ITEM 4. 15
CITY MANAGER' SREPORT
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE CONTRACT CHANGE ORDER NO. 2 WITH
DSS COMPANY DBA KNIFE RIVER CONSTRUCTION
FOR YOSEMITE AVENUE PAVEMENT
REHABILITATION, CIP PS 24- 31 AND APPROVE
BUDGET AMENDMENT
RECOMMENDATION: Adopt Resolution to Approve Contract Change Order No. 2 with DSS Company dba Knife River
Construction for Yosemite Avenue Pavement
Rehabilitation, CIP PS 24- 31 and Approve Budget
Amendment
SUMMARY:
On July 8, 2024, City Council awarded a construction contract to DSS Company, dba Knife River Construction ( Knife River) for construction of Yosemite Avenue Pavement Rehabilitation, CIP PS 24- 31 (Project). The Project consists of improvements to the structural and wearing courses of Yosemite Avenue. Installation of additional pavement reinforcing fabric ( Glas Grid) has been identified as necessary to the repair of Yosemite Avenue.
The City requested and Knife River provided proposed Contract Change Order No. 2 CCO 2) for the subject services at a cost of $ 222, 414. CCO 2 is included as Attachment B. Knife River' s price for the additional 140, 60square feet of Glas Grid is $. 14 per square foot less than the contract price, representing a discount of 19, 684.
Staff requests City Council approve CCO 2 with Knife River for a not to exceed amount of $222, 414 for the additional Glas Grid for the Project.
Proposed CCO 2 exceeds the Project' sremaining construction contingency. Staff therefore also requests City Council approve a budget amendment transferring 223, 000 from the General Fund Street Repair Reserves ( 1010) to the CIP Project Fund ( 3310) as detailed in the Fiscal Impact Section of this report.
BACKGROUND:
On February 12, 2024, City Council approved the creation of Yosemite Avenue Pavement Rehabilitation, Capital Improvement Project ( CIP) PS 24- 31 (Project) to provide improvements to the structural and wearing courses of Yosemite Avenue.
On July 8, 2024, City Council awarded a construction contract to Knife River for construction the Project. The Project will repair damage to the base layer and resurface large portions of the road between SR 120 and the eastern city limits.
CITY MANAGER' S REPORT PAGE 2
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
APPROVE CONTRACT CHANGE ORDER NO. 2 WITH DSS COMPANY DBA KNIFE
RIVER CONSTRUCTION FOR YOSEMITE AVENUE PAVEMENT
REHABILITATION, CIP PS 24- 31 AND APPROVE BUDGET AMENDMENT While performing dig - outs and other structural improvements, the contractor encountered more areas of failed road base than were accounted for during the design phase. The City chose to install additional Glas Grid to reinforce the discovered areas of failed road base.
REASON FOR RECOMMENDATION:
Approval of the proposed change order with Knife River will allow the Project to continue without interruption and provide a more robust repair to this important arterial road.
FISCAL IMPACT:
Staff is requesting City Council approve a budget amendment transferring $ 223, 000 from the General Fund Street Repair Reserves ( 1010) to the CIP Project Fund ( 3310) as follows:
Decrease Street Repair Reserves
1010- 251- 03-0
Increase Transfer Out
1010- 9900-90- 9010
Increase Transfer In
3310- 9900- 393- 0000
Increase Appropriation
3310- 8000- 420- 10
ATTACHMENTS:
223, 000
223, 000
PS 24- 31 $ 223, 000
PS 24- 31 $ 223, 000
A. Resolution Approving Contract Change Order No. 2 with DSS Company dba Knife River Construction for Yosemite Avenue Pavement Rehabilitation, CIP PS 24- 31 And Approving Budget Amendment
B. Change Order No. 2 with DSS Company dba Knife River Construction CITY MANAGER' SREPORT PAGE 3
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
APPROVE CONTRACT CHANGE ORDER NO. 2 WITH DSS COMPANY DBA KNIFE
RIVER CONSTRUCTION FOR YOSEMITE AVENUE PAVEMENT
REHABILITATION, CIP PS 24- 31 AND APPROVE BUDGET AMENDMENT APPROVALS:
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Steven Hollenbeak Date
Assistant Engineer
Ken
6x- ro
Reed Date
Senior Construction Manager
BracVTaylor
City Engi
Cari James
Finance Di - ctor
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Date
q42, 20a
Date
j • 2.5-. 202. 11
Michael King Date
Assistant City Manager
Salvador Navarrete Date
City Attorney
Step en J. Salvatore Date
City Manager
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING CONTRACT CHANGE ORDER NO. 2 WITH DSS COMPANY DBA
KNIFE RIVER CONSTRUCTION FOR YOSEMITE AVENUE PAVEMENT
REHABILITATION, CIP PS 24- 31 AND APPROVING BUDGET AMENDMENT WHEREAS, on February 12, 2024, City Council approved the creation of Yosemite Avenue Pavement Rehabilitation, Capital Improvement Project ( CIP) PS 24- 31 ( Project) to provide improvements to the structural and wearing courses of Yosemite Avenue; and
WHEREAS, on July 8, 2024, City Council awarded a construction contract to DSS Company, dba Knife River Construction ( Knife River) for construction of the Project; and
WHEREAS, staff is requesting City Council approve proposed Contract Change Order No. 2 ( CCO 2) with Knife River for an amount not to exceed $ 222, 414; and WHEREAS, CCO 2 consists of labor and materials to install an additional amount of fiberglass pavement reinforcing fabric to strengthen the new paving in areas of previously unanticipated base damage; and
WHEREAS, staff is also requesting City Council approve a budget amendment transferring $ 223, 000 from the General Fund Street Repair Reserves ( 1010) to the CIP Project Fund ( 3310) as follows:
Decrease Street Repair Reserves
1010- 251- 03-0
Increase Transfer Out
1010- 9900-90- 9010
Increase Transfer In
3310- 9900- 393- 0000
Increase Appropriation
3310- 8000- 420- 10
223, 000
223, 000
PS 24- 31 $ 223, 000
PS 24- 31 $ 223, 000
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby approves CCO 2 with Knife River for an amount not to exceed 222, 414; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop hereby approves a budget amendment transferring $ 223, 000from the General Fund Street Repair Reserves ( 1010) to the CIP Project Fund ( 3310) as detailed above.
