HomeMy WebLinkAbout23A - RESIDENTIAL STREET REPAIR w~ ,i},
REQUEST FOR ~ -
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COUNCIL ACTION
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
JUNE 21, 2010
TITLE: APPROVED
INCREASED CONTINGENCIES FOR ? As Recommended
MID-CITY NEIGHBORHOOD AND ? As Amended
? Ordinance on 1 S` Reading
EDINGER AVENUE IMPROVEMENTS ? Ordinance on 2"d Reading
(PROJECT NOS. 107554 AND 077577) ? implementing Resolution
AND RESIDENTIAL STREET REPAIR ? Set Public Hearing For
- PHASE 12 (PROJECT NO. 106718)
CONTINUED TO
~ ` FILE NUMBER
CITY MANAGER
RECOMMENDED ACTION
1. Increase the contingency for the contract with All American Asphalt for the Mid-City
Neighborhood Improvements and Edinger Avenue Improvements project by $400,000 to a
total estimated contract amount of $2,032,723 and approve a supplemental agreement for
$400,000 with All American Asphalt for the additional work.
2. Increase the contingency for the contract with All American Asphalt for the Residential Street
Repair-Phase 12 project by $320,000 to a total estimated contract amount of $3,542,115.
DISCUSSION
On February 1, 2010, the City Council awarded a contract for the Mid-City Neighborhood and
Edinger Avenue Improvements project to All American Asphalt in the estimated amount of
$1,310,298 plus a contingency of $322,425 totaling $1,632,723. Since then, additional funds
from the Community Development Block Grant Fund Recovery Act became available for the
Mid-City Neighborhood. In order to use the available funds, staff recommends extending the
limits of pavement rehabilitation within the neighborhood.
In addition, contract documents call for construction of one and one-half inch asphalt concrete
pavement over six inches of cement-treated base (CTB). An initial field investigation prior to the
start of construction revealed no issues with the subgrade. However, once the CTB process
was started, some areas of unstable subgrade were encountered. To mitigate the unstable
subgrade, the pavement thickness for all the streets needs to be increased from one and one-
half inch to two inches. The contractor will be paid according to the actual quantities of work and
the bid unit prices. With the additional contingency, the aggregate amount of the change order
is estimated at $722,425, which equals to 55 percent of the original contract.
23A-1
Increased Contingencies for
Mid-City Neighborhood
June 21, 2010
Page 2
When the total change orders exceed 25 percent of the original contract, a supplemental
agreement is required according to the Standard Specifications for Public Works Construction,
which is part of the contract by reference. This agreement will affirm that the contractor will be
paid only according to the contract unit prices and no other compensation will be allowed.
On February 1, 2010, the City Council awarded a contract for the Residential Street Repair -
Phase 12 project to All American Asphalt in the estimated amount of $2,929,195 plus a
contingency of $292,920 totaling $3,222,115. For the same reason mentioned in the Mid-City
Neighborhood project, the pavement thickness for the streets needs to be increased from one
and one-half inch to two inches. Similarly, the contractor will be paid according to the actual
quantities of work and the bid unit prices. Increasing the contingency by $320,000 will raise the
total contingency to 21 % of the contract amount. Since the total contingency is less than 25
percent of the contract amount, no supplemental agreement is needed and the additional work
shall be processed according to the original terms and procedures in the contract.
ENVIRONMENTAL IMPACT
This is no environmental impact associated with this action.
FISCAL IMPACT
The contingency increase for the Mid-City Neighborhood project is estimated at $400,000.
Funds in the amount of $90,000 are available in the Community Development Block Grant Fund
Recovery Act (accounting unit 13518787-66220). The remaining $310,000 is available in the
Public Works Account for Residential Street Repair (accounting unit 05817661-66220).
The contingency increase for the Residential Street Repair -Phase 12 project is estimated at
$320,000. Funds are available in the Public Works Account for Residential Street Repair
(accounting unit 05817661-66220).
APPROVED AS TO FUNDS AND ACCOUNTS:
~~I
Raul Godinez II Francisco Gutierrez , ~ y'h`~'
Executive Director Executive Director
Public Works Agency Finance & Management Services Agency
Cynthia J. Nelson
Deputy City Manager, Development Services
Community Development Agency
RG/DI
23A-2