ITEM 4. 9
CITY MANAGER' S REPORT
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE CONTRACT CHANGE ORDER WITH GEORGE
REED, INC. AND RELATED BUDGET AMENDMENT
ASSOCIATED WITH ROAD MAINTENANCE AND
REHABILITATION, CIP PS 22- 45
RECOMMENDATION: Adopt Resolution Approving a Contract Change Order with George Reed, Inc. and Related Budget
Amendment Associated with Road Maintenance and
Rehabilitation, CIP PS 22- 45
SUMMARY:
On August 8, 2022, City Council awarded a construction contract to George Reed, Inc. for the construction of Road Maintenance and Rehabilitation, Capital Improvement Project ( CIP) PS 22- 45. Staff has identified additional roadway segments that are in need of repair ( Table 1, below) and requested a proposal to perform the extra work. A proposed Change Order with George Reed for this extra work is included as Attachment B, and a project location map is included as Attachment C.
Staff is requesting City Council approve a Contract Change Order in the amount of 760, 530 and a budget amendment transferring $ 760, 530 from the Street Reserve Fund ( 1010) to the Streets CIP Fund ( 3310) and authorize staff to spend the additional funds as necessary to achieve the goals of the project.
BACKGROUND:
On August 8, 2022, City Council awarded a construction contract to George Reed for the construction of the Road Maintenance and Rehabilitation, CIP PS 22- 45. The scope of work consisted of constructing a 3" overlay and installing traffic striping and road markings on Thomsen Road, J Street and Prairie Dunes Drive.
The subject overlay process consists of grinding to remove edge and failed asphalt from the existing street surface, and then placing a single layer of hot asphalt on top and compacting to a depth of 3".
Subsequent to contract execution, Staff identified additional roadway segments that would benefit from a pavement rehabilitation process similar to that being currently performed on the aforementioned streets. These additional segments and the limits of work are summarized in Table 1, below.
CITY MANAGER' S REPORT PAGE 2
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
APPROVE CONTRACT CHANGE ORDER WITH GEORGE REED, INC. AND
RELATED BUDGET AMENDMENT ASSOCIATED WITH THE ROAD
MAINTENANCE AND REHABILITATION, CIP PS 22- 45
Table 1 - Proposed Additional Scope of Work
STREET NAME SEGMENT BEGIN SEGMENT END
Rev. Maurice Cotton Dr. Lathro Rd. Warren Ave.
Shillin Ave. Rev. Maurice Cotton Dr. 100' west of Cedar Valle Dr.
Avon Ave. Lathro Rd. Warren Ave.
Suzie Q Ln. Min o W . Somoa Lane
Min o W . Warfield Rd. Cambrid e Dr.
The proposed extra work includes, and is detailed as Option 1 in Exhibit A to Attachment B:
Rev. Maurice Cotton Dr., Shilling Ave., and Avon Ave.: Pulverize existing road, place 3" overlay, shoulder back, striping and markings.
Suzie Q Ln. and Mingo Wy: grind and remove 3" depth of existing asphalt; place 3" asphalt overlay, striping and markings.
Pulverization is the process of crushing and compacting in- place existing asphalt to form road base, and is an economical alternative to complete road reconstruction.
Shoulder backing is the process of placing and compacting a 3' wide strip of baserock adjacent to new paving on streets without curb and gutter to protect the 3" vertical edge of the new asphalt overlay.
Staff recommends and requests Council approve the proposed budget transfer and change order to perform this pavement rehabilitation.
REASON FOR RECOMMENDATION:
The street segments identified by staff are in need of repair and would benefit from the pavement rehabilitation process currently being performed by George Reed on streets in the original scope of work. Performing the proposed work during George Reed' s mobilization for the current scope of work would be less expensive than performing the work under a separate mobilization, and would extend the service life of the streets by 10- 15 years.
FISCAL IMPACT:
The approved contract with George Reed is for $ 1, 793, 860, with a 15% construction contingency in the amount of $ 269, 079, for a total project budget of $ 2, 062, 939. To fund the proposed additions to the scope of work, a change order in the amount of 910, 529. 80 and a budget amendment in the amount of $ 760, 530 are needed. With the proposed budget amendment, the total authorized project budget would be 2, 823, 469.