The foregoing resolution was passed and adopted this 14th day of October, 2024, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
ATTACHMENT
CHANGE ORDER NO. 2
Yosemite Ave Pavement Rehabilitation,
CIP PS 24- 31
CONTRACT CHANGE ORDER NO. 2
Yosemite Ave Pavement Rehabilitation, CIP PS 24- 31
Contractor: DSS Company dba Knife River Construction
Address: 655 W. Clay St., P. O. Box 6099
Stockton, CA 95206
Change Order Date: October , 2024
Notice to Proceed Date: August 26, 2024
Contract Execution Date: July 8, 2024
City of Lathrop
This contract change order augments or changes the following:
1) ADDITIONS TO CONTRACT
Pursuant to the provisions of the Contract Specifications and the proposals 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 DSS Company dba Knife River Construction dated July 8, 2024.
I. CHANGES IN THE SPECIFICATIONS
A. None
II. ADDITION( S)/UBTRACTION( S) TO CONTRACT
PCO# DESCRIPTION QTY UNIT
UNIT
PRICE
TOTAL
02 Tensar GlasGrid 68, 400 SF 1. 79 122, 436. 00)
02 Tensar GlasGrid ( revised) 209, 000 SF 1. 65 344, 850. 0 SUBTOTAL 222, 414. 00
TOTAL ADDITIONAL COST FROM THIS CHANGE ORDER 222, 414. 00 TOTAL ADDITIONAL COST FROM CHANGE ORDER # 1 61, 575. 00 ORIGINAL CONTRACT AMOUNT 872, 030.
REVISED CONTRACT AMOUNT AFTER CHANGE ORDER # 2 1,56, 019.0
END OF CHANGES)
CHANGE ORDER NO. 2
Yosemite Ave Pavement Rehabilitation,
CIP PS 24- 31 City of Lathrop
DESCRIPTION OF WORK
See " II. ADDITION( S)/UBTRACTION( S) TO CONTRACT." The contractor shall provide all labor, material, equipment and shall perform all incidental tasks as necessary to complete the change order. Works to be performed are detailed in attached Exhibit A.
TIME OF COMPLETION
CCO # 2 will not increase the time frame of 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. 2.
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' swork 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. 2
Yosemite Ave Pavement Rehabilitation,
CIP PS 24- 31
Approved As
To Form:
Recommended
By:
Approved By:
Resolution No.:
Accepted By
Contractor:
City of Lathrop
9, 6- 202. 4
Salvador Navarrete Date
City Attorney
City of Lathrop
Michael King
Assistant City Manager
City of Lathrop
Stephen J. Salvatore
City Manager
City of Lathrop
Date
Date
DSS Company dba Knife River Construction Date
Print Name and Title
Exhibit A
KNIFE RIVER
CONSTRUCTION
AN MDU RESOURCES COMPANY
PROPOSED CHANGE ORDER
NO. 002
SUBJECT: GlasGrid Unit Cost Revision DATE: 09/3/ 24
PROJECT: Yosemite Ave Pavement Rehabilitation JOB NO: 57241844 TO: City of Lathrop - Department of Public Works
390 Towne Centre Drive
Lathrop, CA 95330
ATTN: Ken Reed
FROM: Revae Martinez
DESCRIPTION
Deducts for the original GlasGrid quantitiy that is replaced with the new unit costs and updated quantities shown below.
ITEM DESCRIPTION QTY UM UNIT TOTAL
008 Tensar GlasGrid - 68400 SF $ 1. 79 ($ 122, 436. 00) 8R GlasGrid ( revised) 209000 SF $ 1. 65 $ 344, 850. 0
TOTAL AMOUNT $ 222, 414. 00
APPROVAL
BY:
DATE:
Ken Reed
BY:
DATE:
Revae Martinez4(
09/3/ 2024
655 W. Clay St., P. O. Box 6099 • Stockton, CA 95206 • ( 209) 948- 0302 • Fax (209) 948- 6652
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