HomeMy WebLinkAbout13 APPROVE A NEGOTIATED CHANGE ORDER AND AUTHORIZE THE REMAINING PROJECT BUDGETED APPROPRIATION AS ADDITIONAL CONTINGENCY FOR THE NEWPORT AVENUE PAVEMENT REHABILITATION PROJECTDocuSign Envelope ID: 79268796-7620-44CD-A6D2-5682707D1ADA
REPORT Reveweld m 13
AGENDA
City Manager nB
Finance Director Sa
MEETING DATE: JUNE 7, 2022
TO: MATTHEW S. WEST, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: APPROVE A NEGOTIATED CHANGE ORDER AND AUTHORIZE THE
REMAINING PROJECT BUDGETED APPROPRIATION AS ADDITIONAL
CONTINGENCY FOR THE NEWPORT AVENUE PAVEMENT REHABILITATION
PROJECT BETWEEN 1-5 AND HOLT AVENUE (CIP NO. 70244) AND
SYCAMORE AVENUE AND 1-5 (CIP NO. 70245)
SUMMARY
Staff is requesting the City Council approve a negotiated contract change order in the amount of
$152,158 and authorize the remaining budgeted appropriation in excess of ten percent (10%) of the
contract amount as additional contingency for the Newport Avenue Pavement Rehabilitation Project
between 1-5 and Holt Avenue (CIP No. 70244) and Sycamore Avenue and 1-5 (CIP No. 70245).
RECOMMEN ATION
It is recommended that the City Council:
1. Approve a negotiated contract change order in the amount of $152,158 with R.J Noble
Company; and
2. Authorize the remaining project budgeted appropriation in excess of ten percent (10%) above
the contract amount as additional contingency.
FISCAL IMPACT
Sufficient funds in the amount of $1,900,000 have been appropriated for this project in the FY 2021-
22 Capital Improvement Program budget. Funding is provided through the State Senate Bill 1 (SB1)
Local Streets and Roads Program. In a previous action, the City Council awarded a construction
contract in the amount of $1,349,811.85 with a project contingency of ten percent. This action will
approve a negotiated change order in the amount of $152,158, which is $17,177 above the Council
authorized contract contingency and set aside the remaining budgeted appropriation of $398,030 as
additional contingency for potential unforeseen conditions that may arise necessary to complete the
work within the approved project scope and budget. Upon completion of the work, all remaining
funds will be returned to fund balance.
CORRELATION TO THE STRATEGIC PLAN
Rehabilitation of roadways and repair of sidewalks contributes to the fulfillment of the City's Strategic
Plan Goal B: Public Safety and Protection of Assets. Specifically, the project implements Strategy
#5, which among other items, is to ensure continuous maintenance and improvement of
transportation facilities.
ISCUSSION
The project covers a 1.43 mile segment of Newport Avenue between Sycamore Avenue and Holt
Avenue and includes localized removal and replacement of asphalt concrete pavement failure areas;
DocuSign Envelope ID: 79268798-7820-44CD-A6D2-5682707D1ADA
Newport Avenue Pavement Rehabilitation Project, CIP Nos. 70244 and 70245
June 7, 2022
Page 2
removal and replacement of damaged curb & gutter and sidewalks; reconstruction of curb ramps to
be in compliance with the current federal Americans with Disabilities Act (ADA) requirements;
grinding of existing asphalt paving; construction of a new asphalt rubber hot mix (ARHM) overlay;
replacement of traffic signal detector loops; replacement of striping and pavement markings; and
adjustment of manhole rims and valve boxes to grade. A portion of the work is within Caltrans' right-
of-way, requiring work to be performed at night with closure of the southbound 1-5 offramp.
On May 18, 2021, the City Council awarded a contract to R.J. Noble Company, Inc. in the amount
of $1,349,811.85, at which time an Encroachment Permit Application had already been in process
with Caltrans for approximately six months. It was anticipated that approval and issuance of a permit
was imminent but that did not occur for another seven months, occurring in the winter when weather
and temperatures are not conducive to asphalt paving. Work is ready to commence at this time.
However, there have been significant cost escalations in the price of asphalt since the time the
contract was awarded over a year ago, primarily due to high crude oil prices. Staff has negotiated a
contract change order to adjust the contract unit costs of conventional asphalt concrete and asphalt
rubber hot mix (ARHM) in the amount of $152,158.00, based on the estimated quantity of 6,700 tons
to be used on the project. All other stipulated bid pricing remains unchanged. The authorized project
contingency is $134,981, leaving an unauthorized amount of $17,177 to finalize this change order
and a zero balance for contingency.
Therefore, it is recommended that the City Council approve the negotiated contract change order in
excess of the authorized contingency and authorize the remaining budgeted appropriation for
additional contingency thereby utilizing available SB1 Local Streets and Roads program funding
specific to this project.
[Jou/Stack, P.E.
Oicerbt&�of Public Works/City Engineer
Attachment: Location Map
DocuSign Envelope ID: 79268796-7620-44CD-A6D2-5682707D1ADA
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PROJECT NAME: NEWPORT AVENUE PAVEMENT REHABILITATION BETWEEN SYCAMORE AVENUE AND HOLT AVENUE
(CIP NOS. 70244 AND 70245)