CITY MANAGER' S REPORT PAGE 3
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
APPROVE CONTRACT CHANGE ORDER WITH GEORGE REED, INC. AND
RELATED BUDGET AMENDMENT ASSOCIATED WITH THE ROAD
MAINTENANCE AND REHABILITATION, CIP PS 22- 45
Staff requests City Council approve a budget amendment transferring $760, 530 from the Street Reserve Fund ( 1010) to the Streets CIP Fund ( 3310) as follows:
Increase Transfer Out
1010- 9900- 990- 9010 760, 530
Increase Transfer In
3310- 9900- 393- 0000 PS 22- 45 760, 530
Increase Ex enditures
3310- 8000- 420- 12- 00 PS 22- 45 760, 530
Decrease Reserve
1010- 251- 03- 00 PS 22- 45 760, 530
ATTACH M ENTS:
A. Resolution Approving a Contract Change Order with George Reed, Inc. and Related Budget Amendment Associated with Road Maintenance and Rehabilitation, CIP PS 22- 45
B. Change Order with George Reed, Inc.
C. Project Location Map
CITY MANAGER' S REPORT PAGE 4
OCTOBER 10, 2022 CITY COUNCIL REGULAR MEETING
APPROVE CONTRACT CHANGE ORDER WITH GEORGE REED, INC. AND
RELATED BUDGET AMENDMENT ASSOCIATED WITH THE ROAD
MAINTENANCE AND REHABILITATION, CIP PS 22- 45
APPROVALS:
Q
D. ! f. 2 Z
Steven Hollenbeak Date
Assistant Engineer
ib - 4-.
Ken Reed Date
Senior Construction Manager
aa v l 'sl Za1' L
Cari James Date
Finance Director
I o - - 1- Zo22
Michael King Date
Assistant City Manager
0 ' S= z..z.
Salvador Navarrete Date
City Attorney
J- S' ZZ
St n J. Salvatore Date
City Manager
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING A CONTRACT CHANGE ORDER WITH GEORGE REED, INC. AND
RELATED BUDGET AMENDMENT ASSOCIATED WITH ROAD MAINTENANCE AND REHABILITATION, CIP PS 22- 45
WHEREAS, on August 8, 2022, City Council awarded a construction contract to George Reed, Inc. ( George Reed) for the construction of FY 22/ 23 Road Maintenance and Rehabilitation Capital Improvement Project ( CIP) PS 22- 45; and WHEREAS, the approved contract between the City of Lathrop and George Reed was in the amount of $ 1, 793, 860 plus a 15% construction contingency of 269, 079 for a total project budget of $ 2, 062, 939; and WHEREAS, the contract consisted of 3" asphalt overlays and associated paving tasks on segments of Stonebridge Ave, Thomsen Road, J Street and Prairie Dunes Drive; and
WHEREAS, staff identified additional roadway segments that would benefit from the pavement rehabilitation process currently being performed by George Reed:
Reverend Maurice Cotton Drive, Shilling Avenue, Avon Avenue, Suzie Q Lane and Mingo Way; and
WHEREAS, George Reed has provided the City with a proposal to accomplish this work at a cost of $910, 529. 80; and
WHEREAS, staff is requesting City Council approve a budget amendment transferring $ 760, 530 from the Street Reserve Fund ( 1010) to the Streets CIP Fund 3310) as follows:
Increase Transfer Out
1010- 9900- 990- 9010 760, 530
Increase Transfer In
3310- 9900- 393- 0000 PS 22- 45 760, 530
Increase Expenditures
3310- 8000- 420- 1200 PS 22- 45 760, 530
Decrease Reserve
1010- 251- 03- 00 PS 22- 45 760, 530
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve a Contract Change Order with George Reed, Inc. in the amount of $ 910, 529. 80 and a Budget Amendment transferring $ 760, 530 from the Street Reserve Fund ( 1010) to the Streets CIP Fund ( 3310) and authorize staff to spend the additional funds as necessary to achieve the goals of the project.
The foregoing resolution was passed and adopted this lOth day of October 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS T FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney t 7TAC1iAAENT
s ..
CHANGE ORDER NO. 3
FY 2022- 23 Road Maintenance and Rehabilitation
CIP PS 22- 45 City of Lathrop
CONTRACT CHANGE ORDER NO. 3
FY 2022- 23 ROAD MAINTENANCE AND REHABILITATION. CIP PS 22- 45 Contractor: George Reed, Inc.
Address: 140 Empire Avenue
Modesto CA 95354
Change Order Date: October 10, 2022
Notice to Proceed Date: September 12, 2022
Contract Date: August 8, 2022
This contract change order augments or changes the following:
1) ADDITIONS TO CONTRACT
Pursuant to the provisions of the Contract Specifications and proposal attached as Exhibit A, you are hereby directed to make the herein described changes to the plans and specifications, and scope of work contracted for within the terms of the agreement between the City of Lathrop and George Reed, Inc. dated August 8, 2022.
