Title
Staff Report for a City of San Leandro City Council Resolution to Increase the Contract Change Order Cap Authorization from 27% to 37% (from $316,705 to $434,000; an Increase of $117,295) for the Original Construction Contract Amount of $1,172,980 with Spencon Construction, Inc. for the Annual Sidewalk Repair Program 2019-2020, Project No. 2019.0060
Staffreport
SUMMARY AND RECOMMENDATIONS
The Annual Sidewalk Repair Program 2019-2020 project was awarded on November 18, 2019; the construction work is complete and project closeout has started. This increased change order authorization will allow payment for extra work performed by the contractor due to unexpected conditions encountered during construction, as well as for the construction of improvements added onto the project during the construction phase.
Staff recommends that the Council authorize an increase to the Contract Change Order (CCO) cap from 27% to 37% (from $316,705 to $434,000, which is a Change Order Cap Increase of $117,295) for the original contract amount of $1,172,980 with Spencon Construction, Inc. for the subject project.
BACKGROUND
On November 18, 2019, the City Council awarded a construction contract to Spencon Construction, Inc. for $1,172,980 for the subject project and authorized the City Manager to approve contract change orders up to 27% of the total contract amount. This contract reconstructed or installed 48,600 square feet of concrete sidewalks and driveways, 2,700 linear feet of curb and gutter and 4,300 square feet of ADA accessible curb ramps at more than 400 locations throughout the City. The majority of locations on the Sidewalk Repair Project have been reported to the City by residents, workers, visitors, and other people that utilize the City’s sidewalk network. They report hazards and damaged sidewalks through either directly contacting City staff, or by using the MySL app or website.
Analysis
The construction of the project is complete. However, the current change orders reached the existing contract change order cap approved with the award of the project. Authorizing an increase in the change order cap from 27% to 37% or $316,705 to $434,000, an increase of $117,295, will enable staff to complete the project closeout, and pay the Contractor for the entirety of work completed.
Various items of work, including construction of frontage improvements at the Boys and Girls Club, repair of the trench drains at the Village Marketplace, replacement of ADA truncated domes, and several locations of sidewalk and driveway repair were added to the contract in order to respond to urgent needs, resident requests, and City Council/City Manager requests. These additions resulted in $160,740 of additional scope for the Contractor, or approximately 13.7% of the contract.
The largest change to this project was the addition of tree removals to the Contractor’s scope of work. Many of the repairs completed by this project were due to damage caused by invasive street tree roots. In prior contracts, the Contractor and the Engineering Inspector would work with the Arborist from the Public Works Department to determine whether or not a street tree that caused the sidewalk damage was to be removed. After determining a tree was to be removed, the tree section of the Public Works Department would remove the trees that could not be saved, allowing the Contractor to complete the sidewalk replacement. However, due to staffing shortages and COVID pandemic delays, the Public Works Department was not able to remove the trees for this contract, and the Contractor had to perform these removals. This resulted in $263,850 of additional scope for the Contractor, or approximately 22.5% of the contract. Change order requests to date for this contract are summarized in the Fiscal Impact section below.
Authorizing an increase in the change order cap will allow staff to provide payment to the contractor for the increases in scope under the current contract. An increase of 10% ($117,295) to the existing contract change order cap is necessary to cover the costs of the extra work completed to date. No additional appropriation is needed to cover the costs of the additional work.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure.
Previous Actions
• On November 18, 2019, by Resolution No. 2019-189, the City Council awarded a construction contract to Spencon Construction, Inc. for $1,172,980 and appropriated $170,000 in Measure B Funds.
Applicable General Plan Policies
• Policy T-3.6 - Pedestrian Environment. Improve the walkability of all streets in San Leandro through the planning, implementing, and maintaining of pedestrian supportive infrastructure.
• Policy T-3.7 - Removing Barriers to Active Transportation. Reduce barriers to walking and other forms of active transportation such as incomplete or uneven sidewalks, lack of wheelchair ramps and curb cuts, sidewalk obstructions including cars parked on sidewalks, trail gaps, wide intersections, and poor sidewalk connections to transit stops.
• Policy CSF-6.8 - Maintenance. Ensure that sufficient funding is provided for the ongoing maintenance of City-owned facilities, including streets, streetlights, traffic signals, landscaping, street trees, storm drains, public buildings, and other infrastructure.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA) per Section 15301(c) of the CEQA guidelines. The Notice of Exemption was filed with the Alameda County Recorder on September 27, 2019, and the City received no public objections to the project within the statutory comment period.
Summary of Public Outreach Efforts
This project was advertised in the Daily Review on September 20, 2019, as well as in three other newspapers with circulations that reflect San Leandro’s diversity. Staff also notified contractors interested in working with the City and sent the Contract Book to local builder’s exchanges.
Prior to construction, the Contractor notified residents and businesses whose properties were directly impacted by construction of the construction activities.
Fiscal Impacts
The construction costs are as described below:
Design, Site Investigation and Bid $74,280
Construction Contract $1,172,980
Contract Change Order $434,000
Construction Management and Inspection $133,178
Total $1,814,438
Change Order Summary
Change Order limit authorized at contract award was 27% ($316,705).
CCO No. Description Amount %
1 Added scope for removal of street trees. $58,635 5%
2 Added scope for removal of street trees. $58,635 5%
3 Added scope for removal of street trees. $58,620 5%
4 Added scope for removal of street trees. $58,650 5%
5 Added scope for removal of street trees, $58,620 5%
replacement of ADA compliant truncated
domes, installation of new bike racks
6 Added scope for removal of street trees. $23,535 2%
7 Added scope for additional locations and $58,655 5%
removal of street trees.
8 Added scope for additional locations and $58,650 5%
removal of street trees.
Total Requested Change Orders $434,000 37%
Budget Authority
This sidewalk repair project is funded as follows:
Account No. Appropriation Dates & Source Amount
144-36-420 FY 2020-21, Measure B $117,295*
144-36-414 FY 2019-20, Measure B $450,000
141-38-414 FY 2019-20, Measure BB $50,000
141-36-414 FY 2019-20, Measure BB $220,000
141-36-006 FY 2019-20, Measure BB $63,194
144-36-006 FY 2019-20, Measure B $89,414
144-36-400 FY 2018-19, Measure B $210,852
141-38-400 FY 2018-19, Measure BB $20,000
141-36-400 FY 2018-19, Measure BB $100,000
150-36-429 FY 2018-19, TDA Grant $67,029
210-36-400 FY 2018-19, General Fund $205,000
144-36-379 FY 2017-18, Measure B $138,954
150-36-428 FY 2017-18, TDA Grant $82,700
Total Proposed Project Funding $1,814,438
*Not the full appropriation; only the portion used on this project/contract is shown.
PREPARED BY: Phillip Toste, Associate Engineer, Engineering and Transportation Department