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HomeMy WebLinkAboutE-10 Staff Report - AR Industries Increase and CompletionCONSENT ITEM E-10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: JANUARY 21, 2025 SUBJECT: APPROVE INCREASE TO CONTRACT PURCHASE ORDER AND ACCEPT COMPLETION OF IMPROVEMENTS FOR THE AZUSA CITY HALL EXTERIOR PAINTING UPGRADES PROJECT BACKGROUND: On October 21, 2024, the City Council awarded a contract to AR Industries, Inc. for the Azusa City Hall Exterior Painting Upgrades Project. This project includes enhancements to the exterior of City Hall and the adjacent wooden gazebo, forming part of Phase 4 improvements. During the project's duration, additional work became necessary, leading to a cost increase of $8,100. The proposed actions will approve the increase to the contract purchase order and accept the completed improvements of the Azusa City Hall Exterior Painting Upgrades Project. RECOMMENDATIONS: Staff recommends that the City Council take the following action: 1)Approve an increase to the contract purchase order for AR Industries, Inc. by $8,100; 2) Authorize the City Manager to increase the compensation for a total not to exceed the contract amount of $114,800; and 3)Accept the completion of the improvements for the Azusa City Hall Exterior Painting Upgrades Project. Approved City Council January 21, 2025 Approve Increase and Accept Completion of City Hall Exterior Painting Project. January 21, 2025 Page 2 ANALYSIS: In October 2024, the City Council approved a contract with AR Industries for the exterior painting upgrades at Azusa City Hall. These improvements were essential maintenance, as the building's exterior had become worn and weathered. It had been 20 years since the last paint job was completed at City Hall. The initial project budget was set at $97,000, which included 10% contingency, bringing the total budget to $106,700. However, due to the need for additional work to meet the City's standards, the project budget must be increased to $114,800. This increase results in the budget exceeding the originally approved amount by $8,100. FISCAL IMPACT: A contract for this project was awarded $97,000, with an additional 10% contingency of $9,700 designated for potential change orders, bringing the total budget for the project to $106,700. However, due to extra work required to meet the City's standards, a change order totaling $17,800 was necessary. As a result, the project budget increased to $114,800, which exceeds the amount approved by the council by $8,100. The funding for this project is included in the approved FY2024-25 Capital Improvement Plan (CIP) budget under the City Hall Improvements Phase 4 scope of work in account 46-80-000-651-7125/65125A-7125. Prepared by: Reviewed by: Natalie Reagan Robert Delgadillo, P.E Management Analyst Director of Public Works/City Engineer Reviewed and Approved by: Sergio Gonzalez City Manager Attachment: 1) AR Industries, Inc. Maintenance Contract