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5.
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| Finance Committee |
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| Subject: |
| Tracks at Brea Segment 2 and Segment 3 Restroom, Project 7873 - Additional Project Construction Contingency |
| RECOMMENDATION |
- Increase Project Construction Contingency from $245,543 (10%) to $791,154 (32%) of the Construction Contract Price to cover current approved Change Orders issued to date that do not exceed the 10% contingency amount as well as the anticipated pending Change Order work as identified in the preceding table; and
- Authorize the Public Works Director or his designee to issue Contract Change Orders up to a “not to exceed” amount of 32% of the Construction Contract Price.
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| BACKGROUND/DISCUSSION |
On December 06, 2016, City Council awarded a contract to Lucas Builders, Inc. (LBI) in the amount of $2,455,433.02 and approved a construction contingency of 10% of the Contract Price ($245,543) for the Tracks at Brea Segment 2 and Segment 3 Restroom, Project 7873 (Project). LBI’s bid amount was $600,356 less than the second low bidder for the Project.
The Project converts abandoned railroad rights-of-way, flood control channels and City property into a safe and convenient recreation corridor for pedestrians and bicyclists. As a result of over 100 years of railroad use, segments of the trail route that were once railroad rights-of-way are contaminated with arsenic, which was commonly used as a weed suppressant along the tracks. In order to properly address the contaminated soil within the tracks, a Soil Remediation Action Plan (SRAP) was developed and approved by the Orange County Health Care Agency (OCHCA). Prior to bidding, the amount of soil to be disposed and imported were estimated based on soil testing and analysis as part of the SRAP. However, the SRAP also requires that additional soil testing be performed during construction to verify that the soil proposed to remain on the tracks conforms to OCHCA requirements.
The Project construction including soil remediation, rough grading, import and trail construction started in February 2017. The Project was originally anticipated to be completed by August 2017. However, during construction, the City's geotechnical consultant identified additional contaminated soil that requires disposal per SRAP and OCHCA guidelines. Based on the added soil test results, an additional net increase cost to the bid quantities for soil export and import of $478,585 is needed to complete the required soil remedial work to comply with OCHCA. Furthermore, Staff is estimating a need for other change orders and miscellaneous unforeseen conditions in an amount of approximately $67,026 that will exceed the 10% Contract Contingency. Therefore, due to the extra soil remediation requirements and other Contract Change Orders, Staff is requesting that the Contract Contingency be increased from 10% ($245,543) to 32% ($791,154) in order to continue with the construction Contract with LBI.
Below is a list of the current Contract bid quantity cost overages and pending Change Orders:
| |
Description |
Amount |
| 1. |
Additional net soil to export (contaminated soil) and net import (clean soil). |
$478,585 |
| 2. |
Drinking fountain changes. |
$7,323 |
| 3. |
Repairs to unknown storm drain line running along the trail. |
$11,942 |
| 4. |
Changing the handrail to a guardrail at the west stair railing. |
$7,705 |
| 5. |
Southern California Edison connection to irrigation and future lighting. |
*$104,399 |
| 6. |
Modification to the west stairway to avoid storm drain line. |
*$60,000 |
| 7. |
Modification to the stairway to provide proper drainage. |
*$30,000 |
| 8. |
Over excavation needed for the restroom building. |
*$40,000 |
| 9. |
Allowance for future change orders. |
*$51,200 |
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Total |
$791,154 |
*Estimated amount
Additionally, based on the extra and unforeseen work described herein, the new anticipated project completion is October 2017. |
| SUMMARY/FISCAL IMPACT |
The total approved budget for the Project is $3,964,093 with grant funding coming from a combination of Environmental Protection Agency (EPA) ($153,614), Active Transportation Program (ATP) ($2,577,000), Urban Greening ($815,849), and Land and Water Conservation Fund (LWCF) ($417,630). Staff is requesting City Council consider increasing the Contract Contingency from 10% ($245,543) to 32% ($791,154) and to authorize the Public Works Director or his designee to issue Contract Change Orders in an amount "not to exceed" 32% of the original Contract amount. This contingency increase with Change Order authority will cover the cost of current approved Change Orders issued to date that do not exceed the 10% contingency amount as well as the anticipated pending Change Order work as identified in the preceding table. There is no General Fund impact from this action. Please see the breakdown of the construction and construction engineering budget on the following page:
| Project Expenditure |
Budget |
| Construction Contract |
$2,455,433 |
| Previously Approved Contingency (10%) |
$245,543 |
| Additional Contingency Amount Requested |
$545,611 |
| Total Requested Contingency (32%) |
$791,154 |
| Sub-Total |
$3,246,587 |
| Construction Engineering |
$405,146 |
| Environmental-Geotechnical Inspection Services |
$312,360 |
| Total Approved Budget |
$3,964,093 |
The Project encountered unforeseen conditions including additional soil remediation above the bid quantities and rough grading work. This resulted in extra costs for the additional export of contaminated soil and import of clean soil in accordance with SRAP and OCHCA requirements. Therefore, Staff is requesting City Council consider increasing the Construction contingency from 10% to 32% ($791,154) of the Contract price and to authorize the Public Works Director or his designee to issue Change Orders in the amount "not-to-exceed" 32% ($791,154) of the Contract price. If approved, the total revised Contract amount is estimated to be $3,246,587 with all Change Orders issued to date under the 10% contingency and as estimated up to the requested 32% contingency amount. |
| RESPECTFULLY SUBMITTED |
William Gallardo, City Manager
Prepared by: Raymond Contreras, Assistant Engineer
Concurrence: Steve Kooyman, P.E., City Engineer |