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Increased Contingencies for <br /> Mid-City Neighborhood <br /> June 21, 2010 <br /> Page 2 <br /> When the total change orders exceed 25 percent of the original contract, a supplemental <br /> agreement is required according to the Standard Specifications for Public Works Construction, <br /> which is part of the contract by reference. This agreement will affirm that the contractor will be <br /> paid only according to the contract unit prices and no other compensation will be allowed. <br /> On February 1, 2010, the City Council awarded a contract for the Residential Street Repair - <br /> Phase 12 project to All American Asphalt in the estimated amount of $2,929,195 plus a <br /> contingency of $292,920 totaling $3,222,115. For the same reason mentioned in the Mid-City <br /> Neighborhood project, the pavement thickness for the streets needs to be increased from one <br /> and one-half inch to two inches. Similarly, the contractor will be paid according to the actual <br /> quantities of work and the bid unit prices. Increasing the contingency by $320,000 will raise the <br /> total contingency to 21 % of the contract amount. Since the total contingency is less than 25 <br /> percent of the contract amount, no supplemental agreement is needed and the additional work <br /> shall be processed according to the original terms and procedures in the contract. <br /> ENVIRONMENTAL IMPACT <br /> This is no environmental impact associated with this action. <br /> FISCAL IMPACT <br /> The contingency increase for the Mid-City Neighborhood project is estimated at $400,000. <br /> Funds in the amount of $90,000 are available in the Community Development Block Grant Fund <br /> Recovery Act (accounting unit 13518787-66220). The remaining $310,000 is available in the <br /> Public Works Account for Residential Street Repair (accounting unit 05817661-66220). <br /> The contingency increase for the Residential Street Repair -Phase 12 project is estimated at <br /> $320,000. Funds are available in the Public Works Account for Residential Street Repair <br /> (accounting unit 05817661-66220). <br /> APPROVED AS TO FUNDS AND ACCOUNTS: <br /> ~~I <br /> Raul Godinez II Francisco Gutierrez , ~ y'h`~' <br /> Executive Director Executive Director <br /> Public Works Agency Finance & Management Services Agency <br /> Cynthia J. Nelson <br /> Deputy City Manager, Development Services <br /> <br /> Community Development Agency <br /> RG/DI <br /> 23A-2 <br /> <br />