DATE: October 7, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: CONSTRUCTION CHANGE ORDER NO. 3; AND LEASE AGREEMENT EXTENSION WITH PACIFIC MOBILE STRUCTURES, INC. FOR THE CROWN HEIGHTS COMMUNITY RESOURCE CENTER BUILDING REHABILITATION PROJECT
RECOMMENDATION
title
Staff recommends that the City Council authorize the City Engineer to approve Construction Change Order No. 3 with Fordyce Construction, Inc. (“Fordyce”), in the amount of $640,444 for a total contract amount not-to-exceed $4,973,502, for additional construction services for the Crown Heights Community Resource Center Building (“Crown Heights Community Center”); and authorize the City Engineer to approve change orders required to finalize construction and complete the rental agreement and modular unit removal with Pacific Mobile Structures, Inc. (“Pacific Mobile”) as needed per the construction schedule, in an additional amount not-to-exceed $17,609 to cover outstanding costs totaling $20,561 that exceed the remaining $2,952 available under the existing agreement.
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BACKGROUND AND ANALYSIS
During construction of the Crown Heights Community Center, unforeseen site conditions required the contractor to significantly expand its scope of work. The additional work extended the construction timeline by 54 working days, requiring staff to extend the lease period for the temporary service units to ensure services continued to run uninterrupted through the end of construction. Change Order No. 3 (Attachment 1) documents the additional scope changes resulting from unanticipated field conditions totaling $640,444. Construction is now complete, and City services returned to the Crown Heights Community Center at the beginning of September 2026.
Additionally, with construction complete, the temporary modular units used to support the continuation of various community services have been removed and returned to Pacific Mobile. As noted in Attachment 2, a final payment of $20,561 is required to cover all remaining cost including the removal of the units from their location.
FISCAL IMPACT
The additional construction costs for the Crown Heights Community Center Rehabilitation project, including temporary service locations returns, total $658,053. These costs will be funded from the Crown Heights Rehabilitation and CDBG accounts as shown in the table below, which reflects the amounts drawn from each account and the available balances in each. Sufficient funds are available across both accounts.
The additional funds requested to complete the additional construction efforts, are shown on the table below:
|
Description |
Costs Share by Funding/Accounts |
Change Order Costs |
|
Account Number |
CDBG 821166319237.5395 |
Crown Heights Rehabilitation 907196524501.5703 |
|
|
Construction (Fordyce Construction, Inc.) |
$300,000 |
$340,444 |
$640,444 |
|
Service Extension for Temporary Facilities |
N/A |
$17,609 |
$17,609 |
|
Total Estimated Costs |
$300,000 |
$358,053 |
$658,053 |
|
Available Balance |
$300,000 |
$425,006 |
$725,006 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: MJ Hernandez, Assistant Engineer
Reviewed by: Lillian Doherty, Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Change Order No. 3
2. Pacific Mobile Removal Invoice