Report Prepared by: John Ainsworth, Temporary Senior Engineer, Engineering Department
Title
SUBJECT: Approval of an Increase in Contingency in the Amount of $73,089.83 for Additional Unanticipated Work Reflected in Contract Change Order No. 7 with Mid Cal Pipeline & Utilities, Inc. for the Orchard Lane Sewer Relocation Project No. CP190025
REPORT IN BRIEF
Considers approving proposed Contract Change Order No. 7 for unanticipated work, with an increase in contingency in the amount of $73,089.83 for Project No. CP190025 Orchard Lane Sewer Relocation Project.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving proposed Contract Change Order No. 7 with an increase in contingency of $73,089.83 for a total contingency amount of $160,713.33, which is approximately 18.34% of the original contract amount; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by Staff; or,
2. Approve, subject to conditions other than recommended by Staff (identify specific
findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Article XI, Section 1109 - Contracts on Public Works, and Merced Municipal Code Chapter 3.04, Article IV - Public Works Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2024-2025 Adopted Budget.
DISCUSSION
Staff prepared plans and specifications, the project was advertised for bids, and City Council awarded the project to Mid Cal Pipeline & Utilities, Inc., in the amount of $876,235.00 on April 17, 2023.
City staff applied for and received an Encroachment Permit from Caltrans for the Jack & Bore under State Highway 99 and an Agreement with Union Pacific Railroad for the Jack & Bore under the railroad tracks. A Notice to Proceed was issued to Mid Cal Pipeline & Utilities, Inc. for March 25, 2024. Pacific Boring was on site by mid-April and completed the Jack & Bore under State Highway 99.
A condition of the Agreement with Union Pacific Railroad required staff to work with Rail Pros to supply a construction observer and a railroad flagger. Rail Pros requested a new Observer Agreement which already had been processed in June 2022 for potholing near the railroad tracks, a Flagger Agreement, Work Plan, Project Information Sheet, and a billing form. Staff had some delays with Rail Pros and their paperwork requirements through the month of April only to find out that they could not schedule an observer or flagger until the middle of June. Pacific Boring demobilized and went to do another project during this two-month long delay. Staff received a commitment from Rail Pros for a flagger and observer for July 15th, 2024.
This two-month delay cost the City $63,559.50 with Change Orders No. 4, 5, and 6 attached. The total cost of Change Orders No. 1 thru 6 totaled $86,367.80 or 9.86% of the Bid.
Additional Work for Change Order 7 includes:
1. 4 Hour delay by Rail Pros for using the wrong mile marker; and,
2. Five days of time and material costs to remove and replace a conflicting storm drain line; and,
3. Additional surveying costs to have the elevation of the railroad tracks monitored during the jack & boring operation and for seven days afterwards; and,
4. Quantity adjustments with the final change order.
The total amount for Contract Change Order No. 7 is $74,345.53, which is $73,089.83 over the original 10% contingency amount. Staff is recommending approving the increase and contingency and Contract Change Order No. 7, to complete this project.
IMPACT ON CITY RESOURCES
Project CP190025 was established as a Capital Improvement Project to be funded by Sewer Enterprise Funds. There are sufficient funds available to complete this project.
ATTACHMENTS
1. Executed Original Contract
2. Executed Change Orders No. 1 - 6
3. Proposed Change Order No. 7