Agenda Item Wording:
title
Authorize the City Manager to approve contract change order number 1 and 2 for construction of the Downtown Streetlight Project (1410-72000/CP0345-999) in an amount totaling $242,706.45 and contract change order number 1 for the construction of the Downtown Pavement Rehab Project (2390-72000/CP0373-999) in the amount of $248,959.18.
body
Deadline for Action: None
Submitting Department: Administration - CIP Engineering
Contact Name and Phone Number:
Chantha Chap, Civil Engineer, Chantha.Chap@visalia.city, 713-4418
Eric Bons, Senior Civil Engineer, Eric.Bons@visalia.city, 713-4350
Frank Senteno, City Engineer, Frank.Senteno@visalia.city, 713-4331
Nick Mascia, Assistant City Manager, Nick.Mascia@visalia.city, 713-4323
Department Recommendation:
Staff recommends City Council authorize the City Manager to approve contract change order number 1 and 2 for construction of the Downtown Streetlight Project in an amount totaling $242,706.45 and Contract Change Order number 1 for the construction of the Downtown Pavement Rehab Project in the amount of $248,959.18.
The request is for the approval of the change orders and not for the appropriation of any additional funds. Each of these change orders is able to be covered through the contingency included in the project budget and each projects has remaining funds in the contingency allotment should additional changes be needed. While there may be some small modifications, Staff anticipates that the major issues have already been dealt with through the initial phases of construction. (Project funds remaining in the budget is included below.)
Summary:
During the course of construction, the Downtown Streetlight and Paving project encountered unforeseen conditions, material supply shortages and City driven scope modifications. In addition, the project also had to adapt to requirements imposed by various outside agencies such as Caltrans and Southern California Edison (SCE).
Please note that the final numbers in the change orders below are the result of multiple back and forth negotiations between the City and contractor. In most cases, it took at least three to four iterations of the contractor’s cost proposal before it was determined to be acceptable to the City. The reason there were so many iterations was because the City disagree with the labor hours and incorrect markup rates which resulted in inflated prices that was not reasonable to the project. In addition, the contractor wanted to include items of work that the City does not agree should be part of the cost proposal. For example, the contractor included traffic control expenses that were already part of the construction which would be considered double charging. Each iteration was a two to four week process so at times it took approximately a month to three months before a cost proposal was determined to be acceptable. Furthermore, the contractor had a very tight timeline to deliver the project to completion on Main Street by Thanksgiving. Due to the tight timeline the contractor focused most of the construction efforts on Main Street which impacted how quickly the contractor could assemble change orders and slowed their responsiveness to City’s comments.
Due to the reasons mentioned herein, the change orders took longer to assemble and present to Change Order Committee and ultimately City Council. In fact, all of these change orders have already been completed in order to meet the deadlines imposed on the contractor. In most cases, change orders over $100,000 are presented to Council prior to commencement of work and change orders less than $100,000 are included at the end of the project when staff files the notice of completion. In those latter cases, the change orders are typically minor in nature and cost. However, due to the dollar amount staff wanted to present to City Council prior to the completion of the project and have the mechanism to pay the contractor for work performed.
Staff does not anticipate any larger change orders with this project as the project is anticipated to be completed by April of this year.
Contract Change Order Details:
For the overall benefit to both projects staff recommends the following change orders be approved:
Change Order #1 - Downtown Streetlight Project (P03139)
|
Item No. |
Description of Change Order |
Total Change |
C.O. Category |
|
1 |
PVC/HDPE Conduit |
$41,051.60 |
C. of S./Supply |
|
2 |
Rule 16 Modifications |
$19,757.27 |
C. of S. |
|
3 |
Value Engineering Solar Lighting |
($7,016.00) |
C. of S. |
|
4 |
Demo Existing Streetlight Foundation |
$16,249.08 |
C. of S. |
|
5 |
Tesco Panel Modifications |
$1,473.19 |
C. of S. |
|
6 |
Deeper Streetlight Foundation |
$30,535.64 |
C. of S. |
|
|
Total Cost of Change Order: |
$102,050.78 |
|
ITEM 1: PVC/HDPE Conduit (Increase Material Cost at Agreed Price)
The substitution of PVC conduit in lieu of HDPE (Called out on plans) was due to availability issues and long lead times for HDPE and could have potentially delayed the project.
ITEM 2: Rule 16 Modifications (Extra Work at Agreed Price)
Additional Rule 16/SCE work not shown on the project plans was required by SCE in order to energize service panel B. This includes additional conduit installation/boring, traffic control, pullbox installation and miscellaneous electrical.
ITEM 3: Value Engineering Solar Lighting (Credit at Agreed Price)
The contractor proposed solar temporary lighting in lieu of traditional lighting as a means to save time on the project as potential SCE related delays would have delayed the start of the project. Temporary lighting was one of the first items of work and was necessary for the majority of subsequent electrical work on Main Street.
ITEM 4: Demo Existing Streetlight Foundation (Extra Work at Agreed Price)
Complete removal of approx. (5) existing foundations of varying dimensions was required to install new street lighting foundations on Main Street. The general contractor provided a unit price per location that was negotiated and agreed to ($3,250) for each location.
ITEM 5: Tesco Panel Modifications (Extra Work at Agreed Price)
At the recommendation of the design engineer, additional modifications were necessary to the proposed Tesco lighting control panel B. The contractor provided an agreed lump sum cost from the manufacturer to perform these modifications.
ITEM 6: Deeper Streetlight Foundation (Extra Work at Agreed Price)
The City of Visalia requested 12' deep foundations be installed in lieu of 6' foundations at (16) locations throughout Main Street as a modification to the project that would allow for placing of banners in the future. The general contractor provided a unit price per location that was negotiated and agreed to ($1,900) for each location.
Change Order #2 - Downtown Streetlight Project (P03139)
|
Item No. |
Description of Change Order |
Net increase |
C.O. Category |
|
1 |
Remove Miscellaneous Cables from Existing Poles |
$4,491.71 |
Unforeseen |
|
2 |
RFI 37 Lighting Conduit Conflict - Force Account |
$2,546.37 |
Unforeseen |
|
3 |
Power Conductor Size Upgrade |
$123,226.01 |
TBD |
|
4 |
Pothole and Work Around Cal Water Facilities |
$2,050.94 |
Unforeseen |
|
5 |
COV Requested Parade Preparation and Support |
|
$4,108.76 |
C. of S. |
|
6 |
Temporary Tesco Panel B Modifications |
|
$4,231.88 |
C. of S. |
|
|
Total Cost of Change Order: |
$140,655.67 |
|
ITEM 1: Remove Miscellaneous Cables from Existing Poles (Force Account)
Compensation at force account to the contractor for removal and handling of miscellaneous wires, cabling and facilities on the existing street light poles. These facilities were not identified on the project plans or specifications.
ITEM 2: RFI 37 Lighting Conduit Conflict (Force Account)
On the SW corner of Church and Main a pullbox feeding ball lights on a circuit not identified on the plans was identified and the contractor made modifications to allow for this location to be maintained as part of the new lighting system. Work was tracked at force account.
ITEM 3: Power Conductor Size Upgrade (Agreed Price)
During construction it was brought to the City’s attention that the conductors for the receptacles on the streetlights may not have been sized properly in the plans. City reached out to the design consultant to double check the electrical calculations and based on the proposed loading, it was discovered that the conductors would have to be upsized from #12 to #8 wire to provide the appropriate capacity. For reference, the lower the gauge number the larger the wire size will be. Based on the design consultant’s recommendation, the contractor ordered and installed upgraded power conductors for the street lighting run on Main Street between Willis and Santa Fe. Staff is currently in the process of working with the design consultant to determine why this issue was not caught during the design phase. If the original plan had included the larger conductor, the material and labor cost would amount to approximately $110,000 ($40K for material and $70k for labor). The total cost for Item 3 of this change order is $123,226.01. Because the larger conductor was not included in the original plans it resulted in an increase of approximately $17,000 to the project for which City will need to determine if this was a design error that would lead to liability on the design consultant.
ITEM 4: Pothole and Work Around Cal Water Facilities (Force Account)
Compensation at force account to the contractor for identifying, potholing and working around Cal Water facilities at varying depths that were in conflict with improvements on Main Street between Willis and Bridge Streets.
ITEM 5 - COV Requested Parade Preparation and Support (Force Account)
At the request of the City of Visalia, the contractor provided added preparation activities as well as standby time for Main Street Holiday Parade. In addition to parade standby, the contractor worked on Veterans Day in an effort to expedite construction. This work was tracked at force account.
ITEM 6 - Temporary Tesco Panel B Modifications (Agreed Price)
Compensate the contractor for added modifications during installation to SCE electrical service panel B (temporary) during fabrication. These modifications were necessary to ensure temporary panel could operate the proposed lighting facilities.
