REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
PAUL AMICO, PE, Interim Director
Department of Public Utilities
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Construction Management Division
KELLY YOST, PE, Construction Manager
Capital Projects Department, Construction Management Division
SUBJECT
Title
Approve Contract Change Order No. 2 with West Valley Construction Company Incorporated, of Fresno, California in the amount of $0.00 with thirty (30) additional working days for the Van Ness Avenue Transmission Grid Main Project between Divisadero Street and Stanislaus Street. (Bid File 12401958) (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve Contract Change Order No. 2 with West Valley Construction Company, Incorporated of Fresno, California in the amount of $0.00, with thirty (30) additional working days to allow for completion of water main wet-ties by the City and service transfers for the Van Ness Avenue Transmission Grid Main Project between Divisadero Street and Stanislaus Street, and authorize the Capital Projects Department Director, or designee, to sign this Contract Change Order No. 2 on behalf of the City of Fresno.
EXECUTIVE SUMMARY
On August 15 2024, a contract was awarded in the amount of $2,223,895.00 to West Valley Construction Company, Inc., of Fresno, California for construction of 2,060 linear feet of 16-inch, and 724 linear feet of 12-inch diameter water mains, fire hydrants, and valves; including trenching, excavation, water service transfers, pavement restoration, repair, and reconstruction of existing improvements affected by the Project.
City Council Approval of Contract Change Order No. 2 in the amount of $0.00, with thirty (30) additional working days, will allow for completion of the water main wet ties to be performed by the City and water service transfers performed by the contractor. Approval of this proposed Contract Change Order will allow the project to move forward and provide the necessary improvements required for project completion. There will be no increase to the contract price under this Contract Change Order, as it is for additional contract working days only.
BACKGROUND
On August 15, 2024, a contract was awarded in the amount of $2,223,895.00 to West Valley Construction Company, Inc. for the Van Ness Avenue Transmission Grid Main Project between Divisadero Street and Stanislaus Street (Project). The Notice to Proceed was issued with a start date of February 24, 2025, and a contract completion date of July 15, 2025.
To date, one (1) prior Contract Change Order has been approved totaling $40,000.00, resulting in a revised contract total of $2,263,895.00, and thirty (30) additional days added to the contract time for additional work beyond the original scope of work, with three (3) weather days and twenty-four (24) suspension days, resulting in a revised contract completion date of October 3, 2025.
This contract change order will add working days required to complete construction activities performed by City crews. Those activities have progressed slower than anticipated due to the number of connections to the surrounding existing water system, resulting in a project schedule delay outside the contractor’s control.
City Council approval of Contract Change Order No. 2 for the amount of $0.00 and the addition of thirty (30) contract working days is required by Resolution 2017-158, which sets the approval thresholds for individual Contract Change Orders which exceed 1% of the total contract price or $100,000.00 or aggregate Contract Orders that exceed 10% of the original Contract amount and for individual Contract Time extensions which by itself or aggregated with time increases under previous Change Orders, equals up to thirty (30) days or 20 percent (20%) of the total time allowed under the Contract, whichever is greater. The amount of Contract Change Order No. 2 is $0.00, which when combined with previously approved change orders, is an aggregate total of 1.8% of the original Contract amount. This Contract Change Order will result in a revised contract total of $2,263,895.00. There will be thirty (30) working days added to the contract time by this Contract Change Order, thirty (30) working days added by previous Contract Change Orders, three (3) weather days, and twenty-four (24) Suspension days resulting in a revised Contract Completion date of November 17, 2025.
This contract is covered by the Community Workforce Agreement, adopted by the Council in September 2021. The Contractor for this project has become signatory to the Community Workforce Agreement by executing the Agreement to Be Bound.
Staff recommends that the City Council authorize the Capital Projects Department Director, or designee, to sign Contract Change Order No.2 for the Van Ness Avenue Transmission Grid Main Project between Divisadero Street and Stanislaus Street on behalf of the City of Fresno.
|
CCO # |
CCO Amount |
Days Added |
Approved by: |
Reason |
|
1 |
$40,000.00 |
30 |
CMO |
Unforeseen Conditions |
ENVIRONMENTAL FINDINGS
On April 28, 2022, the City adopted a mitigated negative declaration (MND) for the construction of 0.55 miles of replacement water transmission grid main pipelines within Van Ness Avenue between Divisadero Street and Merced Street, and within Amador Street between Fulton/Van Ness Alley and Van Ness Avenue. The City is now proposing a change to the project description that would add 362 feet of pipeline within Stanislaus Street from Van Ness Avenue to L Street and 489 feet of pipeline within L Street from Stanislaus Street to Calaveras Street, with a reduction in pipeline being replaced in Van Ness Avenue between Divisadero Street and Stanislaus Street. The proposed change to the project description requires that the City reevaluate the potential for environmental impacts, pursuant to the California Environmental Quality Act (CEQA). CEQA requires the adoption of an addendum to the previously adopted MND in this situation because the proposed changes are minor and will not result in significant environmental impacts.
The City contracted with environmental specialists to analyze potential impacts from storage and transportation of hazardous waste, as well as potential impacts to cultural and historical resources, based on the proposed change in the project description. It is apparent that with mitigation measures in place as planned, the proposed project will not cause significant impacts. The addendum to the MND calls for identical mitigation measures as those contained in the previously adopted MND. Staff therefore recommends that the City comply with CEQA by adopting the addendum to the MND.
LOCAL PREFERENCE
West Valley Construction Company, Inc. is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
There is no impact on the General Fund. This Project is located in Council District 3. The necessary $2,725,600 was appropriated into Fiscal Year 2025 of the Water Capacity Fee Fund upon adoption of the 11th Amendment to the AAR No. 2024-122
Attachments:
Executed Contract
Contract Change Order No. 1
Contract Change Order No. 2
Vicinity Map