I. CHANGES IN THE SPECIFICATIONS
A. None
II. ADDITION S TO CONTRACT
Item Description Quantity Unit Unit Extension
Option 1: Suzie( Lane and Mingo Way—0. 25' mill and overlay Reverend Maurice Cotton Drive, Avon Drive, Shilling Ave— Pulverize Existing Roadway, Grade and Com act, Overla 0. 25' HMA
1. 1 Mobilization 1 LS $ 16, 700. 00 16, 700. 00
1. 2 Traffic Control for work on all Roads 1 LS $ 75, 000. 00 75, 000. 00
1. 3 Pulverize and Grade Existing Roadway 158, 730 SF 0. 78 123,809.40 Reverend Maurice Cotton Drive, Avon
Drive,
Shillin Ave
1. 4 Cold Mill Grinding and Off- 54, 960 SF 0. 74 40, 670. 40 Haul - Suzie Q and Min o Wa
1. 5 Lower/ Raise/ Patch I ron — All 1 LS $ 85, 000. 00 85, 000.00 Roads Based on Field Count of:
35 Manholes EA, 12 Water Valves and
One Monument
1. 6 HMA Paving — 0. 25' AC Section put 4, 010 TN 135. 00 541, 350.00 down on all
roads
1. 7 Shoulder Backing - Reverend Maurice 350 TN 80. 00 28, 000. 00 Cotton Drive, Avon Drive, Shillin Ave
SUBTOTAL $ 910, 529. 80
CHANGE ORDER NO. 3
FY 2022-23 Road Maintenance and Rehabilitation
CIP PS 22- 45 City of Lathrop
TOTAL ADDITIONAL COST FROM THIS CHANGE ORDER 910, 529. 80 TOTAL ADDITIONAL COST FROM CHANGE ORDER # 1 2, 200. 00
TOTAL ADDITIONAL COST FROM CHANGE ORDER # 2 6, 500. 00
ORIGINAL CONTRACT AMOUNT 1, 793, 860. 00
REVISED CONTRACT AMOUNT AFTER CHANGE ORDER # 3 2, 713, 090.00
END OF CHANGES)
DESCRIPTION OF WORK
See additions to contract. The contractor shall provide all labor, material, equipment and shall perform all incidental tasks as necessary to complete the change order.
Staff has identified additional roadway segments that would benefit from the pavement rehabilitation process currently being performed by George Reed. These streets and the limits of work are summarized in the following table:
STREET NAME SEGMENT BEGIN SEGMENT END
Rev. Maurice Cotton Dr. Lathro Rd. Warren Ave.
Shillin Ave. Rev. Maurice Cotton Dr. 100' west of Cedar Valle Dr.
Avon Ave. Lathro Rd. Warren Ave.
Suzie Q Ln. Min o W . Samoa Lane
Min o W . Warfield Rd. Cambrid e Dr.
TIME OF COMPLETION
The extra work will add 25 working days to the original contract.
RELEASE AND WAIVER
Acceptance of this Contract Change Order constitutes a full and final resolution of all pending disputes between City and Contractor regarding scope of work and payment for work. Contractor accepts this Contract Change Order as full payment for all work performed to date and hereafter to be performed, up to and including Contract Change Order No. 3. Contractor releases and discharges City from any and all claims, demands, damages, actions and causes of actions and causes of action for injuries, damages or losses, whether known or unknown, foreseen or unforeseen, arising directly from Contractor's work on this contract. Contractor expressly waives the provisions of California Civil Code, Section 1542, which reads as follows:
A general release does not extend to claims which the Creditor does not know or suspect to exist in his favor at time of executing the release, which if known by him must have materially affected his settlement with the debtor.
END OF SECTION)
CHANGE ORDER NO. 3
FY 2022- 23 Road Maintenance and Rehabilitation
CIP PS 22- 45 City of Lathrop
Approved As
To Form:
r Z
Salvador Navarrete Date
City Attorney
City of Lathrop
Recommended
By:
Michael King Date
Assistant City Manager
City of Lathrop
Approved By:
Stephen J. Salvatore Date
City Manager
City of Lathrop
Accepted By
Contractor:
George Reed, Inc. Date
Print Name and Title
EXH161T'. A;•
MODESTO OFF[ CE GEO E R ED
OFFICE& YARD
P. O. BOX 4760, MODESTO, CA 95352 140 EMPIRE AVENUE
TELEPHONE:( 209) 523- 0734
N'
MODESTO, CA 95354
ESTIMATING FAX( 209) 523- 4927 1- 877- 823- 2305
ACCOUNTING FAX:( 209) 523- 4313 WWW. GEORGEREED. COM
CA License No. 211337- A, DIR# 1000001042
October 4, 2022 GRI bid# 22- 829C0
Attn: Ken Reed
Senior Construction Manager— City of Lathrop
kreed@ci. lathrop. ca. us
209) 712- 3136
RE: City of Lathrop- CIP PS 22- 45 CCO 2 Paving Plan
Thank you for giving George Reed, Inc. the opportunity to provide pricing for the referenced project.
