AGENDA #4f
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Budget Amendment and Resolution for Jones Ferry Park/Ride Lot
DATE: December 9, 2002
The attached resolution would authorize the Town Manager to execute a change order to the construction contract for the Jones Ferry Park/Ride Lot for an additional $47,377.
The attached budget ordinance would amend the project ordinance established for the park/ride lot to accommodate the change order to the construction contract and a change order of $16,359 to the engineering contract.
BACKGROUND
The Jones Ferry Road park/ride lot has been constructed on 7.73 acres of land leased from the University of North Carolina and located at the intersection of University Lake Road and Old Fayetteville Road just west of the Carrboro town limits. The lot provides 443 spaces for park/ride lot patrons. Construction began in May and the lot was put into use the week of October 28.
The project ordinance, as amended, totals $1,263,750. This sum includes $130,000 that was added by the Council on October 7 from the Transportation Capital Reserve Fund to accommodate an expected change order. The remaining $1,133,750 includes 80% federal funding, 10% State and 10% local funding. (Please see the attached memorandum from that meeting.)
A 1982 Town Council policy authorizes the Manager to approve orders that do not cumulatively exceed the bid originally approved by the Council by more than 10% of the original contract amount, or $50,000, whichever is less. Ten percent of the original contract amount exceeds $50,000, so the Council needs to approve change orders that cumulatively exceed $50,000.
In early 1999, an engineering contract was negotiated for design of two park/ride lots, one behind Carrboro Plaza on Old Fayetteville Road and the other the Jones Ferry Lot. The portion for the Jones Ferry lot is $51,108.
DISCUSSION
On October 7, we reported to the Council that we had partially negotiated a change order with the contractor for a number of items, but had not finalized it because of outstanding issues regarding contract time. We also projected costs for some additional work for which we then did not have a final cost (please see Attachment 1). Since that time, the construction project has been completed, all construction costs are now known and the engineer has requested additional funds to cover the costs for services rendered beyond the scope of the 1999 contract.
Construction Contract Change Order
Our estimate in October was that the final change order could be as much as $185,000. The final negotiated amount is $232,377. The primary reasons for the $47,377 difference are summarized below. Attachment 2 shows the detailed list of items covered in the change order, including the unit prices.
More linear curb was laid than was included in the bid specs,
though no more than was called for in the design drawings $18,515
The quantity of undercut was more accurately measured 16,770
More soil had to be cut than included in the specifications 10,493
Special landscape matting was needed to hold a bank and a swale 1,599
$47,377
Engineering Contract Change Order
Design services through award of contract and bi-weekly project progress meetings were included in the engineering contract for this project. However, we have modified our contract management procedures since the engineering agreement was executed in 1999. The contract for this project does not include the services we now include that take us through construction, change orders and closeout.
Therefore, we propose a change order to the engineering contract which would cover weekly progress meetings, a number of small design changes made after award of construction, including some initiated by the Town staff and some suggested or required by conditions in the field; representation of the Town in negotiations with the contractor regarding over two dozen potential change orders; and, completion of the closeout paperwork and preparation of as-built drawings as required by the Town of Carrboro. The negotiated amount of this proposed change order and the additional funding needed is $16,359.
CONCLUSION AND RECOMMENDATION
We believe that the additional work performed by the contractor was necessary and appropriate. Our consulting engineer and Town staff have carefully reviewed quantities and prices and believe that the negotiated total of $232,377 is reasonable. We also believe that the extra services provided by the consulting engineer were necessary and that the negotiated price is reasonable.
Manager’s Recommendation: That the Council adopt the following resolution authorizing the Town Manager to execute a change order for an additional $47,377 over what was previously authorized.
That the Council enact the following ordinance amending the Project Budget by $63,736 to accommodate the changes to the construction and engineering contracts. The additional funding would come from the Transportation Capital Reserve Fund.
ATTACHMENTS
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE CHANGE ORDERS TO THE CONTRACT WITH JONES BROTHERS, INC. FOR AN ADDITIONAL $47,377 (2002-12-09/R-7)
WHEREAS, the Town of Chapel Hill has entered into a contract with Jones Brothers, Inc., as the general contractors of Jones Ferry Park/Ride Lot for $994,266; and
WHEREAS, anticipated changes orders will cause the contract to exceed the original contract price by more than $50,000; and
WHEREAS, during the construction of the park/ride lot, changes have been required and a change order has been negotiated for $232,377 with Jones Brothers, Inc.; and
WHEREAS, the Town Council at its meeting of October 7, 2002, approved a change order of up to $185,000 and a budget amendment to accommodate it;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is authorized to approve a final change order to the Jones Brothers contract for an additional $47,377.
This the 9th day of December, 2002.
AN ORDINANCE AMENDING A PROJECT BUDGET FOR A TRANSPORTATION CAPITAL GRANT (2002-12-09/O-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is hereby amended as follows:
SECTION I
The Federal Transit Administration Urbanized Area Formula (Section 5307) funds are from 2002 federal funds from an agreement with the Federal Transit Administration.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of the grant agreements executed with the Federal Transit Administration and the funds appropriated herein.
SECTION III
Revenue anticipated to be available to the Town to complete activities as outlined in the project budget are amended as follows:
Current Revised
Budget Budget
Federal Transit Administration Grants $907,000 $ 907,000
N.C. Department of Transportation 113,375 113,375
Town of Chapel Hill (local match) 243,375 307,111
Total $1,263,750 $ 1,327,486
SECTION IV
Amounts appropriated for the project are amended as follows:
Current Revised
Budget Budget
Capital Construction Costs $ 1,263,750 $ 1,327,486
SECTION V
The Manager is directed to report annually on the financial status of the project in an information section to be included in the Annual Budget, and shall keep the Council informed of any unusual circumstances.
Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.
This the 9th day of December, 2002.
AGENDA #4h
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Budget Amendment and Resolution for a FY 2002-03 Transportation Capital Grant
DATE: October 7, 2002
The attached resolution would authorize the Town Manager to execute a change order to the construction contract for the Jones Ferry Park/Ride Lot which exceeds $50,000.
The attached budget ordinance would amend the original project ordinance established for the park/ride lot to add additional federal funding awarded previously, and to allow for the change order and additional funding needed to complete the project.
The Jones Ferry Road park-ride lot is being constructed on 7.73 acres of land leased from the University of North Carolina and located at the intersection of University Lake Road and Old Fayetteville Road just west of the Carrboro town limits. The lot will provide 443 spaces for park-ride lot patrons. Construction began in May and is expected to be substantially complete by mid-October.
The original project ordinance for this project was established on June 11, 2001 in the amount of $710,000. The grant included $568,000 (80%) in federal funds, $71,000 (10%) in State matching funds, and $71,000 (10%) in local matching funds. Proposals for construction of the lot were received in March 2002 and bids were considerably over the projected project.
The Council was able to award the construction bid on April 22, 2002 by approving the use of additional federal grants for the project totaling $423,750, bringing the total allocation for the project to $1,133,750.
However, because the budget amendment for the project presented to the Council on April 22 to add this additional funding was approved in a format that was technically incorrect, the attached amendment to the project ordinance is proposed to correct the previous amendment. The additional grant includes $339,000 in federal funds (80%) and $42,375 in estimated State funding (10%). The 10% local matching share ($42,375) for this portion of the grant is available in the Transportation Capital Reserve.
We discuss below the recommendation for an authorization for a change order and budget amendment necessary to provide additional funding to complete the project.
Authorization for Change Order
Since the start of construction in May 2002 the contractor has submitted several change order requests. We have agreed on the need for a change order in the amount of $161,248, but have not executed it, because we are still negotiating the amount of extra time that should be allowed. Of this sum, $154,500 relates to undercut (the removal of unsuitable soil.) The undercut unit cost was included in the bid documents, but it is not possible to know the full extent of unsuitable soil before grading is completed. We have agreed with the contractor on the unsuitability and the volume of soil removed. We hope to come to agreement shortly on the number of extra days that should be allowed for that undercut operation.
In addition, there are two items for which we have not yet agreed on a price: additional rip rap and the possibility of the removal of more soil from the site than was included in the contract. We expect these costs would be respectively approximately $1200 and up to $11,000. This potential total of about $174,000 is greater than the contingency account of $54,000 by about $120,000.
A 1982 Town Council policy authorizes the Manager to prepare, approve, and enter into construction contracts that have change orders and amendments to construction contracts that do not cumulatively exceed the bid originally approved by the Council by more than 10% of the original contract amount, or $50,000, whichever is less, and provided that there is an appropriation sufficient for the contract amendment. Based on change orders to date as noted above, the Council wound need to approve change orders when they exceed $50,000.
This project is not yet completed and it is possible that another change order may be necessary. Therefore, we believe that it would be prudent for the Council to authorize change orders up to the cumulative amount of $185,000. The recommended budget amendment includes the funds for this amount net of the $54,000 available in contingency.
Budget Amendment
The attached amendment to the project ordinance would add the additional grant funding of $423,750 as noted above, and increase the total project budget by $130,000 to allow the change orders to date and potential final expenses as discussed above to be approved by the Council. The additional $130,000 is available currently in the Transportation Capital Reserve Fund. Use of this additional amount now may require some adjustment in planned contributions to the Transportation Capital Reserve Fund in subsequent years in order to fund capital improvements and bus replacements as scheduled.
That the Council adopt the attached budget amendment to the project ordinance for the Jones Ferry Road park/ride lot project, and adopt the attached resolution authorizing the Manager to execute the necessary change orders to complete the project.
AN ORDINANCE AMENDING A PROJECT BUDGET FOR A TRANSPORTATION CAPITAL GRANT (2002-10-07/O-2.1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is hereby amended as follows.
SECTION I
The Federal Transit Administration Urbanized Area Formula (Section 5307) funds are from 2002 federal funds from an agreement with the Federal Transit Administration.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of the grant agreements executed with the Federal Transit Administration and the funds appropriated herein.
SECTION III
Revenue anticipated to be available to the Town to complete activities as outlined in the project budget is amended as follows:
Current Revised
Budget Budget
Federal Transit Administration Grants $ 568,000 $907,000
N.C. Department of Transportation 71,000 113,375
Town of Chapel Hill (local match) 71,000 243,375
Total $ 710,000 $1,263,750
SECTION IV
Amounts are appropriated for the project are amended as follows:
Capital Construction Costs $ 710,000 $ 1,263,750
SECTION V
The Manager is directed to report annually on the financial status of the project in an information section to be included in the Annual Budget, and shall keep the Council informed of any unusual circumstances.
Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.
This the 7th day of October, 2002.
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE CHANGE ORDERS TO THE CONTRACT WITH JONES BROS., INC. IN A CUMULATIVE AMOUNT UP TO $185,000 (2002-10-7/R-6.1)
WHEREAS, the Town of Chapel Hill has entered into a contract with Jones Brothers, Inc., as the general contractors of Jones Ferry Road Park-Ride Lot for $994,266; and
WHEREAS, during the construction of the park-ride lot, change order requests totaling $161,248 have been submitted by Jones Bros., Inc.; and
WHEREAS, it is possible that some additional change order requests may be received before the project is closed out; and
WEHREAS, anticipated changes orders will cause the contract to exceed the original contract price by more than $50,000;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is authorized to approve change orders in a cumulative amount of up to $185,000.
This the 7th day of October, 2002.