Title
Consider and take action on a resolution authorizing Change Order 1 to the construction contract with Lucas Construction Company, LLC for the Asphalt Street Rehabilitation - Package 8 (RE1704I), in an amount not to exceed $231,639 (Executive Director of Capital Projects)
Background:
Approval of this resolution will authorize Change Order 1 to the construction contract with Lucas Construction Company, LLC for the construction of the Asphalt Street Rehabilitation - Package 8 (RE1704I) in an amount not to exceed $231,639.
The streets included in this project include Bern Street (St. Christopher Ave. to Smith Lane), Boden Street (Bern Street to Abilene Street), Austin Street (Texas Avenue to FM 270) from future Package 9, and Landrum Street and 7th Street from previous Package 6. Construction contract was awarded by Council on April 14, 2026 with a budget of $1,979,495 consisting of a construction contract at $1,741,616, a work change directive budget of $174,162 (construction contingency), and a material testing budget of $63,717.
During the contracting phase of the project two matters came up:
1. Due to high cost of asphalt, contractor approached City offering that they can replace the pavements with 6-inch concrete with a small (around $6,000) overall saving to the City. This was discussed internally and knowing that concrete has a much longer life, his offer was accepted. City had requested that limed subgrade be increased from 6-inch to 8-inch under concrete.
2. In the process of confirming all quantities prior to construction it was discovered that several pavement line items were underestimated (mainly Austin St) potentially adding up to approximately $231,639 of additional costs.
Considering this, staff looked at the following options:
A. Right size the project scope within the current contract by deferring Add-on Alternate B- Landrum Ave. at a bid cost $356,091 to a future phase or,
B. Increase the contract by an amount not to exceed $231,639 (approximately 13.3%) to allow quantity overruns on certain items, as shown in attachment to the Change Order 1, in order to build the project in its entirety.
We recommend moving forward with the Change Order 1 increase to take advantage of the favorable market and construct Landrum Ave. out of concrete.
The additional $231,639 will be funded through the reinvestment fund balance, resulting in a revised contract amount of $1,973,255. This approach preserves the construction contingency, ensuring adequate funding remains available to address any unforeseen expenses that may arise during the project.
Attachments:
1. Proposed Resolution
2. Exhibit A - Change Order 1 with Adjusted Bid Quantities
3. CIP Project Sheet
4. CIP Aerial Map (Modif.)
FUNDING
{X} Funding in the amount of $231,639 is available from Reinvestment Cash, fund 5017, with expenses charged to project expense string RE1704I-CONSTRUCT-CONSTRUCT-RE CASH.
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor #1: Develop and Maintain our Infrastructure