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Bid 7837— Increase in Change Order Authority • Page 2 <br />DISCUSSION: <br />During the installation of the sewer pipeline along Martin Luther King Boulevard, G. Hurtado <br />encountered unknown and unmarked underground utility pipes. The unmarked utilities have <br />required the contractor to halt construction to pothole the depth and alignment of the unmarked <br />pipes, staff has had to redesign the sewer line alignment, and staff has directed the contractor to <br />utilize jack and bore construction method which is significantly more expensive than open trench <br />construction to avoid impacts to the conflicting utilities. <br />STRATEGIC PLAN ALIGNMENT: <br />This item contributes to Strategic Priority 6 - Infrastructure, Mobility, and Connectivity and <br />Goal 6.2 — Maintain, protect, and improve assets and infrastructure within the City's built <br />environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity. <br />This project aligns with each of the five Cross -Cutting Threads as follows: <br />1. Community Trust — This Project is in the community's best interest by ensuring reliable <br />sewer services for the University Drive residents. <br />2. Equity — This Project will provide equitable distribution of sewer services to all residents in <br />the University Drive. <br />3. Fiscal Responsibility — This Project will provide a net saving in maintenance and <br />operation cost since it is cheaper to maintain sewer pipes than a sewer pump station. <br />4. Innovation — This Project exemplifies "out of the box" thinking by identify an alternative to <br />provide gravity sewer services to an area that was previously served by a pump station. <br />5. Sustainability & Resiliency — This Project promotes growth by installing gravity sewer <br />pipes to serve a neighborhood. Sewer pipes have more flexibility in accepting flow <br />fluctuations throughout the day without much consequences compared to a pump station, <br />which is more rigid and precise on how much flow can be received and pumped out at any <br />given time. <br />FISCAL IMPACT: <br />The total fiscal impact of this action is $243,835. This action increases the contract with G. <br />Hurtado Construction, Inc. to $1,969,177. Sufficient funds are budgeted and available in the <br />Sewer Fund, Elimination of University Knolls Pump Station project account no. 9910223-440301 <br />to fund the change order. <br />Prepared by: <br />Certified as to <br />availability of funds: <br />Approved by: <br />Approved as to form: <br />Attachment: <br />Gilbert Hernandez, Public Works Director <br />Edward Enriquez, Interim Assistant City Manager/Chief Financial <br />Officer/City Treasurer <br />Kris Martinez, Assistant City Manager <br />Phaedra A. Norton, City Attorney <br />Project Location Map <br />