REPORT TO THE CITY COUNCIL November 3, 2016 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Approve Contract Change Order Number 2 in the amount of $128,479.63 for additional work on the Taxilane Reconstruction project at Fresno Chandler Executive Airport (Bid File 3419) (Council District 3) ..Body RECOMMENDATION Staff recommends Council approve Contract Change Order Number 2 (CCO2) for the Taxilane Reconstruction project (Project) at Fresno Chandler Executive Airport (FCH) in the amount of $128,479.63. EXECUTIVE SUMMARY The Airports Department has substantially completed construction of a Federal Aviation Administration (FAA) funded project to replace existing taxilanes and pavement adjacent to S and T-Hangars, install drainage facilities, and slurry seal pavement east and west of Q-Hangars at FCH. During the course of construction unforeseen saturated subgrade soil was encountered over a widespread area of the Project. The proposed change order will compensate the contractor for work to remove the saturated soil and provide stabilized subgrade as required to meet specifications and add 20 calendar days to the contract. The FAA has determined costs associated with this CCO2 are eligible for Airport Improvement Program (AIP) funding and approved the change on October 6, 2016. BACKGROUND Council awarded a contract for the Project to A. J. Excavation, Inc. of Fresno, CA, on October 29, 2015. Construction began in April 2016 with an anticipated completion date of July 3, 2016. After demolition of the asphalt pavement and aggregate base, the subgrade began to show signs of lateral and vertical displacement under the load of the grading equipment. The Project Engineer evaluated the conditions and determined that mitigation efforts would be required. The contractor was directed to remove unstable subgrade, treat as necessary and reconstruct the subgrade section using geotextile fabrics and aggregate base material for localized deep stabilization. The costs associated with this work were estimated by the Airports Construction Manager and finalized through negotiations with the contractor. A geotechnical study, completed prior to bidding, included borings throughout the work area with no indication of unstable subgrade or high moisture content. The condition of the subgrade encountered during construction was unforeseen and required the mitigation efforts outlined in CCO2. Contract Change Order 1 was previously approved by staff and the FAA. It allowed an additional $16,949.63 and 10 contract calendar days to address unrelated and minor unforeseen conditions. Upon approval of CCO2, the total contract price will be $581,462.66 and total contract time will be 120 days. CCO2 is the final/close-out change order document for this project. Resolution 94-114 requires Council approval of Contract Change Orders that are cumulatively in excess of 10% of the original contract price or $100,000, whichever is higher. The total Project cost including CCO2 is 33.4% higher than the original contract price and the total of CCO1 and CCO2 combined exceed $100,000. Therefore, Council approval of CCO2 is necessary. ENVIRONMENTAL FINDINGS On October 29, 2015, Council previously adopted a Categorical Exemption set forth in the California Environmental Quality Act (CEQA) Guidelines, Section 15301(c)/Class 1 (Existing Facilities), which exempts this project as it involves the repair of existing facilities and negligible or no expansion of an existing use. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference does not apply since Federal funding is being used. FISCAL IMPACT Funding for CCO2 is available in FAA Airport Improvement Program Grant 03-06-0088-21 (90% grant funded) and in Airport project reserves (10% grant match). The project is included in the City's FY 2017 Budget. There is no impact to the General Fund from this action. Attachments: Contract Change Order Number 2 CCO Memo to Staff FAA Approval Project Site Plan