PURPOSE

To request City Council authorization for the City Manager to approve of a maximum of $52,000 in change orders to the original construction contract amount for Bid Schedule No. 1145, Robert Gross Park Frontage Renovation.

BACKGROUND

The Robert Gross Park Frontage Renovation (Project) is one segment of the Empire Avenue Transportation, Utility & Landscape ("Empire Avenue Beautification") project, which was included in the FY2001/2002 Capital Improvement Program.  

The park is located on the south side of Empire Avenue west of Naomi Street.  The renovation includes construction of sidewalk and driveway, 8-foot high steel fencing with pilasters and gates, a masonry wall, and landscape/irrigation improvements.  The driveway entrance was widened to accommodate two-way traffic.

The Empire Avenue Beautification project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA).  On November 28, 2000, the City Council adopted Resolution No. 25,879 accepting this Environmental Decision.

On April 8, 2003, eight (8) contractors submitted construction proposals at the Project�s bid opening.  The bids ranged from $99,565.42 to $165,020.54, and S.H.E. Construction Group of Reseda, California, submitted the lowest bid, which was 26 percent ($35,434.58) below the engineer�s estimate of $135,000.

On May 13, 2003, the City Council adopted Resolution No. 26,482, approving the contract documents and awarding the Project construction contract to S.H.E. Construction Group. The purchase order was not issued until August 2, 2003, due to the contractor�s liability insurance expiration and difficulty in obtaining a new insurance carrier.

On August 11, 2003, the contractor began work with a completion date of November 8, 2003.   

ANALYSIS

During project construction, unanticipated work was required due to a lack of �as-built� information for the park, which the City of Burbank acquired from the Lockheed Corporation.  This unanticipated work delayed the project 21 working days and included re-forming the block wall footing due to interfering utility conduits, removing buried concrete, and exporting excess soil.  The total expense for this additional contract work is $17,308.90. 

Also during construction, revisions to the project design were discussed and agreed upon with the Park, Recreation & Community Services Department staff.  These recommended revisions include the following:

• Enhance the landscape areas by widening them and planting larger (15-gallon) shrubs to provide better screening of the park behind the new steel fencing at the back of sidewalk.  Adjacent grass areas will be re-graded and replanted.�Estimated cost is $19,000

• Install a small additional quantity of steel fencing plus an access gate to the park�s picnic area.  Improve structural integrity of the fencing with additional horizontal bracing and shorter spans.�Estimated cost is $11,000

In addition to the above revisions estimated at $30,000, staff recommends an additional contingency of $5,000 for other potential unanticipated changes.  Combining these amounts with the $17,308.90 for additional work to date totals $52,000.

The costs of the design revisions requested by staff are determined by a combination of the following methods as they apply to the extra work: 

• Extension of contract unit price items

• Calculated time and material expenses when unit prices do not apply.  

Staff reviewed these additional costs to ensure competitive pricing.

If the maximum of $52,000 in change orders is approved, the contract�s revised price will be $151,565.42.  This revised amount is 12% above the original engineer�s project estimate of $135,000.00 and 19% above the second lowest bid of $127,163.00 submitted on this project. 

The project work is now on hold until a change order is approved by the City Council.  If the change order is approved, the remaining project work is estimated to require two months to complete.

FISCAL IMPACT

Additional funding of $52,000 for project change orders is available in Account No. 370-CD12A-70999-1177 (Empire Avenue Beautification).

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution authorizing the City Manager to approve a maximum of $52,000 in change orders to the original construction contract for Bid Schedule No. 1145, Robert Gross Park Frontage Renovation.

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