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HomeMy WebLinkAbout23A - CONTINGENCY INCREASE STREET WATER MAIN IMPROVEMENTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2011 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED CONTINGENCY INCREASE TO KANA ? As Recommended PIPELINE FOR CONCRETE STREET ? As Amended WATER MAIN IMPROVEMENT ? Ordinance on 151 Reading ? Ordinance on 2"d Reading (PROJECT NO. 116406) ? Implementing Resolution ? Set Public Hearing For_ 1 J-4- CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION Increase the contingency for the contract with Kana Pipeline, Inc., for the Concrete Street Water Main Project by $100,000 to a total estimated contract amount of $896,130 and authorize the City Manager to execute change orders in an amount not to exceed the authorized contingency. DISCUSSION On May 16, 2011, the City Council awarded a contract for the Concrete Street Water Main project to Kana Pipeline, Inc. in the estimated amount of $723,755 plus a 10 percent contingency of $72,375 totaling $796,130. On Lowell, Olive, Fifth, Sixth, Baker and Raitt Streets, field verification revealed that existing underground utility lines will be in conflict with the water mains that are being installed. Therefore, the water mains were rerouted to clear the utility lines, which required deeper excavation and the installation of additional shoring and pipe fittings. Currently, the project is 40 percent complete; however 70 percent of the original contingency amount is exhausted. To avoid a delay in the project, staff recommends the contingency be increased by $100,000 to compensate the contractor for the additional rerouting of the water mains that will be required. FISCAL IMPACT The contingency increase is $100,000. Funds are available in the Water Utility Capital Projects Fund (accounting unit 06617647-66301). Raul Godinez II Executive Direc Public Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency 23A-1 23A-2