HomeMy WebLinkAboutMINUTES - 10111994 - 1.14 J,
To: BOARD OF SUPERVISORS, COUNTY OF CONTRA COSTA
FROM: COUNTY COUNSEL
DATE: October 11, 1994
SUBJECT: Approval of Contract Change Orders Nos. 8 and 9 and Settlement
Agreement for Byron Airport, Phase I Airport Construction Project (AIP
3-06-0008-05
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. Subject to FAA approval, APPROVE and AUTHORIZE the Public
Works Director or his designee to execute Contract Change
Orders Nos. 8 and 9 to compensate the Contractor, Ferma
Corporation, for additional work on the above-described
project;
2 . APPROVE and AUTHORIZE Board Chair to execute a written
settlement agreement meeting County Counsel's approval; and
3 . AUTHORIZE Public Works Department and County Counsel 's Office
to take other actions necessary to consummate change orders
and settlement.
FISCAL IMPACT
The contract price would be decreased $138, 644. 68 by Change Order
No. 8 and increased $273 ,511. 00 by Change Order No. 9, resulting in
an adjusted contract price of $4, 624, 560.89. Upon approval by the
FAA, the increase would be covered by 90% federal funding. The
remaining 10% would be paid from the Airport Enterprise Accounts.
BACKGROUNDJREASONS FOR RECOMMENDATIONS
On December 21, 1992, the Board awarded a construction contract to
Ferma Corporation for airfield improvements and canal relocation
work at the Byron Airport. The original contract amount was
$3, 536,990. 00. That amount has been increased through a series of
change orders approved by the Board. The present contract amount,
which reflects Change Order No. 7 approved on March 8, 1994, is
$4,489, 694. 57.
On February 11, 1994, Ferma filed with the County six contract
claims seeking additional compensation for extra work or expenses
incurred on the project. These claims, which total $1, 064,756. 00,
invo&lvetthe following items: decreased earthwork production due to
limit on hauling speeds (Claim #1) ; construction water price
increase (Claim #2) ; fuel cost increase (Claim #3) ; acceleration of
contract work (Claim #4) ; increased cost due to decrease in length
of canal_ lining (Claim #5) ; and extra work due to rock encountered
in excavation (Claim #6) .
CONTINUED ON-�ATTACHMENT: X YES SIGNATURE
4adzdL
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON October 11, 1994 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
X UNANIMOUS (ABSENT ) AND ENTERED ON THE MINUTES OF THE BOARD
AYES: NOES: OF SUPERVISORS ON THE DATE SHOWN.
ABSENT: ABSTAIN:
ATTESTED: October 11, 1994
Orig. County Counsel PHIL BATCHELOR, CLERK OF THE BOARD OF
cc: J.'Michaet Watford, Public Works Director SUPERVISORS AND JCNTY ADMINISTRATOR
Hodges & Shutt (via Public Works)
BY... DEPUTY
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BACKGROUND/REASONS FOR RECOMMENDATIONS (cont'd)
County staff has reviewed Ferma Is claims with assistance from
outside consultants (Hodges & Shutt and O'Brien-Kreitzberg &
Associates) . Based on this review, it has been determined that
Claims #1, 2 and 6 have potential merit. After considerable
negotiation and an initial demand from Ferma of $400, 000, Ferma has
finally agreed to accept $273 ,511 in full settlement of all claims.
This represents additional compensation to Ferma of $98, 511 for
reduced hauling speeds (Claim #1) , $30, 000 for construction water
(Claim #2) and $145, 000 for rock encountered in excavation (Claim
#6)
This project was funded 90% by the federal government (FAA) , and
upon approval by the FAA, the additional compensation would
likewise be covered by 90% federal funding. The $273, 511 in
additional compensation is set forth in Change Order No. 9. Change
Order No. 8, which decreases the contract amount by $138, 644 . 68, is
a balancing change order that adjusts the final quantities of
various contract items.
Both the Public Works Department and the County Counsel 's Office
recommend that the proposed change orders and settlement be
approved. For this purpose, a written settlement agreement is
being prepared by counsel for Ferma. Under the settlement
agreement, Ferma and the County would mutually waive all claims
relating to this project, except that the waiver would not affect
future warranty claims relating to the construction work performed
by Ferma. As a part of the settlement, $30, 000 would be paid to
the Byron-Bethany Irrigation District, thus ensuring that the
construction water bill is settled in full and that the lien is
removed from the airport property. Since the change orders must
still be approved by the FAA, Board approval of the change orders
would be contingent upon such FAA approval.
CONSEQUENCES OF NEGATIVE ACTION
Ferma would likely file a lawsuit against the County for the six
claims described above. The ultimate expense to the County,
including costs of litigation, could potentially exceed $273 , 511.
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