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HomeMy WebLinkAbout11/06/2007, C3 - HIGUERA STREET PAVING PROJECT FROM MORRO ST. TO NIPOMO ST. SPECIFICATION NO. 90684 WATER FUNDING IN council M 11/06,07 acEnaa REpoRt G 3 CITY OF SAN LUIS OBISPO FROM: Jay D. Walter, Public Works Direc or� Barbara Lynch, City Engineer SUBJECT: HIGUERA STREET PAVING PROJECT FROM MORRO ST. TO NIPOMO ST. SPECIFICATION NO. 90684 WATER FUNDING INCREASE CAO RECOMMENDATION 1. Approve a budget transfer of $81,000 from Water Fund Working Capital to fund additional fire services and construction related costs. 2. Authorize staff to execute two contract change orders for additional fire service lateral installations and sewer lateral repair work with an additional contract cost of $46,000 and $35,000 respectively. DISCUSSION On July 17, 2007, the City Council awarded a construction contract to Granite Construction for the Higuera Paving Project. On September 4, 2007 construction began. The project included the repaving of Higuera Street from Morro to Nipomo. Prior to completing that paving,.the contractor installed pedestrian lighting conduits and fire sprinkler laterals. Since the time that the City Council awarded the project to Granite Construction two issues have developed which require additional funds. Both of these construction issues are related to the installation of fire sprinkler laterals. Added Fire Sprinkler Laterals A fire sprinkler lateral is a large water service which runs from the water main in the street, into a building to provide water to fire sprinklers in the building. Any major work to a building will require installation of fire sprinklers. The laterals installed by the City terminate in the sidewalk, awaiting final use by the building owner. Installation of the laterals in conjunction with this project means the building owner does not have to open up the street to make the connection for service, but rather can hook up in the sidewalk area. This significantly reduces disruption to the downtown and damage to the street. Originally the Hb era Paving Project included 13 fire service laterals to be installed. During construction, four more buildings were identified that need a lateral. In order not to delay the project or install the fire services after Higuera was paved, staff directed the contractor to proceed with the installation of the additional services. At the time that direction was made, it appeared from the plans that the lateral could be done for a lower cost than the original bid, due to the proximity of the waterline designated for the hookup, and the contingencies would be adequate to G3 - � Higuera Street Paving Project Page 2 cover the additions. Unfortunately, the line that was originally designated for the connection was a transmission main and so could not be used. The waterline to be used for the services is on the other side of the street from the added laterals. Work continued in order to make construction deadlines for the downtown without staff realizing the extent of the final costs to extend the lines. The Contractor and the City negotiated a revised cost for the completed work, including some revisions to the original services that could not tie onto the closer waterline and a credit for the service laterals on the opposite side of the street that were shortened. The additional cost for the needed fire service lateral work is$46,000. Sewer Lateral Conflicts Staff researched the location of existing underground utilities in the project area during design, including the location of the sewer laterals. Most utilities were successfully identified as part of that process; however,the contractor discovered that the sewer laterals in Higuera Street were not in the locations shown on the plans. In several cases, the Fire Service lateral shown on the plans corresponded with the location of the existing sewer lateral. The result was broken sewer laterals and additional contract cost to relocate fire sprinkler services to a new location and repair the damaged sewer laterals. The added contract cost for this work is estimated to be $35,000. The actual cost is will be known once all the work has been completed. CONCURRENCES The Utilities Department concurs with the use of the Working Capital in the Water Fund for purposes of completing needed Fire Sprinkler Service laterals. FISCAL IMPACT Standard change order procedures require the City Council to authorize additional expenditures on construction projects exceeding $100,000 or where additional funds are required. On this particular project, the extent of the financial commitment to the construction company was not perceived by staff until too late. The contingency funds available for the service lateral portion of this project is inadequate to cover the costs. Additional funds are needed to cover the added service laterals, the extension and relocation of service laterals, and the repair of the sewer laterals. The exact cost of this work is unknown at this time. The requested additional funding is anticipated to be adequate for all this work leaving the original project's contingencies available for future use. Total increase in project cost for the Water Fund is $81,000. Requested funding is currently available from Working Capital in the Water Fund. The Water Fund will still be above policy minimum even after the supplemental appropriation. C.� - 2 I/ it Higuera Street Paving Project Page 3 Project Contract Amount (Water Fund Only): $179,700 Project Contingencies (Water Fund Only): $19,000 Total Construction Budget Available (Water Fund Only): $198,700 Estimated Additional Amount Needed: $81,000 Total Project Cost(Water Fund Only): $279,700 PchstoreZpublic rks\stO-reports-agendas rrinuteslcat\2007\cip\90684 higuera paving\90684 budget increase.dac c3 -.