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APPROVE CONTRACT CHANGE ORDER NO. 3 WITH STANTEC CONSULTING SERVICES, INC. FOR THE THORNTON ROAD WIDENING PROJECT
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion authorizing the City Manager to execute Contract Change Order No. 3 to the contract, in the amount of $145,000, with Stantec Consulting Services, Inc. for design support services during construction of the Thornton Road Widening, Project No. PW1428.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
On May 19, 2015, by Resolution No. 2015-05-19-1205, Council approved an Amendment to the Professional Services Master Contract with Stantec Consulting Services, Inc. (Stantec), in the amount of $149,836, to update existing plans and specifications, environmental documents, permits, and to provide limited design support services needed during the construction of the Thornton Road Widening project. The project was included in the Fiscal Year (FY) 2016-21 Capital Improvement Plan (CIP).
Construction of the Thornton Road Widening project is about 30 percent complete, with completion currently estimated by June 2018. Shallow utilities were discovered in the project area, and two change orders have already been executed to provide additional funds and time to address the unforeseen circumstances. Appropriate reimbursement will be sought from the respective utilities for the previously unreported utilities. However, execution of a Contract Change Order (CCO) in the amount of $145,000 is recommended to ensure uninterupted design support services during construction pending reimbursement. CCO No. 3 with Stantec will bring the total for design support during construction to $239,000, or approximately two percent of the construction cost. Projects of this magnitude typically utilize design support amounting to three percent of construction cost.
CCO No. 3 will exceed the authorized change order authority allowed under the original contract and requires Council approval. Staff recommends Council authorize the City Manager to execute CCO No. 3, in the amount of $145,000, with Stantec for design support services during construction of the Thornton Road Widening, Project No. PW1428.
DISCUSSION
Background
Thornton Road is an important arterial within the City of Stockton providing north-south access from Eight Mile Road to Hammer Lane. The City is the lead agency for delivering the Thornton Road Widening project (Attachment A). The project was included in the FY 2016-21 CIP.
On September 11, 2007, by Resolution No. 07-0383, Council authorized the execution of an Amendment to the Professional Services Master Contract with Stantec for final design of the Thornton Road Widening project. The project construction was originally anticipated in 2010, However, Measure K funds planned for the project were not available due to the recession and the project was placed on hold.
With an improved economy in 2014, the San Joaquin Council of Governments (SJCOG) informed the City the project could be funded using Measure K bond revenue. Council authorized executing a Measure K Renewal Financing Agreement between the City of Stockton and the SJCOG to fund the Thornton Road Widening project on May 19, 2015, by Resolution No. 2015-05-19-1205. The resolution also approved an Amendment to the Professional Services Master Contract with Stantec, in the amount of $149,836, to update existing plans and specifications, environmental documents, permits, provide bidding support, and provide limited design support during construction of the project.
On July 26, 2016, by Resolution No. 2016-07-26-1212, Council awarded a Construction Contract for the Thornton Road Widening project to Goodfellow Top Grade Construction, LLC in the amount of $11,618,705. Construction began in October 2016.
Two CCO’s have been issued to Stantec thus far. The original contract included approximately $15,000 for design support during construction, an amount that was only sufficient to get the project started. Projects of this magnitude typically utilize design support amounting to three percent of construction cost, which for this project would be approximately $350,000. CCO No. 1, in the amount of $79,000, was issued to Stantec for additional design support to provide additional surveying, design clarifications and/or modifications, and to redesign portions of the plans to avoid shallow utilities discovered on Phase 1 of the project. The shallow utilities consisted mostly of PG&E high voltage electric lines and AT&T fiber optic duct banks that were not anticipated based on information received from the utility companies. The City will seek reimbursement from the respective utilities for redesign and construction delay costs incurred due to their facilities. CCO No. 2 was issued at no additional cost to extend Stantec’s design contract term past construction of the project to allow time to prepare design record drawings and to complete other project close out work.
Present Situation
Construction of the Thornton Road Widening project is about 30 percent complete, with completion currently estimated at June 2018. To ensure proper design support services during construction through project close-out, execution of CCO No. 3 with Stantec in the amount of $145,000 is recommended (Attachment B). Prior change orders to address the shallow utilities exhausted funding for design support, and the potential of additional unforeseen circumstances warrants additional funds. CCO No. 3 will bring the total design support during construction for the project, including the initial contract allocation of $15,000, to $239,000 or approximately two percent of construction.
Council approval is needed for CCO No. 3, as it will exceed the authorized change order authority allowed under the original contract. Staff recommends Council authorize the City Manager to execute CCO No. 3, in the amount of $145,000, with Stantec for design support services during construction of the Thornton Road Widening, Project No. PW1428.
FINANCIAL SUMMARY
CCO No. 3, in the amount of $145,000, will be funded from the Thornton Road Widening project (PW1428). There is currently an unencumbered balance in the project of $2,553,800 which is sufficient to approve CCO No. 3. The remaining funds are for construction contingency, other change orders, and staff costs.
There is no impact to the City’s General Fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map
Attachment B - Contract Change Order No. 3