Item 4FCity of Southlake, Texas
MEMORANDUM
October 7, 2008
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Terminate the construction contract with Jackson Construction,
Ltd., in the amount of $891,157.70 for paving, drainage, and
utility improvements to Shumaker Lane and Sunshine Lane.
Action
Requested: Terminate the construction contract with Jackson Construction, Ltd.,
in the amount of $891,157.70 for paving, drainage, and utility
improvements to Shumaker Lane and Sunshine Lane.
Background
Information: The FY 2006 Capital Improvements Program (CIP) Budget included
funds for the paving, drainage, and utility improvements on
Shumaker Lane and the FY 2007 CIP Budget included funds for
Pavement Management Improvements that will be used for the
paving and drainage improvements on Sunshine Lane.
Shumaker Lane is currently an unpaved street with surface drainage
running northwest from Sunshine Lane. This project will include
construction of a concrete street pavement section with a storm
water collection inlet at the west end of the Shumaker Lane cul -de-
sac. The water collected by the inlet will be conveyed to a culvert
crossing located at the southeast corner of Hunters Creek Drive and
Dove Road. The existing water line will be replaced with a new 8"
water line. A new 8" sanitary sewer line will be constructed running
from Sunshine Lane to an existing sewer line in Hunters Creek
Drive.
Sunshine Lane is currently an asphalt street with bar ditches running
from Highland Street to Dove Road. This project will scarify, reclaim,
and reshape the existing pavement and subgrade. The roadway
foundation will then be capped with a 4 inch overlay of new asphalt
pavement. The existing bar ditches will be regraded and reshaped to
provide improved drainage conditions.
On February 21, 2006, the City Council approved a professional
services agreement with Cheatham and Associates for the design
and preparation of construction plans for these improvements. On
August 17, 2007, the City Manager authorized an addendum to this
contract to include design services for Sunshine Lane.
Seven bids were received on February 19, 2008. The bids were
reviewed by Cheatham and Associates and the City Staff and
tabulated as follows:
BIDDER BID AMOUNT
Jackson Construction
$891,157.70
JLB Contracting
$897,191.66
North Texas Contracting
$941,309.80
Sunmount Corporation
$971,113.00
Conaster Construction
$1,049,377.40
JRJ Paving
$1,176,480.65
Texas Standard Construction
$1,629,754.20
On March 4, 2008, the City Council awarded the contract to Jackson
Construction as recommended. At the time of award, several
necessary easements remained outstanding. Unfortunately, it took
staff and the property owners longer than expected to come to an
agreement on the easements. Consequently, construction prices
have risen significantly during the past 6 '/2 months. The contractor
has notified us that he will not be able to begin any work for another
4 -6 weeks and he will require a change order in the amount of
$90,184.15 to account for the increase in construction cost resulting
in a total contract amount of $981,341.85.
Staff has visited with the City Attorney's office and determined that
there exists no legal requirement for the city to authorize a change
order due to an increase in construction costs. Staff has discussed
the project with the second low bidder and they have also expressed
a need to have an increase due to the increase in construction cost;
however, the increase is less than what has been requested by the
low bidder. With the price increases from both contractors, the
second low bidder at the time of the bid has now become the low
bidder as a result of the potential change order.
Jackson Construction has submitted a letter requesting they be
released from the contract if the increase is not forthcoming.
Staff recommends termination of the contract with Jackson
Construction. An additional item will be presented to Council for the
award of the construction contract to JLB construction.
Financial
Considerations: Termination of the contract with Jackson Construction, Ltd. in the
amount of $891,157.70 and the 10% construction phase contingency
of $90,000 will release the encumbrance of the total project budget of
$981,157.70 for award to another contractor.
Citizen Input/
Board Review: None
Legal Review: None
Alternatives: The Council may terminate the contract with Jackson Construction,
Ltd. or reject the Staff recommendation..
Supporting
Documents: Bid Tabulation
Jackson Construction Letter requesting release
Location Map
Project
Schedule: The Notice to Proceed for this project was never issued.
Staff
Recommendation: Terminate the construction contract with Jackson Construction,
Ltd., in the amount of $891,157.70 for paving, drainage, and utility
improvements to Shumaker Lane and Sunshine Lane.
Staff Contact: Robert H. Price, P.E., Director of Public Works
Gordon J. Mayer, Jr., P.E. Deputy Director of Public Works
Michael James, P.E. Civil Engineer
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CONSTRUCTION LTD-
5112 SUN VALLEY DRIVE
FORT WORTH, TX 76119
TEE,.: 817 -572 -3303
FAX: 817-478-0'143
September 26, 2008
Gordon Mayer, Director of Public Works
City of Southlake.
1400 Main Street
Southlake, Texas 76092
RE: Shumaker Lane and Sunshine Lane Paving, Water, Sewer. and Drainage
Improvements
Mr. Mayer:
As per our conversation this morning we are sending you this letter requesting to be
relived from our contract with The City of Southlake on the above. referenced project.
This request is being made due to the cost increases of materials and fuel since the project
bid. February 19, 2008 .and today, when the city received the final, key, easement on the.
proj ect.
If you have any questions or comments please. feel free to contact me at 81.7 - 572 -3303 or
walter@jacksonconstruction.net
cerely,
Walter J. ore
Construction Manager
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