DATE: OCTOBER 24, 2023
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E., L.S., PUBLIC WORKS DIRECTOR BY: PATRICK FUNG, ASSISTANT ENGINEER
TITLE: 2022-2023 PAVEMENT MAINTENANCE PROJECT, CIP NO. 9981, 9120, 9080 RECOMMENDED MOTION:
A motion to approve a resolution authorizing:
Contract Change Order No. 1 to Granite Construction Company for the 2022-2023 Pavement Maintenance Project, CIP No. 9981, 9120, 9080 in the amount of $430,678.35 and authorizing the City Manager to execute all necessary documents related to Contract Change Order No. 1; and Contract Change Order No. 2 to Granite Construction Company for the 2022-2023 Pavement Maintenance Project, CIP No. 9981, 9120, 9080 for an amount not to exceed $250,000 and authorizing the City Manager to execute all necessary documents related to Contract Change Order No. 2; and 10% of the new contract amount for construction contingencies ($881,868.50) for the 2022-2023 Pavement Maintenance Project, CIP No. 9981, 9120, 9080.
EXECUTIVE SUMMARY:
This Report requests City Council action with respect to the 2022-2023 Pavement Maintenance Project, CIP No. 9981, 9120, 9080. City staff is recommending that the Project be improved by incorporating additional components into the construction process, which will require Contract Change Orders and additional funding.
BACKGROUND:
On May 16, 2023, the Salinas City Council awarded the 2022-2023 Pavement Maintenance Project, CIP No. 9981, 9120, 9080 to Granite Construction Company (Resolution No. 22661) for the sum of $8,138,006.96. Construction commenced on July 31, 2023.
The project, in general, calls for rehabilitation of pavements, reconstruction of curb ramps, curbs, gutters, and installation of new signs and striping. See Exhibit A – Project Location Map.
Contract Change Order 1
The project calls for chip sealing several arterial roadways. A chip seal is a roadway surface treatment that consists of a layer of asphalt binder followed by a layer of embedded aggregate. Chip seals provide a new skid-resistant wearing surface, seal minor cracks, and prevent further deterioration of the existing roadway due to oxidation and water intrusion. Although chip seal can be installed without any other additional treatments, and in an effort to be responsive to opposition from the bicycling community, staff is recommending the installation an additional layer of Tire Rubber Modified Surface Sealer (TRMSS). This product is applied directly on top of the chip seal aggregate. TMRSS is manufactured with recycled rubber tires and improves the durability and longevity of the chip seals. TRMSS will also enhance the finished surface by providing a smoother, black finish that contrasts well with the new roadway striping.
Contract Change Order No. 1 (CCO 1) directs the Contractor to install approximately 277,857 square yards (SY) of TRMSS at all locations within the project proposed as chip seal, at a unit cost of $1.55 per SY. The total estimated cost for CCO 1 is $430,678.35. The contractor has indicated concern regarding material shortages. In an effort to avoid impacting the project schedule and pursuant to Department Policy 75-1, the City Engineer has authorized the Contractor to proceed with CCO 1 to procure the material and avoid delays to the project.
Contract Change Order 2
The project calls for pavement patch repairs, where areas of severely distressed pavement were identified, ground out, and repaved with hot mix asphalt. During the in-field layouts, staff realized that in the time between the project design and construction, most of the distressed pavement areas originally located had expanded beyond the original limits. Furthermore, many new areas were identified with moderate to severely stressed pavement. Last winter’s storms were likely to have caused this increase in deterioration.
Contract Change Order No. 2 (CCO 2) directs the Contractor to remove and replace additional asphalt concrete at the various project locations as identified by staff at the bid unit prices. The total amount not to exceed for additional patch repair areas for CCO 2 is $250,000. Pursuant to Department Policy 75-1, the City Engineer authorized the Contractor to proceed with CCO 2 while the paving crew and equipment were mobilized at the project locations.
Department Policy 75-1, Item 3, states City Council approval and authorization is required for Contract Change Orders of more than $100,000. Staff is seeking the City Council’s approval of Contract Change Order No. 1 and Contract Change Order No. 2 for a total estimated cost of $680,678.35, which is within the project’s current 10% contingency ($813,800.69).
Table 1: Change Order Summary
CCO No.
Amount
Cumulative Amount
Percentage of Current Contingency Used ($813,800.69)
CCO 1
$ 430,678.35
$ 430,678.35
53%
CCO 2
$ 250,000.00
$ 680,678.35
84%
Increasing the construction contingencies by an additional $881,868.50 will allow staff to move the project to completion more effectively and efficiently.
CEQA CONSIDERATION:
Categorically Exempt: The City of Salinas has determined that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Section 15301(c), Class 1), because the project proposes to improve the existing roadway intersection, crosswalks, signage, and pavement striping.
Furthermore, the project does not qualify for any of the categorical exemptions found at CEQA Guidelines Sections 15300.2, because the section is not applicable to this project.
STRATEGIC PLAN INITIATIVE:
This item relates to the Council’s Strategic Goal of Infrastructure and Environmental Sustainability by improving the condition of local streets and city facilities.
DEPARTMENTAL COORDINATION:
Public Works staff has worked closely with the Finance Department in identifying and tracking the funding of this project.
FISCAL AND SUSTAINABILITY IMPACT:
Contract Change Order No. 1 and Contract Change Order No. 2 are within the project’s current 10% contingency.
Increasing the construction contingencies by 10% of the new contract amount, or an additional $881,868.50, will be funded by CIP 9981. The adopted FY 23-24 budget for CIP 9981 includes $2,800,000 in Road Maintenance and Rehabilitation Program (SB1) funds which are available and appropriated in 5800.50.9981.
ATTACHMENTS:
Resolution for CCO 1
Resolution for CCO 2
Resolution for Increasing Construction Contingencies
Exhibit A: Project Location Map
Page | 3
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT