Title
Approving a change order in the amount of $485,194 for Capital Excavation Company associated with the Kelly Lane Phase 2 roadway improvements project, and authorizing the City Manager to execute the same.
Summary
This agenda item requests approval of Change Order No. 1 with Capital Excavation Company (CapEx) in the amount of $485,194 for the Kelly Lane Phase 2 (Project).
Early in the design of this Project, before the bid process and selection of the contractor, city staff discussed with the design consultants the advantages and disadvantages of elevating Vilamoura and Kelly Lane near the intersection of those two roads with either span bridges or box culverts over a tributary of Wilbarger Creek. Ultimately, city staff decided to pursue box culverts at the advice of engineering consultants that determined those would be less expensive. Contractors thus bid on the Project with a design that used box culverts.
Interestingly, when city staff interviewed the contractors that had submitted bid proposals, one of the contractors, CapEx, indicated they could lower their bid more if the city installed span bridges instead of box culverts. CapEx offered to lower their original bid from $17,382,177, which included the box culverts, to $14,893,736, which replaced box culverts with span bridges. Considering the differences in on-going maintenance and operations, the impacts of recent rain events, the United States Army Corp of Engineers preference for bridges instead of box culverts (since more favorable to retaining natural resources such as aquatic features and wildlife passage), and the lower cost, the decision was made to recommend span bridges.
The span bridges needed to be designed so CapEx's revised, lowered bid was a probable construction cost based on conversations between the contractor and the design consultant. To offer City Council the option of pursuing span bridges instead of box culverts, staff presented two items at the June 27, 2023 City Council meeting:
1) a professional services supplemental agreement (PSSA) for $537,554 for the design consultant (JMT) to design the span bridges and
2) the contract to CapEx to construct Kelly Lane Phase 2 with span bridges.
City Council approved both the PSSA and construction contract to move forward with the span bridges.
This change order is an upward adjustment to the probable construction cost based on the finalization of the span bridge design. Even with the increase in cost, the construction cost savings from changing to box culverts to span bridges is maintained with the savings changing from $2,488,441 to $1,465,693. If this change order is approved, the total construction cost of the Project will total $15,378,930, which is well below the $22,890,000 construction budget for this project.
The bridge design has been finalized and the bridge components already ordered. Beam delivery and placement is expected to occur Friday July 12, 2024 for the first set and Friday July 26, 2024 for the second set.
This agenda item supports the Infrastructure pillar of the Strategic Plan, by ensuring the roadways built will meet current and future needs.
Prior City Council Action
On June 27, 2023 City Council approved and executed a construction contract with Capital Excavation Company in the amount of $14,893,736 for the Kelly Lane Phase 2 roadway improvements project.
Deadline for City Council Action
Action is requested on June 25, 2024.
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes _X_ No __ N/A __
Amount: $485,194___
1295 Form Required? Yes _X_ No __
Legal Review Required: N/A _X__ Required __ Date Completed: ___________
Supporting documents attached:
Change Order
Recommended Action
Approve a change order in the amount of $485,194 for Capital Excavation Company associated with the Kelly Lane Phase 2 roadway improvements project, and authorize the City Manager to execute the same.