19-0521_SIEMENS INDUSTRY INC_E16_Agenda ReportCity of San Juan Capistrano
Agenda Report
TO : Honorable Mayor and Members of the City Council
FROM : ~njamin Siegel, City Manager
SUBMITTED BY : Steve May, Public Works and Utilities Director ,L~
PREPARED BY : Joe Parco, City Engineer
George Alvarez, Project Manager
DATE: May 21, 2019
5/21/2019
E16
SUBJECT: Approval of Change Order No. 2 for the Citywide Street Name Sign
Replacement Program Project (GIP 11101) (Siemens Industry Inc.)
RECOMMENDATION :
Approve and authorize the City Manager to execute Change Order No. 2 to the
construction contract with Siemens Industry Inc. for the Citywide Street Name Sign
Replacement Program Project (GIP 11101) for an amount not to exceed $34,650.
EXECUTIVE SUMMARY :
The Citywide Street Name Sign Replacement Program Project has been completed, and
additional costs were incurred because the City's database of signs did not include the
quantities of signs that actually needed to be replaced. The additional cost of $34,650
exceeds the City Manager's authority for construction change orders. It is recommended
that the City Council approve Change Order No. 2 for this amount. After this change order,
the Project budget will have a surplus of $45,053 that will be returned to the Systems
Development Fund.
DISCUSSION/ANALYSIS:
The contractor, Siemens Industry Inc., has completed replacement of all of the existing
street name signs for the Citywide Street Name Sign Replacement Program Project (GIP
11101 ). This Project replaced all of the City's approximately 1,000 street name signs with
new signs so that all signs in the city would meet Federal and State standards for retro-
City Council Agenda Report
May 21, 2019
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reflectivity, which is how much light reflects back toward a source of light (i.e. vehicle
headlights).
During the sign fabrication and installation process, it was discovered that the City's sign
database had omissions and needed to be revised to reflect actual field conditions. Some
of the database revisions included correcting misspelled names, correcting the sign sizes,
and adding signs that were not included in the sign database. The sign database is used
to identify the location, size, street name, and any other information needed to
manufacture the street name signs. As a result of the additional time required to ensure
a complete and accurate sign database, Change Order No. 1 was issued to increase the
contract duration only. As a result of the database review, it was discovered that the
quantity of residential signs decreased and the number of sign posts and overhead mast
arms needed to support the signs increased. Change Order No. 2 (Attachment 1) reflects
the decrease in residential signs and the increase in the mast arms and sign posts. As a
result of these changes, a Project cost increase in the amount of $34,650 is required to
cover the cost of the additional sign posts and mast arms.
The City Manager is authorized to approve construction change orders for this Project up
to $19,600. Since the amount of Change Order No. 2 exceeds the City Manager's
authority, it is recommended that the City Council authorize the City Manager to execute
Change Order No. 2 for an amount not to exceed $34,650. The Project is now complete
and a Notice of Completion will be filed with the County Recorder.
FISCAL IMPACT :
The Fiscal Year 2018-19 amended budget for the Citywide Sign Replacement Program
Project (CIP 11101) is $302,400. The total expenditures for the Project, including Change
Order No. 2, is $257,347, leaving $45,053 to be returned to the Systems Development
Fund. Project expenditures are detailed in the table below.
T bl f P . t E d"t a e o ro1ec xpen 1 ures
Item Expenditures
Contract Amount $195 ,898
Change Order No. 1 (time extension) $ 0
ChanQe Order No. 2 $ 34 ,650
Administration to Date $ 26 799
Total Project Expenditures ~257,347
ENVIRONMENTAL IMPACT:
The present recommended action of approving a change order for the Street Name Sign
Replacement Project, which has already been completed, is not subject to CEQA
pursuant to Section 15060(c)(3) of CEQA Guidelines because the action is not a project
as defined in Section 15378 of the CEQA Guidelines, and the action would have no
potential for resulting in physical change to the environment, directly or indirectly. The
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May21,2019
Page 3 of 3
Project, prior to construction, was determined to be exempt from CEQA per Section
15061 (b)(3), which is the general rule that CEQA applies only to projects which have the
potential for causing a significant effect on the environment.
PRIOR CITY COUNCIL REVIEW:
• On April 16, 2019, the City Council approved a procedure for distribution of salvaged
street name signs and appropriated the proceeds of sale toward the programs and
activities of the Youth Advisory Board.
• On September 5, 2017, the City Council awarded a contract for the Citywide Street
Name Sign Replacement Project (CIP 11101) to Siemens Industry Inc. in the amount
of $195,898 and authorized the City Manager to approve change orders for the Project
up to an amount not to exceed 10 percent of the approved contract amount.
• On August 1, 2017, the City Council directed staff to retain designated street name
signs from historic streets for future donation to local non-profit organizations, and to
direct the Youth Advisory Board to administer the donation process.
• On June 20, 2017, the City Council approved Option B (without the City emblem) for
the design for the Citywide Street Name Replacement Project (CIP 11101).
• On March 7, 2017, the City Council rejected bids for the Citywide Street Name Sign
Replacement Project (CIP 11101) and authorized staff to re-advertise and receive
construction bids.
