Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Ann M. Stillman, Director of Public Works
Subject: Measure K: Increase the Not-to-Exceed Amount of the Agreement with Granite Rock Company for the Middlefield Road Improvement Project in the North Fair Oaks Area
[County Project No. OD420, Project File No. E4931]
RECOMMENDATION:
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Measure K: Adopt a resolution increasing the Director of Public Works’ authority to execute change orders to the construction agreement with Granite Rock Company, for the Middlefield Road Improvement Project in the North Fair Oaks Area, to increase the not-to-exceed amount of $33,047,550 by an additional amount of $1,452,450 to a new not-to-exceed amount of $34,500,000.
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BACKGROUND:
On October 20, 2020, this Board adopted Resolution No. 077819, which adopted plans and specifications, including conformance with general prevailing wages, as established by the Department of Industrial Relations, in the locality in which said work is to be performed for each type of workman needed to execute the contract and calling for sealed bids for the Middlefield Road Improvement Project (Project).
On February 9, 2021, this Board adopted Resolution No. 078007, which authorized an agreement with Granite Rock Company (Graniterock) for construction of the Project in the amount of $19,131,379 and authorized the Director of Public Works to execute contract change orders to grant time extensions for project completion and payment up to a maximum agreement amount not to exceed $21,044,550.
On November 1, 2022, this Board adopted Resolution No. 079277, which increased the not-to-exceed amount of the agreement with Graniterock for construction of the Project in the amount of $2,500,000 and authorized the Director of Public Works to execute contract change orders and payment up to a maximum agreement amount not to exceed $23,544,550.
On September 12, 2023, this Board adopted Resolution No. 079923, which increased the not-to-exceed amount of the agreement with Graniterock for construction of the Project in the amount of $2,900,000 and authorized the Director of Public Works to execute contract change orders and payment up to a maximum agreement amount not to exceed $26,444,550.
On February 27, 2024, this Board adopted Resolution No. 080208, which increased the not-to-exceed amount of the agreement with Graniterock for construction of the Project in the amount of $2,500,000 and authorized the Director of Public Works to execute contract change orders and payment up to a maximum agreement amount not to exceed $28,944,550.
On June 25, 2024, this Board adopted Resolution No. 080545, which increased the not-to-exceed amount of the agreement with Graniterock for construction of the Project in the amount of $4,103,000 and authorized the Director of Public Works to execute contract change orders and payment up to a maximum agreement amount not to exceed $33,047,550.
DISCUSSION:
Graniterock’s work on the Project is now complete, with all major elements finished, including sanitary sewer replacement, joint trench installation, sidewalk widening, bio-retention and green infrastructure, jack and bore operations, roadway reconstruction, striping, signing, streetlights, pedestrian lights, and streetscape elements. The remaining significant Project items of work include: the placement of wires for the electrical and telecommunication systems in the constructed underground facilities to be completed by the utility companies; installation of the railroad traffic signals to be completed by Union Pacific Railroad; realignment of the Redwood Junction/Health Clinic Driveway to be completed by the Department of Public Works (Department); installation of specific streetlights and traffic signal poles by the Department that cannot be installed until the overhead wires are removed; and the removal of existing wooden utility poles by the utilities once the underground electrical system is operational.
The Department and Contractor have been negotiating to resolve additional costs and delays experienced due to unanticipated conflicts and design challenges throughout the duration of the Project. These issues have rendered the current “not-to-exceed” amount insufficient to properly compensate Graniterock for the completed work and to close out the Project.
The Project incurred significant delays and costs from unanticipated utility conflicts, many of which required design modifications and coordination with agencies. Substantial effort and coordination with Union Pacific Railroad and SamTrans were necessary to complete the jack and bore operations to place casings under the railroad tracks. There were also design changes and challenges during the installation of sanitary sewer lines due to utility conflicts, including relocation of California Water Service Company water lines. Additionally, increased potholing was necessary to locate utility conflicts before demolition to avoid further delays. The increased cost for the unexpected utility conflicts is estimated to be approximately $1,156,728.
The Project continued to use a Time and Materials (T&M) payment method for several bid items and has incurred additional costs through change orders. These changes include modifications to striping between MacArthur Ave and Hurlingame Avenue, additional sidewalk concrete work, extra underground conduit work, and additional mobilization. The increased cost for T&M work and change orders is estimated to be approximately $295,722.
The Department recommends that this Board consider these unanticipated conditions for this Project and approve the recommended contract increase amount to facilitate completion of the Project. Construction issues or conflicts often arise during construction projects, which must be addressed immediately to keep the project moving forward. In some cases, these issues require additional compensation. The Department worked diligently through the construction of this Project to minimize additional costs and develop solutions that were timely, effective, and financially responsible.
County Attorney has reviewed and approved the resolution as to form.
FISCAL IMPACT:
The new not-to-exceed amount of Granite Rock Company construction contract is $34,500,000. The recommended increase of the Project contract by $1,452,450 will allow for final payment to the Contractor.
Several of the additional costs as identified above are shared between various utilities and funding sources. The Department will seek reimbursement of these costs based on existing cost share agreements.