City Council

Agenda Request

Agenda Of:

October 16, 2007

Agenda Request No:

IV B

Initiated By:

Mike Hobbs, Director of Public Works

Responsible Department:

Public Works

Presented By:

Mike Hobbs, Director of Public Works

Department Head:

Mike Hobbs, Director of Public Works

Additional Department. Head (s):

Mike Goodrum, Community & Environmental Director

Subject / Proceeding:

Animal Control Facility

Approval of Change order No. 1 and Authorization to Purchase

Exhibits:

Change Order No. 1

Clearances

Approval

Legal:

Joe Morris, City Attorney

Executive Director:

Purchasing:

Jennifer Montgomery

Purchasing Manager

Asst. City Manager:

Karen H. Glynn

Budget:

Jennifer Brown

Assistant Fiscal Services Director

City Manager:

Allen Bogard/for AB

Budget

Expenditure Required: $

Net $0

Amount Budgeted/Reallocation: $

N/A

Additional Appropriation: $

N/A

Recommended Action

The Public Works Department requests that City Council approve the execution of Change Order No. 1 in the deductive amount of $237,067 with Zekkours Construction Co., Inc. and approve the purchase of a pre-engineered modular building from Houndquarters, Inc. in the amount of $211,248.

Executive Summary

On September 4, 2007, City Council authorized execution of a contract with Zekkours Construction Co., Inc. in the amount of $751,580 for the turnkey construction of a 4,300 s.f. animal control facility. Chapter 2155 of the Texas Government Code stipulates that all public works contracts in excess of $25,000 will include payment and performance bonds in the full amount of the contract value. On or about September 27, 2007, Zekkours Construction Co., Inc. was notified by its insurance agency that the bond underwriter would not provide bonds in the full amount of the contract value of $751,580. Subsequent discussions with the underwriter revealed that the denial for bonding was based solely on the contractor’s limited experience with bonded public works projects.

To date, Zekkours Construction has successfully completed in excess of ten projects under contract with the City, of which two required bonding, with the largest being $180,000. The underwriter stated that he would bond a project up to $600,000 in value until such time that the underwriter felt the firm deserved consideration for an increase in its bonding capacity.

It should be noted that in an effort of good faith and in order to keep the project on-schedule, Zekkours Construction had ordered the pre-engineered modular building and made a down payment of $23,472.

Staff is proposing that in order to keep the project on schedule, City Council approve the following proposals:

Execute a deductive change order in the amount of $237,067 with the contractor (per the following breakdown):

Building Cost	$234,720
Contractor Markup (11%)	$25,819
Less 10% Down Payment	$23,472
Net Change Order	237,067

Issue a purchase order to Houndquarters, Inc. for the purchase of the pre-engineered modular building in the amount of $211,248

Building Cost	$234,720
Less 10% Down Payment	$ 23,472
Net Building Cost	$211,248

In discussions with the Legal and Purchasing Departments, there is agreement that the provisions of Chapters 252 and 271 of the Texas Local Government Code permit both of the above-specified actions.

The net impact of this action to the City will be a savings of $25,819 and, more importantly, the ability to complete construction of the facility within the contract completion time of December 31, 2007.

Exhibits

Animal Control Facility CIP No. MU0701. Change Order No. 1

CIP CHANGE ORDER REQUEST

D ate:	10.3.2007	Change Order #:	1
P .O. #:		Department:	CIP PW
P rogram #:		Notice to Proceed Date:
Project Title:	Animal Control Facility	Project #:	MU0701

R equested By:	David Gaines	Phone Ext:	281 275-2359
Contractor:	Zekkours Construction	Contract Date/Time:

Change Order Description:

Deduct the sum cost of the pre-engineered modular building and contractors mark up less the contractors deposit to get it in production. Building by Owner.

Cost of building (234,720.00)

11% mark up (25,819.00)

Less 10% down 23,472.00

Net change order 237,067.00 (Deductive)

Contractor agrees to coordinate warranty items related to material defects with the building manufacturer on behalf of the Owner

Price Impact:

A. Original Contract Amount:	$761,580.00
B. Current Change Order Amount:	($237,067.00)
C. Previous Change Orders:	$0.00
D. Cumulative Change Order Amount (B + C): *	($237,067.00)
E. Percent of Original Contract (D ¸ A):	-31.13%
F. Revised Contract Amount (A+D): **	$524,513.00

*Cumulative change order amount (Line D) must not exceed 25% of original PO amount.

**If new purchase order total (Line F) exceeds $25,000 and original purchase order amount (Line A) is less than $25,000, change order must be taken to City Council for approval.

Schedule Impact:

Original Contract Time (Days):	100	Original Completion Date:	12.31.2007
Current Change Order (Days):	0
Previous Change Orders (Days):	0
Revised Contract Time (Days):	100	Revised Completion Date:	12.31.2007

Vendor Acknowledgement: Date: 10/03/07

CITY CLEARANCES