Council awarded the North Truckee Drain Realignment Phase 3 Project to Q&D Construction, in the amount of $14,118,008, on December 12^th, 2016.  The original contract included a Force Account of $500,000.

Force Account is a contingent contract item used for additions to the contract arising within the course and scope of the contract for incidental costs due to unforeseen circumstances.  The Force Account amount is not guaranteed to the contractor; it is used for additional work, due to unforeseen circumstances, as approved by the city engineer.  Force Account expenditures to date total $481,329 of which approximately $300,000 was used for the removal of non-excavatable rock material discovered during construction.  The non-excavatable rock formation was confined to a relatively small area in between two sample boring locations performed in conjunction with the design phase geotechnical exploration; therefore, the rock material was not identified until it was encountered during construction.  After discovery of the non-excavatable material, City staff met with Q&D Construction and CME (testing and inspection consultant) to discuss options for removal.  The decision was made to pursue the drilling and blasting method to remove the material in a timely manner and mitigate the construction costs associated with stopping work and storing a partially installed rail shoring system on site.

3,900 out of 5,000 lineal feet of storm drain remain to be constructed.  The possibility of encountering unforeseen issues along the 3,900 lineal feet, especially while working in Railroad Right of Way and at the drain outfall to the Truckee River, is high; therefore, staff recommends Change Order #1 to replenish the Force Account in the amount of $300,000 to allow for the expedient approval of additional work should it be required.

1. City Council could approve Change Order #1 as outlined by Staff.
2. City Council could reject Change Order #1 and provide direction to the City Manager.

I move to approve Change Order #1 to the existing contract with Q&D Construction in the amount of $300,000.