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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Valerie C. Ross, Acting Director Subject: Authorization to execute Contract
Change Order No. Three with Holland-
Dept: Development Services Lowe Construction, Inc.— Rehabilitation of
Pavement on Highland Avenue--Route 259
Date: July 12, 2000 to Waterman Avenue per Plan 9996.
MCC Date: 07-24-2000 File: 1.7127
Synopsis of Previous Council Action:
7/01/1998 - FY 1998-99 Capital Improvement Project Budget Allocated $241,000 in Measure
"I" funds for the Highland Ave. from Route 259 to Waterman Rehab pavement.
2/15/1999 - Approved Resolution 1999-39 adopting the 5-Year Capital Improvement Program
(1999/03) for Measure "I" Local Expenditures.
5/03/1999 - Approve Plan No. 9969 and Authorized Director of Development Services to
Advertise for bids.
7/06/1999 - Adopted FY 1999-2000 Capital Improvement Program which Allocates a total of
$533,500 in Measure "I" funds in Account No. 129-367-5504-7127 "Highland Ave. from Route
259 to Waterman -Rehab. Pavement".
9/20/1999 Adopted Resolution No. 1999-233 awarding contract for Rehabilitation of Pavement
on Highland Avenue from Rte. 259 to Waterman Ave to Holland-Lowe Construction, Inc.
5/01/2000 - Approved Change Order No. One in the amount of $57,928.00 for trenching,
backfilling, restoration of payment and installation of irrigation system.
Recommended Motion:
That Contract Change Order No. Three with Holland-Lowe Construction, Inc. be approved for
placing of a leveling course of pavement and related work for a net Change Order amount of
$26,304.53, increasing the contract total from $438,379.90 to $464,684.43.
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Valerie C. Ross
Contact person: Michael Grubbs, Sr. Civil Engineer Phone: 5179
Supporting data attached: Staff Report & Change Order Ward: 2, 6 & 7
FUNDING REQUIREMENTS: Amount: $26,304.53
Source: (Acct. No.) 129-367-5504-7127
(Acct. Description) Highland Ave. Rehab.
Finance:
Council Notes:
Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
Authorization to execute Contract Change Order No. Three with Holland-Lowe Construction,
Inc.— Rehabilitation of Pavement on Highland Avenue--Route 259 to Waterman Avenue per
Plan 9996.
Background:
On September 20, 1999, the City entered into a contract with Holland-Lowe Construction,
Inc.— Rehabilitation of Pavement on Highland Avenue--Route 259 to Waterman Avenue.
Due to delays regarding the Highland Street Tree project, construction could not start until
April 17, 2000.
Change Order No. One in the amount of $57,928.00 for trenching, backfilling, restoration of
pavement, and installation of irrigation system between "E" Street and Sierra Way, was
approved by the Mayor and Common Council on May 1, 2000.
Change Order No. Two in the amount of$4,350.00 for additional sidewalk needed to match up
with the new handicap access ramps to provide a smooth handicap accessible transition to the
existing sidewalk, was approved by the City Administrator on June 7, 2000.
Subsequently, site conditions were encountered which required further modification of the
design as described below.
Item Description Increase
1 Increase to compensate contractor for cost to complete the Base $14,691.78
Paving of Waterman Intersection
Additional cost of items 3, 5 & 6 (Original Bid—Asphalt
2 Products) due to oil cost increase between September 20, $12,050.22
1999 and June 2000
Additional cost to add 3/8" Dense Fine Mix for leveling
3 course. Cost is based on Time and Material. $64,942.13
4 Increase due to addition of 21 more traffic signal loops at $ 3,948.00
intersections along the length of the project.
5 Reduction in Rubberized Asphalt Concrete Pavement $(69,327.60)
Net Amount of Change Order No. Three $26,304.53
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JUSTIFICATION
Item 1: The intersection of Waterman Avenue and Highland Avenue was originally included in
the project but was deleted because Public Services Department had a project to rehabilitate
Waterman Avenue which covered the same area. When Public Services staff became aware they
would be unable to complete the rehabilitation of the Waterman/Highland intersection, it was
decided to complete the work as a part of this project as originally intended.
