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Home My WebLink AboutRes2022-072 Harris Sand & Gravel Change Order 1 CITY OF SEWARD,ALASKA Sponsored by: Bower RESOLUTION 2022-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,APPROVING CHANGE ORDER 1 IN THE AMOUNT$35,896.72 FOR THE CONSTRUCTION CONTRACT WITH HARRIS SAND & GRAVEL FOR THE NORTH EAST LAUNCH RAMP RENOVATION PROJECT,AND APPROPRIATING FUNDS WHEREAS, in 2019 ADF&G evaluated the North East Launch Ramp and determined the launch ramp needed replacement; and WHEREAS, in resolution 2020-042 council approved a cooperative agreement with ADF&G for the phase II construction and commitment from the city to appropriate the remaining funds needed to complete the project; and WHEREAS, in September 2021 Harris Sand & Gravel was the winning bidder for the North East Launch Ramp replacement project; and WHEREAS,at the December 6,2021 City Council meeting council approved Resolution 2021-137 for the construction contract with Harris Sand&Gravel in the amount of$4,439,736.00 to replace the North East Launch Ramp; and WHEREAS, the bid schedule pay item (2801.0) AC Pavement 2100 tons in 2021 was $348,000.00; and WHEREAS,since 2021 the price of fuel and oil has increased sharply; and WHEREAS, the paving contractor has notified Harris Sand & Gravel of the increase in materials to complete the paving portion of the project; and WHEREAS, PND engineers and the city have negotiated with Harris Sand & Gravel on the price increase for the paving portion of the contract and have settled on agreed upon price of $35,896.72; and WHEREAS,with the additional increase of$35,896.72 for paving the new not to exceed construction cost for the North East Launch Ramp Renovation Project will be$4,475,632.72. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The City Council hereby approves Change Order 1 for the price increase of $35,896.72 for paving to the original Harris Sand&Gravel contract with a new not to exceed contract amount of$4,475,632.72 for the North East Harbor Ramp Renovation project. • CITY OF SEWARD,ALASKA RESOLUTION 2022-072 Section 2. Funding in the amount of$35,896.72 is herby appropriated from Parking Fund Reserves account 13000-0000-3710-0000-11422 to the North East Harbor Launch Ramp Renovation Project Infrastructure account no. 1142-0000-8101. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 23"1 day of May,2022. T E I , KA isty Ter , Mayor AYES: Casagranda, DeMoss, Calhoon, Osenga, McClure, Terry NOES: None ABSENT: Wells ABSTAIN: None ATTEST: /X: Kris Peck Acting City Clerk (City Seal) `.y OF SEii" • . GctP r00%. • •••? • SEAL •: . �ti•�TF Ar-pS OF --4 City Council Agenda Statement r Meeting Date: May 23, 2022 � To: City Council Through: Janette Bower, City Manager -- From: Norm Regis, Harbormaster Agenda Item: Resolution 2022-072: Approving Change Order 1 in the Amount of $35,896.72 for the Construction Contract with Harris Sand &Gravel for the North East Launch Ramp Renovation Project, And Appropriating Funds Background and justification: The State of Alaska Department of Fish and Game C'ADF&G'� conducted an evaluation of the North East Harbor Launch Ramp in 2019 and recommended that the launch ramp be replaced. The ramp requires increasing levels of maintenance and while we are currently able to utilize the ramp, it has become more of a safety issue due to rotting wood, necessitating replacement. The City Council approved Resolution 2020-042 a Cooperative Agreement (20-122) between the City and ADF&G for Phase II construction with a commitment from the City to appropriate the remaining 25% for this project. In September 2021, Harris Sand and Gravel was the winning bidder for the NE Launch Ramp replacement project. On December 6, 2021 in Resolution 2021-137 Council approved a construction contract with Harris Sand and Gravel in the amount of $4,439,736.00 to replace the North East Launch Ramp (NELR) their bid item for the upland improvements paving portion is $348,000.00. Since that time the price of fuel and oil has increased sharply, and the paving contractor has notified Harris Sand & Gravel of the increase in cost. Harris Sand & Gravel through the paving contractor is asking for a $65,332.30 increase in this payment item to be able to pave the NELR parking area. Working with PND engineers and negotiating with Harris Sand &Gravel we have settled on a $35,896.72 price increase to be able to finish the paving portion of the NELR parking area. By completing the paving of the NELR parking area parking will save on future maintenance cost in grading restriping after every rain throughout the summer taking up valuable labor at a time where finding workers is difficult. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with: Comprehensive Maintain a thriving port of Seward through harbor improvements, Plan: infrastructure expansion, and implantation of management plans. Strategic Plan: Complete the renovation of the Boat Harbor Other: Certification of Funds Total amount of funds listed in this legislation: $ $35,896.72 This legislation (✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ $35,896.72 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 13000-0000-3710 to 1142-0000-8101 X Not budgeted Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor X Parking F1 Water F1 Healthcare Motor Pool Other *unaudited numbers. The balances do not reflect Unassigned Fund Balance*: $776,101.22 internal loan for the North Available Unrestricted Cash Balance*: $1,042710.73 East Launch Ramp. Finance Signature: r Attorney Review✓ Administration Recommendation RxYes x Adopt Resolution Not applicable Other: CITY OF SEWARD Seward Northeast Harbor Launch Ramp Renovation CONTRACT CHANGE ORDER No.: 001 Date: May 5,2022 Project No.: 201160 Project: Seward Northeast Harbor Launch Ramp Renovations Contractor: Harris Sand & Gravel,Inc. Contract NTP Date: December 21,2021 Change Originated By: Seward Project Contractor 0 The following describes changes to the project scope,resulting in an adjustment to the contract price: References: CO-001 Nature of the Change: Due to economic commodity price increase for costs relating to asphalt cement oil (AC Oil), fuel, and other consumable materials,the price to perform Asphalt Paving work has increased significantly since the time of bid. The final negotiated agreed upon Contract Price increase for this work is$35,896.72. Supporting documentation of paving subcontractor proposal letter and spreadsheet of estimated price increase breakdown prepared by Engineer used for negotiations is included as an attachemnt to this Change Order 001. The General Contractor, Harris Sand& Gravel,has proposed no additonal mark up to complete the asphalt paving work. The changes result in the following adjustment of Contract Price and Contract Time: Original Contract Sum: $ 4,439,736.00 Previous Additions: $ - Previous Deductions: $ - Contract Price Prior to the Change Order: $ 4,439,736.00 Net(Increase) (Decrease) Resulting from this Change Order: $ 35,896.72 Net Increase Resulting from All Change Orders: $ 35,896.72 Current Contract Price Including this Change Order: $ 4,475,632.72 Contract Completion Date Prior to this Change Order: June 20,2022 Net(Increase) (Decrease)Resulting from this Change Order: 0 Calendar Days Current Contract Completion Date Including this Change Order: June 20,2022 The above changes are recommended: Nathan Harris,PND Engineers,Inc. ENGINEER By: � ,�..; Date: 5/5/22 The above changes are approved: Norm Regis, Harbormaster CITY OF SEWARD By: Date: The above changes are accepted: Bill Harris,Harris Sand& Gravel,Inc. CONTRACTOR By: Date: File Code: 201160-001