AR-Change Order/Matich Corporation

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CITY OF COLTON AGENDA REPORT FOR THE COUNCIL MEETING OF JUNE 19, 2001 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: KATHY KIVLEY Assistant to the City Ma e SUBJECT: Request approval of Change Order #1 in the amount of $ 71,749.59 for the 2000-2009 Pavement Rehabilitation Project — Phase 11 DATE: JUNE 11, 2001 BACKGROUND: At the City Council Meeting of April 3, 2001, the Contract for the 2000-2009 Pavement Rehabilitation Project — Phase 11 was awarded, in the amount of $459,459.00, to Matich Corporation; per the approved agenda item, an amount of $72,541.00 was allocated for Contingencies. The project is currently under construction in the Cooley Ranch area. The Engineer's Estimate for this project was $562,600. 86; the average bid for this project (not including Matich Corporation's bid) was $561,350.25. When preparing the Engineer's Estimate for this project, the recent increases in power and gasoline prices were factored in, resulting in the removal of four (4) small portions of the original project concept. Based upon the amount of available funding, something had to be cut from the proposed project even before the project was presented to City Council at the CIP Workshop of February 13, 2001. Staff chose to cut the smaller streets adjacent to the main portions of the proposed project, rather than eliminating a single larger portion of the proposed project. These smaller portions were deleted hoping that the public bid for the proposed project would come in with a low enough total cost estimate to allow these streets to be returned to the project. Because the bid from Matich Corporation was lower than expected, this option is now open. A Change Order to the 2000-2001 Pavement Rehabilitation Project will facilitate the completion of the several portions of work as described in the paragraphs below. These items encompass only those types of work which are included in the original Contract as awarded to Matich Corporation. The Change Order will reflect an increase in proposed quantities of the Bid Items onlywith the unit costs per item remaining the same. iSIS/DISCUSSION: ANP►L M' ich Corporation's bid was under the Engineer's Estimate compiled on the basis of current market #r6ndsi. The funding ceiling for this project was based upon the available CIP funding allocations (Host City" Fees, Gas Tax and Measure I monies). The contractor's low bid means that there is funding avaiI*le (Contingencies -- $72,541.00) to return items to the contract which were deleted in order that ,the;arrticipated public bids not exceed available funding. Item #10