Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Approval of Change Order No. 1 for Construction Contract with Elite Landscape Construction, Inc., in the Amount of $72,886.48 for Bellevue Ranch Landscape Improvements, Project No. 120053
REPORT IN BRIEF
Considers approving Change Order No. 1 with Elite Landscape Construction, Inc., for Project No. 120053 - Bellevue Ranch Landscape Improvements in the additional amount of $72,886.48, for a total construction contract amount of $1,282,226.93.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving Change Order No. 1 for Bellevue Ranch Landscape Improvements, Project No. 120053, with Elite Landscape Construction, Inc., in the additional amount of $72,886.48, for a total construction contract amount of $1,282,226.93; and,
B. Authorizing the City Manager or Deputy 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 2022-23 Adopted Budget.
DISCUSSION
On July 19, 2021, Council approved a $1,209,340.45 contract with Elite Construction for the Bellevue Ranch Landscape Improvements Project.
The work to be done consists, in general, of the installation of landscape trees, shrub and groundcover planting, along with the associated irrigation system. The project is located within the Bellevue Ranch Subdivision (East/West). The proposed streetscape frontage landscape area will include: the east side of M Street from Barclay Way to Cardella Road; and, the north side of Cardella Road from M Street to G Street; and, the east and west side of Bancroft Drive from Cardella Road to Arrow Wood Drive; and, the north and south side of Merill Place from Bancroft Drive to G Street. Open space bike trail section will run adjacent to the existing bike trail running east-west along the Cottonwood Creek and along the bike trail running north-south along Fahrens Creek linear overflow detention basin.
The proposed Change Order includes necessary changes to bid item quantities, as well as additional irrigation and shrubbery at M & Cardella, Bancroft & Merill, as well as along the bike bath. At the July 19, 2021 meeting, Council approved change orders up to 5% of the contract amount; the proposed change order is for 6% of the contract amount. Funding is available within the project budget and staff recommends approval of the Change Order to close out the project.
History and Past Actions
Travelers Casualty and Surety Company of America (“Travelers”) issued surety bonds as part of the Subdivision Agreements for Bellevue Ranch West Villages 1, 2, 3, 4, 5, and 10. As part of the Subdivision Agreements, Walnut Creek Development, Inc. (“Developer”) was required to install certain public works improvements, including a bicycle path, landscaping, irrigation, and other related improvements. Since the Developer was found in default of the subdivision agreements, and the work was not completed, the City entered into negotiations with the bond surety company, Travelers.
On July 20, 2009, the City of Merced and Travelers entered into a Settlement Agreement requiring Travelers to have specific improvements completed as well as the payment of $528,288 to be paid by Travelers to the City. This money was accepted by the City and deposited into Fund 062 - Developer Capital Fee. As stated in the Settlement Agreement:
“G. Whereas, in exchange for Travelers: (1) completing (or causing to complete) a modified scope of work identified in Section II below; and (2) issuing payment in the amount of $528,288.00, the City warrants and represents that the Project has been fully and satisfactorily completed by Developer in accordance with the term of the Subdivision Agreements and all applicable law including all statutory and contractual definitions of Project “completion,” and that the City accepts the Project as completed in full without reservations;
H. Whereas, this Agreement is intended to resolve all remaining issues between Travelers and the City with regard to the remaining improvements on the Projects, fully, finally and forever, as set forth herein.”
Per the aforementioned, the City has no further ties or conditions to Travelers for the completion and use of this Settlement payment.
On February 16, 2010, City Council approved an Amendment to the Settlement Agreement to allow for additional time for Travelers to complete the agreed upon improvements due to Fish and Wildlife permit delays, as well as to make some minor changes to the original plans for the improvements.
On December 16, 2019, City Council approved a supplemental appropriation in the amount of $574,078, including accrued interest from Fund 062 - Developer Capital Fee, transferring and appropriating the same to Account 450-1104-637.65-00 Project 120053 for use of the settlement payment to complete landscape and irrigation improvements in the Bellevue Ranch Subdivision Area.
On September 21, 2020, City Council approved a Professional Services Agreement with KLA, Inc., for landscape design services for the Bellevue Ranch Area Landscape and Irrigation Improvements Project 120053 for a total amount not to exceed $43,200.
IMPACT ON CITY RESOURCES
This project was established as Capital Improvement Project #120053-Bellevue Landscape and funding is available in the project account Funds 450 (Traveler’s Settlement Agreement), 170 (Bellevue Ranch West CFD), and 164 (Bellevue Ranch East CFD).
ATTACHMENTS
1. Change Order No. 1