HomeMy WebLinkAboutStaff Report 6631
City of Palo Alto (ID # 6631)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 4/4/2016
City of Palo Alto Page 1
Summary Title: Change Order Number 9 for MP Nexlevel Contract No.
C15156474
Title: Approval of Change Order Number 9 in the Amount of $267,607 to
Contract Number C15156474 With MP Nexlevel of California, Inc. for
Additional Trenching and Installation Work on Utilities Underground District
No. 47; And Approval of a Budget Amendment in the Electric Fund in Fiscal
Year 2016, Offset by a Reduction of $96,000 From the Electric Fund
Distribution Reserve to Complete the Installation of Underground
Substructures for Underground Utility District Number 47
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that the City Council approve and authorize the City Manager or his designee
to:
1. Execute Change Order Number 9 (Attachment A) in the amount of $267,607 to Contract
C15156474 with MP Nexlevel of California, Inc. for trenching and installation of utility
substructures changed or missed during the design of capital improvement project EL-
11010 - Underground District 47 – Middlefield, Homer, Webster and Addison (UUD 47).
2. Utilize savings in non-contingency contract funds of $48,308, the remainder of the
existing $170,000 in contingency amounts not already allocated to Change Orders 1-8
($124,218 remaining) and the additional funding approved in this staff report to pay for
Change Order Number 9.
3. Amend the Fiscal Year 2016 Budget Appropriation Ordinance for the Electric Fund by: (i)
Increasing the Underground District 47 (EL-11010) project budget in the amount of
$96,000; and (ii) Decreasing the Electric Fund Rate Distribution Reserve in the amount of
$96,000.
Background
City of Palo Alto Page 2
Underground Utility District No. 47 (“UUD 47”) involves converting the overhead utility lines to
underground in the Area of Middlefield Road, Homer Avenue, Webster Street, and Addison
Avenue. On March 2, 2015, the City Council approved and authorized the City Manager to
execute an Electric Enterprise Fund construction contract with MP Nexlevel of California, Inc.
(“MP Nexlevel”), in the amount of $1,697,836, with a contingency amount of $170,000, for
trenching and installation of utility substructures and an Addendum to the Agreement for Joint
Participation in the Installation of the Underground Facilities System Between the City of Palo
Alto, AT&T, and Comcast Corporation of California IX, Inc. (Staff Report 5469).
Discussion
MP Nexlevel was the lowest responsible bidder for the project, whose scope of work consisted
of excavation and placement of conduits, vaults, boxes and pads in the public right-of-way and
in public utility easements for the future installation of City of Palo Alto Utilities (Utilities),
AT&T, and Comcast cables and equipment.
During construction there were several change orders initiated by Utilities, Public Works
Department, AT&T, and Comcast which increased the estimated cost by $313,389 above the
contract amount. These changes included:
1. Repairing deteriorated sidewalks and curbs at a few locations within the
undergrounding district. This work was unanticipated and was not included in the
original scope of work. Public Works considered this a public safety hazard and
requested that Utilities allow MP Nexlevel to perform repairs.
2. Repairing damaged storm drain lines at the intersection of Homer Avenue and Webster
Street. This section of the line is considered a critical public infrastructure. In
anticipation of the “El Nino” winter storm and to avoid any further damages to the
existing line, Public Works requested that Utilities allow MP Nexlevel to make repairs to
the storm drain line since it was in the work area of the project.
3. Installing additional vaults and boxes for AT&T and grounding rods for Comcast which
will be fully reimbursed by the telecommunication companies.
Items 1-3 above were covered by Change Orders 1-8. The City has already paid MP Nexlevel for
Change Orders 1-8.
4. Correcting installed quantity numbers for certain materials. Some of the quantities for
conduit installation for the City’s and Comcast’s systems exceeded the estimated bid
quantities due to an oversight during development of the IFB and associated bid
quantities. These items are primarily 2’’ & 4” primary, secondary, communication and
Comcast communication conduits.
Item 4 is addressed by Change Order 4, which staff recommends Council approve.
City of Palo Alto Page 3
The bid item quantities in the contract are estimates, based on the engineering design, whereas
the contractor’s invoices are based on actual work completed. The total amount billed for the
project is $1,649,528 out of a total contract amount of $1,697,836. As a result, there is $48,308
(contract amount minus billed amount) remaining in the contract.
Change orders associated with Items 1 through 4 above totaled $313,389. The change orders
exceed the approved contingency amount of $170,000 by $143,389. Staff recommends that
Council approve the use the remaining balance of the contract amount of $48,308 to offset a
portion of the overage in the contingency and add $96,000 to the contract contingency to fund
the remaining balance of the change orders. In addition, a budget amendment in the amount
of $96,000, from Electric Fund Reserves, is needed to fund the change orders and increase the
total CIP EL-11010 budget to $2,294,525 for FY 2016.
