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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 15, 2015 TITLE: TERMINATE CONTRACT FOR SEVENTEENTH STREET WATER MAIN IMPROVEMENTS, BRISTOL TO BROADWAY (PROJECT 11-6416) (STRATEGIC PLAN NO. 6, 1B) I CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED yob"ys"�S LFAs Recommended/ a j ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the Executive Director of Public Works to terminate for convenience the contract extended to Paulus Engineering for construction of the Seventeenth Street Water Main, originally awarded in the amount not to exceed of $1,832,571, but now closing the contract for a $1,287,167.64 total. Approve Change Order No. 2 in the amount of $178,184.15 which is a contract increase to pay for remaining inventory of water main materials. Approve Change Order No. 3 which is a final closeout credit, reducing the contract by $818,547. DISCUSSION On December 2, 2014, the City awarded a construction contract to Paulus Engineering, Inc., to replace the water main in Seventeenth Street from Bristol to Broadway for a total not to exceed amount of $1,832,571. The water main being replaced was installed in the 1930's and had begun to experience a number of breaks and leaks. Based on critical factors such as age, history of breaks, size, location, and system redundancy, this water main was the highest priority for replacement. During the first phase of construction between Broadway and Flower (Exhibit 1), the contractor encountered a number of utilities that were not identified in the contract documents. The interfering utilities made it necessary either to realign the water main or to relocate the interfering utilities. Either option resulted in major project delays and additional costs, some of which would be the City's responsibility. Generally, record information, such as that provided in the contract documents, is sufficiently accurate to account for minor realignment and adjustments. However, the variation encountered for this project was too great to proceed without potholing, which is an accurate and cost-effective method of establishing utility alignments. In preparation for the second phase of construction between Flower and Bristol, staff directed the contractor to pothole the existing utilities to verify underground alignments and soil conditions. After reviewing the pothole information, staff confirmed that the water main would require numerous realignments and adjustments resulting in substantial additional costs. Therefore, staff recommends the