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  Agenda Item   18.    
City Council Meeting
Meeting Date: 05/04/2021  
FROM: Bill Gallardo

Subject:
Authorize Additional Contingency Amount for Contract with Stephen Doreck Equipment Rentals, Inc. for the Moorpark Drive Water Improvements Project
RECOMMENDATION
Authorize the City Engineer to issue Change Orders up to a "not-to-exceed" amount of 25% of the Contract Price.
BACKGROUND/DISCUSSION
The Moorpark Drive Water Improvements Project, CIP No.7430 ("Project") is programmed in the FY 2020-21 Capital Improvement Program (CIP). The Project is located on Moorpark Drive between Brittany Lane and Larkstone Lane (Attachment A). The work consists of replacing approximately 1,250 linear feet of existing water main and associated water services.

On December 15, 2020, the City Council awarded a construction contract to Stephen Doreck Equipment Rentals, Inc. in the amount of $339,857.10 and authorized the City Engineer to issue Change Orders up to a "not-to-exceed" amount of 10% of the contract price.

Construction commenced on February 22, 2021 with the projected completion date of April 2, 2021. During construction, it was discovered that additional water mains the length of 205-LF in Brittany Lane would need to be replaced due to the corrosive condition of the pipes. In addition, there are four water services that would need to be replaced along with additional slurry seal of the area. The cost of this Change Order is $69,334.92, which is 20% of the contract price. Staff has reviewed the cost and found it reasonable. Therefore, staff is recommending authorization to issue Change Orders "not-to-exceed" 25% of the contract price ($84,964.28) to cover this Change Order and any other minor potential Change Orders that may come up in order to complete the project.
COMMISSION/COMMITTEE RECOMMENDATION
The Finance Committee reviewed staff’s recommendation at their April 27, 2021 meeting and recommended for Council approval.
 
FISCAL IMPACT/SUMMARY
The Project budget is programmed in the FY 2020-21 CIP with a total projected budget of $490,000 of Water Funds. The contract price in the amount of $339,857.10, plus the 25% "not-to-exceed" contingency in the amount of $84,964.28, for a total of $424,821.38, is within the current Project budget. There is no impact to the General Fund.

The Project will replace water mains and associated water services on Moorpark Drive, between Brittany Lane and Larkstone Lane. If the City Council approves staff's recommendation, the Project is anticipated to be completed by end of May 2021.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:Hsing Chao, Associate Engineer
Concurrence: Michael Ho, P.E. Deputy Director of Public Works / City Engineer
 
Attachments
Attachment A

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