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SR-06-10-2014-3GCity Council Meeting: June 10, 2014 .Agenda Item:G®1 To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Contract Modification for the 2400 Ocean Front Walk Beach Restroom Replacement Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a second modification to Contract No. 9792 (CCS) in the amount of $35,000 (includes a 10% contingency) with G2K Construction, Inc., a California -based company, to provide additional construction services for the 2400 Ocean Front Walk Beach Restroom Replacement Project. This would result in an amended contract with a new total amount not to exceed $746,700 and one month schedule impact. 2. Authorize the Director of Public Works to issue any necessary change orders to complete the work within contract authority. Executive Summary On August 27 2013, Council authorized a contract with G2K Construction, Inc. in the amount of $711,700, for the construction of the 2400 Ocean Front Walk Beach Restroom Replacement Project. Staff issued a first modification in the amount of $24,773 within budget authority. Staff recommends a second contract modification for additional construction services in the amount of $35,000 to Contract No. 9797 (CCS) with G2K Construction, Inc. for a new contract total in an amount not to exceed $746,700. The project will be completed in summer 2014. Background On August 27, 2013, Council authorized a contract with G2K Construction, Inc. in the amount of $711,700, for the construction of the 2400 Ocean Front Walk Beach Restroom Replacement Project. One contract modification in the amount of $24,773 was issued via change order within budget authority due to unforeseen conditions, added scope and design changes. 1 Discussion The Beach Restroom Renovation project began construction in November 2013 with the demolition of the old restroom structure. During this demolition, unforeseen conditions were encountered involving site utilities (telephone and power connections) and the resulting removal of the existing asphalt. Additionally, design and construction changes were proposed to accommodate input from the community on the connection to the bike path. These unforeseen conditions and scope changes require additional funding and time. Staff recommends a second modification in the amount of $35,000 to minimize delays and accommodate the additional work authorized to date as well as any additional scope changes that may still arise from further revisions to the bike path and surrounding area. There is an anticipated one month schedule impact due to the cumulative effect of all the issues associated with these change orders. Construction Schedule The contractor is currently 75% complete with the construction and plans to complete the project in summer 2014 Financial Impacts & Budget Actions The contract modification amount to be awarded to G2K Construction, Inc. is $35,000 (includes a 10% contingency) for an amended contract total not to exceed $746,700. Funds are available in the FY2013 -14 Capital Improvement Program budget in account C1 10840.589000. Prepared by: Christopher Dishlip, Civil Engineer Approved: V Martin Pastucha Director of Public Works F, Forwarded to Council: Rod Gould City Manager