, 2021, following a formal public bid process, City Council awarded a construction contract to Three Peaks Corporation to install new concrete footings/foundations and unload, assemble, and install/erect City furnished buildings (Project). This contract is in the amount of $442,411, with a total construction budget of $477,411 that included $30,000 for construction contract contingency and $5,000 for construction contract administration/inspection, surveying, permitting, and materials testing costs. Construction began in July of 2021 and is now substantially complete.
The next phase of the New City Yard project is the installation of the Tennant Improvements (TI) inside the large building. The TI consists of (but is not limited to) exterior windows, HVAC, plumbing & electrical services, walls, restroom fixtures, etc. Staff is proposing to have the windows installed at this time during the building construction phase. The rest of the required TI are currently out to bid and includes the installation of walls, ceiling, and floor finishes, construction of reception lobby, staff offices, conference room, restroom facilities, storage space -125-
City Council Meeting of February 14, 2022
Change Order No. 2 - New City Yard Project Unload, Assemble, & Install/Erect City Furnished Steel Buildings and Install Concrete Footings/Foundation - Project No. 11147
and kitchenette, and the installation of new HVAC, electrical, and plumbing systems. Staff will return to Council at a later date with a recommendation to award the construction of the TI.
To secure the buildings and allow temporary equipment storage before building occupancy, staff administratively approved Change Order No. 1 to purchase and install five (5) roll -up vehicle access doors for the buildings. To initiate the interior tenant improvements and further secure the nearly -completed facilities, staff recommends approval of Change Order No. 2, which incorporates installing the windows for the 60x100 larger building. Change order No. 2 also includes the installation of rain gutters on the smaller 40x40 building to complete the drainage infrastructure to minimize erosion and direct stormwater runoff to the onsite storm drain system and construction modifications to the internal decks/mezzanine floors.
The total cost associated with proposed Change Order No. 2 is in the amount of $56,053.
FISCAL IMPACT:
The table below includes the funding identified in the FY2021/2022 Capital hnprovement Program (CIP) for the overall New City Yard Project:
Funding Source
Amount
City Yard Property Sale Proceeds Sale to Woodside Homes) $1,000,000.00
Public Facilities Fees Funds
' 118,000.00
General Fund Transfer from Dunlap Blvd. Bridge Removal/Replacement Pro' ect
330,000.00
General Fund Transfer from Wilson III Basin Project
200,000.00
Pavement Management Program Funds
240,000.00
Total Funding Available
$1,888,000.00
The total estimated Project costs are included below:
Description
Costs
Construction Contract
$442,411.00
Construction Contract Contingency
30,000.00
Change Order No. 11
12,104.36
Proposed Change Order No. 22
56,053.00
Construction Contract Administration/Staff Time/Inspection/Material Testing/Permitting
5,000.00
Total Proposed Construction Budget (Installation of City Yard Buildings) $545,568.36
(1) Remaining contingency balance after Change Order No. 1 (Administratively Approved) and proposed Change Order No. 2, if approved, will be $17,895.64.
(2) Part of this City Council action.
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City Council Meeting of February 14, 2022
Change Order No. 2 - New City Yard Project Unload, Assemble, & Install/Erect City Furnished Steel Buildings and Install Concrete Footings/Foundation - Project No. 11147
The table below includes the costs to date and estimated costs for the items of work that need to be completed for the New City Yard Project.
Completed Items
Actual Cost
Environmental Review/Permittin Staff Costs to Date
$40,000
City Yard Grading Contract Costs
269,172
Fabrication and Delivery
331,083
City Yard Building Installation
545,568
Covered Storage Installation
88,000
Subtotal
$1,273,823
Remaining Items to be Completed
Estimated Cost
Landscaping/Irrigation
$17,500
Wet and Dry Utilities
200,000
Furniture/Appliances/Equipment
36,500
Fire Suppression/Alarm
120,000
Tenant Improvements
115,000
HVAC
45,000
Plumbing/Electrical
50,000
Misc. Site Improvements (Paving, parking, etc.
30,000
Subtotal
$614,000
Total Estimated Project Cost
$1,887,823
The table above includes the total estimated cost of the overall project and identifies the actual costs for the completed items, as well as the current estimated cost of the items remaining to be completed.
The cost of the completed items was higher than anticipated due to the rise in construction costs associated with the change in CCI and more specifically, the higher than normal cost of steel required for the three steel building structures.
With the total proposed project cost in the amount of $545,568.36 and the funding shown in the table above, there is sufficient funding available to accommodate staff s recommendation.
It is important to note that the total estimated cost of the overall project identified in the DIF Program is in the amount of $2,583,429. The City Yard Property Sale Proceeds identified in the table above is in the amount of $1,000,000. With the total cost associated with the property purchase estimated to be in the amount of $94,715, the resulting net land proceeds is in the amount of $905,285, offsetting the net cost of the total project. Staff will return to Council with an update to the DIF Program in the fall of this year reflecting the net savings associated with property acquisition costs for the New City Yard Project based on the final actual cost to complete the project.
Attachments: Proposed Change Order No. 2
Approved By: / !( /
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City of
PUBLIC WORKS DEPARTMENT
Date: 1/18/2021 City Project No. 11147
Purchase Order No. 5200-0000726
Contract Change Order No. 2
Contractor: Three Peaks Corporation
New City Yard Project Unload, Assemble, & Install/Erect City Furnished Steel Buildings and Install Concrete ProjeCt: Footings/Foundation
Change Proposed:
Additive:
1. Purchase and installation of windows for 60'x100' building $ 34,373.50
2. Purchase and Installtion of rain gutters for 40'x40' building $ 5,413.26
3. Additional sheet metal and decking work required for 60'x100' building $ 16,266.24– Deductive:
6266 24Deductive:
The additive and/or deductive work as stated above is compensable as Changes In Work under the provisions of Section 3 of Standard Specifications for Public Works Construction (Latest Edition).
Deductive Additive
$0.00 $56,053.00
Adjustment of Contract Time of Completion:
Agreed Contract Change Order price: $56,053.00
Contract Amount: $ 442,411.00
Previously Approved Change Order Numbers: $ 12,104.35
Previously Approved Contract Change Order Amount: $ 454,515.35 New/Revised Total Contract Amount: $510,568.35
Reviewed and Approved by Const. Manager:/ f j FVZ.) Z'— Date
Approved by City Engineer:
Date
Approved by City Manager:
Date
Accepted by: 1/18/2022
Th e Peaks Date
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