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APPROVE MOTION TO AUTHORIZE CONTRACT CHANGE ORDER FOR THE THORNTON ROAD WIDENING PROJECT
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RECOMMENDATION
It is recommended that the City Council approve a motion authorizing Contract Change Order No. 42, in the amount of $281,260, with Goodfellow Top Grade Construction, LLC for 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 July 26, 2016, by Resolution No. 2016-07-26-1212, Council approved a Construction Contract with Goodfellow Top Grade Construction, LLC, in the amount of $11,618,705, for construction of the Thornton Road Widening project. The project was included in the Fiscal Year (FY) 2016-21 Capital Improvement Plan (CIP). Additional funding was allocated to the project in the FY 2018-23 CIP.
The Thornton Road Widening project was originally scheduled to be completed by November 2017. Construction delays primarily related to utility conflicts and poor weather extended the project completion date by approximately one year. The contractor completed the west side of Thornton Road, and is currently building the east side of Thornton Road. The final phase of construction work is expected to be completed by the end of November 2018. Contract Change Order (CCO) Nos. 1 through 23 were processed administratively to facilitate utility adjustments, conduct subsurface inspections, protect utilities, and for additional contractor overhead costs for the extra time needed to complete the project. CCO No. 24 provided for additional utility protection of shallow utilities and was approved by Council on April 17, 2018. With this Council action, the change order authority was re-set, and construction continued. CCO Nos. 25 through 41 were processed within the updated administrative change order authority to facilitate utility adjustments, modify the roadway design to avoid utilities, and perform grade adjustment and related work on adjacent properties. Council approval is recommended for CCO No. 42, as the cumulative amount of CCO Nos. 25 through 42 will exceed the current administrative change order authority. Staff is documenting and reviewing all utility and design related issues that contributed to project delays. A full accounting of the delays and associated cost impacts will be known when the Thornton Road Widening project is complete. Staff and the City Attorney’s Office are evaluating what action is needed to recover any unnecessary utility related cost overruns.
Staff recommends Council approve CCO No. 42, in the amount of $281,260, with Goodfellow Top Grade Construction, LLC for construction of the Thornton Road Widening, Project No. PW1428. CCO No. 42 is necessary to compensate Goodfellow Top Grade Construction, LLC for an increase in the asphalt thickness of the roadway which increased the amount of asphalt quantity needed on the project. Upon approval of CCO No. 42, the Council authorized total contract value will be $14,560,836.18, the original contract amount plus cumulative total of CCO Nos. 1 through 42. A new administrative change order authority of $1,521,083.62 will be established based on the new total contract value. Depending on the degree of additional complications experienced while completing construction of the project and negotiation of any pending project claims, additional change orders may be presented for Council consideration.
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 - Vicinity Map). The project was included in the FY 2016-21 CIP and the FY 2018-23 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. A portion of this amount, totaling $1,952,740, is for work within County jurisdiction and will be reimbursed by San Joaquin County. The County is also required to reimburse the cost of any change orders attributed to their share of the project. Construction began in October 2016.
The Thornton Road Widening project is designed to be constructed in three phases. Construction of the west side of Thornton Road is the first phase of work. The second phase is construction of the east side of Thornton Road, with the final phase being the installation of medians.
Shallow utilities were uncovered while constructing phase one of the project, which significantly delayed the project. PG&E underground electric and gas facilities, AT&T fiber optic duct banks, a City water supply line, and other incidental utilities are located within the project’s work limits. Initial excavation work determined that a portion of these utilities were shallow and in conflict with the zone of excavation and reconstruction for the roadway section. The contractor performed additional exploratory utility excavations (utility potholing) to confirm the extent and nature of the shallow utility conflicts. The project design engineer, Stantec, redesigned the roadway section and portions of the traffic signal, lighting, and storm systems to resolve utility obstructions on the project. This redesign and modified construction method to avoid shallow utilities caused significant delays to the project.
The Thornton Road Widening project was originally scheduled to be completed by approximately November 2017, based on allowable construction days. This date did not account for delays due to weather, material delivery impacts, additional work, or unforeseen circumstances. These factors would typically result in relatively minor delays, and at the beginning of the project it was expected that the actual completion would be in early 2018. This completion date is now estimated to be November 2018, due to delays that are categorized as follows:
Project Suspension (three months): The discovery of shallow utilities in phase one of the project required additional utility potholing and a redesign of portions of the project to resolve utility obstructions. This prevented the contractor from completing scheduled work for three months.
