Report Prepared by: Rick Maddox, P.E., Interim City Engineer
Title
SUBJECT: Approval of Additional Contingency in the Amount of $603,748.13 for Additional Unanticipated Work on the WWTF Phase VI Headworks Project Number CP230035
REPORT IN BRIEF
Considers approving proposed change order from GSE Construction Inc., with additional contingency in the amount of $603,748.13 for Project No. CP230035 - WWTF Phase VI Headworks.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Proposed Change Order from GSE Construction, Inc., with additional contingency amount of $603,748.13, for a total contingency amount of $919,018.13, which is approximately 29.15% 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 2024-25 Adopted Budget.
DISCUSSION
On June 20, 2023, Council awarded the WWTF Phase VI Headworks project to GSE Construction Inc., in the amount of $3,152,700.00 with a 10% contingency of $315,270.00.
The work to be done consisted of construction of a new influent flow meter manhole; and new mechanical screens, washer/compactors, grit removal baffles, new equipment hatches, flap gates, vent piping, electrical, concrete repair, and coating for the Headworks Improvements. After acquiring materials, the contractor began work on May 13, 2024. After cleaning the influent pump wet-well to prepare for coating, it was found that the influent pump riser pipes have extensive deterioration. After discussions with the Public Works Director, Ken Elwin, it is recommended to replace the piping with a corrosive resistant stainless steel.
With this being such a large unanticipated cost so early in the project, staff is requesting additional contingency in the amount of $603,748.13, equal to the proposed change order, to be added to the existing contingency to avoid an additional burden to construction for possible future change orders. This would result in a total contingency of $919,018.13 which is approximately 29.15% of the original contract amount.
Staff has approved 4 change orders prior to this one and executed 3. Change Order 4 remains under the contingency limit and is currently being routed for execution.
IMPACT ON CITY RESOURCES
Project CP230035 was established as a Capital Improvement Project to be funded by Sewer Enterprise funds. There is sufficient funding in the project to complete this change order.
ATTACHMENTS
1. Executed Contract Change Order 1
2. Executed Contract Change Order 2
3. Executed Contract Change Order 3
4. Pending Execution Contract Change Order 4
5. Pending Contract Change Order 5
6. Original Executed Contract