• On February 21, 2017, the City Council continued the item to reject bids for the
Citywide Street Name Sign Replacement Project (CIP 11101) to March 17, 2017.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
This item does not require commission, committee, or board review .
NOTIFICATION:
Jeffrey Pierce, Siemens Industry Inc.
ATTACHMENT:
Attachment 1 -Change Order No. 2
Item
No.
1
2
EXHIBIT "A"
CHANGE ORDER FORM
City of San Juan Capistrano
Contract Change Order# 2
Project: Citywide Street Name
Replacement Project
Change Order No.: 2
32400 Paseo Adelanto
Sau Juan Capistrano, CA 92675
(949) 493-1171
Orig. Contract Amt.: $195,898 Days 180
Contract No.: CIP 11101
Contractor: Siemens Industries, Inc.
Owner: City of San Juan Capistrano
Prev. Appvd. Changes: $0 .00
This Change: $34,650
Revised Contract Amt.: $230 ,548
Days 135
Days 165
Days 480
This Change Order covers changes to the subject contract as described herein. The Contractor
shall construct , furnish equipment and materials, and perform all work as necessary or required
to complete the Change Order items for a lump sum price agreed upon between the Contractor
and City of San Juan Capistrano, otherwise referred to as Owner.
Description of Changes
Bid item #2, install 6 inch residential street name sign each at $118,
reduce quantity from 756 to 712, a reduction of 44 signs
Bid Item #3, install, 9 inch residential street name signs each at $182 .00, reduce
quantity from 250 to 236, a reduction of 14 signs
61147.02100120950242.4
Increase/ Contract
(Decrease) Time
in Contract Extension,
Amount Davs
($5,192)
($2,548)
EXHIBIT"A"
ATTACHMENT 1
-Page 1 of 3
3
4
5
Bid item# 4, install traffic signal mast arm overhead street name signs each at $720,
Increase quantity from 72 to 129, an Increase of 57 signs
$41,040
Bid item #5, install 12 foot galvanized 3 Inch residential street name sign posts
each at $450, Increase quantity from 15 to 18, an Increase of 3 sign posts
$1,350
Increase contract days due to additional signs installed that were not in the original City
3M sign database
165
-
Totals $34,650 165
This Contract Change Order consists of 2 pages and any exhibits attached to this Contract Change Order shall not be part of the
Contract Change Order unless specifically lnlllaled by or on behalf of both the Contractor and the City of San Juan Capistrano.
Contract Change Order #2
61147.02100\20950242.4 2
Page 1 of 2
ATTACHMENT 1
Page 2 of 3
The amount of the contract will be increased by the sum of $34 ,650 and the contract time shall be
extended by 165 working days. The undersigned Contractor approves the foregoing Change Order#
2 as to the changes , if any .. in the contract price specified for each item including any and all supervision
costs and ot11er miscellaneous costs relating to the change in work, and as to the extension of time
allowed , if any , for completion of the entire work on account of said Change Order# 2. The Contractor
agrees to furnish all labor and materials and perform all other necessary work, inclusive of the directly
or indirectly related to the approved time extension, required to complete the Change order items . This
document will become a supplement of the contract and all provisions will apply hereto. It is understood
that the Change Order shall be effective when approved by the Owner.
Contractor accepts the terms and conditions stated above as full and final settlement of any and all
claims arising out of or related to the subject of this Change Order and acknowledges that the
compensation (time and cost) set forth here in comprises the total compensation due for the work or
change defined in the Change Order, including all impact on any unchanged work. By signing this
Change Order, the Contractor acknowledges and agrees that the stipulated compensation includes
payment for all Work contained in the Change Order, plus all payment for any acceleration or
interruption of schedules, extended overhead costi;, delay, and all impact or cumulative impact on all
Work under this Contract. The signing of this Change Order acknowledges full mutual accord and
satisfaction for the change and that the stated time and/or cost constitute the total equitable adjustment
owed the Contractor as a result of the change . The Contractor hereby releases and agrees to waive all
rights, without exception or reservation of any kind whatsoever , to file any further claim or request for
equitable adjustment of any type , for any reasonably foreseeable cause that shall arise out of, or as a
resLrlt of, this Change Order and/or its impact on the remainder of the Work under the Contract.
Accepted:
Recommended:
I h~l!~-~,;;e.,,, Authari<ed ReP<esentatlve Date
(Signature) Date
Approved :
(Signature) Date
Item Justification for Change(s)
No .
Contract bid items number 2 and 3 reduced the quantities, bid Items 4 and 5 inc reas ed the quantities need to
1 -4 complete the street name sign installation ci tywide .
Due to the complexity of revising the sign data base, making certain all the street name signs were correctly
5 spelled, and o rderino additional sions the number of contract dovs needed to be extended.
This Contract Change Order consists of 2 pages and any exhibits attached to this Contract Change Order shall not be part of the
Contract Change Order unless specifically Initialed by or on behalf of both the Contractor and the City of San Juan Capistrano.
Contract Change Order# 2
61147 .02100\20950242.4 3
Page 2 of 2
ATTACHMENT 1
Page 3 of 3