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File #: 14-1894   
Type: Misc - Professional Services Agreements
In control: City Council A Session
On agenda: 10/9/2014
Posting Language: An Ordinance, for median enhancements to the recently completed Hunt Lane Project (Ingram Road to Potranco), approving a staff-requested change order totaling $332,412.99 and authorizing payment to Liberty Mutual Surety, for the Hunt Lane Road Project, an authorized 2007-2012 General Obligation Bond funded project, located in Council Districts 4 & 6. [Peter Zanoni, Deputy City Manager; Mike Frisbie, Director, Transportation and Capital Improvements]
Attachments: 1. Map - Hunt_Lane- Project, 2. Draft Ordinance, 3. Ordinance 2014.10.09.0776
DEPARTMENT:    Transportation and Capital Improvements          
 
DEPARTMENT HEAD: Mike Frisbie
      
COUNCIL DISTRICTS IMPACTED: 4, 6
 
SUBJECT:  Change Order: Construction of Colored & Stamped Concrete Median (Hunt Lane: Ingram Road to Potranco Road Project)            
 
SUMMARY:
An ordinance approving a staff-requested change order for additional construction work, to be completed within the project limits, totaling $332,412.99 and authorizing payment to Liberty Mutual Surety, for the Hunt Lane: Ingram Road to Potranco Road Project, an authorized 2007-2012 General Obligation Bond funded project, located in Council Districts 4 & 6.
BACKGROUND INFORMATION:
Project Background
The Hunt Lane: Ingram Road to Potranco Road Project was completed in April 2014 and provided for the widening and reconstruction of Hunt Lane, from Ingram Road to Potranco Road, from two lanes to four lanes with a multi-use shared use path, sidewalks, curbs, driveway approaches, and necessary drainage and traffic signal improvements.  In addition, drainage work included the construction of a storm drain system along Hunt Lane, from Potranco Road to north of Heritage Farms Road, roadside drainage channels, improvement of the existing drainage channel and new culverts south of Sugarloaf Drive.  Project construction began in May 2011 and Ballenger, the awarded contractor, defaulted on the contract in December 2012.  Ballenger's Bonding Company/Surety, Liberty Mutual Insurance Company, contracted with the completion contractor, J3 Company, LLC, for the completion of work on Hunt Lane, and issued a notice to proceed to J3 on April 2013.  J3 substantially completed construction of the Project in April 2014.  Under the terms of the Surety Agreement, the City makes payments directly to the Surety, Liberty Mutual Insurance Company, and Liberty Mutual then makes payments for work performed to the completion contractor, J3.  
 
The original scope of work for the Hunt Lane (Ingram Road to Potranco Road) Project provided for concrete and grass medians as controlled access measures to mitigate large school traffic in the area.  At the conclusion of the project but prior to the topsoil and grass seeding, staff worked to fulfill the community's desire to provide aesthetic landscape in the medians.  This work is anticipated to begin on October 2014 and be completed by December 2014.
 
Previous Council Action
A previously executed contract with Ballenger Construction for the Hunt Lane, from Ingram Road to Potranco Road Project, for $7,992,945.17 was approved by City Council on January 13, 2011, through Ordinance 2011-01-13-0006. Change orders previously have increased this contract by $530,064.03 to a total of $8,523,009.20. This change order will increase the contract by $332,412.99 to a contract amount of $8,885,422.19.
The following table illustrates the change orders that have occurred since construction on this project began:
Item
Amount
Original Contract Value
$7,992,945.17
Previously Authorized Change Orders
$530,064.00
Proposed Change Order
$332,412.00
Revised Contract Value
$8,885,422.19
 
 
ISSUE:
This ordinance approves a change order in the amount of $332,412.99 and authorizes payment to Liberty Mutual Insurance Company, who will then make payment for work performed to the completion contractor, J3 for the Hunt Lane: Ingram Road to Potranco Road Project, an authorized 2007-2012 General Obligation Bond-funded project, located in Council Districts 4 & 6.  
 
At the conclusion of the project but prior to the topsoil and grass seeding, staff worked to fulfill the community's desire to provide aesthetic landscape in the medians.  
 
The work associated with this change order will replace approximately 2,267 feet long (half a mile) and14 feet wide of proposed vegetated medians with colored, stamped concrete.  This work is anticipated to begin on October 2014 and be completed by December 2014.
 
Approval of the ordinance will be a continuation of City Council policy to complete previously approved General Obligation Bonds-funded projects.
 
ALTERNATIVES:
As an alternative, City Council could choose not to approve this change order and may require staff to engage an on-call contractor to complete this scope of work.  However, this would lead to additional costs for maintenance of the medians until Project completion and a likely increase in price.  The most cost effective option is to approve this change order.
 
FISCAL IMPACT:
This is a one-time capital improvement expenditure in the amount of $332,412.99, payable to Liberty Mutual Insurance Company.  Funds are available from previously authorized 2007-2012 General Obligation Bonds, included in the FY 2014-2019 Capital Budget and are included in the Project's contingency fund.
 
RECOMMENDATION:
Staff recommends approving this change order, in the amount of $332,412.99, for Hunt Lane: Ingram Road to Potranco Road Project.