MEETING DATE: 10/23/2018
DEPARTMENT: COUNTY ADMINISTRATION OFFICE
DEPT HEAD/DIRECTOR: Ray Espinosa
AGENDA ITEM PREPARER: Dulce Alonso
SBC DEPT FILE NUMBER: 425
SUBJECT:
COUNTY ADMINISTRATION OFFICE - R. ESPINOSA
Delegate authority to CAO to finalize, approve and execute Change Order to Engie Energy Services contract in the amount up to $257,297.00, upon negotiation and available financing and subject to approval by County Counsel for legal content.
SBC FILE NUMBER: 425
AGENDA SECTION:
CONSENT AGENDA
BACKGROUND/SUMMARY:
On July 24, 2018 the Board of Supervisor approved a contract with Engie Services U.S for a project consists of the design, construction, installation, and monitoring of certain energy conservation measure improvements to various County facilities.
Pursuant to the agreement, Engie Services U.S has performed pre-construction testing and investigations within the required time period. Furthermore, Engie Services U.S has timely submitted a change order request in the amount of one hundred twenty-five thousand dollars ($125,000) for the additional scope of work and requested to discuss the additional change order costs in the meet and confer process. In accordance with Section 5.04 of the agreement, the change order increasing the contract amount shall not be binding on the County without specific approval from the Board of Supervisors.
The total market value of the proposed change order is $257,297.00. Pursuant to the contract, the County would have the right to terminate the contract upon the payment of $50,000, or enter into a meet & confer process regarding the proposed change order. Staff recommends that the County meet and confer regarding the additional change order amount, to determine whether to agree to equitable reductions to the scope of the project, or additional compensation.
FISCAL IMPACT
As mentioned in prior agenda items, using conservative assumptions, the project is forecasted to generate a savings of over $11 million over the life of the project.
BUDGETED:
Yes