Title
Department of Transportation recommending the Board receive information regarding the contingency budget status for the Green Valley Road Slipout Repair Project, CIP 78707 / 36102008, Contract 2776. (Est. Time: 5 Min.)
FUNDING: Federal Highway Administration anticipated reimbursement (88.53%), California Disaster Assistance Act anticipated reimbursement (8.60%), Road Fund (2.87%). (Local, State and Federal Funds)
Body
DISCUSSION / BACKGROUND
The contract for the Green Valley Road Slipout Repair Project (Project) was approved by the Board on January 29, 2019, Item 21, Legistar 18-1967, and Notice to Proceed was issued for June 27, 2019.
The first item of work for the contractor was to identify actual location(s) of the broadband fiber optic utility existing at the site. The Project plans included anticipated depths for the utility based on as-built drawings provided by the utility company. However, after unsuccessfully attempts to locate the utility, it was discovered that the fiber optic line was installed at much greater depths than was originally anticipated. The Department of Transportation (Transportation) directed the contractor to pothole the additional depths and locations as extra work. After coordination with the utility company, Transportation determined that the fiber optic line must be relocated in order for the Project to be constructed. As a result, Transportation directed the contractor to demobilize equipment from the site, also as extra work. The utility company will be relocating the fiber optic line with no additional costs to Transportation allowing the line to continue to provide broadband service to the area. Once the utility is relocated, Transportation will pay the contractor to mobilize and complete the contract work.
To date, Transportation has issued two Contract Change Orders (CCOs), for a cumulative contingency amount of $66,457.44 or 7.01% of the original contract amount. These CCOs included the additional potholing work to identify the location of the fiber optic line and demobilization of the contractor. Since the Board has authorized a contingency budget of $94,767.70 or 10% of the original contract amount, any future CCOs resulting in a cumulative contingency encumbrance over this amount will require Board approval.
Though the extent of the repairs and associated costs could not be determined by this Board meeting date, Transportation is bringing this informational item to the Board to provide an update on the project status. Transportation will return to the Board with any subsequent CCO that results in exceedance of the contingency budget with a formal request for the Board to approve that CCO. Although every attempt will be made to bring subsequent CCOs to the Board prior to the work being performed, it is possible that approval will be requested retroactively.
ALTERNATIVES
This is an informational item only.
PRIOR BOARD ACTION
See Discussion/Background section above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board receive and file the report.
FINANCIAL IMPACT
This is an informational item only with no financial impact at this time. Transportation will return to the Board requesting retroactive approval of any subsequent CCO that results in exceedance of the established contingency budget. The current budget for the construction phase of the Project is $1,213,444.70 (includes an estimated bid of $947,677.00; construction management, survey, materials testing and design support during construction totaling $171,000.00; and, contingency of $94,767.70).
Total Funding for this Project is included in the 2018 Capital Improvement Program (CIP) approved by the Board on June 26, 2018 (Item 61).
Final construction costs are eligible on the basis that the work is considered to be federally participating. Transportation will continue its coordination with Caltrans Local Assistance to ensure that all construction costs be eligible for reimbursement at the authorized rates. The awarded construction bid was lower than the budgeted amount in the CIP; therefore, the Project has adequate local funds to cover the anticipated increased cost for the local match.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Infrastructure, Public Safety
CONTACT
Rafael Martinez, Director
Department of Transportation