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HomeMy WebLinkAboutTC Agd Pkt 2015-08-19-15TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Town Council Meeting August 19, 2015 Agenda Item: STAFF REPORT To: From: Subject: Reviewed By: BACKGROUND Mayor and Members of the Town Council Department of Public Works Recommendation Approve a Change Order to the Stewart Drive Storm Drain Rehabilitation. Project. — URGENCY ITEM The Stewart Drive Storm Drain Rehabilitation Project includes pipe rehabilitation and replacement work for the storm drain system on Stewart Drive between Sonora Court and Tiburon Boulevard, and Silverado Drive. The construction of the project was included in the 2015/16 Capital Improvement Plan and funded in the amount of $500,000 including contingency and soft costs. The project was designed by Harrison Engineering Inc to include a base bid and an alternate bid. The difference between these options is lining two pipe segments rather than replacing them. The lining option saved considerable money and based on older videos supplied by the Town it appeared lining was a feasible option for these lines. The low bid for the project with the lining was $323,100, much lower than the bid for replacing all the lines at $430,470. On July 1, 2015, Council awarded the project Cratus Inc. for $323,100.00 plus a 15% contingency. At the same time Council awarded a construction management contract bringing the total budget for the project to $419,951, under the $500,000 in the CIP budget. On August 17, 2015, we received the video inspection done by the contractor prior to lining. This video indicated severe deterioration has occurred since the Town's last video of these line segments. It is impracticable to line these pipes; the amount of repairs that would be needed to make the pipes suitable for lining would result in a total cost greater than outright replacement. Replacing the lines will add $108,000 to the contract cost. In addition, the revised project with contingency would exceed the amount budgeted in the CIP for this project. ANALYSIS The pipes are significantly deteriorated and need to be replaced. The Contractor has started work and is scheduled to replace the storm drains between through August 28, 2015, with final paving and cleanup occurring by September 4, 2015. Waiting until the next Council meeting to decide on this issue would expose the town to claims from the contractor for delays or additional extra work and potentially expose the Town to a breach of contract claim. We also note that we have two contractors trying to work in this area TOWN OF TIBURON PAGE 1 OF 2 Town Council Meeting August 19, 2015 and coordinate schedules. An uncertain schedule for on contractor could result in delay claims from the other contractor. FINANCIAL IMPACT The 2015/16 Capital Improvement plan included funding in the amount of $500,000 including for construction, construction contingency and construction management. This change will increase the required funding to about $527,000. Note that the overage is less than the contingency in this project. Therefore staff recommends that Council allow staff to use funds currently budgeted for storm drain flushing as needed to cover the contingency on this project. Funding is from the Street Impact Fund and Gas Tax. RECOMMENDATION Staff recommends that the Town Council: 1. Approve a motion by two-thirds vote that places this item as an urgency item on the agenda by finding that there is a need to take immediate action and that the need for that action came to the attention of the Town subsequent to the agenda being posted. 2. Approve a change in the contract price of $107,370 for the Stewart Drive Storm Drain Rehabilitation Project. 3. Approve a motion that allows staff to draw on funds in the CIP for the Storm Drain Flushing Project to cover contingencies as needed for the Stewart Drive Storm Drain Rehabilitation Project. Prepared by: Patrick Barnes, Director of Public Works TOWN OF TIBURON PAGE 2 OF 2 Current With Change Order Construction $323,100 $430,470 Contingency $48,465 $48,465 Total Construction $373,581 $480,951 Design CM $45,980 $45,980 Total $419,561 $526,931 RECOMMENDATION Staff recommends that the Town Council: 1. Approve a motion by two-thirds vote that places this item as an urgency item on the agenda by finding that there is a need to take immediate action and that the need for that action came to the attention of the Town subsequent to the agenda being posted. 2. Approve a change in the contract price of $107,370 for the Stewart Drive Storm Drain Rehabilitation Project. 3. Approve a motion that allows staff to draw on funds in the CIP for the Storm Drain Flushing Project to cover contingencies as needed for the Stewart Drive Storm Drain Rehabilitation Project. Prepared by: Patrick Barnes, Director of Public Works TOWN OF TIBURON PAGE 2 OF 2