Report Prepared by: John C. Sagin, Jr., AIA, Principal Architect
Title
SUBJECT: Increase Contingency Percentage for the Public Works Corp Yard Fleet Shop Upgrade Project 114060
REPORT IN BRIEF
Authorizes the City Manager to approve change orders to the construction contract for the Public Works Corp Yard Fleet Shop Upgrade Project 114060 for up to 50% of the original contract amount, not to exceed $96,709.80.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a Supplemental Appropriation in the amount of $77,368.00 to Fleet Capital Improvement Account 670-1103-637.65-00 Project 114060 from the unappropriated, unreserved fund balance; and,
B. Approving a contingency percentage not to exceed 50% of the original construction contract, amount not to exceed $96,709.80, for the Public Works Corp Yard Fleet Shop Upgrade Project 114060; and,
C. Authorizing the City manager to execute the necessary documents and to approve change orders not to exceed 50% of the total contract.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future City Council meeting.
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
Not applicable.
DISCUSSION
The project scope for the Public Works Corp Yard Fleet Shop Upgrade Project 114060 consists, in general, of the removal of existing concrete valley gutter, concrete and AC pavement, as well as the installation of a new storm drain manhole, storm drain pipe, channel drain, and approximately 10,563 square feet of concrete slab.
Construction began in January 2016. During the course of construction, there have been a few changes due to unforeseen existing field discoveries which have necessitated change orders beyond the 10% contingency funds. One of the major changes that needed to be approved was for additional earthwork and backfill. Once construction had begun, the contractor encountered unstable soil conditions which necessitated additional excavation and backfill. This major change impacted multiple aspects of the project, including re-routing of the existing sewer and electrical lines.
As such, the sum total of the change orders is expected to greatly exceed the ten percent contingency amount previously approved by Council. We are therefore requesting to increase the contingency amount not to exceed 50% of the original total contract amount.
The following is the proposed budget for the project:
|
Construction |
$ 193,419.60 |
|
Contingency (50%) |
$ 96,709.80 |
|
Engineering, Testing & Inspection |
$ 29,012.60 |
|
Total: |
$ 319,142.00 |
IMPACT ON CITY RESOURCES
This project was established as a Capital Improvement Project, however project account 670-1103-637.65-00-114060 does not contain sufficient funding to complete the request. An appropriation in the amount of $77,368 from the unreserved, unappropriated fund balance is necessary.
ATTACHMENTS
1. Change Order No. 1