City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01682 10/15/2024 Consent Item 16.
Change Order: North 5th Street Sewer Improvements
File ID: 2024-01682
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to execute Change Order No. 2 to City Agreement No. 2023-1402 with ARB, Inc., for an amount not- to-exceed $176,169.45, bringing the agreement’s total not-to-exceed amount to $1,346,822.91; and 2) resetting the City Manager’s authority to issue Change Orders for City Agreement No. 2023-1402.
Contact: Kyle Beltran, Project Manager, (916) 808-3828, [email protected]; Roxanne Dilley, Supervising Engineer, (916) 808-1458, [email protected]; Sherill Huun, Engineering & Water Resources Division Manager, (916) 808-1455, [email protected]; Pravani Vandeyar, Director, (916)-808-3765, [email protected]; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Change Order
Description/Analysis
Issue Detail: Staff recommends Council approve Change Order No. 2 with ARB, Inc. for the City Agreement No. 2023-1402, to compensate the Contractor for performing additional work to resolve unforeseen utility conflicts between the City, ARB, Inc., and AT&T during construction of the original sewer improvement plan. This work includes, but is not limited to, traffic control, sawcutting, potholing, excavation, exploration, shoring of City and AT&T utilities, and the material procurement and delivery of the original design structures that occurred between May 6, 2024, and July 19, 2024.
The costs of this work were determined per the City Standard Specification 8-10, “Payment by Cost and Percentage”.
Additionally, Change Order No. 2 includes the execution of Field Order (FOD) No. 05, which proposes a revision to the original sewer improvement plans to avoid the AT&T utility conflicts. The City directed the Contractor to provide construction efforts for the revised sewer plans, resolve
File ID: 2024-01682 10/15/2024 Consent Item 16.
previous or ongoing construction activities associated with the utility conflicts, and eliminate original bid items that were negated by Field Order No. 05.
The total compensation for this change order is $176,169.45, as shown below:
Description Amount
CCO No.02 - Part 1 - T&M for Utility Conflict $ 411,833.45 CCO No.02 - Part 2 - Cost Proposal for FOD No. 05 $ 87,256.00 CCO No.02 - Part 3 - Eliminate Bid Items due to FOD No. 05$ (322,920.00) Total $ 176,169.45
Policy Considerations: This Change Order exceeds the City Manager’s approval authority and requires Council approval per City Code 3.04.020.
Economic Impacts: This Change Order is expected to create 0.70 total jobs (0.41 direct jobs and
0.30 jobs through indirect and induced activities) and create $108,773.18 in total economic output ($68,560.57 of direct output and another $40,212.61 of output through indirect and induced activities).
The indicated economic impacts are estimates calculated using a calculation tool developed by the Center for Strategic Economic Research (CSER). CSER utilized the IMPLAN input-output model (2009 coefficients) to quantify the economic impacts of a hypothetical $1 million of spending in various construction categories within the City of Sacramento in an average one-year period. Actual impacts could differ significantly from the estimates and neither the City of Sacramento nor CSER shall be held responsible for consequences resulting from such differences.
Environmental Considerations: The subject projects were reviewed and determined to be categorically exempt from the California Environmental Quality Act (CEQA). This project consists of the operation, repair and minor alteration of existing public or private facilities used to provide public utility services involving negligible expansion of use (CEQA Guidelines Section 15301(b)), and replacement and reconstruction of existing utility systems involving negligible expansion of capacity (CEQA Guidelines Section 15302(c)).
Sustainability: The proposed project is consistent with the 2040 General Plan, PFS-3.1, “Provision of Adequate Utilities,” as it improves infrastructure reliability by providing adequately sized mains to reduce Sanitary Sewer overflows and allow the adjacent developments to continue developing. The Township 9 area, within Basin CS351 and the River District, benefiting from this project’s sewer capacity improvement has been identified by the City as a high priority, primary redevelopment area.
File ID: 2024-01682 10/15/2024 Consent Item 16.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Change Order No. 2 is needed to provide compensation for all the labor, equipment, markup, surcharges, and fees associated with the additional work, rental fees, and lost overhead between May 6, 2024, and July 19, 2024, while the City, ARB, Inc., and AT&T attempted to resolve an unplanned utility conflict that impacted the original design. The value of Change Order No. 2 exceeds the approval authority of 8% of the original contract value for change orders, as defined by City Code 3.04.020.A.3.
Financial Considerations: The original not-to-exceed amount of the contract was $1,120,564. The net change by previous change orders in the amount of $50,089.46, increased the contract not-to- exceed amount to $1,170,653.46. Proposed Change Order No. 2 in the amount of $176,169.45 would increase the contract not-to-exceed amount to $1,346,822.91. There are sufficient funds in the Combined Sewer Pipe Program (X14170100, Fund 6002) to execute this Change Order.
There are no General Funds allocated or planned for this project.
Local Business Enterprise (LBE): ARB, Inc. is an LBE.