Change Order #1 - Downtown Pavement Rehab Project (P03138)
|
Item No. |
Description of Change Order |
Net increase |
C.O. Category |
|
1 |
Additional Grind and Pave Limits from Garden to Santa Fe |
|
$200,552.20 |
C. of S. |
|
2 |
Added Irrigation Boxes |
$488.75 |
C. of S. |
|
3 |
Striping Material Change in Caltrans Right of Way |
$5,287.23 |
C. of S. |
|
4 |
Install DI's and Storm Line at Encina |
$42,631.00 |
C. of S. |
|
|
Total Cost of Change Order: |
$248,959.18 |
|
ITEM 1: Additional Grind and Pave Limits to Santa Fe (Increase on Contract Items)
The City of Visalia requested additional grind and pave limits on Main Street between Garden and Santa Fe. Originally, this area was not shown on the project documents to receive cold planning or new HMA because it was in relatively good shape. However, according to the plans this segment of roadway required multiple transverse cuts in the road to allow for streetlight conduits to be installed. In addition, in order to avoid hitting existing underground utilities, the contractor potholed multiple locations which created even more cuts into the roadway. All of this brought a road that was in relatively good shape to poor condition. Since this area was already under construction it would be beneficial to extend the limits of the paving work to complete continuity of the project through Santa Fe Street. The City has a future project next year to rehab the remaining side streets in Downtown. Contractor to be compensated at bid item prices for this work.
ITEM 2: Added Irrigation Boxes (Force Account)
Two (2) additional irrigation boxes installed at the NE corner of Encina and Main at the request of City of Visalia, Urban Forestry to house existing irrigation facilities.
ITEM 3 - Striping Material Change in Caltrans Right of Way (Agreed Price)
Compensate the contractor for installing thermoplastic pavement stripe and markings within the Caltrans right of way on Court and Locust Streets. The project documents called for painted stripe and markings, however the this does not comply with the State requirements.
ITEM 4: Install DI's and Storm Line at Encina (Extra Work at Agreed Price)
The existing drainage system located on the south side of Main Street at Encina Street does not function to drain existing street run off. This extra work would remove the existing fail/damaged corrugated half pipe and replace with 12" storm main and install two drain inlets to improve drainage of the street.
Engineering staff presented these items to the Change Order Committee on February 23rd to seek approval of the change orders. The Committee denied and directed staff to renegotiate and/or remove miscellaneous overhead costs. The Committee approved the Change order(s) contingent upon the Contractor deleting noted costs. This report reflects negotiated change orders based on the Committee’s direction. Due to the high dollar amount per the City Procurement Policy, the contract change order requires City Council approval. The Change Order Committee is a non-appointed committee of technical staff who are not directly involved with the project being considered. The Committee reviews the contract change order request for completeness, accuracy, constructability, objectivity, consistency, and overall insight.
Background Discussion:
The Downtown Street Light Project consists of replacing a 70+ years old lighting system in Downtown Visalia with a modern lighting system that meet current industry standards. It’s important to note that the primary purpose of the project is to replace this outdated and unsafe high voltage (4,000-volt) electrical lighting system. This system, with aging and deteriorated assets, makes the repair and maintenance very unsafe for City maintenance staff. The project includes replacing existing system with a new multi-functional streetlight system which will provide longer lasting serviceability, normal maintenance per industry standards, lowered operational cost, and an aesthetically pleasing finished product. In addition, the project also includes pavement rehabilitation and installation of joint trench facilities to take advantage of construction efficiencies and minimize construction disruptions in the future.
The Downtown Streetlight Project and the Downtown Pavement Rehabilitation Project were advertised together because they are complimentary projects that impact the same areas. The City of Visalia entered into a contract with A-C Electric Company on June 16, 2022 for construction of the Downtown Streetlight and Pavement Rehabilitation in the amount totaling $8,853,574.15.
Fiscal Impact:
Downtown Streetlight Project (CP0345)
The streetlight component of the Downtown project is funded by the Measure N (141) Fund with a total project budget of $9.6M. The table below shows the budget summary for the Downtown Streetlight Project:
|
Project Funding: |
|
|
|
|
|
Measure N Fund (141) - Streetlighting: |
|
$9,600,000 |
|
|
Total Project Funding: |
|
$9,600,000 |
|
|
|
|
|
|
Project Costs: |
|
|
|
|
|
Design Staff Time (Estimated) |
|
$350,000 |
|
|
Design -Consultant (QK Inc.) |
|
$504,916 |
|
|
Construction Management -Staff Time (Estimated) |
|
$196,000 |
|
|
Streetlight Procurement |
|
$822,050 |
|
|
Construction Management (NV5, Inc.) |
|
$515,386 |
|
|
Construction -Streetlighting (AC Electric) Construction Change Order #1 & #2 |
|
$6,279,318 $242,706 |
|
|
Total Project Costs: |
|
$8,910,376 |
|
Summary: |
|
|
|
|
|
|
|
|
|
|
Total Project Funding: |
|
$9,600,000 |
|
|
Total Project Cost: |
|
($8,910,376) |
|
|
|
|
|
Project Funds Remaining: $689,624
Downtown Pavement Rehabilitation Project (CP0373)
The pavement rehabilitation component of the Downtown Project is funded by funds from the Senate Bill 1- Road Maintenance and Rehabilitation Account (SB1 RMRA) Fund (113) with a total project budget of $3,520,800. These funds are for the design and construction of pavement rehabilitation, limited sidewalk repairs & curb ramps, and ADA-compliant parking stalls. The table below shows the budget summary for the Downtown Pavement Project:
|
Project Funding: |
|
|
|
|
|
SB1 Funding (113) - Pavement Rehabilitation |
|
$3,520,800 |
|
|
Total Project Funding: |
|
$3,520,800 |
|
|
|
|
|
|
Project Costs: |
|
|
|
|
|
Design Staff Time (Estimated) |
|
$56,230 |
|
|
Design -Consultant (QK Inc.) |
|
$380,603 |
|
|
Construction Management -Staff Time (Estimated) |
|
$49,000 |
|
|
Construction Management (NV5, Inc.) |
|
$128,847 |
|
|
Construction -Streetlighting (AC Electric) Construction Change Order #1 |
|
$2,574,257 $248,959 |
|
|
Total Project Costs: |
|
$3,437,896 |
|
|
|
|
|
|
Summary: |
|
|
|
|
|
Total Project Funding: |
|
$3,520,800 |
|
|
Total Project Cost: |
|
($3,437,896) |
|
|
|
|
|
Project Funds Remaining: …………………………………………………. $82,904
With the current progress of construction, the project funding is sufficient to cover the cost for the contract change orders and therefore no additional appropriation transfer is needed.
