HomeMy WebLinkAboutAGENDA REPORT 1996 0501 CC REG ITEM 10J r IT
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AGENDA REPORT r.
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To: The Honorable City Council
From: Ken Gilbert, Director of Public Works I'�
Date: April 18, 1996 (Meeting 5-1-96)
Subject: Consider Approval of an Increase to the Contract Price
for the 1995 Slurry Seal Project and Related Budget
Amendment
BACKGROUND
On November 1, 1995, the City Council awarded a contract to Valley
Slurry Seal Company in the amount of $238,213 .85, for the
construction of the 1995 Slurry Seal Project.
DISCUSSION
A. Method of Payment
The contractor is paid on the basis of the amount of slurry seal
actually applied to the streets. The amount of slurry seal
applied is determined by weighing and measuring the total
tonnage of aggregate used. Payment is made using the unit price
bid per extra long ton [aggregate plus all other materials in
the mix design (oil, latex, etc. ) ] applied to the total tons of
aggregate used.
B. Engineer's Estimate
In preparing the plans and specifications for every project
employing unit price bids, the City must include in the bidding
documents an engineer's estimate of the quantity anticipated to
be required for each of the bid items. The estimated quantities
included in the bidding document for the subject project were
developed by Public Works staff. In an attempt to save time and
costs in the preparation of these documents, staff attempted to
estimate the square footage of all of the affected streets from
aerial photographs. These square footage measurements were then
converted into tons of aggregate via a formula. An estimate of
the total number of tons of aggregate required was then included
in the bidding documents.
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C. Field Measurements
During the inspection of the work, field measurement of the
actual area of the streets and the actual tonnage of aggregate
used on each street have proven to be significantly higher than
the estimated quantities set forth in the bidding documents. It
is anticipated that the actual amount of aggregate required for
Type I slurry seal to be applied, will be over 3,000 tons. This
amount is significantly higher than the 1,700 tons identified
for this bid item.
D. Added Streets
Prior to becoming aware of the above described increase in the
amount of Type I Slurry Seal required, and subsequent to the
award of the contract, it was determined that the condition of
the streets in the industrial park located southeast of the
intersection of Poindexter Avenue and Gabbert Road, warranted
resurfacing with Type II Slurry Seal. Accordingly, these
streets were added to the contract via a Change Order. Payment
for such work would be made at the unit price bid for Type II
Slurry Seal.
E. Change Orders
Change Order #1: As stated above, Change Order #1 added the
industrial streets southeast of Gabbert Road and Poindexter
Avenue. The additional traffic control and notification related
to this added work required an increase of $3,110 to the lump
sum amounts for this work.
Change Order #2: As stated above, the additional quantity of
Type I Slurry Seal required for the project, required adding a
number of days to the anticipated length of the project. The
additional traffic control and notification related to these
added days, required an increase of $5,750 to the lump sum
amounts for this work.
F. Increased Administration and Inspection Costs
The above describe increase to the scope of work required will
result in an increase to the cost for Contract Administration
and Inspection.
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G. Revised Cost Estimate
Based on the above, a revised estimate of project costs is
summarized as follows:
Prior Revised
Element Amount ($) Change ($) Amount ($)
Bid Item #6 Type I Slurry 153,000.00 125,550.00 278,550.00
Bid Item #7 Type II Slurry 16,800.00 26,600.00 43,400.00
All other Bid Items 68,413.85 68,413.85
Sub-Total 238,213.85 152,150.00 390,363.85
Change Orders 8,860.00 8,860.00
Sub-Total: Construction 238,213.85 161,010.00 399,223.85
All Non-Construction Costs 50,786.15 16,000.00 66,786.15
Total Project 289,900.00 177,010.00 466,010.00
Recommended Contingency 33,990.00
Total Budget 400,000.00 100,000.00 500,000.00
H. Summary,
Although a discrepancy between the estimated quantities and the
actual quantities required for Type I Slurry Seal was recognized
at or near the commencement of construction, the full scope of
the actual cost of the project was not fully known until the
majority of the work had been scheduled. It was determined,
therefore, not to attempt to reduce costs by reducing the scope
of the project. The determination was made based on the
following factors:
• all of the streets identified are in need of slurry seal;
• the amount of the bid prices are competitive; and,
• a reduction of the scope of work could result in additional
costs for the restocking of materials.
I. Budget
It is recommended that the amount of the budget and the funding
source for this project be revised as follows:
Current Revised
Source Budget ($) Change ($) Amount ($)
Gas Tax [003-142-903-0210]: 400,000 (400,000) 0
LTF [011-142-903-0210]: 0 500,000 500,000
Sub-Total 400,000 100,000 500,000
Note: The amount of funds available in Fund 011 exceed $1.5 million.
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RECOMMENDATION (Roll Call Vote)
Staff recommends that the City Council take the following actions:
1. That the approved contract price for the subject project be
increased to $390, 363 . 85.
2. That the amount of the appropriation and budget for the subject
project be revised as follows:
- Acc. 03-142-903-0210: from $400,000 to $0 ($400,000 decrease)
- Acc. # 11-142-903-0210: from $0 to $500,000 ($500,000 increase)
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