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Title
Change Order No. 2 for the construction contract with McMahon Contracting, Inc. in the net negative amount of -$14,378.14 for Oakdale Paving and Drainage Improvements
Presenter
Romin Khavari, City Engineer and Ron McCuller, Public Works Director
Recommended Action
Approve
Analysis
On August 2, 2016 the City Council (16-5861) approved a construction contract with McMahon Contracting, Inc. in the amount of $1,677,641.72 for Oakdale Paving and Drainage Improvements; 5% construction contingency in the amount of $83,882; material testing with Team Consultants in the amount of $20,910.75; in-house engineering in the amount of $65,428.03; street lighting improvements in the amount of $15,000 for a total project cost of $1,862,862.50.
This project provides for paving and drainage improvements for Phase I of Oakdale Road between Roy Orr Blvd to the existing dogleg at Old Oakdale Road. Phase I of the Oakdale project consists of 600 feet of concrete 4-lane divided thoroughfare between Roy Orr Blvd and the dogleg at Old Oakdale Rd; it also provides for the installation of traffic signals at the intersection of Oakdale Road and Roy Orr Blvd., storm drain and water main improvements, street lighting and other related items of work.
Phase II segment of Oakdale Road Project provided for 30% design and will extend Oakdale Road 3000 feet eastward to SH 161; design of this segment will be completed and constructed under separate contracts in FY 2021 and beyond and pending future developments in the area. The project cost proposal was over its allocated budget, FNI worked with the City to eliminate the storm drainage work from the Phase II portion of the project since the interim measures completed by City crews earlier this year appear to have solved the immediate ponding drainage concern at that location. The drainage improvements will be included in the overall Oakdale Phase II construction at a future date.
Change Order/Amendment No. 1 in the net amount of $12,909.90 was approved by the City on October 28, 2016. The change order modified storm drain, curb inlet, flex base and street light conduit quantities.
The current Change Order/Amendment No. 2 in the net negative amount of -$14,378.14 (Cumulative: $200,027.66) allows for current contract of conventional 9" 4000 PSI HES (high early strength) reinforced concrete pavement (-$104,617.80) to be modified to 9" 4000 PSI reinforced concrete pavement ($88,574.76), ground box reduction (-$800.40), 2" SCH 40 PVC street light conduit reduction (-$1,784.70) and relocation of an air release valve and vent pipe ($4,250.00) in conflict with construction.
State statutes require City Council approval of a change order when the cumulative cost of this change order exceeds $50,000. With approval of this change order, the City Manager will be able to approve the change order to a cumulative value of $50,000 without additional Council approval. Also, the City, as an owner, reserves the right to increase the amount of the work to be performed in a given construction contract by an amount not to exceed twenty-five (25%) percent of the original bid. The amount of this contract is $1,677,641.72 and the 25% value of this contract is $419,410.43. Total of change orders after approval of current change order/amendment No. 2 will be -$1,468.24 for a revised contract amount of $1,676,173.48.
Contract completion date remains March 29, 2017
Financial Consideration
No additional funding is required for this change order.
Project contingency will be split as follows:
1. -$18,628.14 will be a credit to Street Capital Projects fund (401592) WO #01406303 (Oakdale-Roy Orr to 161 STRT) 68540 (Construction) Contract 185380 Line 2
2. $4,250 will be allocated to Water Capital Projects Fund (500592) WO #01613003 (Oakdale-Roy Orr to 161 Water) 68540 (Construction) Contract 185380 Line 4