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HomeMy WebLinkAboutMATERIAL DISTRIBUTED TO THE CITY COUNCIL ON ITEM 6Najera, Stephanie From: Stack, Doug Sent: Tuesday, September 18, 2012 3 :03 PM To: Parker, Jeffrey C. Subject: TRR Phase 1 Change Order Hi Jeff, In response to Council inquire regarding the change order amount /percentage for TRR Phase I, several unanticipated subsurface conditions were encountered during construction impacting operations and costs. Just to name a few: • Discovery of numerous underground utility lines, valves, drainage pipes, buried headwall structures, etc. not shown on historical maps and drawings which require removal and disposal. • Discovery of buried burned debris near Legacy Road west of Tustin Ranch Road necessitating continued avoidance of grading operations in the immediate area while procedures for handling were finalized. • Discovery of petroleum -based stained soil within Legacy Road east of Tustin Ranch Road necessitating continued avoidance of grading operations in the immediate area while procedures for handling were finalized. • Discovery of cement - treated soils covered by a layer of topsoil in the vicinity of two historical helicopter pads necessitating crushing and pulverizing operations. • Discovery of wet, saturated soils well above volumes originally anticipated from review of soil boring logs and historical groundwater data. Early on in construction, we realized that these discoveries could lead to a higher changer order condition. On December 6, 2011, staff brought these issues to City Council's attention and Council authorized an additional contingency of 15% in addition to the 10% statutory limit pursuant to Public Contract Code. Staff worked closely with our construction manager and general contractor for full cost containment within budgetary authority. What is important to again reinforce is that the City in assuming construction responsibilities at the former MCAS Tustin is dealing with unknown and unusual conditions that cannot always be accurately predicted. For projects that are substantially complex and prone to higher environmentally challenging conditions, limits are often set higher to manage and mitigate the impact of such project related risks. Doug