The overage in the contingency account occurred due to a contract oversight. There was an
error in the contract management spreadsheet. An internal process and system review has
been conducted and new controls have been added to prevent this from recurring in the future.
Item Description Amount
A Contract Amount (C15156474) $1,697,836
B Total Amount Billed $1,649,528
C Remaining amount in contract (A - B) $48,308
D Contract Contingency $170,000
E Items 1 through 3 above (Change Orders 1 to 8) $45,782
F Item 4 above (Change Order 9) $267,607
G Total of all Change Orders (E + F) $313,389
H Remaining amount in Contingency (D - G) - $143,389
I Remaining Authorized Amount (C-H) - $95,081
J Contract and Budget Amendment Ordinance Request $96,000
Resource Impact
A budget amendment in the Electric Fund of $96,000, offset with a reduction to the
Electric Fund Distribution Reserve is recommended to fund the contract change orders for
capital improvement project EL-11010 (Underground District 47 – Middlefield, Homer,
Webster, and Addison).
Policy Implications
This project supports CPAU Key Strategy number 7 – Implement programs that improve the
quality of the environment and Supporting Objective number 2 – Invest in utility infrastructure
to deliver reliable service.
City of Palo Alto Page 4
Timeline
Substructure installation work pertaining to Undergrounding District No. 47 (UUD47) has been
completed. Adding money to the existing Contract C15156474 will not impact the timeline of
the project.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act under Section
15302(d) of the California Code of Regulations, Title 14, Chapter 3 (conversion of overhead
electric utility facilities to underground).
Attachments:
Attachment A: Underground 47 - Change Order #9 (PDF)
Contract Change Order City of Palo Alto
Department: Electric Engineering
Contract Number: C15156474
APPENDIX B – CONTRACT CHANGE ORDER PAGE 1 OF 6
Appendix B:
Contract Change Order
See next page for Form and Instructions:
DocuSign Envelope ID: 3CE5F23B-CEC7-4D32-BA56-0090FB5F4D31
PAGE 2 OF 6 APPENDIX B –CONTRACT CHANGE ORDER
Contract Change Order Form
Project Title: Underground District No. 47 Project Number: 40012979
Contract Number: C15156474 Date: 12/21/2015
Contractor: MP Nexlevel of California, Inc. Change Order
Number:
9
Description of Change Order Additional trenching, conduit & box installation
Background Information: Additional trenching, conduits and boxes were installed in order to comply
with undergrounding requirements for the district.
Change Order Justification: In order to convert the overhead utility lines to underground, additional
trenching, conduit, and boxes were needed. This work was overlooked during
the design/bid process, but is necessary for the conversion to proceed.
Description of Work to be Performed: MP Nexlevel did additional trenching work and installed conduits and boxes
for CPAU, AT&T and Comcast. These items were not included in the original
contract.
Incorporates Field Order Number(s):
Cost Time
This change order will:
Not change cost
X Increase cost by $267,607.20______
Decrease cost by $_______________
This change order will:
X Not change time
Increase time by _________ days
Decrease time by _________ days
The date of completion as of this change order is
___________________________.
Note G/L account number (s) here (see G/L #’s below):
Basis for change in cost:
Unit price(s)
X Lump sum
Cost plus ______%
Other:_______________
Performing the work will not change the completion
date of the project.
Bid Item #1 $22,517.00 ----------CPA, AT&T, Comcast
Bid Item #3 $104,225.00--------CPA, AT&T, Comcast
Bid Item #4 $31,107.45-----------CPA
Bid Item #12 $13,650.00----------CPA
Bid Item #14 & 17 $33, 050.00----------CPA
Bid Item #29, 30 & 31 $45,131.25------CPA
Bid Item #36 & 37 $17,926.50-------- Comcast
Total ------------------------$267,607.20
DocuSign Envelope ID: 3CE5F23B-CEC7-4D32-BA56-0090FB5F4D31
Contract Change Order City of Palo Alto
Department: Electric Engineering
Contract Number: C15156474
APPENDIX B – CONTRACT CHANGE ORDER PAGE 3 OF 6
Contract Change Order Form - continued
The undersigned Contractor approves this Change Order as to the changes, if any, in the contract price specified for each Line Item
and as to the extension of time allowed, if any, for completion of the entire work on account of each Line Item, and agrees to furnish
all labor and materials and perform all work necessary to complete any additional work specified therein, for the consideration stated
therein. It is understood that the time and cost adjustments set forth in this Change Order include full compensation for any impacts
or delays associated with the Line Items addressed in this Change Order.
Accepted for Contractor: Accepted for City of Palo Alto:
By: By:
Title: Title:
Date: Date:
DocuSign Envelope ID: 3CE5F23B-CEC7-4D32-BA56-0090FB5F4D31
Project Manager
3/21/2016 3/21/2016