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HomeMy WebLinkAbout11 - Irvine Terrace Landscape ImprovementsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. I I June 23, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Fong Tse, P.E. 949 - 644 -3321 orftse @city.newport- beach.ca.us SUBJECT: IRVINE TERRACE LANDSCAPE IMPROVEMENTS — PERMISSION TO INCREASE CONTINGENCY AMOUNT TO ACCOMMODATE UNFORESEEN EXTRA WORK - CONTRACT NO. 3865 RECOMMENDATIONS: Authorize a total not -to- exceed contingency amount of $37,018 (42% of the total bid amount). DISCUSSION: The City Council, at its April 14, 2009 regular meeting, awarded the Irvine Terrace Landscape Improvements Project to Tal Cal Engineering for the $88,982 low bid and a $8,900 (10 %) construction contingency for a total award amount of $97,882. During construction and excavation of the parkway, it was discovered that the existing parkway and asphalt concrete travel path was constructed on top of an old roadway. Ground covers were then installed above the buried asphalt concrete pavement. The extra work to dispose of the buried pavement between Jamboree Road and Irvine Terrace and the additional irrigation system components required to make the design shown on the plans functional have depleted the 25% contingency amount approved by the City Manager in accordance with Council Policy F -3. Additional removals still need to take place between Irvine Terrace and Avocado Avenue in order to install the new parkway improvements at depths below the buried pavement and concrete layer. Since the work site has been exposed, staff does not anticipate other changed field conditions. The total contingency amount needed to complete the project is approximately $37,018 or 42 %. While a 10% contingency allotment would be sufficient for most projects, the cost of non- competitive change orders can escalate and quickly surpass the minimal 10% contingency allotment on a small project. The percentage change on small project change orders then appears excessive. The approximated total cost of this project including all change orders is $126,000. The next responsive total base bid amount received on this project was $149,008.67. Irvine Terrace Landscape Improvements — Permission to Increase Construction Contingency - Contract No. 3865 June 23, 2009 Page 2 Environmental Review: City Council funding actions are exempt from California Environmental Quality Act (CEQA). Public Notice: Not Applicable. Funding Availability: There are sufficient funds available in the following Irvine Terrace Landscape Improvements accounts for the project: Description /Account Number Purpose Genera( Fund/7013- C3170904 Construction Contract $ Contributions/7251- C3170904 Construction Contract $ General Fund/7013- C3170904 Construction Contingency $ Total: $ Prepared by: Fog e, P.E. Princ' al Civil Engineer Submitted by: Amount 68,982.00 20,000.00 37,018.00 126,000.00 ien G. Badum c Works Director