Bid based on RFQ discussed with Ken Reed and Jason Reyes with additional roadways and treatments to be added to the roads noted. Work plans and projected quantities were provided by Ken Reed.
Proposal items and scope included: Option# 1
Item Description Quantity Unit Unit Extension
Suzie Q Lane and Mingo Way— 0. 25' mil) and overlay
Reverend Maurice Cotton Drive, Avon Drive, Shilling Ave— Pulverize Existing Roadway, Grade and Compact, Overlay 0. 25' HMA
1. 1 Mobilization 1 LS 16, 700. 00 16, 700. 00
1. 2 Traffic Control for work on all Roads 1 LS 75, 000. 00 75, 000. 00
1. 3 Pulverize and Grade Existing Roadway 158, 730 SF 0. 78 $ 123, 809. 40 Reverend Maurice Cotton Drive, Avon Drive,
Shilling Ave
1. 4 Cold Mill Grinding and Off- Haul- 54, 960 SF 0. 74 40, 670. 40 Suzie Q and Mingo Way
1. 5 Lower/ Raise/ Patch Iron— All Roads 1 LS 85, 000. 00 85, 000. 00 Based on Field Count of:
35 Manholes EA, 12 Water Valves and One
Monument
1. 6 HMA Paving— 0. 25' AC Section put down on all 4, 010 TN 135. 00 $ 541, 350. 00 roads
1. 7 Shoulder Backing - Reverend Maurice Cotton 350 TN 80. 00 28, 000. 00 Drive, Avon Drive, Shilling Ave
TOTAL $ 910,529.80
Pricing is based on field visit and discussions with Ken Reed. Option # 1 paving does not include paving grid/ fabric in any of the roads to be overlayed. Prices are based on completing the work in the 2022 work season. lfthe City of Lathrop decides to start in 2023, escalations may apply.
Pricing assumes unobstructed access and full work area is available to GRI. Standard M- F work week, day-time.
If weekend work is requested by the City, a $ 7, 000. 00 adder will be applied to Saturday shifts on top of item work to cover premiums on GRI crew and subcontractor work.
Proposal items and scope included: Option# 2
Item Description Quantity Unit Unit Extension
Suzie Q Lane and Mingo Way— 0. 25' mill and overlay
Reverend Maurice Cotton Drive, Avon Drive, Shilling Ave— Conform Grind, Glass Grid Paving Fabric, Overlay
0. 25' HMA
1. 1 Mobilization 1 LS 11, 500. 00 11, 500. 00
1. 2 Traffic Control for work on all Roads 1 LS 45, 000. 00 45, 000. 00
1. 3 Cold Mill Grinding and Off- Haul- 64, 630 SF 1. 35 87, 250. 50 Suzie Q and Mingo Way
1. 4 Lower/ Raise/ Patch Iron— All Roads 1 LS 77, 000. 00 77, 000. 00 Based on field count of:
35 Manholes EA, 12 Water Valves and One
Monument
1. 5 HMA Paving— 0. 25' AC Section put down on all 4, 010 TN 185. 00 $ 741, 850. 00 roads
1. 6 Shoulder Backing - Reverend Maurice Cotton 350 TN 80. 00 28, 000. 00 Drive, Avon Drive, Shilling Ave
TOTAL $ 990,600.50
Pricing is based on field visit and discussions with Ken Reed. Option # 2 paving includes paving grid on the following roads: Reverend Maurice Cotton Drive, Avon Drive, Shilling Ave. Prices are based on completing the work in the 2022 work season. If the City of lathrop decides to start in 2023, escalations may apply.
Pricing assumes unobstructed access and full work area is available to GRI. Standard M- F work week, day-time.
If weekend work is requested by the City, a $ 7, 000. 00 adder will be applied to Saturday shifts on top of item work to cover premiums on GRI crew and subcontractor work.
Respectfully,
e,ure i. Cuc¢ ten
209- 402- 5122 cell
PROPOSAL ACCEPTANCE:
Name Signature Company/ Title Date
2 Page
ATTACHMENT C — PROJECT LOCATION MAP
FY 22/ 23 ROAD REHABILITATItJN AND MAINTE IANCE
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