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Attachment No. 2 May 22,2014 Mr. Huy Ho,PE City of Pleasanton P.O. Box 520 Pleasanton, CA 94566-0802 RE: CM SERVICES FOR I-580/FOOTHILL ROAD INTERCHANGE IMPROVEMENTS;CITY CIP NO. 095034 CURRENT BUDGET STATUS Dear Huy: I wanted to advise you as to the current and projected budget status for CM services for the I-580/Foothill Road Interchange Project. The project has incurred time impacts due to inclement weather, differing site conditions, and the contractor is currently behind schedule. To date, the contract has been extended 19 working days where the contractor could not advance the controlling operation due to inclement weather,although the contractor worked on non-critical operations the majority of these days and staff time was required. The contractor's latest schedule shows completion an additional 13 working days(which includes approximately 8 working days time extension for impacts due to buried concrete obstructions)beyond the revised contractual completion date. This totals an anticipated shift in the end of work of 32 working days. The contractor has worked and has stated they will continue to work additional Saturday shifts and shifts in excess of 8 hours to maintain this schedule. This additional contract and shift time was not budgeted for in the cost estimate provided for construction management and inspection services for the I- 580/Foothill Road project. Costs were also impacted by the two month shift of start of this contract due to cost increases included in our contract. CM,Inc.'s estimate for construction management and inspection services for both this project and the pending I-680Bernal Avenue project was based on projected schedules provided by the City during contract negotiations. As noted in our Cost Proposal Note 1, "This cost estimate is based on award of construction contracts at the times noted below each contract and relies on staff efficiencies realized by the overlap of contracts as reflected above. Should the overlap of contracts significantly change, a contract amendment may be required to cover additional costs." The 1-680/Bernal project has been delayed on several occasions and it is our current understanding the I-680/Bernal Avenue project is scheduled for award by the City Council on June 3, 2014. While our cost estimate relied on an overlap of over six months between the projects,the projects are now anticipated to overlap by less than two months, even when considering the above delays at I-580/Foothill Road. This is a significant change. The testing/source inspection budget has been negatively impacted due to contractor's choice to procure material out-of-state and to recycle material on site. The contract between the City and contractor anticipated the potential for additional costs for out-of-state source inspection and the City has recovered $5,000 for source inspection of electrical standards in Ohio and will recover an additional$5,000 for source inspection of overhead sign structures currently being undertaken in Utah. On site recycling of ground and crushed material and contractor's request these materials be tested for compliance with several different material requirements has resulted in an increase in testing costs when compared to anticipated use of quarry products. The reliance on recycled products and the need to immediately incorporate products into the work due to lack of onsite storage areas also resulted in additional testing. We have also incurred some costs for retesting non-compliant material, including a second source 1;51 SFVFNTH AVFNIIF • SAN FRANCISCO COI IFfRNIA 04122 • 11C QQII ?7n