REPORT TO THE CITY COUNCIL
FROM: nicholas d. mascia, PE, Assistant City Manager
Interim Director - Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: JOSHUA S. RHODES, PE, Assistant Director
Capital Projects Department, Construction Management Division
RICHARD STOCKWELL, Chief Engineering Inspector
Capital Projects Department, Construction Management Division
SUBJECT
Title
Approve Contract Change Order No. 05 in the amount of $159,863.55, with no additional working days for price escalations and additional work items with Emmett’s Excavation, Incorporated of Clovis, California for the Traffic Signal Improvements and Construction of Storm Drainage Facilities at West Clinton Avenue and North Valentine Avenue Project - Project ID PW00678 / PW00944. (Bid File 3751) (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve Contract Change Order No. 05 with Emmett’s Excavation, Incorporated of Clovis, California which increases the contract amount by $159,863.55, for a revised contract total of $1,625,214.78, with no additional working days for price escalations associated with project suspension, additional electrical service pull boxes, and balancing Bid Item quantities to reflect the actual quantities installed for the Traffic Signal Improvements and Construction of Storm Drainage Facilities at West Clinton Avenue and North Valentine Avenue Project and authorize the Capital Projects Department Director, or designee, to sign this Contract Change Order No. 05 on the City’s behalf.
EXECUTIVE SUMMARY
On March 24, 2022, a contract was awarded in the amount of $1,334,053.00 to Emmett’s Excavation, Inc. of Clovis, California for the Traffic Signal Improvements and Construction of Storm Drainage Facilities in Drainage Area “AL” at West Clinton Avenue and North Valentine Avenue Project to install storm drainage pipe, manholes, and connection to existing and proposed facilities, in addition to constructing a new traffic signal, streetlights, pavement reconstruction, pavement grind and overlay, ADA access ramps, and curb and gutter at the intersection of West Clinton Avenue and North Valentine Avenue. City Council Approval of Contract Change Order No. 05 in the amount of $159,863.55 with no additional working days is necessary to compensate Emmett’s Excavation for price increases in labor, materials, equipment, and fuel associated with a previous two hundred and seventy-one (271) day project suspension, the addition of three (3) pull boxes for electric service, and adjustments to Bid Item quantities to reflect the actual quantities installed. This increase will result in a revised contract total of $1,625,214.78. The funding for this Contract Change Order is funded by SB1 Road Maintenance and Rehabilitation Account (RMRA) funds.
BACKGROUND
On March 24, 2022, a Contract was awarded in the amount of $1,334,053.00 to Emmett’s Excavation, Inc. for the Traffic Signal Improvements and Construction of Storm Drainage Facilities at West Clinton Avenue and North Valentine Avenue Project. The Notice to Proceed was issued with a start date of October 10, 2022, and a contract completion date of March 21, 2023.
There have been four (4) Contract Change Orders approved to date, totaling $131,298.23, resulting in a revised contract total of $1,465,351.23. There have been twenty-three (23) days added to the contract time by the previously executed Contract Change Orders, in addition to thirty-three (33) weather days and two hundred and seventy-one (271) suspension days resulting in a revised contract completion date of July 5, 2024.
Emmett’s Excavation commenced work on October 10, 2022, starting with the storm drain work with the expectation of completing this portion of the contract by November 9, 2022. Request for Information No. 02 and Request for Information No. 03 were received November 1, 2022, and November 8, 2022, respectively, requesting direction on how to proceed with identified utility conflicts impacting the proposed storm drain installation. The project was suspended starting December 1, 2022, to address the utility conflicts. The project plans were subsequently revised, and construction operations resumed when contract time was reinstated on January 2, 2024. This project suspension resulted in two hundred and seventy-one (271) suspension days added to the contract time. Request for Proposal (RFP) No. 02 was submitted to Emmett’s Excavation for cost increases associated with the project suspension. Proposed Change Order No. 03, and subsequently revised Proposed Change Order No. 03.1, was provided by Emmett’s Excavation detailing the labor, materials, equipment, and fuel cost escalations resulting from project suspension. City staff reviewed the submitted details and subsequently met with Emmett’s Excavation on May 2, 2024, to review items submitted as response to RFP No 02. During this meeting it was determined what requested cost escalations were justified, resulting in approved cost escalation fees in the amount of $128,282.31.
RFP No. 06 was submitted to Emmett’s Excavation for labor, equipment, materials, and incidentals to install three (3) additional pull boxes that were not shown on the approved plans. Proposed Change Order No. 09 detailing the labor, equipment, and materials was provided by Emmett’s Excavation and approved by City staff, resulting in approved fees in the amount of $7,993.20. The remaining $23,588.04 of the Contract Change Order No. 05 is for the adjustments to Bid Item quantities to reflect the actual quantities installed. These combined items result in Change Order No. 05 amount of $159,863.55.
City Council approval of Contract Change Order No. 05 for an additional $159,863.55 is required by Resolution 2017-158, which sets the approval thresholds for Contract Change Orders which, in aggregate, exceed 10% of the original Contract Price. Previously approved Contract Change Orders in addition to Contract Change Order No. 5 is $159,863.55, which is an aggregate total of 21.8% of the original Contract Price, thereby requiring City Council approval. No additional working days are requested as part of Contract Change Order No. 05.
This project received construction authorization prior to the City Council adopting the Community Workforce Agreement (PLA) for Public Works Projects. The Project was also publicly bid prior to the effective date of the PLA. In addition, prior to authorizing the construction contract, staff consulted with the Building Trades Council who concurred with staff’s recommendation to award the construction contract. As such, the PLA, adopted by Council in September 2021, is not applicable to this project.
Staff recommend that the City Council authorize the Capital Projects Department Director, or designee, to sign Contract Change Order No. 05 for the Traffic Signal Improvements and Construction of Storm Drainage Facilities at West Clinton Avenue and North Valentine Avenue Project on behalf of the City.
ENVIRONMENTAL FINDINGS
Based on staff analysis, it was determined that the project falls within the Categorical Exemption set forth in CEQA Guidelines, Sections 15301/Class 1, 15303/Class 3 and 15304/Class 4. Furthermore, staff previously determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
LOCAL PREFERENCE
Local Preference is not applicable due to the Federal funding requirements.
FISCAL IMPACT
The Traffic Signal Improvements and Construction of Storm Drainage Facilities at West Clinton Avenue and North Valentine Avenue Project is located in Council District 3. The project is federally funded by the Congestion Mitigation and Air Quality Program (CMAQ) grant. The local match is funded with Local Traffic Signal Mitigation Impact Fees and SB1 Road Maintenance and Rehabilitation Account (RMRA) funds. The storm drain facilities portion of the project is locally funded with Cash in Lieu Inter-Fund Loan and a Fresno Metropolitan Flood Control District (FMFCD) Reimbursement Agreement. This project will not have any impact on the General Fund.
Attachments:
Construction Contract - Emmett’s Excavation Inc.
Contract Change Order No. 01
Contract Change Order No. 02
Contract Change Order No. 03
Contract Change Order No. 04
Contract Change Order No. 05
Vicinity Map