Item 4M MemoCITY OF
SOUTH LAKE
MEMORANDUM
(November 16, 2021)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Item 4M
Subject: Amend the construction contract to Tiseo Paving Company for
White Chapel Improvements from Emerald Boulevard to
Highland Street in an amount not to exceed $15,766,670.
Action
Requested: Amend the construction contract to Tiseo Paving Company for
White Chapel Improvements from Emerald Boulevard to Highland
Street in an amount not to exceed $15,766,670.
Background
Information:
The widening of the North White Chapel roadway began in 2008
with the award for design services to Huitt-Zollars, Inc. The project
faced many significant challenges since its inception. For more than
a decade, multiple design iterations were undertaken to
accommodate and/or address concerns of previous City Council's,
the School District, and residents whose property line would abut to
the new roadway's limits. Right of way and temporary construction
easements were obtained via complex and lengthy negotiations and
eminent domain proceedings.
Final design plans were submitted for city review in 2011, 2013,
2014, 2016, and 2017. The final iteration was the last recorded
change before the drawing package was released for bids in
February 2019.
In 2019, City Council awarded a construction contract for the North
White Chapel Boulevard Improvement project (Emerald Boulevard
to Highland Street) in an amount not to exceed $14,766,670. This
amount included a base bid of $13,424,245.95 plus a contingency
(approximately 10% of base bid) of $1,342,424.05 as shown below.
Milestone
Amount
Base Bid
$ 13,424,245.95
Initial Contingency -10% of base
$ 1,342,424.05
2019 Approved authorization
$ 14,766,670.00
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Item 4M
The additional funding for contingency is a standard risk mitigation
practice for Southlake projects. This action is an accepted
construction industry practice of setting money aside to cover
unexpected costs that arise throughout a construction project. The
costs charged against contingency are paid once a change order
has been issued to the contractor.
Contract changes depleted the contingency amount at a rate faster
than anticipated for this project. The table shows a summary of the
project changes, broken down into six different categories (Design -
utility, Design -owner, Design -residential, Economic, Subsurface -
franchise and Subsurface -utility) and accompanying costs. Each
category identified below is accompanied by an example of the type
of change incurred.
Reason for Change
Amount
Design -utility
$
23,250.00
Design -owner
$
872,962.52
Design -residential
$
30,458.93
Economic
$
90,991.00
Subsurface -franchise
$
217,124.25
Subsurface -utility
$
321,825.19
Grand Total
$
1,556,611.89
Changes classified as:
1. "Design utility": Items that were completed at the
request of Public Works Operations. These changes
were made to existing utilities that were accessible
because of the roadway project but were not part of
the original scope of work. The removal of valves from
an existing water line is an example of this type of
work. This effort was undertaken as a risk mitigation
measure. Similar valves installed around the same
timeframe have started to fail. The widening project
gave the opportunity to have these valves removed for
less cost and less impact to customers vice during an
emergency repair situation.
2. "Design -owner": Additional work undertaken at the
request of the city. Most of these changes would have
been included as part of the original project cost if
work was identified earlier in the project development
phase. For example, construction of the temporary
drive on school property was not planned but required
as the south drive was closed. This item was not part
of the original scope as the project team did not
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Item 4M
confirm with CISD that both drives would be needed
for ingress/egress while the stormwater system was
being constructed.
3. "Design -residential": Additional work undertaken at
the request of residents. The project team reviewed
and approved requests that exemplified exceptional
customer service without added betterments. For
example, changes were undertaken to the screening
wall due to privacy concerns of a resident. The new
wall afforded less privacy than the previous wall,
therefore, the project team determined that this was
an acceptable request as the change did not
adversely impact the new wall's appearance. Further,
it returned the same amount of privacy that was
afforded by the original wall.
4. "Economic": Price increases due to market
fluctuations for streetlights. The original scope of work
called for the contractor to install streetlights. The work
was removed as the project team incorrectly believed
the franchise utility would install the streetlights.
Introducing the streetlights back into the project
resulted in the higher cost due to market volatility.
5. "Subsurface -franchise": Additional work undertaken
due to conflicts with franchise utilities. It was
discovered that relocated franchise utilities still
conflicted with planned work. The project team
pushed through these issues rather than delay the
project weeks to months waiting for the utilities to
return and attempt to successfully relocate their
infrastructure a second time. The project team is
working with each provider for reimbursement.
6. "Subsurface -utility": Additional work undertaken due
to conflicts with existing infrastructure. Plans provided
by the city to the designer of record indicated an
existing water line was deeper than its actual depth.
The water line had to be lowered because the
elevation of the new roadway failed to provide the
necessary clearance between it and the existing water
line.
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Financial
Considerations:
Item 4M
The following table shows the results of amending the current
construction contract by the additional $1,000,000. The revised
contract amount, if amended, would be $15,766,670.
Milestone
Amount
2019 Approved authorization
$ 14,766,670.00
FY2022 CIP Contingency add
$ 1,000,000.00
Revised authorization
$ 15,766,670.00
The contract increase will pay for known changes as well as any
unexpected changes that may arise for the remainder of the project.
Funding for the revised contract amount is available via the
approved Capital Improvement Program. Expenditures will not
exceed approved budgeted funds.
Strategic Link: This item links to the City's Strategy Map strategic focus areas of
Mobility, Infrastructure, and Quality Development. It specifically
relates to the City's Corporate Objectives, C2: Provide Travel
Convenience Within City & Region, and F2: Invest to Provide &
Maintain High Quality Public Assets. The Critical Business Outcome
is, CBO2: Enhance Mobility Though Aggressive Traffic
Management Initiatives And Capital Project Implementation.
Citizen Input/
Board Review: None.
Legal Review: None.
Alternatives: The City Council may approve or deny the request.
Supporting
Documents: None.
Staff
Recommendation: Amend the construction contract to Tiseo Paving Company for
White Chapel Improvements from Emerald Boulevard to Highland
Street in an amount not to exceed $15,766,670.
Staff Contact: Rob Cohen, Director of Public Works
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