Report Prepared by: Laura Ivancich, Management Analyst, Engineering
Title
SUBJECT: Approval of Additional Contingency in the Amount of $53,190.80 for Additional Work Which is Reflected in Change Orders 3 with Mid Cal Pipeline & Utilities, Inc. for the Craig Drive Sewer Main, Project No. CP250064
REPORT IN BRIEF
Considers approving an increase to the contingency in the amount of $53,190.80 for Project No. CP250064 - Craig Drive Sewer Main for the extra work reflected in Change Order 3.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the increase in contingency in the amount $53,190.80, for a total contingency amount of $112,223.30, which is approximately 28.51% of the original agreement amount for the extra work reflected in Contract Change Order 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
In Fall of 2024, the staff was notified of failing septic tanks on Craig Drive by the residents. Due to the developing situation, the Engineering Department designed the installation of a new sewer line and determined that the existing water main needed to be upgraded to current City Standard.
On April 7, 2025, Council approved the construction contract with Mid Cal Pipeline & Utilities, Inc. in the amount of $393,550.00 with a 15% contingency of $59,032.50. The w...
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