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Council approves change order for fire apparatus project after unexpected utility and site work

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Summary

Soledad City Council voted unanimously to approve a contract change order to cover additional power, underground sprinkler and site work costs for the Fire Apparatus Phase 1 project; the added cost of $70,003.44 will come from fire impact fees and ARPA funds.

The Soledad City Council voted unanimously to approve a construction contract change order for the Fire Apparatus Phase 1 project, adding $70,003.44 in unanticipated costs that staff said are eligible to be paid from the city's fire impact fee fund supplemented by American Rescue Plan Act (ARPA) dollars.

City project engineer Alex Ramos told the council the change order consists of three components that arose after preconstruction work: a relocation of the electrical point of connection after the originally planned utility tie-in was taken by the school district, additional underground wiring and sprinkler service to the building, and assorted site work including removal of a eucalyptus root ball and extra concrete and base rock to support foundations. Ramos said it was more cost-effective to have the current contractor perform the additional tasks rather than re-mobilize the tree contractor.

Why it matters: Council members asked how the change will be funded and whether the added work is an allowable use of development fees. City staff responded that the fire impact fees are intended for facility expansions that increase capacity and that the city will pair those fees with ARPA funding to complete the project. Council discussion also emphasized continued scrutiny to minimize future change orders across multiple capital projects.

Council action and vote: After discussion and public input (no members of the public commented on this item), a council member moved to approve the resolution authorizing the contract change order; another council member seconded. The motion carried with all members present voting in favor.

Project context and next steps: Staff described the change as a result of conditions discovered after the original contract was negotiated and the preconstruction meeting with PG&E and the project team. The contractor will proceed with the additional electrical tie-in at the alternate utility portal and perform the underground sprinkler and miscellaneous site repairs. Staff said they will continue to oversee the project to limit further unforeseen work and cost increases.

Funding details: Staff identified the additional cost for the change order as $70,003.44. They said the city will use accumulated fire development impact fees, which the city collects to expand capacity, together with ARPA funding to cover the increase. No other funding sources were specified during the discussion.

Council and staff comments closed the item; the council then adopted the resolution authorizing the change order.