Upon completion of grinding of the existing pavement at the intersection of Waterman Avenue
and Highland Avenue, it was discovered that the grinder had cut into a layer of"open graded"
asphalt which had been placed many years ago. This "open graded" asphalt layer raveled badly
under traffic creating a significant amount of dust and an unsuitable driving surface even for the
one week period between grinding and the scheduled paving with rubberized asphalt pavement.
The contractor agreed to place a 1/2 inch thick leveling course of 3/8 dense fine graded regular
asphalt concrete pavement to provide a suitable driving surface. The contractor agreed to
perform this work on a time and material basis, in accordance with Section 3-3 "Extra Work" of
the Standard Specifications. Therefore, the amount shown is the actual cost for the Contractor to
accomplish this work plus reasonable markup and profit.
Item 2: The Contract for this project was awarded on September 20, 1999, based on a bid
provided by the contractor based on pricing of asphalt pavement at the time the bid was placed.
Due to delay in completing the Highland Streetscape project, the "Notice to proceed" had to be
delayed until April 17, 2000. After negotiations with staff, the contractor agreed to the delay
with no other associated costs except for increases in the cost of paving oil which goes into
"tack" and"asphalt pavement"used in the project.
Item 3: Upon completion of grinding of the existing pavement between Sierra Way and
Arrowhead Avenue it was discovered that the grinder had cut into a layer of "open graded"
asphalt which had been placed many years ago by Caltrans. This "open graded" asphalt layer
raveled badly under traffic creating a significant amount of dust and an unsuitable driving
surface even for the one week period between grinding and the scheduled paving with rubberized
asphalt pavement. The contractor agreed to place a % inch thick leveling course of 3/8 dense
fine graded regular asphalt concrete pavement to provide a suitable driving surface. The
contractor agreed to perform this work on a time and material basis, in accordance with Section
3-3 "Extra Work" of the Standard Specifications. Therefore, the amount shown is the actual cost
of the Contractor to accomplish this work plus markup and profit.
Item 4: Item I 1 "Install Traffic Detector Loops" called for a total of 50 traffic detector loops to
be replaced as part of the project. To facilitate the grinding, the connecting wires to 33
additional loops had to be cut bringing the total number of loops needing to be replaced to 83.
In accordance with Section 3-2.2 "Payment" of the Standard Specifications, authority is given to
pay up to 125% of the original bid quantity for Item 11. Therefore, payment can be made
without change order for a total of 50 x 1.25 = 62 (rounded down) loops leaving 21 loops to be
paid under this change order.
- 3 -
Item 5: The cost of Items 1 and 3 is partially offset by a reduction in the cost of Rubberized
Asphalt Concrete Pavement used in the final paving on the project.
Original Contract Amount plus Change Orders One and Two..........$ 438,379.90
Net Increase due to Change Order No. Three.................................$ 26,304.53
AmendedContract Cost..............................................................................$ 464,684.43
Financial Impact:
The total amount of all change orders approved to date for this project including the
completion of irrigation associated with the Highland Streetscape plus Change Order No.
Three is $88,582.53. Sufficient funds are available in Account No. 129-367-5504-7127
"Highland Ave. Route 259 to Waterman - Rehabilitate Pavement" to cover the cost of this
Change Order.
Recommendation:
Staff recommends approval of Contract Change Order No. Three.
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CONTRACT CHANGE ORDER NO. THREE
FILE NO. 1.7127 DATE: 07/11/00
PROJECT: PAVEMENT REHABILITATION ON HIGHLAND AVENUE
BETWEEN ROUTE 259 AND WATERMAN AVENUE PER PLAN
NO 9969.
TO: HOLLAND-LOWE CONSTRUCTION, INC.
427 S. PERSHING AVENUE
SAN BERNARDINO, CA 92408-1320
GENTLEMEN:
You are hereby compensated for performing the additional work as follows:
Item Description Increase
1 Increase to compensate contractor for cost to complete the Base $ 14,691.78
Paving of Waterman Intersection
2 Additional Cost Of Item 3, 5 & 6 (Asphalt Products) Due To $ 12,050.22
Oil Cost Increase.
3 Additional Cost To Add 3/8" Dense Fine Mix For Leveling $ 64,942.13
Course. Cost Is Based On Time and Material.
4 Increase due to addition of 21 more traffic signal loops at $ 3,948.00
intersections along the length of the project.
5 Reduction in Rubberized Asphalt Concrete Pavement $ (69,327.60)
Total Amount of Change Order No. Three $ 26,304.53