AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE
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Authorization to Increase the Construction Contract with Carolina Sunrock, LLC above the Ten Percent Threshold for the Homestead Road Improvements Project.
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT
Lance Norris, Director, Public Works
Chris Roberts, Manager of Engineering & Infrastructure, Public Works
STAFF RECOMMENDATION
Adopt the attached resolution authorizing the Town Manager to go above the ten percent threshold on the construction contract for Homestead Road Improvements Project and increase the construction contract by $281,314 for a total amount of $3,725,000. The project is nearly complete and the increase in the contract amount will allow completion of the project.
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ACTION/DECISION POINTS
Council must adopt or reject the attached resolution authorizing the Town Manager’s approval to increase the construction contract with Carolina Sunrock, LLC and approve change orders as necessary.
LEGISLATIVE CONTEXT
Town Resolution (2013-01-29/R-3) requires Council to provide authorization to the Town Manager to increase the contract cost once the cumulative costs of construction change orders goes above ten percent of the original contract amount.
BACKGROUND AND CONTEXT
• On June 14, 2023, resolution (2023-06-14/R-2) was passed authorizing the Town Manager to execute a contract with Carolina Sunrock, LLC in the amount of $3,241,783.03 for the Homestead and Seawell School Roads Sidewalk project.
• Said resolution (2023-06-14/R-2) further resolved that the Town Manager was authorized to approve change orders as necessary provided that the contract cost remains within the amount budgeted of $3,443,686.
• The Town directed various additions to the scope of work throughout the project that were not included in the original design documents at the time of bid award including:
o Coordinating the addition of new turn lanes into the Town-owned property at 2200 Homestead Road, which will be the new entrance drive to the affordable housing project, Homestead Gardens.
o Acquiring the Right-of-Way easement at 2032 Homestead Road to install the sidewalk connection between Valley View Drive at the Chandler Development to Merin Road that completes all the sidewalks on both sides of the road from Weaver Dairy Connection to Seawell School Road.
o Addition of a section of stormwater pipe to alleviate flooding issues along Seawell School Road that were caused by development happening between the time of design and the start of construction activities.
• Due to these scope of work additions as well as typical unforeseen conditions during the construction process that were not part of the original bid documents the change orders to the contract for Carolina Sunrock will cumulatively amount to more than ten percent above the original contract value.
TRADEOFFS, ALTERNATIVES, IMPACTS
The project is nearly complete, and additional funding is needed to successfully complete the project and allow residents to bicycle, walk, roll and transit on Seawell School Road and Homestead Road.
FINANCIAL IMPACT
Funds are available in the remaining 2015 Streets and Sidewalks Bond Funds to increase the construction contract.
ATTACHMENTS
Resolution
Town Resolution (2013-01-29/R-3)
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO INCREASE THE CONSTRUCTION CONTRACT ABOVE THE TEN PERCENT THRESHOLD ON THE U-4726 IK HOMESTEAD ROAD IMPROVEMENTS PROJECT. (2025-06-11/R-3)
WHEREAS, Town Resolution 2013-01-29/R-3 requires Council to provide authorization to the Town Manager to increase the contract cost once the cumulative costs of construction change orders goes above ten percent of the original contract amount; and
WHEREAS, funding is available in the remaining 2015 Streets and Sidewalks Bond Funds.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to go above the ten percent threshold on costs of the cumulative change orders on the Homestead Road Improvements project to increase the construction contract amount up to $3,725,000.00.
This the 11th day of June, 2025.
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