Weather delays (four months): Projects routinely experience delays due to inclement weather. On the average, two months of weather related delays per year can be expected on larger projects. The Thornton Road Widening project is expected to incur four months of weather delays over a two-year construction season.
Utility delays (two months): Some utility obstructions could not be fixed through redesign efforts. Various utilities mobilized to relocate their facilities out of the path of the contractor’s work. The relocation process, along with customer notification notice timelines, caused delays to the contractor’s work schedule.
Utility Protection Work (three months): A new roadway section design and shallow utility precautionary measures were added to the project. As a precaution, the contractor had to install concrete protective caps over existing shallow utilities as part of building the roadway. In addition, restrictions on the weight and construction methods over shallow utilities were added. The precautionary measures will add more time to build the roadway and will delay the project’s completion by three months.
Present Situation
The contractor completed the west side of Thornton Road, and is currently building the east side of Thornton Road (phase two). The third and final phase of the project involves construction of medians, striping, pavement markings, signage, and final punch list items. The final phase is expected to be completed by November 2018. Staff coordinated with the contractor, designer, and utility companies to resolve utility issues on the project and mitigate delays to the extent possible.
Construction CCO Nos. 1-23, in the amount of $1,156,338.38, were previously approved under the administrative change order authority allowed under the original contract. These change orders were needed to facilitate utility adjustments, conduct subsurface inspection, protect utilities, and pay overhead costs due to the contractor during project suspension.
CCO No. 24, in the amount of $150,000, to install concrete caps over shallow utilities on the east half of the roadway was approved by Council on April 17, 2018, by Motion No. 2018-04-17-1109, as this change order exceeded the administrative change order authority allowed under the original contract. CCO No. 24, when added to total previous change orders, increased the construction total to $12,925,043.38. With this Council action, the change order authority was re-set, and construction continued. CCO Nos. 25 through 41 were processed within the administrative change order authority of $1,357,504.34. CCO Nos. 25 through 41 were generally needed to facilitate utility adjustments, modify the roadway design to include structural geogrid fabric to protect utilities, and perform grade adjustment and related work on adjacent properties.
CCO No. 42 with Goodfellow Top Grade Construction, LLC, in the amount of $281,260, is required to account for additional asphalt concrete needed as part of a revised roadway design. The revised roadway design reduces the overall thickness of the roadway construction section from 29 inches (6" asphalt over 23" aggregate base) to 17 inches (8" asphalt over 9" aggregate base with reinforcing fabric). This 12-inch total net reduction of the roadway construction thickness reduces the conflict with shallow utilities. CCO No. 42 is for the increased quantity of asphalt at the contract unit price. A deductive change order for the reduced excavation quantities has already been processed. Council approval is needed for CCO No. 42, as the cumulative amount of CCO Nos. 25 through 42 will exceed the administrative change order authority under the contract (Attachment B - CCO No. 42).
Staff recommends Council approve CCO No. 42, in the amount of $281,260, with Goodfellow Top Grade Construction, LLC for construction of the Thornton Road Widening, Project No. PW1428. Upon approval of CCO No. 42, the Council authorized total contract value will be $14,560,836.18, the original contract amount plus cumulative total of CCO Nos. 1 through 42. A new administrative change order authority of $1,521,083.62 will be established based on the new total contract value. Depending on the degree of additional complications experienced while completing construction of the project and negotiation of any pending project claims, additional change orders may be presented for Council consideration.
Staff has been documenting and reviewing all utility and design related issues that have contributed to project delays. A full accounting of the delays and associated cost impacts, and the proportion of the change orders to be reimbursed by San Joaquin County, will not be known until the Thornton Road Widening project is completed. Staff and the City Attorney’s Office are presently addressing a potential course of action needed to recover any unnecessary utility related cost overruns.
FINANCIAL SUMMARY
The Thornton Road Widening, Project No. PW1428, currently has an unencumbered balance of $3,285,000 remaining, which is sufficient to fund the CCO No. 42, in the amount of $281,260, with Goodfellow Top Grade Construction, LLC.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map
Attachment B - Contract Change Order No. 42