Report Prepared by: Richard Maddox, P.E., Senior Engineer
Title
SUBJECT: Approval of Additional Contingency in the amount of $185,910 for Additional Streetlights for the Safe Streets Streetlight Retrofit, Project Number CP230002
REPORT IN BRIEF
Considers approving proposed Change Order 2 with Tennyson Electric LLC, for additional contingency in the amount of $185,910 for Project Number CP230002 - Safe Streets Streetlight Retrofit.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving proposed Change Order 2 with Tennyson Electric LLC, for additional contingency funding in the amount of $185,910, for a total contingency amount of $404,660 which is approximately 37% 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.
Merced Municipal Code Chapter 3.04, Article IV - Public Works Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
On August 19, 2024, Council awarded the Safe Streets Streetlight Retrofit project to Tennyson Electric LLC in the amount of $1,093,750 with a 20% contingency of $218,750.
As the project progressed, it was discovered that the original photocontrol devices being used were incompatible with the streetlights, so staff worked on executing Change Order 1 for $38,300 to replace them.
The work to be performed in Change Order 2 includes the removal of High-Pressure Sodium (HPS) streetlights and replacing them with Light Emitting Diodes (LED) lights. There are 2,500 lights currently being retrofitted from HPS to LED technology. The new streetlights will increase safety for residents, pedestrians, and drivers in neighborhoods throughout the City of Merced.
The proposed change order will add an additional 852 lights which were not included in the plans and specifications. Most of these lights are located in neighborhoods that have Community Facility District (CFD) funds or Maintenance District (MD) funds available to pay for the new lights.
The original contingency amount of $218,750 minus Change Order 1 in the amount of $38,300, left a remaining contingency of $180,450.
Staff is requesting additional contingency in the amount of $185,910, for a total contingency amount of $404,660 which is approximately 37% of the original contract amount in order to add 852 additional lights located mostly in Community Facility Districts or Maintenance Districts that were not a part of the original bid.
IMPACT ON CITY RESOURCES
Project CP230002 is established as a Capital Improvement Project to be funded by Measure C and multiple Maintenance Districts (MD) and Community Facility Districts (CFD). There is sufficient funding to complete this project.
ATTACHMENTS
1. Executed Original Agreement
2. Executed Change Order 1
3. Proposed Change Order 2