CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 21-002, 2021 Street Resurfacing Program - City, K-Five Construction for an amount not to exceed $33,000 and a total award of $4,581,679.25.
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: William J. Novack, Director
BACKGROUND:
The City currently maintains almost 460 centerline miles of road through the annual street
maintenance program. The annual resurfacing program ensures smooth roads and protects the infrastructure investment in the pavement base. When resurfacing is delayed, the roadway can no longer be effectively resurfaced and base failures will lead the new pavement to fail much sooner than normal. This results in additional funds being expended to keep the roadways in a serviceable condition.
On May 4, 2021, the City Council awarded Contract 21-002, Street Resurfacing Program - City, to K-Five Construction with a project completion date of October 31, 2021. The purpose of this contract is for the resurfacing of approximately 78,363 feet (14.84 miles) of various local roadways. This annual program rehabilitates existing streets by resurfacing the existing pavement.
DISCUSSION:
Prior to the 2021 Street Resurfacing Program being awarded, the Department of Public Works (DPW) had recently completed a storm sewer installation along Briergate Drive from Bauer Road to Cherry Hill Lane and as a result, the utility trench was compacted with stone. The location of the trench is along the curb line and DPW did not have the appropriate equipment to finish the patching.
Instead of hiring another contractor to do the patching, the most cost-effective method of completing the work is to add the patching to the City's resurfacing program.
This change order is requested to include one pay item, utility trench patching 4.5", to the contract. The contract currently includes a pay item for 4.5" patching in the bid, which is $50 per SY and the plan quantity is only 50 SY. To complete the patching, the quantity will be increased to almost 1000 SY. TED staff has negotiated a lower unit price with K-Five due to the increased quantity and they have kindly offered $33/SY, which is very reasonable.
The amount of this change order increases the original contract amount by $33,000.
I, Yifang Lu, of TED certify that this work is necessary for successful completion of this work/project/contract. I further certify that the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed, or the change is germane to the original contract as signed, or the change order is in the best interest of the city and authorized by law.
This contract was approved with contingency in the amount of 3% of the original contract value and 29 days. Staff requests the use of contingency funds for the change order. A summary of the award and contingency information is provided in the tables below.
Contract Award
|
Original Contract Value |
$ 4,548,679.25 |
|
Prior Cumulative Approved Change Orders |
$0 |
|
Subtotal |
$ 4,548,679.25 |
|
(+/-) This Change Order |
$ 33,000 |
|
Total Contract Value |
$ 4,581,679.25 |
Contingency
|
Authorized Contingency |
Days |
Dollars |
|
Original Amount |
29 |
$ 136,460.38 |
|
(-) Previously Authorized |
|
$ 0 |
|
Subtotal |
|
$136,460.38 |
|
(-) This Change |
|
$ 33,000 |
|
Balance Left |
|
$103,460.38 |
FISCAL IMPACT:
CIP #: MP009
The 2021 Street Resurfacing Program - City is expensed to the Infrastructure account listed below. A total of $5.5M was budgeted for the City Resurfacing portion of the overall Maintenance Improvement Program (MIP) in 2021. The requested change order is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
30282300-551502 |
Bond Fund |
$6,013,000 |
|
|
|
|
*Per Council directive, contingency on construction projects is set at 3% on projects over $500,000 and 5% on projects under $500,000.