CITY COUNCIL STAFF REPORT
Meeting: April 4, 2023
Subject
Consider authorizing an increase in the total contract amount with Guerra Construction Group for the Wilson Park Basketball Court Project (Project No. 2022-11).
Recommended Action
Authorize the Director of Public Works to execute any necessary change orders for an additional construction contingency amount of $40,000 and increase the authorized contract amount to a not-to-exceed total of $369,421.40 to Guerra Construction Group; and Adopt Resolution No. 23-xxx approving budget modification #2223-271 increasing appropriations by $40,000 in the Capital Improvement Program Capital Projects Fund (budget unit 420-99-252) for construction contingency and transferring the funds from the Capital Reserve (budget unit 429-99-001).
Reasons for Recommendation
On January 17, the City Council awarded a construction contract with Guerra Construction Group in the amount of $299,474.00 and authorized the Director of Public Works to execute any necessary change orders, up to a construction contingency amount of $29,947.40 (10%), for a total authorized contract amount of $329,421.40.
During excavation activities, the Contractor uncovered several unexpected conditions in the new basketball court area:
A storm drain pipe of approximately 110 linear feet (LF) which was slated for demolition, was discovered to be made of asbestos containing materials. Handling of asbestos requires a contractor with a specialized license for removal and disposal. The cost to remove and properly dispose of this pipe is $14,067.90; A separate abandoned asbestos pipe of approximately 92 LF was found in another location within the excavated area. Handling of asbestos requires a contractor with a specialized license for removal and disposal. The cost to remove and properly dispose of this pipe is $14,202.30; A third abandoned asbestos pipe of unknown length was found within the excavated area. Handling of asbestos requires a contractor with a specialized license for removal and disposal. The cost to remove and properly dispose of this pipe is currently unknown, but is estimated at approximately $10,300; An active water line was also found running beneath the northern half of the court. The cost to relocate this water line is approximately $8,500.
Table 1 – Construction Change Orders
Wilson Park Basketball Court Project
PCO#
Description
Amount
1 Asbestos Pipe Removal
$14,067.90
2 Asbestos Line Removal
$14,202.30
3 Asbestos Line Removal
$10,300.00
4 Water Line Relocation
$8,500.00
Total
$47,070.20
Authorized construction contingency amount: $29,947.40
Differential: $17,122.80 over currently authorized funding The cost of the additional work, including removal and disposal of the hazardous material, is estimated at $47,070, exceeding the currently authorized contingency amount of $29,947.40. Since the removal of the asbestos pipes and relocation of the water line are necessary to construct the basketball court, extra funds are needed beyond the current contingency amount. The existing contingency plus the additional funds, (for a total project contingency of 23%) will address the current change orders, as well as allow for further contingency funding that may be required as the construction on the project progresses.
Sustainability Impact
No sustainability impact.
Fiscal Impact
The Fiscal Year 2022-2023 Capital Improvement Programs budget for the Wilson Park Basketball Court Project (budget unit 420-99-252) is $510,000, which includes $214,549 of grant funding. The existing budget, which includes design, permitting, construction management services, and the construction contract, is not adequate to implement the project due to the unanticipated conditions. An additional appropriation of funds is requested in the amount of $40,000. The additional appropriations are to be funded by the Capital Reserve Fund through a transfer of funds to the project budget (from budget unit 429-90-001 and transferred to budget unit 420-99-252). If approved, the total project budget will be $550,000.
California Environmental Quality Act (CEQA)
This project is exempt from the CEQA under 14 C.C.R. Section 15301 (minor alterations to existing facilities.) _____________________________________
Prepared by: Ayano Hattori, Project Manager
Reviewed by: Susan Michael, Capital Improvement Programs Manager Reviewed by: Chad Mosley, Interim Director of Public Works Department Reviewed by: Matt Morley, Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:
A– Draft Resolution