Prior Council Action:
November 7, 2022 - City Council authorized City Manager to approve consultant contract Amendment #2 in the amount not to exceed $44,326 for the Downtown Streetlight Project (CP0345) and consultant contract Amendment #4 for the Downtown Pavement Rehabilitation Project (CP0373) in the amount not to exceed $55,215 for additional construction support with Quad Knopf (QK).
May 2, 2022 - City Council conducted the first of two public hearings to amend the Measure N plan and appropriate $2,700,000 towards the Downtown Streetlight Project (CIP 1410-72000/CP0345-999) to address a shortfall in the Downtown Streetlight project’s budget.
April 7, 2022 - The Measure N Oversight Committee reviewed and approved the Measure N amendment for the appropriation of $2,700,000 towards the Downtown Streetlight Project.
April 4, 2022 - City Council received the bid results for the Downtown Streetlight and Downtown Pavement Rehabilitation Projects for information. Authorized staff to begin the Measure N amendment process for the appropriation of $2.7M towards the Downtown Streetlight Project. Council authorized the appropriation of $2,141,800 of SB1 RMRA funds towards the Downtown Pavement Rehabilitation Project.
December 6, 2021 - City Council authorized the City Manager to execute an agreement with NV5, Inc. to provide the construction management services for the Downtown Streetlight Project and Pavement Rehabilitation Project in the amount of $644,233.00.
November 15, 2021 - City Council authorized the City Manager to purchase the streetlight poles for the Downtown Streetlight Project from AV Poles and Lighting of Lancaster, CA, in the amount of $822,050.25.
November 15, 2021 - City staff presented the preliminary construction staging plans for the Downtown Streetlight Project and Downtown Pavement Rehabilitation Projects.
June 7, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the second public hearing. The committee reviewed and approved the recommendations.
May 17, 2021 - City staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight Project to the first public hearing. The committee reviewed and approved the recommendations.
April 22, 2021 - City Staff presented the recommendation for the appropriation of $2.4M for the Downtown Streetlight project to the Measure N Oversight Committee. The Committee reviewed and approved the recommendation.
March 15, 2021 - City Staff presented decorative streetlight options for the downtown streetlight project. City Council approved the recommendation for the layout option 3 and streetlight scenario 3 and Measure N amendment process to approve the appropriation of $2.4M for the Streetlight project.
December 07, 2020 - City Staff presented standards for installing Back Flow Preventors within the public right of way. City Council approved the recommendation for the standards.
July 21, 2020 - City Staff presented revised layout options for the Downtown Streetlight Project. City Council approved the recommendation for a core decorative streetlight style.
June 01, 2020 - City Staff presented layout options for the Downtown Streetlight Project. City Council requested additional information from City Staff.
October 21, 2019 - Council authorized award of the design contract for the Downtown Streetlight Project to Quad Knopf for an amount not to exceed $407,098.00.
October 15, 2018 - City Staff presented an update of the downtown streetlights project to City Council during a work session item.
April 16, 2018 - Council approved Resolution No. 2018-25 to designate various road projects for 2018/19 funding from the State of California Road Repair and Accountability Act of 2017 (Senate Bill SB1)
Alternatives:
None recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to approve Contract Change Order number 1 and 2 for construction of the Downtown Streetlight Project in an amount totaling $242,706.45 and Contract Change Order number 1 for the construction of the Downtown Pavement Rehab Project in the amount of $248,959.18.
end
Environmental Assessment Status:
None.
CEQA Review:
Categorical Exemption, Section 15301(c)
Attachments:
1. Ownership Disclosure