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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 Page 1 of 4 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 Page 2 of 4 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. Page 3of4 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 Page 4of4