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APPROVE MOTION TO AUTHORIZE CONTRACT CHANGE ORDER FOR THE HAMMER LANE WIDENING PHASE 3B PROJECT
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RECOMMENDATION
It is recommended that the City Council approve a motion authorizing the City Manager to execute Contract Change Order No. 36, in the amount of $102,634.50, with DSS Company dba Knife River Construction for the Hammer Lane Widening Phase 3B, Project No. PW1427.
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 September 27, 2016, by Resolution No. 2016-09-27-1212, Council approved a Construction Contract with DSS Company dba Knife River Construction, in the amount of $5,645,461.65, for construction of the Hammer Lane Widening Phase 3B project. The project was included in the Fiscal Year (FY) 2016-21 Capital Improvement Plan (CIP).
The Hammer Lane Widening Phase 3B project was originally scheduled to be completed by May 2018. Construction delays related to additional work and adverse weather conditions extended the project completion date to August 2018. Construction began in April 2017, and is now substantially complete with only project closeout remaining. Contract Change Order (CCO) Nos. 1 through 35 were processed administratively to facilitate utility adjustments, install additional fire hydrants, make field modifications to storm drain facilities, and make additional roadway repairs. CCO No. 36 is for additional paving work on the north side of Hammer Lane between Valencia Avenue and Misty Lane. Council approval is recommended for CCO No. 36, as the cumulative amount of CCO Nos. 1 through 36 will exceed the current administrative change order authority.
Staff recommends Council approve CCO No. 36, in the amount of $102,634.50. Upon approval of CCO No. 36, the Council authorized total contract value will be $6,331,114.02, the original contract amount plus cumulative total of CCO Nos. 1 through 36.
DISCUSSION
Background
Hammer Lane is an important arterial within the City of Stockton providing east-west access from Interstate 5 to State Route 99 (SR99). The City is the lead agency for delivering the Hammer Lane Widening Phase 3B project (Attachment A - Vicinity Map). The project was included in the FY 2016-21 CIP.
In October 1994, Council adopted specific plans for nine roadway corridors, one of which included the Hammer Lane corridor. The Specific Plan for Hammer Lane identified the roadway to be widened to six lanes from Interstate 5 to Thornton Road, and to eight lanes from Thornton Road to SR99. The widening of Hammer Lane was divided into multiple phases as follows: Thornton Road to the Union Pacific Railroad crossing (Phase 1), Union Pacific Railroad underpass to the formerly Southern Pacific Railroad crossing (Phase 2), and Kelley Drive to Thornton Road (Phase 3). Phases 1 and 2 were completed in 2003 and 2004, respectively.
On March 8, 2005, by Resolution No. 05-0080, Council authorized the execution of an Amendment to the Professional Services Master Contract with Mark Thomas & Company, Inc. for final design of the third phase of the Hammer Lane Widening project from Kelly Drive to Thornton Road. Phase 3 plans were completed, but were split into two phases - Phase 3A (Kelly Drive to Alexandria Place) and Phase 3B (Alexandria Place to Thornton Road), due to funding availability, right-of-way acquisition issues, and utility relocations.
With an improved economy in 2014, the San Joaquin Council of Governments (SJCOG) informed the City that 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 Hammer Lane Widening Phase 3B project on May 19, 2015, by Resolution No. 2015-05-19-1204. By Motion No. 2015-05-19-2014 on the same date, Council authorized the execution of an Amendment to the Professional Services Master Contract with Mark Thomas & Company, Inc. in the amount of $285,051, to update existing plans and specifications, environmental documents, permits, provide bidding support, and provide limited design support during construction of the project.
On September 27, 2016, by Resolution No. 2016-09-27-1212, Council awarded a Construction Contract for the Hammer Lane Widening Phase 3B project to DSS Company dba Knife River Construction in the amount of $5,645,461.65. Construction began in April 2017, and is now substantially complete with only project closeout remaining.
Present Situation
Construction CCO Nos. 1 through 35, in the amount of $583,017.87, were previously approved under the administrative change order authority allowed under the original contract. These change orders were needed to facilitate utility adjustments, install additional fire hydrants, make field modifications to storm drain facilities, and make additional roadway repairs.
CCO No. 36 with DSS Company dba Knife River Construction, in the amount of $102,634.50, is required to pay for the additional hot mix asphalt pavement needed on the north side of Hammer Lane between Valencia Avenue and Misty Lane that was not included as part of the original scope of work. This section of the project was not going to be paved as part of the original design. However, paving became necessary because the roadway condition deteriorated, and the surface profile was uneven. Paving this section addressed this deficiency and improved rideability. The CCO is being paid at the contract unit price for asphalt. Council approval is needed for CCO No. 36, as the cumulative amount of CCO Nos. 1 through 36 will exceed the administrative change order authority under the contract (Attachment B - CCO No. 36).
Staff recommends Council approve CCO No. 36, in the amount of $102,634.50, with DSS Company dba Knife River Construction for construction of the Hammer Lane Widening Phase 3B, Project No. PW1427. Upon approval of CCO No. 36, the Council authorized total contract value will be $6,331,114.02, the original contract amount plus cumulative total of CCO Nos. 1 through 36. A new administrative CCO authority of $698,111.40 will be established based on the new total contract value. The majority of this new CCO authority will not be used. The project is now substantially complete with only the final balancing CCO remaining. The final CCO is not expected to utilize a significant percentage of this new authority.
FINANCIAL SUMMARY
The current approved budget for the Hammer Lane Widening Phase 3B, Project No. PW1427, is $9,759,224. There is an unencumbered balance of $2,265,900, which is sufficient to fund the CCO No. 36, in the amount of $102,634.50, with DSS Company dba Knife River Construction (304-3020-640).
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. 36