HomeMy WebLinkAboutExplanationEXPLANATON
On June 18, 2013, City Council adopted Resolution No. 2013-97 awarding a contract in
the amount of $3,709,079.35 to PAL General Engineering, Inc. for the 8th Street Smart
Growth Revitalization Project (Specification No. 12-13.) A lighting plan and lighting
specifications were included as part of the bid documents. However, contractors were
only asked to provide unit pricing for installation of associated line items of work, as staff
had originally planned on going through a separate procurement process for the street
light standards, LED fixtures, decorative poles and projection lights. After contract
award, unforeseen challenges arose that preclude the City from procuring and safely
storing the street lights and associated materials during construction.
Therefore, staff. has requested a quote from the contractor to procure the lights and
accept liability for ensuring the lights are shipped, stored and delivered to the job site
undamaged. Staff's estimate for procuring the street lights and associated materials,
which was prepared prior to contract award, was $700,000. The contractor's lump sum
change order request is for $707,769.09, which only exceeds staff's estimate by
approximately 1%. Therefore, staff recommends executing the change order with PAL
General Engineering, as the amount is fair and reasonable, the contractor accepts
liability for the materials, and there is no competitive advantage to exploring further
options for procurement.