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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE OCTOBER 3, 2023
SUBJECT: CONTRACT CHANGE ORDERS NO.8 AND NO.9 FOR THE TOD CROWTHER
SEWER PIPELINE REPLACEMENT PROJECT
FISCAL
IMPACT: EXPENSE: $ 4,696,973.63
$ 469,697.36
$ 136,481.16
$ 5,303,152.15
BUDGET: $ 5,445,645.90
$ 3,829,676.56
$ 1,615,969.00
SUMMARY:
ORIGINAL CONSTRUCTION CONTRACT
CONTINGENCY AMOUNT
CONTRACT CHANGE ORDER NO. 8 AND 9
TOTAL CONTRACT AMOUNT WITH
CHANGE ORDERS
TOTAL PROJECT BUDGET
(103101-6750) ARPA FUNDS
(713101-6750) TOD SEWER DEVELOPMENT
IMPACT FEES
Two Contract Change Orders for the TOD Crowther Sewer Pipeline Replacement Project covering major unforeseen conditions and extra work are being presented to the City Council for its consideration. Kana Pipeline, Inc. has been contracted by the City to construct the above- mentioned project. Upon completing all of the trenching and sewer pipe installation, quantities for three bid items were exceeded, which had not been anticipated during the design phase. As the work nears completion, it was discovered that additional sewer pipe, concrete, and asphalt pavement restorations were needed. In addition, due to the extended working days, the project accrued additional fees to pay for inspection services by the BNSF staff observing the construction work within their right-of-way. There have been seven previous change orders that were approved by the City Administrator within his administrative approval limits. However, with the addition of the change order Nos. 8 and 9 plus the overage on three (3) bid items, the project is now exceeding the 10% contingency, which is the City Administrator's authority limit, and therefore requires City Council consideration and approval.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Authorize the City Administrator to approve Contract Change Orders Nos. 8 and 9 with Kana Construction Inc. in the amount of $136,481.16, and
1.e.
Oct 3, 2023
City Council Agenda
October 3, 2023
2. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to:
Promote Community and Economic Development, as Objective Number 3.10 is the implementation of housing element strategies. This agenda item will specifically result in the enhancement of public infrastructure needed to support additional/future housing opportunities in the Transit -Oriented Development (TOD) District.
DISCUSSION:
On November 16, 2021, the City Council approved a contract with Kana Pipeline Inc., (Kana) to provide construction services on the TOD Crowther Sewer Pipeline Replacement project. Since the start of construction, the project has encountered numerous delays due to unforeseen conditions. The existing sewer line serving the Transit -Oriented Development (TOD) District requires upgrading to provide adequate capacity for the new developments along Crowther Avenue. Kana was given notice to proceed to start the project on January 17, 2022. The unknown field conditions encountered contributed to project delays and added project costs and change orders. These included unknown abandoned utilities not previously shown on the construction plans that had to be removed in addition to other utilities in the same vicinity of the new sewer line. In addition, there were several unit bid item quantities that exceeded the original estimate thus increasing the cost to construct the project. The cost for those items is controlled by unit bid pricing times the total quantity of the item. In addition, it should be noted that the proposed project was constructed beyond Placentia city limits and well into the city of Fullerton. This required coordinating with Fullerton staff whom also had a street project within the vicinity, which created a delay in the project deliverables. The original completion date for the project was October 5, 2022 but was extended to September 15, 2023.
FISCAL IMPACT:
The cost for Contract Change Orders Nos. 8 and No. 9 amounts to $136,481.16. The previous seven (7) contract change orders were approved by the City Administrator as they were within his administrative approval limit. However, these change orders exceed his 10% aggregate approval limit and are presented to the City Council for its consideration and approval. The revised total construction contract amount is $5,303,152.15. Sufficient funds are budgeted and available in the Fiscal Year 2023-24 Capital Improvement Program Budget to cover this expense. As such, sufficient funds exist for the recommended actions.
City Council Agenda
October 3, 2023
Prepared by:
Reviewed and -approved:
Chris Tanio Luis Estevez
Deputy Director Public Works/City Engineer Deputy City Administrator Reviewed and approved:
Damien R-Arrula
City Administrator
Attachment:
Contract Change Orders Nos. 8 and No. 9