08-16-2022 CC RPT 48 - Laserfiche WebLink

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City °JArts &Innovation City Council Memorandum IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII TO: HONORABLE MAYOR AND CITY COUNCIL DATE: AUGUST 16, 2022 FROM: PUBLIC WORKS DEPARTMENT WARD: 2 SUBJECT: BID NO. 7837 - MARTIN LUTHER KING BOULEVARD AND ALTA MESA DRIVE SEWER IMPROVEMENTS — INCREASE IN CONSTRUCTION CHANGE ORDER AUTHORITY TO G. HURTADO CONSTRUCTION, INC. FROM $150,000 TO $393,835 (25%) FOR A TOTAL CONTRACT AMOUNT OF $1,969,177 ISSUE: Approve an increase in change order authority for Bid No. 7837 regarding the Martin Luther King Boulevard and Alta Mesa Drive Sewer Improvements Project to G. Hurtado Construction, Inc. from $150,000 to $393,835 (25%) fora total contract amount of $1,969,177. RECOMMENDATION: That the City Council approve an increase in change order authority for Bid No. 7837 regarding the Martin Luther King Boulevard and Alta Mesa Drive Sewer Improvements Project to G. Hurtado Construction, Inc., from $150,000 to $393,835 (25%) for a total contract amount of $1,969,177. BACKGROUND: On August 17, 2021, the City Council awarded a contract in the amount of $1,575,342 to G. Hurtado Construction, Inc., (G. Hurtado) to remove a pump station that is approximately 33 years old and does not meet current City standards for emergency storage, electrical control systems, and accessibility to pumps. The pump station will be replaced with a new gravity sewer system on Martin Luther King Boulevard from Chicago Avenue to Canyon Crest Drive and on Canyon Crest Drive from Martin Luther King Boulevard to University Drive. With the gravity sewer system in place and the demolition of the sewer pump station, sewer services will be more reliable and the risk of sewer backing up due to the pump station mechanical or electrical failure is eliminated. At the time of award, the Public Works Department was authorized to negotiate change orders up to $150,000 per Resolution No. 23256. The Public Works Department is requesting a $243,835 increase in change order authority from $150,000 to $393,835 for a total contract amount of $1,969,177 to address unanticipated underground utility conflicts encountered.