Title
Adopt a Resolution to Approve and Authorize the City Manager to Negotiate and Approve an Increase in the Cumulative Change Order Amount from 15% to 25% (from $532,582 to $887,637) for Annual Street Paving 21-23 Rehabilitation Phase, Project No. 2022.0050
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY
This contract provides for the mill and overlay, and full depth reclamation (FDR) of five streets throughout the City. The increase in change order authority will be for additional base repairs and subgrade-cement mixing on Anza Way, necessitated by unforeseen poor subgrade conditions.
RECOMMENDATIONS
Staff recommends the following action:
• Authorize an increase in the Cumulative Change Orders Cap from 15% to 25% (from $532,582 to $887,637) of the Construction Contract
BACKGROUND
On July 15, 2024, the City Council awarded a contract to DeSilva Gates Construction, LLC for $3,550,550 for the Annual Street Paving 21-23 Rehabilitation Phase, Project No. 2022.0050 and authorized the City Manager to approve individual contract change orders up to 5% and cumulative change orders up to 15% of the original contract amount.
This contract is for the pavement rehabilitation phase of a multi-phased project which utilized a Full Depth Reclamation (FDR) process to rehabilitate Anza Way, Beecher Street, and a short section of Dutton Avenue, in addition to the milling and overlaying of Lorraine Avenue and 139th Avenue. Previous project phases that included street sealing and curb ramp construction have already been completed.
Pedestrian curb ramps within the street reconstruction limits were also updated to comply with Americans with Disabilities Act (ADA) accessibility standards.
Analysis
The project is substantially complete, and the contractor is addressing punch list items. However, during the paving of Anza Way, unexpectedly poor subgrade conditions were encountered. Stabilizing the street required significantly higher quantities of hot mix asphalt (HMA) used for base repairs due to the unforeseen softness of the subgrade. Soil investigations conducted during the design phase of the project did not reveal the full extent of these poor subgrade conditions, as sampling at select points cannot guarantee a uniform representation of the entire street.
In addition, a higher-than-expected number of shallow utilities within the roadway required subgrade stabilization to be performed by hand, rather than with heavy equipment, to prevent damage. This labor-intensive process was far more time-consuming and costly than originally planned.
As a result, the total value of change orders will exceed the previously approved cumulative contract change order cap. To fully close out the project and issue final payment to the contractor, staff recommends increasing the cap from 15% to 25%, raising the limit from $532,582 to $887,637-an increase of $355,055.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
Previous Actions
• On April 18, 2022, by Resolution No. 2022-055, the City Council authorized the City Manager to execute a Consulting Services Agreement with Nichols Consulting Engineers for an Amount Not to Exceed $1,065,000 for the Design of the Annual Street Paving 2021-2023 Project, Project No. 2022.0050; to Authorize Individual Agreement Amendments Up to 10% ($106,500); and to Authorize Cumulative Agreement Amendments Up to 25% ($266,250)
• On January 23, 2023, by Resolution No. 2023-006, the City Council Approved a Construction Contract with Spencon Construction in an amount of $2,471,000 for Curb Ramp Upgrades for the Annual Street Paving 21-23, Project No. 2020.0050, and authorized the City Manager to Negotiate and Approve Individual Change Orders Up to 5% of the Original Contract Amount ($123,550) and Cumulative Change Orders up to 25% of the Original Contract Amount ($617,750) and appropriated $465,000 for the Project in Fiscal Year 2022-2023
• On June 20, 2023, by Resolution No. 2023-073, the City Council Approved a Construction Contract with Pavement Coatings Company in an amount of $9,207,613 for the Surface Seal Phase for the Annual Street Paving 21-23, Project No. 2020.0050, and authorized the City Manager to Negotiate and Approve Individual Change Orders Up to 5% of the Original Contract Amount ($460,380) and Cumulative Change Orders up to 10% of the Original Contract Amount ($920,761)
• On July 15, 2024, by Resolution No. 2024-092, the City Council awarded a contract to DeSilva Gates Construction, LLC for $3,550,550 for Annual Street Paving 21-23 Rehabilitation Phase, Project No. 2022.0050 and authorized the City Manager to approve individual contract change orders up to 5% and cumulative change orders up to 15% of the original contract amount
Applicable General Plan Policies
• Policy T-5.3 - Maintenance. Regularly maintain City streets and traffic control devices to ensure that streets operate safely and efficiently. The City will strive for an overall Pavement Condition Index of 76, which is the lower limit of industry best practices
• Policy T-2.1: Complete Streets Serving All Users and Modes. Create and maintain “complete” streets that provide safe, comfortable, and convenient travel through a comprehensive, integrated transportation network that serves all users
• Policy T-7.2: Capital Improvements. Identify capital improvements and other measures which improve the safety of bicyclists, pedestrians, and motor vehicles on San Leandro Streets
Environmental Review
A CEQA exemption was filed on April 14, 2022 with the Alameda County Clerk’s office.
Summary of Public Outreach Efforts
The Notice to Bidders was published in the Daily Review, the South County Post, Vision Hispana and World Journal. Staff also notified local builders’ exchanges and construction data firms, as well as a list of contractors that asked to be notified of bidding opportunities via email. The project is described on the Engineering and Transportation Department website.
Two mandatory pre-bid meetings were held on May 7 and May 9, 2024, with potential bidders.
Prior to any construction which would affect access to private businesses or residences, the contractor provided advance notification in the form of door hangers before the work started.
Contract Change Order Summary
CCO No. Description Amount %
1 Increased base repair quantity, bid item 23 $177,527.50 5%
2 Increased base repair quantity, bid item 23 $177,527.50 5%
3 Increased base repair quantity, bid item 23, $177,527.50 5%
and speed bump installation
4 * Increased base repair quantity, bid item 23, $177,527.50 5%
and increased hand mix quantity, bid item 27
5 * Increased hand mix quantity, bid item 27 $54,292.76 1.5%
Estimated Change Order Total $764,402.76 21.5%
*CCO items to be executed after City Council approval.
Financial Impacts
The estimated cost of this project is detailed below. The budget authority section has details on funding types, accounts, and authorizations. CIP accounts are carried forward for five years or until the work is complete, whichever occurs first.
Design and Bid $1,250,000
Construction Contracts:
Curb Ramps (Spencon Construction) $2,252,890
Pavement Surface Seal (Pavement Coatings Co.) $9,623,512
Pavement Rehabilitation (DeSilva Gates Construction, LLC) $3,550,550
Construction Management & Inspection $649,301
Construction Contingencies $532,583
Total Cost: $18,131,836
Budget Authority
The project is funded as follows:
Account No. Reso. Appropriation Dates & Source Amount
152-38-521 FY 22-23 Budget, SB1 Grant $500,000
144-38-520 FY 22-23 Budget, Measure B Grant $1,005,000
190-31-804 FY 22-23 Budget, ARPA Grant $3,699,665
150-38-452 FY 22-23 Budget, Cal Recycle Grant $165,000
152-38-520 FY 22-23 Budget, Gas Tax Funds $965,000
210-38-521 FY 22-23 Budget, General Funds $8,953,723
141-38-392 FY 17-18 Budget, Measure BB $266,896
141-38-528 FY 24-25 Budget, Measure BB $2,576,604
Total Appropriation: $18,131,888
ATTACHMENT
• A: Resolution Paving CCO Cap
PREPARED BY: Bennett Sanderson, Assistant Engineer, Public Works Department, Engineering Division