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City of San Leandro <br />Meeting Date: July 20, 2020 <br />Staff Report <br />Agenda Section:File Number:20-320 CONSENT CALENDAR <br />Agenda Number:8.E. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Keith Cooke <br />Engineering & Transportation Director <br />FINANCE REVIEW:Susan Hsieh <br />Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution to Increase the <br />Contract Change Order Cap Authorization from 13% to 20% (from $1,321,300 to <br />$2,032,769; an Increase of $711,469) for the Original Construction Contract <br />Amount of $10,163,845 with DeSilva Gates Construction, LP.; and to <br />Appropriate $364,960 from the Measure B Fund Balance for the Annual <br />Overlay/Rehabilitation 2017-2018, Project No. 2018.0050 <br />SUMMARY AND RECOMMENDATIONS <br />The Annual Overlay/Rehabilitation 2017-2018 was awarded on July 16, 2018, the construction <br />work is nearly complete and project closeout has started. This increased change order <br />authorization will allow payment for extra work performed by the contractor due to unexpected <br />conditions encountered during construction, as well as for the construction of improvements <br />added onto the project during the construction phase. <br />Staff recommends the following actions: <br />·Authorize an increase to the Contract Change Order (CCO) cap from 13% to 20% (from <br />$1,321,300 to $2,032,769, which is a Change Order Cap Increase of $711,469) for the <br />original contract amount of $10,163,845 with DeSilva Gates Construction LP. for the subject <br />project; and <br />·Appropriate $364,960 for the subject project from Measure B Local Streets and Roads fund <br />balance (Fund 144) to complete the project. <br />BACKGROUND <br />On July 16, 2018, the City Council awarded a construction contract to DeSilva Gates <br />Construction, L.P. for $10,163,845 for the subject project and authorized the City Manager to <br />approve contract change orders up to 13% of the total contract amount. This contract overlaid <br />and reconstructed 10.71 lane-miles of roadway on twenty different streets. The streets selected <br />Page 1 City of San Leandro Printed on 7/15/2020 <br />184