REPORT TO COUNCIL
SUBJECT
Title
Increase Construction Contingency by $3,600,000 from $14,277,594 to $17,877,594 for the Civic Center Phase 1 Project and Authorize the City Manager or Designee to Execute Change Order Number 254 in the Amount of $4,394,208.92
Report
BACKGROUND
Regarding the Civic Center Phase 1 Project ("Project"), on October 27, 2020, Council awarded a construction contract to Hensel Phelps Construction Co. (Hensel Phelps) in the amount of $174,116,999.92 with an additional 8.2% construction contingency in the amount of $14,277,594. The bid was approximately 23% below the engineer's estimate of $225,000,000. (RTC No. 20-0799).
A contract between Hensel Phelps and the City was executed on November 10, 2020. Construction began in December 2020 and is scheduled for final completion in December 2023.
EXISTING POLICY
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for public works contracts exceeding $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The previous actions were taken by City Council related to the Civic Center Modernization Environmental Impact Report (EIR).
On September 25, 2018 (RTC No.18-0799), City Council adopted a resolution to:
a. Certify the EIR;
b. Make the Findings Required by the California Environmental Quality Act;
c. Adopt the Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program.
On July 14, 2020 (RTC No. 20-0505), Council voted to approve changes to the Civic Center Modernization Project as described in the Addendum to the Civic Center Environmental Impact Report.
As the action being considered does not constitute any changes to the scope of the Project, no further environmental review is required.
DISCUSSION
Throughout the construction of the new City Hall, there were unexpected issues and events that have increased the total project construction costs as described below.
These costs can be divided into 3 main categories...
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