Title
AN ORDINANCE APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH B. DEAN CONSTRUCTION COMPANY FOR THE NORTHWEST QUADRANT T-HANGAR DEVELOPMENT PROJECT, AN INCREASE OF $395,084.44 FOR A REVISED CONTRACT PRICE OF $2,547,940.49. (PWC 3/20/18)
Body
Issue/Request:
AN ORDINANCE APPROVING CHANGE ORDER #1 TO THE CONTRACT WITH B. DEAN CONSTRUCTION COMPANY FOR THE NORTHWEST QUADRANT T-HANGAR DEVELOPMENT PROJECT, AN INCREASE OF $395,084.44 FOR A REVISED CONTRACT PRICE OF $2,547,940.49
Key Issues:
• Due to initial funding limitations, this project was split into two phases with the first phase being T-hangars constructed in FY 18 and the second phase, a taxiway to serve a protion of the hangars, constructed in FY 19.
• Based upon the current project schedule, Phase 1 should be completed in June or July 2018
• After consultation with the Finance Department regarding cash flow, it is possible to accelerate the construction of Phase 2.
• Since the paving unit prices have already been established by bid, Phase 2 can be added by change order and an additional seven T-hangar units will be available four to six months earlier than if the construction is done in two phases.
Proposed City Council Motion:
FIRST MOTION: I move for a second reading of AN ORDINANCE APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH B. DEAN CONSTRUCTION COMPANY FOR THE NORTHWEST QUADRANT T-HANGAR DEVELOPMENT PROJECT, AN INCREASE OF $395,084.44 FOR A REVISED CONTRACT PRICE OF $2,547,940.49.
SECOND MOTION: I move for adoption of AN ORDINANCE APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH B. DEAN CONSTRUCTION COMPANY FOR THE NORTHWEST QUADRANT T-HANGAR DEVELOPMENT PROJECT, AN INCREASE OF $395,084.44 FOR A REVISED CONTRACT PRICE OF $2,547,940.49.
Background
The Northwest Quadrant T-Hangar Development Project was to provide replacement hangars to some of the existing tenants being displaced as part of the Taxiway A project that demolished four open t-hangar buildings and three enclosed t-hangar buildings.
Due to funding limitations, this project was split into two phases. The first phase to be constructed in FY 18 provided for two t-hangar units consisting of 28 single units (21 usable in phase 1) and two taxilanes for a total project cost of $2.2M. Phase 2 planned originally for FY 19, consisted of the construction of a third taxilane allowing access the seven unusable units and vehicle parking for a total project cost of $525,000. Based upon the current project schedule, Phase 1 should be completed in June or July of this year. Base upon the contractors construction schedule and after consultation with the Finance Department regarding cash flow, it is possible to accelerate the construction of Phase 2 into this fiscal year so that the third taxilane is completed and seven individual units are available this fiscal year and the entire project is completed this summer.
Impact/Analysis:
The funding for Phase 2 would only be accelerated by one or two months, and the cash flow for the fund remains positive. In addition, we will be able to accelerate the relocation of seven tenants that have been displaced due to their hangar being demolished.
The FY 18 CIP showed a Phase 2 project budget of $525,000. This change order of $395,084.44, plus the design and inspection contract modification with CMT of $66,630.00 results in a total phase 2 cost of $461,714.44, or under budget by 63,285.56 for phase 2.
If approved, the CIP budget will be modified in a future budget amendment.
Timeline:
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Presenter
Presenter: Bob Hartnett, Deputy Director of Public Works
Recommendation
Recommendation: Staff recommends Approval of AN ORDINANCE APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH B. DEAN CONSTRUCTION COMPANY FOR THE NORTHWEST QUADRANT T-HANGAR DEVELOPMENT PROJECT, AN INCREASE OF $395,084.44 FOR A REVISED CONTRACT PRICE OF $2,547,940.49.
Committee Recommendation
Committee Recommendation: The Public Works Committee voted unanimously 4-0 to recommend to City Council approval of AN ORDINANCE APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH B. DEAN CONSTRUCTION COMPANY FOR THE NORTHWEST QUADRANT T-HANGAR DEVELOPMENT PROJECT, AN INCREASE OF $395,084.44 FOR A REVISED CONTRACT PRICE OF $2,547,940.49.