Title
Adopt a Resolution to Authorize the City Manager to Negotiate and Approve Increases in Individual and Cumulative Change Orders from 15% to 20% (from $940,200 to $1,253,600; an increase of $313,400) for the Construction Contract with D. L. Falk Construction, Inc. for the Police Building and South Offices Modifications Project, Project No. 2014.0481
Staffreport
Council Priority
Public Safety
Infrastructure
SUMMARY
This action will authorize an increase to the cumulative contract change order cap for the contract with D. L. Falk Construction, Inc. related to the construction for the Police Building and South Offices Modifications project.
RECOMMENDATIONS
Staff recommends authorizing an increase of the contract change order cap for the subject project from 15% to 20% (an increase of $313,400).
BACKGROUND
The subject project is for remodeling work at both the South Offices Building and the San Leandro Police Building. The construction phase has been ongoing since February 2019, and work on the final construction phase of the project is scheduled to be completed by Summer 2023.
Due to unforeseen conditions, owner requested changes, design changes, utility delays, and contractor delays, the original change order limit of 15% will be exceeded for the construction contract.
Analysis
At contract award, the project budget contained a change order contingency of 15% for the $6,268,000 construction contract. However, change orders are currently projected to total 20% of the original contract, an increase of 5% or $313,000.
Authorizing an increase in the change order cap will enable staff to complete the project without further delay. No additional funding allocation is requested at this time.
Previous Actions
• On November 7, 2016, the City Council by Resolution No. 2016-145, approved a CSA with Indigo for design services related to the Police Building and South Offices Modifications Project.
• On July 3, 2017, the City Council by Resolution No. 2017-093 approved Amendment No. 1 to the CSA with Indigo for design services to convert the theater space inside the South Offices Building to a new community meeting room.
• On November 5, 2018, the City Council by Resolution No. 2018-136 awarded a construction contract to DLF and authorized the appropriation of additional funding towards construction of the subject project.
• On November 19, 2018, the City Council by Resolution No. 2018-139 approved a CSA with Indigo in the amount of $394,090 for construction support services related to the subject project.
• On September 20, 2021, the City Council by Resolution No. 2021-139 approved a NPSA with Watson Consoles to furnish and install new dispatch consoles related to the subject project.
• On September 6, 2022, the City Council by Resolution No. 2022-137 approved Amendment 4 to a consulting services agreement with Indigo, Hammond & Playle Architects for construction support services.
• On September 6, 2022, the City Council by Resolution No. 2022-138 approved Amendment 1 to a consulting services agreement with Jason R. Zalinski for inspector of record services.
Applicable General Plan Policies
GOAL CSF-1: Provide and maintain high-quality police, fire, and emergency medical services.
Permits and/or Variances Granted
Building permits were issued for the construction of the subject project by the City’s Building and Safety Services Division of the Community Development Department.
Environmental Review
This project was deemed Categorically Exempt per California Environmental Quality Act (CEQA) section 15301 (A and C) - Existing Facilities.
Fiscal Impacts
This Project is estimated to cost $11,134,983, not including settlement for delays.
The project is funded as follows:
Account No. Source FY/Approp. Date Amount
210-18-137 General Fund FY15/16 $208,000
210-18-137 General Fund FY16/17 $1,556,983
210-18-145 General Fund, CIP Bond FY18/19 $5,000,000
210-18-137 General Fund FY17/18 $560,000
210-18-146 General Fund, CIP Bond FY18/19 $1,150,000
210-18-146 General Fund, CIP Bond Reso 2018-136 $943,000
210-18-145 General Fund, CIP Bond Reso 2020-017 $775,000
210-18-137 General Fund Reso 2022-137 $942,000
Existing Appropriation $11,134,983
ATTACHMENTS
Att A: Resolution DLF change order limits increase
Att B: DLF Change order summary
PREPARED BY: Kyle K. Lei, Associate Engineer, Engineering and Transportation Department