REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director-Capital Projects Department
BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
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. 3 in the amount of $2,500,000.00 with nine (9) additional working days for completion of domestic water improvements, sanitary sewer improvements, and to increase the Supplemental Work Contract Bid Item with Floyd Johnston Construction Company Incorporated of Fresno, California for the Downtown Redevelopment Grant Water and Sewer Improvements Project - Project ID WM00009 / RC00177. (Bid File 12402356) (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve Contract Change Order No. 3 with Floyd Johnston Construction Company, Inc. of Fresno, California which increases the contract amount by $2,500,000.00, for a revised contract total of $22,110,825.50, with nine (9) 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. 3 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. 3 in the amount of $2,500,000.00, with nine (9) additional working days, will allow for work related to: 1) Completion of domestic water infrastructure improvements in the amount of $999,940.00; 2) Completion of sanitary sewer infrastructure improvements in the amount of $999,780.00; and 3) Increase of Contract Bid Item No. 30 - Supplemental Work in the amount of $500,280.00. Approval of this proposed Contract Change Order will allow the project to move forward and provide the necessary improvements required for project completion. This increase will result in a revised contract total of $22,110,825.50. Funding for this Contract Change Order is included in the Fiscal Year 2025 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. 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 two (2) Contract Change Orders approved to date totaling $825,900.00, resulting in a revised contract total of $19,610,825.50. There have been twenty (20) days added to the contract time by the previously executed Contract Change Orders, in addition to eight (8) weather days and no suspension days, resulting in a revised contract completion date of November 3, 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. 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 not fully understood at the time of project award.
City Council approval of Contract Change Order No. 3 is required by Resolution 2017-158, which sets the approval thresholds for individual Contract Change Orders which aggregate up to ten percent (10%) of the total Contract Price. The amount of Contract Change Order No. 3 is $2,500,000.00, which is 13.3% of the original Contract amount. This increase will result in a revised contract total of $22,110,825.50. There will be nine (9) additional working days added to the contract time by this Contract Change Order resulting in a contract completion date of November 12, 2025.
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. 3 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. Funding for this Contract Change Order is included in the Fiscal Year 2025 Capital Improvement Budget within the Water and Wastewater Enterprise Funds. This Contract Change Order will have no impact on the General Fund.
Attachments:
Construction Contract - Floyd Johnston Construction Company, Inc.
Contract Change Order No. 01
Contract Change Order No. 02
Contract Change Order No. 03
Vicinity Map