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<br />Item #9
<br /> CITY COUNCIL AGENDA REPORT
<br />
<br />December 3, 2024
<br />Public Works - Engineering Division
<br />
<br />TITLE: APPROVE AN ADDITIONAL CONSTRUCTION CONTINGENCY OF $250,600
<br />FOR A TOTAL PROJECT CONTINGENCY AMOUNT OF $377,600 TO
<br />CONSTRUCT BID ALTERNATIVES 1-4 FOR THE LIONS WAYSIDE AND
<br />DELUCCHI PARKS RENOVATIONS PROJECT, CIP NO. 06716
<br />
<br />SUMMARY
<br />The construction contract for the Lions Wayside and Delucchi Parks Renovations, CIP No.
<br />06716, was approved by the City Council on September 3, 2024. The bid was awarded to the
<br />lowest responsive bidder, Integra Construction Services, Inc., in the amount of $1,265,000 for
<br />the base bid amount and included a contingency of $127,000 (approximately 10 percent) for
<br />unforeseen yet necessary work. The project bid resulted in lower than estimated bid costs,
<br />leaving a project balance of $323,510. At the time of the award, staff recommended not to
<br />award the bid alternates due to the cost of Integra’s bid alternate pricing, which totaled
<br />$447,000. After the contract was awarded, staff was able to value engineer and negotiate with
<br />the contractor to construct the bid alternates for a total of $250,600, which would leave a
<br />remaining balance of $72,860, when adding a new $50 expenditure for the project. The
<br />funding for the project, including the recommended bid alternatives, is fully funded by
<br />dedicated Parks Impact Fees such that money from the General Fund is not used to
<br />implement this project. Construction of the bid alternates is not expected to impact the project
<br />schedule.
<br />
<br />RECOMMENDATION
<br />Authorize the City Manager, or authorized staff, to approve and execute contract change
<br />orders for an additional $250,600, for a total project contingency amount of $377,600, for the
<br />bid alternate work and unforeseen yet necessary related work.
<br />
<br />BACKGROUND
<br />On July 17, 2024, the City received seven base bids ranging from $1,265,000 to $1,776,966
<br />for the Lions Wayside and Delucchi Parks Renovations project, CIP No. 06716. The low base
<br />bid amount submitted by Integra Construction Services Inc. (Integra), in the amount of
<br />$1,265,000, was approximately 19 percent lower than the Engineer’s Estimate of $1,560,000.
<br />
<br />On September 3, 2024, the City Council awarded the construction contract to Integra
<br />Construction Services, Inc. in the amount of $1,265,000 with a construction contingency of
<br />$127,000 (approximately 10 percent).
<br />
<br />DISCUSSION
<br />The awarded base bid included park improvements that focused on the top priorities for Lions
<br />Wayside Park, as determined during the Master Plan public outreach process; these priorities
<br />included the construction of a new bandstand, a larger lawn area, retention of the majority of
<br />the existing mature trees, a trail, gathering areas, and other supporting Lions Wayside Park’s
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