HomeMy WebLinkAbout2023-04-18; City Council; ; Approval for Change Order No. 3 to the Ace Electric, Inc. Contract for Temporary Fire Station 7CA Review __AF__
Meeting Date: April 18, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: John Maashoff, Public Works Manager
john.maashoff@carlsbadca.gov, 442-339-2856
Subject: Approval for Change Order No. 3 to the Ace Electric, Inc. Contract for
Temporary Fire Station 7
District: 2
Recommended Action
Adopt a resolution authorizing the City Manager to approve Change Order No. 3 to the Ace
Electric, Inc. construction contract for Temporary Fire Station 7, Capital Improvement Program
Project No. 4091, in an amount not to exceed $10,865.
Executive Summary
The city has built a temporary fire station at 4600 Carlsbad Boulevard while a permanent site is
being considered to be obtained and developed, as part of Capital Improvement Program
Project No. 4091. Design of the project was completed, building permits were issued and
construction of Temporary Fire Station 7 is substantially complete. The Fire Department began
operating the temporary station on Jan. 9, 2023.
The City Council is now being asked to approve a change order in an amount not to exceed
$10,955 in the construction contract so that some remaining electrical work can be completed.
This change order is the result of a discrepancy in the plans that was discovered during
construction.
This change order exceeds the spending authorization the City Council granted the City Manager
for change orders on this project, and therefore requires the City Council’s approval under
Carlsbad Municipal Code Section 3.28.090, which applies to purchasing in construction
contracts.
Explanation & Analysis
Background
• Aug. 29, 2022 - The Temporary Fire Station 7 site and building electrical system contract
was offered for bids on.
• Oct. 12, 2022 - Staff received two bids on and determined the lowest responsive and
responsible bidder to be Ace Electric, Inc., with a bid in an amount of $199,700.
• Nov. 2, 2022 - The City Manager then awarded a contract to Ace Electric, Inc. in an
amount of $199,700.
April 18, 2023 Item #7 Page 1 of 7
The City Manager is authorized to award construction project contracts in amounts less than the
formal bidding threshold of $200,000 established by the Uniform Public Construction Cost
Accounting Act, in accordance with the Carlsbad Municipal Code Section 3.28.040(C)(3).
However, under Section 3.28.040(C)(6), the City Manager may only authorize construction-
related change orders to an existing contract that do not exceed $200,000.
Because the contract amount could exceed this threshold, staff asked the City Council to
authorize the City Manager to approve change orders to the Ace Electric, Inc. contract in an
amount not to exceed $25,000, consistent with Municipal Code Section 3.28.090(B). The City
Council then adopted Resolution No. 2022-272 on Dec. 6, 2022, authorizing the City Manager to
execute construction contract change orders in an amount not to exceed $25,000.
Change order request
Ace Electric began working on installation of the contracted electrical work needed for the
project on Nov. 28, 2022. The City Manager approved two routine change orders, totaling
$24,910, during construction.
During construction, Ace Electric notified the city of a changed condition indicating that the
actual number of conduits and wiring required exceeded those that had been represented on
the contract drawings.
Staff reviewed the request and confirmed that one of the single-line electrical drawings included
in the contract documents was not accurately scaled and that the quantity of materials required
would be more than was shown on the plans. Ace Electric subsequently submitted a request for
additional compensation for the labor and materials necessary to complete the project in an
amount of $10,955.
That amount exceeds the spending authority the City Council granted the City Manager for the
change orders on the project. Staff have evaluated the Ace Electric request and recommend that
the City Council authorize the City Manager to execute Change Order No. 3 to the contract with
Ace Electric, Inc. in an amount not to exceed $10,955.
Fiscal Analysis
Sufficient funding is available to complete the project. The available funds and estimated
construction costs for the project are shown in the table below:
Temporary Fire Station 7 Project
Capital Improvement Program Project No. 4091
Total appropriation to date $2,022,000
Total expenditures/encumbrances to date -$1,576,599
Total available balance $445,401
Additional project costs
Remaining construction expenditures (estimated) -$40,000
Ace Electric Change Order No. 3 -$10,955
License agreement costs for 92 months (current estimate) -$246,770
Remaining balance $147,676
April 18, 2023 Item #7 Page 2 of 7
Options
Staff provide the following options for the City Council’s consideration:
1. Authorize the City Manager to execute Change Order No. 3 in an amount not to exceed
$10,955
Pros
• The project budget can support the requested compensation; sufficient funding is
available for the change order
• Execution of Change Order No. 3 will compensate Ace Electric, Inc. for all project
work, and the project can be closed out
Cons
• None identified
2. Do not authorize the City Manager to execute Change Order No. 3
Pros
• None identified
Cons
• Not authorizing the execution of Change Order No. 3 would likely result in a
formal submission of a claim by the contractor, thereby delaying close-out of the
project
Staff recommend Option 1 for the City Council’s approval.
Next Steps
With the approval of the City Council, the City Manager will execute Change Order No. 3, and
the contract close-out process can begin.
Environmental Evaluation
The City Planner has determined the project belongs to a class of projects that the State
Secretary for Natural Resources has found do not have a significant impact on the environment.
It is therefore exempt from the requirement for the preparation of environmental documents
under California Environmental Quality Act Guidelines Section 15301 (b) - Existing facilities;
Section 15303 (c) - Construction or conversion of small structures, and Section 15304 (f) - Minor
alterations to land.
In making this determination, the City Planner has found that the exceptions listed in Section
15300.2 of the CEQA Guidelines do not apply to this project.
• The project is consistent with 15301 (b) because it is located on a developed site with
existing parking and utilities such as gas, sewer, water and electrical amenities.
