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HomeMy WebLinkAbout09 CONTRACT CHANGE ORDER WITH R.J. NOBLE CO.AGENDA REPORT Agenda Item Reviewed: Finance Director ~ ~? MEETING DATE: MARCH 15, 2011 TO: HONORABLE MAYOR AND COUNCIL MEMBERS VIA: DAVID C. BIGGS, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS /CITY ENGINEER SUBJECT: AUTHORIZE NEGOTIATION OF A CONTRACT CHANGE ORDER WITH R.J. NOBLE COMPANY FOR THE TUSTIN RANCH ROAD PAVEMENT REHABILITATION PROJECT CIP 70195 SUMMARY Staff is requesting City Council authorization to negotiate a contract change order with R.J. Noble Company to extend the project limits of CIP 70195 to include construction of the Bryan Avenue Pavement Rehabilitation Project CIP 70199 by utilizing bid savings realized in the Tustin Ranch Road Project. RECOMMENDATION It is recommended that the City Council authorize staff to negotiate a contract change order with R.J. Noble Company to extend the project limits of the Tustin Ranch Road Pavement Rehabilitation Project CIP 70195 to include construction of the Bryan Avenue Pavement Rehabilitation Project CIP 70199 and utilize the bid savings in CIP 70195. FISCAL IMPACT $2,041,250 has been budgeted and appropriated in this Fiscal Year 2010-2011 Capital Improvement Program for the Tustin Ranch Road Pavement Rehabilitation Project CIP 70195. A construction contract was awarded in the amount of $1,264,114, resulting in a projected bid savings of approximately $650,000. The proposed contract change order would be negotiated to include Bryan Avenue Rehabilitation in an amount not to exceed the savings available. Bryan Avenue Rehabilitation Project is programmed for next fiscal year, but is currently unfunded. DISCUSSION On February 1, 2011, the City Council awarded the construction contract for the Tustin Ranch Road Pavement Rehabilitation Project CIP 70195 to R.J. Noble Company in the amount of $1,264,114, which is below the adopted CIP budgeted amount of $2,041,249 for the project. This budget is funded in part from State Proposition 42 and Proposition 1 B funds, which must be expensed by June 30, 2011 and June 30, 2012, respectively. The contract amount represents a favorable savings in bid prices that the City realized due to a slow construction period and competitive market conditions. This situation provides a rare opportunity to expand the original project and include an adjoining project to realize additional savings. Therefore, staff is recommending that the Tustin Ranch Road project limits be extended to include construction of the Bryan Avenue Rehabilitation Project CIP 70199 from Browning Avenue to Jamboree Road. The two arterial streets are contiguous, with the Tustin Ranch Road Pavement Rehabilitation Project CIP No. 70195 March 15, 2011 Page 2 Bryan Avenue Project extending easterly and westerly from the southerly limit of the Tustin Ranch Road Project. Including the Bryan Avenue Rehabilitation now, gives the City the opportunity to advance the project and saves the Tustin taxpayers by taking advantage of the low bid prices and favorable bid conditions. With oil prices on the rise and the very real potential of material cost escalation, bid prices will likely increase in the near future. Accordingly, the proposed inclusion of Bryan Avenue is contingent on successful negotiations with the Contractor and the utilization of favorable unit bid pricing. The proposed pavement rehabilitation on Bryan Avenue consists of the grinding of existing asphalt paving; construction of a new asphalt rubber hot mix (ARHM) wearing surface; removal and replacement of damaged pavement sections, curb & gutter and sidewalks; replacement of existing curb ramps to be in compliance with current federal Americans with Disabilities Act (ADA) requirements; replacement of traffic signal detector loops; replacement of striping and pavement markings; and adjustment of manhole rims and valve boxes to grade between Bryan Avenue and Jamboree Road. It is recommended that the City Council authorize staff to negotiate a contract change order with R.J. Noble Company to extend the project limits of CIP 70195 to include construction of the Bryan Avenue Rehabilitation Project CIP 70199, all within the available savings realized from the bid for CIP 70195. Since the Bryan Avenue Rehabilitation Project involves the replacement and repair of existing facilities with minor modifications, it is categorically exempt under California Environmental Quality Act (CEQA) requirements. A Notice of Exemption has been recorded with the County of Orange. Approved for Forwarding By: S. Stack, P.E. ~f Public Works/City Engineer Attachments: Location Maps ~ ~~ 'avid C. Big s, Ci Manager S:\City Council Items\2011 Council ItemsWuthorize CCO TTR Rehab (CIP 70195).docx ur i'*.s ```~ ~ ~ W -, ~. _ -- o s U ~ ~~. Q~ ~~. ~ ~ ,~,,,.F ~ ~ ~ ~ ~~.~ l~ ~~ 1 ', it o-' ~~ -~ -~ ~. ~ -~ o -~ ~~° ~~ -~,- ~ o ~ .~ ~~ ~~ o ~ ~ ~ ~~~ i ~~ ~~~ /• \ U ~ o S~ 2 ~~ti G ~ oo ~~~ ~~ ~ 3 / O ~ ~J" a; O~ ~. o ~. ~, ~ ~, o a~ ., o ~ o ~~a ~~ti ~~~ o s O U 0 U w a z a a Z m Z W m C J 0 Z CA Z H CA H LL U