October 1, 2024
Public Works
DATE: October 1, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works/City Engineer
Wendy Wellbrock, PE, Senior Civil Engineer
Subject:
Resolution to amend the contract with Ghilotti Bros., Inc. for the Yellow Brick Road Project
FINANCIAL IMPACT: $40,000 in the General Capital Fund is available for the final change order completing the construction of the
Yellow Brick Road Project (29113). After this contract
amendment, there will be a balance of $23,521.36 in the FY24-25 Budget for Project 29113 and $54,439.32 in the
General Capital Fund Balance allocated to Project
29113. Staff is recommending a transfer of $23,521.36
from the General Capital Fund for the Yellow Brick Road Project (29113) to the Yellow Brick Road – Clean, Green and Beautiful Project (23032), and also appropriate
$54,439.32 from General Capital Fund Balance for
Project 23032. This will result in no new impact to the General Fund.
Account String: 20136031-400708-29113 & 20136031-
400708-23032
PREVIOUS COUNCIL
ACTION:
March 2, 2021
April 16, 2024
AGENDA
REPORT
October 1, 2024
STATEMENT OF THE
ISSUE:
City staff is requesting approval to amend the
construction contract with Ghilotti Bros., Inc. for the final Change Order No. 19b to ensure all financial obligations for the project are satisfied and project is successfully closed out.
RECOMMENDED ACTION:
ADOPT a resolution to approve a second amendment to
a construction contract with Ghilotti Bros., Inc. for the Yellow Brick Road Project in the amount of $40,000 for
the final change order that addresses unforeseen project conditions, for an amended total contract amount not to exceed $7,717,134.37; ACCEPT the Yellow Brick Road
Project as complete to enable the City to release the
contractor’s bonds and retention payment, transfer funds in the General Capital Fund from the Yellow Brick Road
Project (29113) to the Yellow Brick Road – Clean, Green and Beautiful Project (23032) in the amount of
$23,521.36; and APPROPRIATE $54,439.32 from
General Capital Fund Balance for Project 23032 - Public Works Department (Robert Armijo 510-620-5477/ Wendy
Wellbrock 510-307-8108).
DISCUSSION:
The Yellow Brick Road Project (Project) is the first phase in the City’s effort to implement the Yellow Brick Road Iron Triangle Walkable Neighborhood Plan , which was adopted by City Council on May 19, 2015. The Project is a community led effort to designate and implement safe walking and bicycling routes for Iron Triangle Neighborhood residents to increase walking and bicycling modes of transportation to and from places of interest including schools, parks, downtown Richmond (including health care facilities, shopping destinations, Post Office, etc.), the Richmond multimodal station, the Richmond Greenway, and the Bay Trail.
The Project limits are 7th Street from Ripley Avenue to Pennsylvania Avenue, 8th Street from Ohio Avenue to Lincoln Avenue, and Pennsylvania Avenue from 2nd Street to Harbour Way. The scope of work includes pedestrian safety improvements including crosswalks, traffic circles, bulbouts, sidewalk and roadway improvements, striping, traffic and pedestrian signals and lighting, and storm drain improvements.
The contract with Ghilotti Bros., Inc. for the Project was approved on March 2, 2021, for a total amount not to exceed $7,542,695.05, including construction contingencies (Attachment 2).
During construction, delays and unforeseen existing conditions required that additional work be performed. This work was not included in the original contract scope but was
October 1, 2024
necessary to maintain accessibility, safe conditions along the Project area and improve the finish look of the completed project. On April 16, 2024, the City Council approved the first amendment to the construction contract with Ghilotti Bros., Inc. to increase the contract in the amount of $134,439.32, for an amended total contract amount not to exceed $7,677,134.37 which included $54,439.32 for project-related work and a contingency amount of $80,000 for potential additional change orders (Attachment 3).
At the time, City staff had been in negotiations with Ghilotti Bros., Inc. for the final change order for additional hot mix asphalt (HMA) that was required at various intersections due to unforeseen areas of unsuitability, and time-related home overhead, extended general conditions and unanticipated field labor due to project schedule impacts by PG&E which extended the project beyond the contractual completion date.
The final negotiated amount exceeded the remaining contingency amount by $40,000.
City staff is now recommending that the City Council accept this Project as complete and approve a second contract amendment to increase Ghilotti Bros., Inc. contract in the amount of $40,000, for an amended total contract amount not to exceed $7,717,134.37 to cover the cost associated with the final Change Order No. 19b (Attachment 4). This will enable the final payment to be made to Ghilotti Bros., Inc. and close out the project.
The first phase of the Project has been completed within the scope, quality standards, and compliance requirements set forth by the City of Richmond and has significantly improved the safety of walking and bicycling routes for Iron Triangle neighborhood residents.
The Yellow Brick Road Supplemental Street Lighting Project is part of the second phase of the Project and includes the installation of an additional 92 pedestrian streetlights on 8th Street between Ohio Avenue and Pennsylvania Avenue to further improve safety.
This Project received grant funding through the California Department of Transportation Clean California grant. On May 21, 2024, the City Council approved award of a construction contract to Nema Construction, and construction is scheduled to begin in Fall 2024. Additional funding is needed to cover potential change orders. City staff is recommending a transfer of $23,521.36 from the General Capital Fund for the Yellow Brick Road Project (29113) to the Yellow Brick Road – Clean, Green and Beautiful Project (23032) and appropriate $54,439.32 from General Capital Fund Balance for Project 23032.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Original Construction Contract
Attachment 3 – 1st Amendment to the Construction Contract Attachment 4 – 2nd Amendment to the Construction Contract-Proposed