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
KELLY YOST, PE, Construction Manager
Capital Projects Department, Construction Management Division
SUBJECT
Title
Approve Contract Change Order No. 10 in the amount of $463,125.00, with no additional working days for additional pavement quantities of HMA Paving with Cal Valley Construction Inc. of Fresno, California for City of Fresno Paving Bid Package at Various Locations Project - Project ID SM00050. (Bid File 12402606) (Council Districts - 1, 3, 4, 5, 6 and 7).
Body
RECOMMENDATION
Staff recommends that the City Council approve Contract Change Order No. 10 with Cal Valley Construction Inc. of Fresno, California which increases the contract amount by $463,125.00, for a revised contract total of $8,403,125.00, with no additional working days for the addition of asphalt quantities for the City of Fresno Paving Bid Package at Various Locations project and authorize the Capital Projects Department Director, or designee, to sign this Contract Change Order No. 10 on behalf of the City of Fresno.
EXECUTIVE SUMMARY
On June 27, 2024, a contract was awarded in the amount of $7,358,665.00 to Cal Valley Construction, Inc. of Fresno California for street paving, concrete repair, and ADA improvements in eight (8) separate project areas. These projects are similar in scope and were combined into one single bid package project to provide economy of scale and streamline the process of bidding and awarding the contract.
City Council Approval of Contract Change Order No. 10 in the amount of $463,125.00, with no additional working days, is necessary to compensate Cal Valley Construction, Inc. for additional quantities due to unit weight changes in current production HMA Asphalt aggregates causing overruns on the contract Engineer’s estimated quantity of HMA Asphalt for street paving. Approval of this proposed Contract Change Order will allow the project to move forward and provide HMA Asphalt to cover the additional quantities required to complete this project. This increase will result in a revised contract total of $8,403,125.00. This project is funded through a combination of SB1 Gas Tax, Measure C, and American Rescue Plan Act (ARPA) funding, which are included in the FY2024 budget adopted by Council.
BACKGROUND
On June 27, 2024, a contract was awarded in the amount of $7,358,665.00 to Cal Valley Construction, Inc. for the City of Fresno Paving Bid Package at Various Locations Project. The project includes 8 separate project areas as follows: the streets within the Dakota-Shields-First-Fresno neighborhood, Fruit Avenue between Clinton and Dakota, the streets within the Ceasar Chavez-Maple-Huntington-Chestnut neighborhood, the streets within the Shields-Crystal-Clinton-Hughes neighborhood, the streets within the Browning-Bullard-Millbrook-Ninth neighborhood, First Street from Sierra to Herndon, and Echo Avenue from Olive to McKinley. The scope of work within the Rialto-Marks-Norwich-Valentine neighborhood includes concrete repair and street paving. The Notice to Proceed was issued with a start date of October 14, 2024, and a contract completion date of July 31, 2025.
There have been nine (9) prior Contract Change Orders approved totaling $581,335.00, resulting in a revised contract total of $7,940,000.00. There have been zero (0) days added to the contract time by the previously executed Contract Change Orders, with nine (9) weather days and no suspension days, resulting in a revised contract completion date of August 13, 2025.
During the paving operations at the first of eight areas, it was discovered that the HMA Bid Item tonnages were estimated at a lower weight per cubic foot compared to the higher weight per cubic foot of the approved HMA material being used, causing an overrun of the HMA Bid Item. Due to this weight difference, it has been calculated that this will cause an overrun to all HMA Bid Items for all paving areas of the project.
City Council approval of Contract Change Order No. 10 for an additional $463,125.00 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. The amount of Contract Change Order No. 10 is $463,125.00, which when combined with previously approved change orders, is an aggregate total of 14.2% of the original Contract amount. This increase will result in a revised contract total of $8,403,125.00. There will be no working days added to the contract time by this Contract Change Order, no working days added by previous Contract Change Orders, 9 weather days, and no Suspension days resulting in a revised Contract Completion date of August 13, 2025.
This contract is covered by the Community Workforce Agreement (or Project Labor Agreement, PLA), adopted by the Council in September 2021. The Contractor for this project has become signatory to the PLA 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.10 for the City of Fresno Paving Bid Package Various Locations Project on behalf of the City.
ENVIRONMENTAL FINDINGS
On June 27, 2024, the Council adopted a finding of Categorical Exemption pursuant to Sections 15301/Class 1, 15302/Class 2, and 15303/Class 4 of the California Environmental Quality Act (CEQA) Guidelines. Based on staff analysis, it was determined that no adverse environmental impacts would occur because of the proposed project and 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 for this project due to it being funded by State SB1 Gas Tax and ARPA which precludes local preference.
FISCAL IMPACT
The City of Fresno Paving Bid Package Various Locations project area are within Council Districts 1, 3, 4, 5, 6, and 7. The project is funded through a combination of SB1 Gas Tax, Measure C, and ARPA funding, which are included in the FY2024 budget adopted by Council. This Change Order will have no impact on the General Fund. The project remains within the construction contingency for the project that was included in the adopted FY2025 budget for the Public Works Department.
Attachments:
Construction Contract-Cal Valley Construction
Contract Change Order No. 1
Contract Change Order No. 2
Contract Change Order No. 3
Contract Change Order No. 4
Contract Change Order No. 5
Contract Change Order No. 6
Contract Change Order No. 7
Contract Change Order No. 8
Contract Change Order No. 9
Contract Change Order No. 10
Vicinity Map