CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Change Order #3 to Contract 24-023, 2024 Street Resurfacing Program - MFT North, to K-Five Construction Corporation for an amount not to exceed $100,501.91, for a total award of $6,657,305.62, and an additional 59 calendar days
body
DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: William J. Novack, P.E., Director of Transportation, Engineering and Development/City Engineer
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 24-023 to K-Five Construction Corporation on April 2, 2024, with an approximate completion date of July 26, 2024. The purpose of this contract is to utilize state Motor Fuel Tax funds allocated to the City to resurface approximately 11.56 miles of local roads. The work also includes curb and gutter replacement, sidewalk replacement, ADA sidewalk improvements, and associated restoration as needed for the roads being resurfaced.
Change Order #1 for the use of contingency funds was approved by the City Manager on July 15, 2023, for an amount equal to $23,686.37. This Change Order addressed changing field conditions associated with the storm sewer installation for the curb extensions and balancing of quantities for additional patching and driveway restoration.
Change Order #2 for the use of contingency funds was approved by the City Manager on September 9, 2024, for an amount equal to $94,705.09. This Change Order addressed changing field conditions associated with the curb and gutter replacement along Washington Street between Ogden and Benton. The curb and gutter were poured as an integral part of the concrete road base so instead of simple removal as stipulated in the contract, the contractor was required to employ hand methods to cut the curb, break it apart, and remove it by hand. This work was labor intensive and took approximately three times longer than typical curb and gutter removal. Further, the curb section was exceptionally deep which made removal more difficult. The new curb and gutter that was installed by the contractor also needed to be extra deep to match the sections removed, which required concrete not anticipated in the contract. Six additional days were awarded for this work.
DISCUSSION:
This Change Order is being requested to authorize an additional $100,501.91 for increases in contract costs attributable to the curb and gutter replacement on Washington Street from Aurora Avenue to Bluebird Lane. The contractor experienced the same unforeseen issues on this south section of Washington Street as they did on the north section. To establish fair compensation, the contractor’s labor, equipment and materials were tracked to determine the actual cost of the work.
In addition to the time required to complete the replacement on Washington Street, the contractor experienced delays due to numerous JULIE utility locates that were not completed by the private utility locators within the time frame required by state statute. This was beyond the control of the contractor, and although they adjusted their work plan as much as possible to compensate, the delays resulted in an additional 53 days required to complete the contract.
This contract was approved with a contingency in the amount of 3% ($193,152.37) of the original contract value and 29 days. The remaining contingency available after Change Orders #1 and #2 is $74,760.91 and 23 days.
Staff requests the authorization of additional funds, usage of remaining contingency funds, and a contract extension of 36 days. A summary of the award and contingency amount is provided in the tables below.
Contingency
|
Authorized Contingency |
Days |
Dollars |
|
Original Amount |
29 |
$193,152.37 |
|
(-) Previously Authorized |
6 |
$118,391.46 |
|
Subtotal |
23 |
$74,760.91 |
|
(-) This Change |
59 |
$100,501.91 |
|
Balance Left |
-36 |
-$25,741.00 |
Contract Award
|
Original Contract Value |
$6,438,412.25 |
|
Prior Cumulative Approved Change Orders |
$118,391.46 |
|
Subtotal |
$6,556,803.71 |
|
(+/-) This Change Order |
$100,501.91 |
|
Total Contract Value |
$6,657,305.62 |
FISCAL IMPACT:
CIP #: MP009
The 2024 Street Resurfacing Program - MFT North is expensed to the Infrastructure account listed below. This change order uses the pre-approved contingency balance of $74,760.91, but an additional $25,741 is still needed to fully fund the increased cost of this work.
This can be accommodated within the MFT Fund budget, pending a budget amendment to be brought to the City Council on February 18, 2025. Funds for bridge work were initially budgeted in the Capital Projects Fund, and that budget was not reallocated to the MFT Fund when the decision was made to use Rebuild Illinois Funds. The action will be a net-zero budget transfer between funds.
|
Account Number |
Fund Description |
Total Budget Amount |
|
30282500-551502 |
Motor Fuel Tax Fund |
$10,601,538 |