On March 22, 2016, City Council awarded a Contract to O’Duffy Bros., Inc. (Contractor) in the amount of $2,397,058 and approved a construction contingency of $239,706 for the Glenbrook Tract Water and Street Improvements, Project 7452 (Project). This Project will rehabilitate the existing pavement of the residential streets in the Glenbrook Tract neighborhood bounded by Birch Street to the north, Orange 57 Freeway to the west, Greenbriar Lane/Hillhaven Drive to the south, and the Brea Union Plaza to the east. In addition, the Project will replace approximately 12,700 linear feet of water main, services, gate valves, fire hydrants, and appurtenances. Finally, this Project will replace damaged and/or uplifted sections of sidewalk, curb and gutter and reconstruct curb access ramps to be in compliance with Americans with Disabilities Act (ADA) requirements. The improvements will be performed on Fig Avenue, Eucalyptus Street, Plum Avenue, Redbay Avenue, Camphor Circle, Valverde Avenue, Aurora Avenue, Holly Street (street and fire hydrant improvements only - water mains were replaced in 1989), Chevy Chase Drive, Hillhaven Drive, Greenbriar Lane, Eucalyptus Lane, Amberwick Circle, Windermere Circle, Heather Circle, Dover Avenue, Amberwick Lane, Heather Lane, and Devonshire Drive.
The installation of the water line improvements started in June 2016, and the Project was anticipated to be completed by February 2017. However, during construction, the Contractor encountered unforeseen conditions that resulted in significant delays and additional costs. Most of the unforeseen conditions related to numerous unmarked or mis-marked underground utilities (i.e. SCE, Gas, AT&T, street lighting and existing water main) which required additional potholing, deeper excavations, hand digging, realignment of water mains, and additional pipe fittings. Additionally, the Contractor encountered large concrete encasements to connect the new water main to the existing water main, thus it was necessary to install additional fittings and removal of concrete to complete the water main connections. These unforeseen conditions resulted in decreased daily production, which necessitated staff to direct the Contractor to proceed with the Change Order work on a time and materials basis in order to control costs and further reduce the potential time delays. Furthermore, staff requested to reconnect three additional water main connections in the existing easement by the Glenbrook Club House to provide less disruption to the residents during routine maintenance and fixing water leaks.
To date, staff has negotiated the cost of four (4) Change Orders with the Contractor in an amount of $367,360.88, which exceeds the staff Change Order authority of $239,706 by $127,654.88. Of this total, approximately $76,850 was related to the added water connections. Change Orders 1 and 2 totaling $145,434.65 have been paid, which are within staff's Change Order authority. Change Orders 3 and 4, totaling $221,926.23, have been approved by staff, but will exceed staff's Change Order authority. Therefore, they will be part of the pending Pay Estimate No. 9 payment. Although, Change Orders 1 through 4 have been approved by staff, there are some remaining work changes still under review (Change Order 5), which could bring the total Change Orders to $525,000 for this Project or roughly 22% of the Contract. Additionally, due to the extended time for this Project to be completed, staff is recommending an additional $29,000 for construction engineering (i.e. inspections/administration).
Therefore, due the Change Orders discussed with added construction engineering, staff is requesting the City Council consider appropriating an additional $314,000 to the Project budget. Staff is still evaluating the total cost and reimbursement process with respect to the Change Orders related to mis-marked/unmarked facilities (ie. Gas and AT&T), which could reduce the total Project cost incurred by the City. The new anticipated Project completion date is late April 2017; weather permitting. The following is summary of all Change Orders:
| Description |
Amount |
Status |
| 1. Realigned new water line at Fig Street due existing water line conflict; numerous utility conflicts at various locations; Additional water valves and fittings at Chevy Chase, Valverde and Glenbrook Clubhouse parking lot (Phase 1). |
$77,170.33 |
Approved |
| 2. Modifications to Water connection and various utility conflicts. Additional water valves and fittings at Chevy Chase, Valverde and Glenbrook Clubhouse parking lot (Phase 2). |
$68,264.32 |
Approved |
| 3. Complete additional water connections at Chevy Chase, Valverde and Glenbrook Clubhouse parking lot (Final Phase). Numerous utility conflicts at various locations. |
$122,468.89 |
Approved |
| 4. Realigned new water line due to fiber optic cable conflict and numerous utility conflicts at various locations. |
$99,457.34 |
Approved |
| 5. Unexpected deeper high pressure main line to be abandoned at Birch and Redbay. Numerous utility conflicts with house water services. |
$125,000.00 |
Pending/Under Review |
| Subtotal |
$492,360.88 |
|
| Allowance for Unanticipated Conflicts |
$32,639.12 |
|
| Total |
$525,000.00 |
|
As stated previously, in an effort to minimize costs and further time delays on the Project, the Contractor agreed with the City to complete the extra work on a time and materials basis. This required significant documentation and a lengthy review process. For instance, Change Orders 3 and 4 were performed in October 2016 through early December 2016 and the amounts were just finalized in mid-March 2017. To date, the Project has completed the following:
- Replaced approximately 12,700 linear feet of water mains
- Replaced damaged curb, gutter and sidewalk
- Reconstructed curb ramps
The following work is remaining:
- Pavement resurfacing to be constructed by late April 2017
- Close out/Final
|
The total approved budget for the Project was $2,900,000 with funding coming from a combination of Measure M ($663,000), Sewer ($30,000), Urban Runoff ($7,000), and Water ($2,200,000) funds. Staff is requesting City Council consider an additional $314,000 from the Water Fund (Fund 420) to cover the cost of current approved Change Orders to date and the anticipated pending Change Order work as identified in the previous table. Therefore, a Resolution appropriating the added funds from the Water Fund (Fund 420) to the Project is attached for City Council consideration and approval. There is no General Fund impact from this action. The following table provides a breakdown of the construction and construction engineering budget with the requested additional funds:
| Project Expenditure |
Approved budget |
Requested Funds |
Total |
| Construction Contract |
$2,397,058 |
$0 |
$2,397,058 |
Contingency
|
$239,706 |
$285,294 |
$525,000 |
| Subtotal |
$2,636,764 |
$285,294 |
$2,922,058 |
| Construction Engineering (i.e. inspections, administration) |
$263,236 |
$28,706 |
$291,942 |
| Total |
$2,900,000 |
$314,000 |
$3,214,000 |
The Project encountered unforeseen conditions including numerous utility conflicts and other unanticipated work as well as extra needed water connections that resulted in additional costs that exceeded the Project contingency and schedule delays. Therefore, staff is requesting City Council consider increasing the Project contingency for Change Orders from 10% to 22% ($525,000) and adding $314,000 to the Project budget. |