REPORT TO THE CITY COUNCIL
April 21, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer
Department of Public Utilities -Wastewater Management Division
SUBJECT
Title
Approve a contract change order in the amount of $262,730 for change order work associated with the Recycled Water Transmission Main, Southwest Quadrant, Project SW1A (BF3410) (Council District 3 and Fresno County)
Body
RECOMMENDATION
Staff recommends that City Council approve the contract change order for the Recycled Water Transmission Main, Southwest Quadrant Project (Project).
EXECUTIVE SUMMARY
The DPU-Wastewater Management Division is currently managing a $7,877,153.25 project for the first section of the recycled water transmission system. During the course of construction four unforeseen conditions have caused changes in the originally bid scope of work. There are three relatively minor changes and one major change. The largest change, $237,940, was caused by unforeseen deteriorated road bed conditions and excess moisture. Staff recommends that the City Council approve a contract change order in the amount of 3.3% or $262,730 to the Floyd Johnston Construction Company of Clovis.
BACKGROUND
The Project was awarded by Council for construction on September 10, 2015. Construction began in December 2015 with an expected completion date of August 8, 2016. The Construction Management Act enacted May 20, 2015 requires change orders in excess of 1% on projects which exceed $10M to be approved by the Council.
The Project has four changes causing unforeseen work for the construction contractor. The first item was an unidentified telephone line which was only identified when the contract requested all utilities be potholed prior to construction. Second, was an undocumented electrical duct bank that required bore and jack of additional length of 72” diameter steel casing. Third, was the addition of a 4” recycled water service stub for a new customer. The fourth change was because the majority of the existing county road where the pipeline was being installed was found to have unsound road bed that caused the trench work to be unsuitable for the saw cut of the trench edge. This inability to hold the trench edge and additionally a lack of proper road bedding material caused the replacement of the remaining nearly two miles of eight feet of road width. These four changes were negotiated in the respective amounts of: $3,197, $4,668, $16,925, and $237,940. These changes have been charged to the supplemental work line item. In an effort to prevent delays associated with the project staff desires to move these four items out of the supplemental work and increase the project costs through a contract change order. Moving these items out of the supplemental work line item will allow the approval of further supplemental work not to exceed the $300,000 per the original construction contract.
ENVIRONMENTAL FINDINGS
A Mitigated Negative Declaration (MND) was adopted by the Council on December 18, 2014, for this Project. An analysis has been performed pursuant to CEQA Guidelines §15162 to determine whether subsequent environmental review is required for the Project. Based on this analysis the following findings are made to support the determination that no subsequent environmental review is required:
1. No substantial changes are proposed in the Project which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects.
2. No substantial changes occur with respect to the circumstances under which the Project is undertaken which will require major revisions of the previous MND due to the involvement of new significant environmental effects, or a substantial increase in the severity of previously identified significant effects.
1. There is no new information which was not known or could not have been known at the time of the previous MND that the Project will have significant effects not discussed in the MND.
Furthermore, since a MND was previously adopted for this Project, the considerations set forth in CEQA Guidelines §15162(a)(3)(C) and (D), related to the adequacy and feasibility of previously adopted mitigation measures, are not applicable. Based upon these findings, it has been determined that no further environmental documentation is required for this Project.
LOCAL PREFERENCE
Local Preference was not implemented because this item is a change order.
FISCAL IMPACT
This project has no impact to the General Fund and is located in Council District 3 and Fresno County. This project is identified in the current financial plan and the five year CIP model. The funds do exist for this project in the sewer enterprise fund number 40528.
Attachment:
Contract Change Order No 1