HomeMy WebLinkAbout05 CONTRACT WITH TBC CONTRACTORSAGENDA REPORT Revrewel d m 5
City Manager ~ `
Finance Director
MEETING DATE: JANUARY 17, 2012
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
PAMELA ARENDS-KING, FINANCE DIRECTOR
SUBJECT: AUTHORIZE NEGOTIATION OF A CONTRACT CHANGE ORDER WITH TBC
CONTRACTORS CORPORATION FOR THE INFORMATION TECHNOLOGY /
FINANCE RECONFIGURATION (CIP 10032) -PHASE 2
SUMMARY
Staff is requesting that the City Council authorize staff to negotiate a change order to the existing
construction contract with TBC Contractors Corporation to complete the planned Phase 2
improvements for the Information Technology/Finance Reconfiguration CIP No. 10032. Phase 2
improvements are budgeted and appropriated in this Fiscal Year Capital Improvement Program.
RECOMMENDATION
It is recommended that the City Council authorize staff to negotiate a contract change order with
TBC Contractors Corporation to extend the project to include Phase 2.
FISCAL IMPACT
Sufficient funds in the amount of $281,000 have been budgeted and appropriated in this Fiscal
Year 2011-2012 Capital Improvement Program for Phase 2 improvements. This amount includes
a furnishing/cabling allocation of $100,000 to complete each new office and work station.
Furnishing will be purchased separately in accordance with procurement policy and procedures.
BACKGROUND
The total project includes the relocation of IT functions/equipment to the second floor of the Civic
Center and the design reconfiguration of the vacated Finance Department work spaces.
Improvement plans have been prepared and approved by the Building Division.
Due to the exception work and timely execution performed by TBC Contactors Corporation, staff is
recommending that the existing contract be extended to include Phase 2. The extension would be
contingent upon a fair and reasonable price negotiation between the City and TBC. The estimated
construction cost to complete Phase 2 is $181,000. Value engineering opportunity will be explored
with TBC to evaluate construction materials, details, and methods which could result in potential
savings.
The initial phase dealt primarily with the IT central network server relocation, second floor restroom
reconfiguration, electrical switch gear upgrades, building structural reinforcement, and climate
control and ventilation upgrades. TBC's contract bid price for this work was $177,800. Three
enhancements or changes in scope/design were value added in the amount of $9,277 and
included City Hall electrical panel upgrades and spare conduits for future needs and field
IT/Finance Reconfiguration -Phase II, CIP No. 10032
January 17, 2012
Page 2
modifications to improve the climate control characteristics of the network server room. The total
expenditure for Phase 1 was completed for $187,077.
A Change Order is a Contract Document tool whenever an addition, deletion or modification to the
scope, cost, completion schedule, material or equipment furnished, andlor the nature of work to be
performed is made which affects the cost or time of a Construction Contract as defined in the
Contract Documents. In this case, the extension to expand the original contract to include Phase 2
improvements is completely discretionary for the City and would be an addition to the original
scope and therefore appropriately documented and authorized through a negotiated Change
Order. Taking this approach will advance the project construction by three months minimum.
It is recommended that the City Council authorize staff to negotiate a contract change order with
TBC Contractors Corporation to extend the project to include construction of Phase 2, all within the
adopted budget and appropriation for the Capital Improvement for IT/Finance Reconfiguration -
Phase 2, CIP No. 10032.
Douglas S. Stack, P.E. Pamela Arends-King
Di'~-e~tor of Public Works/City Engineer Director of Finance
S:\City Council Items\2012 Council Items\IT-Finance Reconfiguration_contract extension.docx