DEPARTMENT: Transportation & Capital Improvements
DEPARTMENT HEAD: Mike Frisbie, P.E.
COUNCIL DISTRICT(S) IMPACTED: Council District 9
SUBJECT:
Change Order: Redland Road North - Ridgewood Parkway to Loop 1604 Project
SUMMARY:
An ordinance approving a change order in the amount of $381,654.00 and authorizing payment to J3 Company, LLC for the Redland Road North Project to provide for additional box culvert excavation needed for the installation of box culverts throughout the scope of the project, an authorized 2012-2017 General Obligation Bond funded project located in Council District 9.
BACKGROUND INFORMATION:
This is an authorized 2012-2017 General Obligation Bond Project. This Project provides for reconstruction and widening of Redland Road North to a four lane roadway with a raised median and a two-way left turn lane, shared use path, curbs, sidewalks, driveway approaches, traffic-signal improvements and drainage improvements, as needed, from Ridgewood Parkway to Loop 1604. Drainage improvements will include underground drainage pipes and box culverts to capture off-site and street runoff which will outfall into existing tributary drainage channels adjacent to the project. Project construction began in May 2016 and is estimated to be completed by December 2017.
The Small Business Economic Development Advocacy (SBEDA) Program Goal Setting Committee set a 19% Minority/Women Business Enterprise (M/WBE) subcontracting goal and a 2% African-American Business Enterprise (AABE) subcontractor participation for this contract. The Economic Development Department approved a partial waiver submitted by J3 Company, LLC, because the contractor demonstrated a good faith effort to provide subcontracting opportunities for small, minority and women-owned businesses.
A previously executed contract with J3 Company, LLC for Redland Road North Project in the amount of $14,714,638.00 was approved by City Council on March 10, 2016 through Ordinance 2016-03-10-0198. Previous change orders have increased this contract by $111,909.89, to a total of $14,826,547.89. The percent of change orders to date is less than 1% of the total contract. This change order will increase the contract by $381,654.00, or 2.6%, to a new total contract amount of $15,208,201.89. Typical construction contingency is 10% leaving a capacity of 6.7% of contingency for the remainder of the project.
|
Item |
Amount |
|
Original Contract Value |
$14,714,638.00 |
|
Previously Authorized Change Orders |
$111,909.89 |
|
Proposed Change Order |
$381,654.00 |
|
Revised Contract Value |
$15,208,201.89 |
ISSUE:
This ordinance approves a change order in the total amount of $381,654.00 and authorizing payment to J3 Company, LLC for the Redland Road North Project to provide for additional box culvert excavation needed for the installation of box culverts throughout the scope of the project, an authorized 2012-2017 General Obligation Bond funded project located in Council District 9.
The change order, requested by the City, authorizes an amount of $381,654.00 payable to J3 Company, LLC. The consultant’s original bid quantity for Item 106.1 Box Culvert Excavation and Backfill was 53 cubic yards. The actual amount that should have been in the bid quantity is 5,924.6 cubic yards. The difference is 5,871.6 cubic yards of box culvert excavation and backfill that the City will need to add to the quantity for this bid item to be included as part of the construction. Due to the consultant’s error, the box culvert excavation quantity was not quantified correctly, but this additional quantity was necessary as part of the project originally.
This change order will rectify the bid quantity of 53 cubic yards for Item 106.1 Box Culvert Excavation and Backfill with the new quantity of 5,924.6 cubic yards. In addition, the contractor has agreed to lower his original bid price from $80 to $65 per cubic yard for the additional quantity of 5,871.6 cubic yards of box culvert excavation and backfill that is needed for the project. This is a savings of $88,074.00 to the City with the lower unit bid price that J3 agreed to for the additional quantity needed for this bid item.
ALTERNATIVES:
As an alternative, City Council could choose not to approve the change order and require staff to complete a bid process for the work. However, this would lead to further delays of the project 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 $ 381,654.00 payable to J3 Company, LLC for construction services. Funds are available from the 2012-2017 General Obligation Bond Program for the Redland Road and Redland Road Drainage Projects and are included in the FY 2017-2022 Capital Improvement Budget.
RECOMMENDATION:
Staff recommends approval of the City requested change order in the total amount of $381,654.00 for the Redland Road North Project.