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AGENDA ITEM REVIEW FORM |
3.A.
Special City Council Meeting
- Meeting Date:
- 11/28/2022
- Department Head:
- Jenny Torres
- Submitted By:
- Jenny Torres, Economic Development Manager, Administration, Economic Development
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding Mesa Street Improvements Phase I (CDBG Contract No. 119-22) Change Order No. 1. (Jenny Torres, Economic Development Manager and Eulogio Vera, Director of Public Works)
SUMMARY:
City staff met on several occasions with the Mesa Street Improvements Project contractor and construction administration engineer to discuss challenges related to the removal and processing of the existing rubble on Mesa Street for roadway construction and the need for grading on private property for sidewalk construction. After evaluating all our options, City staff and our construction administration engineer recommended processing a change order to address this challenge.
The change in scope of work involves two elements:
1) The Change Order will modify the Contract Sum by increasing the amount of removal and processing of rubble on Mesa Street and grading on private property in order for the contractor to construct the requirement of sidewalks per the Arizona Department of Housing (ADOH). The contract cost will increase by $125,200.00;
2) The change order will modify the contract completion date to March 30, 2023, in order to provide 20 additional days of work related to the following:
The staff worked with the finance department to allocate additional funding needed to move forward with this change order. Purchases for construction work over $45,000 go out to bid under the City Code-Purchasing § 3.05.010(D). However, the City Code also allows for waiver of formal bidding procedures under City Code-Purchasing § 3.05.010(F) for good cause. In this case, going out to bid would both delay the project possibly beyond the grant contract time, and add to the cost.
The staff recommends approval of Mesa Street Improvements Project Change Order No. 1.
The change in scope of work involves two elements:
1) The Change Order will modify the Contract Sum by increasing the amount of removal and processing of rubble on Mesa Street and grading on private property in order for the contractor to construct the requirement of sidewalks per the Arizona Department of Housing (ADOH). The contract cost will increase by $125,200.00;
| Original Contract Sum | $2,097,200.00 |
| Modified Contract Sum | $2,123,200.00 |
| Net Change (increase) | +$125,200.00 |
2) The change order will modify the contract completion date to March 30, 2023, in order to provide 20 additional days of work related to the following:
- 8 days for Mesa Alley City water and sewer work delaying roadwork work
- 8 days for Mesa Street roadway rubble removal and
- 6 days for rubble removal and grading on private property
The staff worked with the finance department to allocate additional funding needed to move forward with this change order. Purchases for construction work over $45,000 go out to bid under the City Code-Purchasing § 3.05.010(D). However, the City Code also allows for waiver of formal bidding procedures under City Code-Purchasing § 3.05.010(F) for good cause. In this case, going out to bid would both delay the project possibly beyond the grant contract time, and add to the cost.
The staff recommends approval of Mesa Street Improvements Project Change Order No. 1.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE MESA STREET IMPROVEMENT PROJECT CHANGE ORDER NO.1, AUTHORIZE A BUDGET TRANSFER AND WAIVE FORMAL PURCHASING PROCEDURES FOR THE GOOD CAUSE PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- Yes
- TOTAL:
- $125,200.00
- BUDGETED AMOUNT:
- No
- AVAILABLE AMOUNT TO TRANSFER:
- Yes
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Projects Acct# 225-210-90010.220; Balance $1,742,583.24.
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The staff is asking authorization to council to do a budget transfer of $125,200.00 from Capital Projects Account #100-999-90015 to the Capital Project Account #225-210-90010.220 to pay for this change order.