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HomeMy WebLinkAbout23B - PROJ - CONTINGENCY INCREASE FOR RJ NOBLEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 2, 2012 TITLE: CONTINGENCY INCREASE WITH R.J. NOBLE COMPANY FOR RESIDENTIAL STREET REPAIR - PHASE 16 (PROJECT NO. 126753) NON GENERAL FUND :bLITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 151 Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For_ 0 CONTINUED TO FILE NUMBER RECOMMENDED ACTION Increase the contingency for the contract with R.J. Noble Company for Residential Street Repair, Phase 16, by $500,000, and authorize the City Manager to execute change orders in an amount not to exceed the authorized contingency. DISCUSSION On March 5, 2012, the City Council awarded a contract to R.J. Noble Company in the estimated amount of $2,633,564 for Residential Street Repair, Phase 16. During construction and while removing the existing pavement, the contractor encountered areas where the street sections were thicker than expected as well as a wet and unstable sub-grade. To ensure the integrity of the new pavement, the excess water needs to be removed from the sub-grade. This process requires additional excavation, which is greater than the amount specified in the contract, and also strengthening the sub-grade with a cement-treated soil. Since the additional work was not included in the original contract amount, staff is requesting an additional contingency amount of $500,000 to pay for the work. FISCAL IMPACT The contingency increase is $500,000 for the project. Funds are available in the Community Development Block Grant Fund (accounting unit 13518783-66220). APPROVED AS TO FUNDS AND ACCOUNTS: Ra odinez Francisco Offif-erre4-V ,./,Y Executive Dire for Executive Director Public Works Agency Finance & Management Services Agency ,ft" uj(?( &Oatz?j Nancy E ards Interim E cutive Director Community Development Agency 23B-1 23B-2