REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
PAUL AMICO, PE, Director
Department of Public Utilities
BY: francisco V. magos II, PE, Assistant Director
Capital Projects Department, Utilities and On-Site Project Management Division
ROBERT A. DIAZ, Project Manager
Capital Projects Department, Utilities and On-Site Project Management Division
SUBJECT
Title
Approve Contract Change Order No. 4 with Floyd Johnston Construction Company Inc. of Fresno, California in the amount of $2,924,928.00 with one hundred (100) additional working days for the Downtown Redevelopment Grant Water and Sewer Improvements Project. (Bid File 12402356) (Council District 3)
Body
RECOMMENDATIONS
Staff recommends that the City Council approve Contract Change Order No. 4 with Floyd Johnston Construction Company, Inc. of Fresno, California in the amount of $2,924,928.00, with one hundred (100) additional working days to allow for completion of domestic water improvements, sanitary sewer improvements, and to increase the Supplemental Work Contract Bid Item for the Downtown Redevelopment Grant Water and Sewer Improvements Project and authorize the Capital Projects Department Director, or designee, to sign this Contract Change Order No. 4 on the City’s behalf.
EXECUTIVE SUMMARY
On June 13, 2024, a contract was awarded in the amount of $18,784,925.50 to Floyd Johnston Construction Company Inc. of Fresno, California for the Downtown Redevelopment Grant Water and Sewer Improvements Project to bring water and sewer facilities to current standards including the replacement of 14,315 linear feet of water mains, 5,576 linear feet of sanitary sewer mains, and rehabilitation of existing sewer and manhole facilities.
City Council approval of Contract Change Order No. 4, in the amount of $2,924,928.00, is recommended to support the continued progress of the project. This change order includes an extension of one hundred (100) additional working days, which will allow for the completion of necessary improvements and ensure the project remains on track for successful delivery. This increase will result in a revised contract total of $25,035,753.50. Funding for this Contract Change Order is included in the Fiscal Year 2026 Capital Improvement Budget within the Water and Wastewater Enterprise Funds.
BACKGROUND
On June 13, 2024, a contract was awarded in the amount of $18,784,925.50 to Floyd Johnston Construction Company, Inc., of Fresno, California for the Downtown Redevelopment Grant Water and Sewer Improvements Project. The contractor’s Notice to Proceed was issued with a start date of September 9, 2024, and a contract completion date of September 19, 2025.
There have been three (3) Contract Change Orders approved to date totaling $3,325,900.00, resulting in a revised contract total of $22,110,825.50. There have been twenty (29) days added to the contract time by the previously executed Contract Change Orders, in addition to eight (8) weather days, resulting in a revised contract completion date of November 12, 2025.
The original construction contract included the replacement of 14,315 linear feet of water mains and 5,576 linear feet of sanitary sewer mains, including trenching, excavation, water and sewer service transfers, pavement restoration, repair and reconstruction of existing improvements affected by the Project, and incidentals for complete construction. Additionally, the work includes the rehabilitation of the existing sewer and manhole facilities.
This Contract Change Order will provide funding needed to complete domestic water improvements, sanitary sewer improvements, and increase the Supplemental Work Bid Item. Unforeseen construction issues that resulted in the need for this Construction Change Order include concrete discovered underneath the roadway during utility excavation work, larger trench pattern restoration and the discovery of an underground storage tank (UST). Of the $2,924,928 change order amount, $2,362,500 is directly attributed to an increase in permanent pavement restoration by 10,500 square yards. This was a result of utility alignments being adjusted in the field due to unforeseen underground conflicts, which required a wider trench patch to ensure a full and complete permanent structural section was established and meet existing pavement joints to prevent future pavement deterioration. Therefore, it is necessary for Bid Item overrun quantities related to realized field adjustments due to unforeseen site conditions, unknown future challenges due to constructing within historical City Right of Way and providing for additional bid item quantities related to water and sewer pipe constructability limitations.
City Council approval of Contract Change Order No. 4 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 contract time extensions in excess of thirty (30) days. The amount of Contract Change Order No. 4 is $2,924,928.00, which is 15.6% of the original Contract amount. This increase will result in a revised contract total of $25,035,753.50. There will be one hundred (100) additional working days added to the contract time by this Contract Change Order resulting in a contract completion date of April 14, 2026.
|
CCO # |
CCO Amount |
Days Added |
Approved by: |
Reason |
Scope Change |
|
1 |
$753,750.00 |
15 |
CMO |
Unforeseen condition |
Increase Bid Item No. 4 - “Utility Potholing and Bid Item No. 29 - “Ground Penetrating Radar Survey” by an estimated 750/EA. |
|
2 |
$72,150.00 |
5 |
Director |
Unforeseen condition |
Provide all labor, materials & equipment to protect the unmarked clay conduit pipe, which runs parallel in the same trench as the proposed sewer main on Kern St, between E St and Fagan Alley. |
|
3 |
$2,500,000.00 |
9 |
Council |
Unforeseen conditions |
Additional domestic water infrastructure improvements, additional sanitary sewer infrastructure improvements, and increase Contract Bid Item No. 30 - Supplemental Work. |
This contract is covered by the Community Workforce Agreement (or Project Labor Agreement, PLA), adopted by 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. 4 for the Downtown Redevelopment Grant Water and Sewer Improvements Project on behalf of the City.
ENVIRONMENTAL FINDINGS
On June 16, 2024, as part of the contract award, the Council adopted a finding of Categorical Exemption per staff’s determination pursuant to Sections 15301/Class 1 (Existing Facilities) and 15302/Class 2 (Replacement or Reconstruction) of the CEQA Guidelines. 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
Floyd Johnston Construction Company, Inc. is a local business, as defined by the Fresno Municipal Code.
FISCAL IMPACT
This Project is located in Council District 3 and will have no impact to the General Fund. Funding for this Contract Change Order is included in the Fiscal Year 2026 Capital Improvement Budget within the Water and Sewer Enterprise Funds.
Attachment(s):
Construction Contract - Floyd Johnston Construction Company, Inc.
Contract Change Order No. 1
Contract Change Order No. 2
Contract Change Order No. 3
Contract Change Order No. 4
Vicinity Map