• The project is consistent with Section 15303 (c) because the two temporary buildings
would house a maximum of seven staff members and contain two offices that are each less
than 2,000 square feet and, combined, are less than 6,000 square feet.
• The project is consistent with Section 15304 (f) because there will be minor trenching
conducted to connect to existing underground utilities and the surface will be restored.
Exhibits
1. City Council resolution
2. Location map
April 18, 2023 Item #7 Page 3 of 7
RESOLUTION NO. 2023-115
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO APPROVE CHANGE
ORDER NO. 3 TO THE ACE ELECTRIC, INC. CONSTRUCTION CONTRACT FOR
THE TEMPORARY FIRE STATION 7, CAPITAL IMPROVEMENT PROGRAM
PROJECT NO. 4091, IN AN AMOUNT NOT TO EXCEED $10,865
WHEREAS, on Nov. 2, 2022, the City of Carlsbad entered into a contract with Ace Electric, Inc.,
for the Temporary Fire Station 7 site and building electrical work in an amount of $199,700; and
WHEREAS, on Dec. 6, 2022, the City Council adopted Resolution No. 2022-272, authorizing the
City Manager to execute construction contract change orders in an amount not to exceed $25,000; and
WHEREAS, staff have determined that the value of the contract change order work required to
complete the project exceeds the City Manager's authorization by $10,865; and
WHEREAS, Change Order No. 3, the final change order to the contract with Ace Electric, Inc. is
necessary due to the actual quantity of required conduits and wiring exceeding those represented on
the contract drawings; and
WHEREAS, staff recommend that the City Council authorize an additional increase in the City
Manager's authority to sign change orders in an amount not to exceed $10,865; and
WHEREAS, staff recommend that the City Council authorize the City Manager to execute Change
Order No. 3.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the City Manager is hereby authorized to execute Change Order No. 3, to the Ace
Electric, Inc. construction contract for Temporary Fire Station 7, Capital Improvement
Program Project No. 4091, attached hereto as Attachment A.
Exhibit 1
April 18, 2023 Item #7 Page 4 of 7
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 18th day of April, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Luna.
None.
None.
None.
KEITH BLACKBURN, Mayor iJwv rSHERRY FREISINGER, City Clerk (SEAL)
April 18, 2023 Item #7 Page 5 of 7
�ocuSign Envelope ID: A570335B-556E-4632-9972-661 F3D3ACBF1
ATTACHMENT A Project: 4091; Temporary Fire Station 7 Building and Electrical Work Change Order No. 03
CITY OF CARLSBAD -CONTRACT CHANGE ORDER NO. 03
Contract: 4091 {PWS23-1940FAC) -Temporary Fire Station 7 Electrical Work
CONTRACTOR: Ace Electric, Inc.
6061Fairmount Ave
San Diego, CA 92120
P.O. NO. P141831
The Contractor is directed to make the following changes as described herein. Changes shall include all labor, materials, equipment, contract time extension, and all other goods and.services required to implement this change. Payment stated on this change order includes all charges, direct or indirect, arising out of this additional work including charges for field overhead, extended home office overhead, delays, disruptions, cumulative impacts, loss of efficiency, extended equipment costs and overtime premium costs and is expressly agreed between the City and the Contractor to be the complete and final costs hereof. The requirements of the specifications, where pertinent and not in conflict with this change order, shall apply to these changes. This change order is not effective unless signed by the City Manager and/or the Mayor or his/her designee.
Pursuant to the General Provisions of this contract, oerform the followina: Item 1: The master meter breaker was determined to be 300A rather than 400A as shown on the plans and the dimensions of the main feeder conduits and conductors were not accurately This item constitutes compensation for all labor, equipment and shown on sheet E200. materials necessary to install the main electrical feeder conduits and conductors from the main service switchboard to the new automatic transfer switch as shown on sheet E200.
·:... . t,/!:IFO l Increase to contract cost.. ........................................................................... $7,483.78 Item 2: The drawing scale on sheet E200 wasn't accurate and actual quantities of conduit and This item constitutes compensation for all conductors was more than scaled on the plans. additional labor, equipment and materials necessary to install the conduits and conductors between panel PB and Transformer T-TR1, T-TR2 and the sewer lift station disconnect.
Increase to contract cost ................. .-.............................. ?/#..9.':1 ................ $3,4 70.46
TOTAL INCREASE TO CONTRACT COST .................................................................. $10,954.24
TIME FOR COMPLETION OF ALL WORK UNDER THIS CONTRACT SHALL NOT BE INCREASED AS A RESULT OF THIS CHANGE ORDER.
RECOMMENDED BY:
3/21/2023
MUNICIPAL PROJECTS MANAGER (DATE)
� 3/21/2023
ENGINEERING MANAGER (DATE) /J-e, � 4/19/2023
DEPARTMENT HEAD (DATE)
APPROVED AS TO FORM:
(JIA.,J.it-k �it12012023
CITY ATTORNEY (DATE)
4/19/2023
(DATE)
(DATE)
April 18, 2023 Item #7 Page 6 of 7
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PLOTTED BY: Andy Chang PLOT DATE: 2/24/2022 PATH: Z:\John_Maashoff\FS7_Temp_Exhibit\FS7_Temp_Exhibit_Revised_01-26-22.mxd
PROJECT NAME EXHIBITPROJECT
NUMBER4091 2TEMPORARY FIRE STATION 7
LOCATION MAP
CARLSBAD
VISTA
ENCINITAS
SAN MARCOS
OCEANSIDE
Legend
PARKING
DRIVE AISLE
LAYDOWN AREA
BUILDINGS
Vicinity
Exhibit 2
April 18, 2023 Item #7 Page 7 of 7