SUBJECT:  APPROVAL OF CHANGE ORDER NO. 4 AND INCREASE CONTRACT CONTINGENCY FOR THE SAN JOSE/SANTA CLARA WATER POLLUTION CONTROL PLANT FY 97/98 CAPITAL IMPROVEMENT PROGRAM, RAILCAR PLATFORMS AND COVER PROJECT

 

RECOMMENDATION

 

Approval of:

 

1.      Change Order No. 4 with Rushford Construction, Incorporated for the construction project entitled “San Jose/Santa Clara Water Pollution Control Plant, FY 1997/1998 Capital Improvement Program, Railcar Platforms and Cover Project,” in an amount of $68,526;

 

2.      Increasing the project contingency by $92,000 and thereby increasing the total contract amount from $242,089 to $334,089; and

 

3.      Extending the term of the agreement to December 15, 2001.

 

BACKGROUND

 

This project provides for the construction of a canopy above the treatment plant’s railcars of chlorine and sulfur dioxide gases.  On April 20, 1999, Council awarded a construction contract in the total amount of $242,089 for the subject project to Rushford Construction, which included a contingency of $40,000. The project allowed for 150 calendar days for completion and the contract start date was June 18, 1999, with a completion date of November 14, 1999.

 

The project bid called for the contractor to retain a structural engineer to design the footing for the canopy.  After the contractor’s shop drawings for the canopy were submitted and approved by the design engineers, the contractor proceeded to order the canopy materials and delivered the materials on site.  Upon the start of physical construction work in September 1999, the contractor encountered changes in site conditions that required redesign of the canopy.  Specifically, electrical duct banks found at the site interfered with the construction of the canopy piers.

 

As a result of the changes in site conditions, three change orders (COs) have been issued in the amount of $28,012 to remedy the situation.  Funds for CO #1-3 were provided by the original contingency amount and involved the hiring of a structural consultant engineer to redesign the piers; the hiring of a geotechnical consulting firm to conduct soil borings and provide information to the structural engineer; and performing exploratory excavation.  The additional site information gathered, including groundwater conditions, resulted in the need for the structural engineer to redesign and slightly relocate the canopy structure and extend the foundation piers deeper into the subsurface area. Redesign of the piers could not be accomplished until May 2001 and the contractor proceeded again with construction in July 2001. The project is currently about 64 percent complete.

 

ANALYSIS

 

Change Order No. 4 would provide for the following activities:

 

1.      Construct four 24-inch diameter concrete drilled piers at 30-foot depth and four 36-inch diameter concrete drilled piers at 35-foot depth.  This includes the construction of two additional piers. The cost for this work is $63,978.

 

2.      Raise and consolidate two south platform support foundations.  The contractor is required to perform manual excavation of this area since it is in close proximity to the chemical railcars. The cost for this work is $4,548.

 

The contractor is working diligently with staff to complete this project before the wet weather period begins, which poses more hazardous conditions for the work around this hazardous chemical area.  Staff requests extension of the original completion date to December 15, 2001. Staff further requests that, in order to avoid delaying the project further at this critical time period, the contingency amount be increased by $92,000 to a total of $132,000. This would result in a remaining available project contingency of $35,462, which would enable staff to make timely decisions on any additional work that may arise, considered critical given that the project is only 64 percent complete.

 

PUBLIC OUTREACH

 

Not applicable.

 

COORDINATION

 

The project has been coordinated with the Offices of the City Attorney, Equality Assurance, and Risk Management, and was scheduled to be heard at the September 13, 2001, Treatment Plant Advisory Committee meeting.

 

COST IMPLICATIONS

 

The cost of this recommendation is $92,000.  Funds are available with the existing appropriation in the Treatment Plant Capital Fund.

 

 

CONTRACT AMOUNTS

 

 

Original Contract

Original Project Contingency

Original Total Contract

 

Proposed Additional Project Contingency

Proposed Total Contract                                   

 

$ 202,089

$   40,000

$ 242,089

 

$   92,000

$ 334,089

 

USE OF PROJECT CONTINGENCY

 

 

Original Project Contingency

Proposed Additional Project Contingency

Proposed Total Project Contingency

 

Uses

CO #1 (Approved & Paid)

CO #2 (Approved & Paid)

CO #3 (Approved & Paid)

CO #4 (Recommended)

Total Project Contingency Uses

 

Remaining Available Project Contingency

 

$   40,000

$   92,000

$ 132,000

 

 

$     5,239

     13,510

       9,263

      68,526

$    96,538

 

$    35,462

 

 

BUDGET REFERENCE

 

            Fund:                                        Treatment Plant Capital Fund – (512)

          Amount:                                   $92,000

            Budget Document:                    2001-2002 Proposed Capital Budget

                                                            Page 725

 

NONDISCRIMINATION

 

The City of San Jose Nondiscrimination Requirements are included in this project as required in Chapter 4.08 of the San Jose Municipal Code.

 

CEQA

 

CEQA:  Exempt

 

 

CARL W. MOSHER

Director, Environmental Services Department