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AGENDA ITEM REVIEW FORM |
6.C.
Regular City Council Meeting
- Meeting Date:
- 09/08/2021
- Department Head:
- Eulogio Vera
- Submitted By:
- James Einwaechter, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the change order request of Bunger Steel for pre-engineered metal building for Public Works. (James Einwaechter, Assistant Director of Public Works)
SUMMARY:
The City of San Luis entered into a contract with Bunger Steel of Phoenix for a pre-engineered metal building for the new Fleet Services Shop Facility for the Public Works Department. The City Council approved a contract with Bunger Steel in the amount of $103,208.00 in April of 2021. To date, the city has paid sums totaling $67,086.00 toward this work, in accordance with the original mutually agreed payment schedule in the city's contract with Bunger Steel. On July 28, 2021, Bunger Steel submitted to the city a requested change order of $13,874.00 due to significant increases in the price of steel subsequent to the city entering into the original contract with them, claiming the right to continue to pass along any increases in labor or materials plus 15%. The city asked that Bunger Steel guarantee that this would be the last such request. On August 5, 2021, Bunger Steel confirmed that there should be no further increases if the city both immediately accepted the change order request and immediately authorized their request to proceed with fabrication of the building. If the city did not agree to the change order and pay the additional money, Bunger Steel would claim the right to keep the $67,086.00 which has been paid and stop work. At that time, staff advised that if Bunger Steel agreed this would be the last such request, the city could approve the change order, subject to that condition, and be done with the matter. Bunger Steel indicated agreement with this position on August 5, 2021. To abate the emergent situation of work stoppage, accelerating cost increases, and/or potential loss of $67,086.00 in city funds spent-to-date as we awaited approval of the Council, we sought (with the advice of the Assistant City Attorney) and secured from the Interim City Manager approval to proceed with the change order, subject to subsequent ratification by the Council. The Public Works Department signed/approved the change order on August 5, 2021. Staff recommends ratification of the change order by the Council.
RECOMMENDATION / SUGGESTED MOTION:
I HEREBY MOVE TO ACCEPT AND APPROVE THE REQUESTED CHANGE ORDER OF BUNGER STEEL FOR QUOTE NUMBER MC21-0325 IN THE AMOUNT OF $13,874.00, SUBJECT TO THE CONDITION THAT THIS IS THE FINAL SUCH CHANGE ORDER FOR ANY PRICE INCREASES SUSTAINED BY BUNGER STEEL, WHATSOEVER, AND THAT THE CITY SHALL NOT BE LIABLE FOR ANY SUCH FURTHER INCREASES FOR THE PURCHASE OF THE PRE-ENGINEERED METAL BUILDING, AS EVIDENCED BY THE ORIGINAL CONTRACT ENTERED INTO BETWEEN THE PARTIES ON OR ABOUT MAY 5, 2021.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY-CIP
- TOTAL:
- $117,082.00
- BUDGETED AMOUNT:
- $103,208.00
- AVAILABLE AMOUNT TO TRANSFER:
- $13,874.00
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- CAPITAL OUTLAY-CIP, GL ACCOUNT 100-999-90015
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
FUNDING FOR THIS EMERGING $13,874.00 REQUIREMENT IS AVAILABLE VIA THE $518,000.00 "CONTINUATION AMOUNT" (FROM FY 2021 TO FY 2022) IN SOLID WASTE GL ACCOUNT NUMBER 100-999-90015. A BUDGET TRANSFER IS NOT REQUIRED, AS THE ADDITIONAL $13,874.00 WILL BE EXPENDED AGAINST THE SAME ACCOUNT.