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City of San Leandro City Council Meeting Date: July 10, 2023 Agenda Number: 10.d. Agenda Section: ATS Review File Number: 23-271 File Type: Staff Report Adopt a Resolution to Authorize the City Manager to Negotiate and Approve Increases in Individual and Cumulative Change Orders from 15% to 20% (from $940,200 to $1,253,600; an increase of $313,400) for the Construction Contract with D. L. Falk Construction, Inc. for the Police Building and South Offices Modifications Project, Project No. 2014.0481 Council Priority Public Safety Infrastructure SUMMARY This action will authorize an increase to the cumulative contract change order cap for the contract with D. L. Falk Construction, Inc. related to the construction for the Police Building and South Offices Modifications project. RECOMMENDATIONS Staff recommends authorizing an increase of the contract change order cap for the subject project from 15% to 2 0% (an increase of $313,400). BACKGROUND The subject project is for remodeling work at both the South Offices Building and the San Leandro Police Building. The construction phase has been ongoing since February 2019, and work on the final construction phase of the project is scheduled to be completed by Summer 2023. Due to unforeseen conditions, owner requested changes, design changes, utility delays, and contractor delays, the original change order limit of 15% will be exceeded for the construction contract. Analysis At contract award, the project budget contained a change order contingency of 15% for the $6,268,000 construction contract. However, change orders are currently projected to total 20% of the original contract, an increase of 5% or $313,000. Authorizing an increase in the change order cap will enable staff to complete the project without further delay. No additional funding allocation is requested at this time. Previous Actions Page 1 City of San Leandro Printed on 6/14/2023