Item 4GCity of Southlake, Texas
MEMORANDUM
October 7, 2008
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Award construction contract to JLB Contracting, in the amount
of $897,191.66 for paving, drainage, and utility improvements to
Shumaker Lane and Sunshine Lane and provide for
construction phase contingencies.
Action
Requested:
Background
Information:
Award construction contract to JLB Contracting, in the amount of
$897,191.66 for paving, drainage, and utility improvements to
Shumaker Lane and Sunshine Lane and provide for construction
phase contingencies.
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:
3111114 V
Jackson Construction
JLB Contracting
North Texas Contracting
Sunmount Corporation
Conaster Construction
JRJ Paving
Texas Standard Construction
BID AMOUNT
$891,157.70
$897,191.66
$941,309.80
$971,113.00
$1,049,377.40
$1,176,480.65
$1,629,754.20
Cheatham and Associates recommended award of the contract to the
low bidder, Jackson Construction, Ltd. The City Staff concurred in
this recommendation.
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 ($65,000) 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 pending change order.
Staff previously recommended termination of the contract with
Jackson Construction. Staff is now recommending award of the
construction contract to JLB Contracting.
Financial
Considerations: The recommended award amount is $897,191.66. Staff also
recommends that the City Council approve a 15% construction phase
contingency of $129,808.34 in addition to the award of $897,191.66
for a total project budget of $1,027,000.
The FY 2006 Capital Improvements Program (CIP) included funds in
the amount of $389,218.00 for the paving and drainage
improvements on Shumaker Lane and $101,360.00 for the water and
sewer improvements in Shumaker Lane. The total funding available
for the Shumaker Lane improvements is $490,578.00 and the total
funding required is $490,360.00 with the contingency amount.
The FY 2007 Capital Improvements Program (CIP) included funds in
the amount of $1,200,000.00 for the paving improvements to remedy
deficiencies identified by the Pavement Management Assessment
(PMA) program. Sunshine Lane is one of the streets identified in this
program. The total funding currently available is $1,133,564.00 and
the total funding required for Sunshine Lane is $536,640.00 with the
contingency amount.
Citizen Input/
Board Review: None
Legal Review: The City Attorney has reviewed the contract specifications.
Alternatives: The Council may award the contract to JLB Contracting, or reject all
bids.
Supporting
Documents: Bid Tabulation
Location Map
Project
Schedule: 180 calendar days are allotted from the date of Notice to Proceed for
this project.
Staff
Recommendation: Award construction contract to JLB Contracting, LP, in the amount
of $897,191.66 for paving, drainage, and utility improvements to
Shumaker Lane and Sunshine Lane and provide for construction
phase contingency amount of $129,808.34 for a total project budget
of $1,027,000.00.
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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