Report Prepared by: Rom Robinson, Assistant Engineer, Engineering
Title
SUBJECT: Approval of Additional Contingency in the Amount of $179,197.59 for Additional Work Which is Reflected in Change Orders 2 and 3 with American Paving Co. for the Main Street Directional, Project No. CP230014
REPORT IN BRIEF
Considers approving an increase to the contingency in the amount of $179,197.59 for Project No. CP230014 - Main Street Directional for the extra work reflected in Change Orders 2 and 3.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the increase in contingency in the amount $179,197.59, for a total contingency amount of $324,068.30, which is approximately 33.55% of the original agreement amount for the extra work reflected in Contract Change Orders 2 and 3; 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 - Contract on Public Works
Merced Municipal Code Chapter 3.04, Article IV - Public Works Contract.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
At the August 5, 2024, City Council meeting, Council approved allocating $300,000 of the City’s annual RSTP (Regional Surface Transportation Program) allocation to CP230014 - Main St One-Way. This additional funding would allow for ARPA to be utilized on projects that cannot use street funding sources.
At the November 4, 2024, Council meeting, Council approved reallocating a total of $208,041 of ARPA funding to CP220073 - Bob Hart Square Expansion to close the gap between the budget and bid results. At that same meeting, it was mentioned that the additional budget request for Bob Hart did not include contingency, engineering, and inspections, and that there was an opportunity to use street funding to supplement the Main Street One-Way project in the event additional funding is needed.
At the December 9, 2024, Special City Council meeting, Council approved reallocating $245,896 of ARPA from the Main Street One-Way project to Bob Hart Square to fund the contingency, testing, inspection, and engineering. $694,119 in Measure V Local was approved to be allocated to the Main Street project to fund the shortfall.
On December 16, 2024, Council approved the construction contract with American Paving Company in the amount of $965,804.70 with a 15% contingency of $144,870.71.
Change Order 1 in the amount of $1,146 was executed to provide loading and unloading zones along Main Street, near Destino’s Restaurant.
The original contingency amount of $144,870.71 minus Change Order 1 in the amount of $1,146.00, left a remaining contingency of $143,724.71. The total amount of Change Orders 2 and 3 is $322,922.30, which is $179,197.59 above the remaining contingency amount for the project.
Additional Work for Change Order 2 includes ($186,802.00):
1. Grind and Overlay Main Street from M Street to MLK Way; and,
2. Additional dig-outs replacing failed areas of roadway on Main Street.
Additional Work for Change Order 3 includes ($136,120.30):
1. Remove and replace portions of crosswalks on Main Street; and,
2. Additional quantity of Type II and Type III slurry seal; and,
3. Adding a bike loop detector at the intersection of Main Street and M Street.
Staff is recommending approving the increase in contingency for Contract Change Orders 2 and 3 to complete this project.
IMPACT ON CITY RESOURCES
Project CP230014 is established as a Capital Improvement Project to be funded by ARPA, RSTP, and Measure V Local Transportion. There is sufficient funding to complete this project.
ATTACHMENTS
1. Executed Original Agreement
2. Executed Change Order 1
3. Proposed Change Order 2
4. Proposed Change Order 3