CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #3 to Contract 22-002, 2022 Street Resurfacing Program - MFT, to K-Five Construction for an additional 242 days
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: William J. Novack, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City currently maintains almost 460 centerline miles of road. The purpose of the resurfacing contract is to ensure smooth roads and to protect the City’s investment in its pavements. When resurfacing is delayed, the roadway can no longer be effectively resurfaced, and the base failures that result will lead the pavement to fail sooner. This then results in needing additional funds to keep the roadways in serviceable condition. The City typically has two resurfacing programs each year, one program using MFT funds and one using city funds.
The City Council awarded Contract 22-002, 2022 Street Resurfacing Program-CITY, to K-Five Construction on July 26, 2022 with a completion date of October 31, 2022.
DISCUSSION:
This Change Order is requested to extend the project completion date to June 30, 2023, an extension of 242 days. Last summer, the construction industry experienced major shortages and delays due to a seven-week strike by quarry workers. The Contractor notified the City about the strike and kept the City updated regarding the scheduling impacts and challenges throughout the project.
During the strike, plants ran out of the raw materials needed to produce the asphalt and concrete required for the completion of this project. After the strike was finally resolved and work at the quarries resumed, there were additional delays. Plants had to restock their raw materials and perform quality control testing before production could resume in earnest. The Contractor, who by then had a backlog of projects to coordinate, experienced further scheduling challenges due to limited truck availability. The contractor has agreed to hold unit pricing from the original contract in 2022 to complete a portion of the construction in 2023. Therefore, staff finds the extension reasonable and recommends approval of the extension.
FISCAL IMPACT:
There is no fiscal impact, this Change Order is extending the completion date of the project.