Report to Mayor and City Council
Tuesday, September 07, 2021
Consent
SUBJECT:
Title
CONSIDER AUTHORIZATION TO EXPEND ADDITIONAL CONSTRUCTION CONTINGENCY FOR PROJECT NO. 1422 BROADWAY INTERSECTION IMPROVEMENTS - TRAFFIC SIGNAL MODIFICATIONS (CITY COUNCIL)
Body
I. SUMMARY
Project No. 1422: Broadway Intersection Improvements - Traffic Signal Modifications on Broadway from Victoria Street to Alondra Boulevard is one of the City’s Capital Improvement Program (CIP) projects and currently under construction (Exhibit No. 1).
This project includes the design, modification, and upgrade of five signalized intersections on Broadway. The intersections are on Broadway at (1) Victoria Street, (2) a pedestrian crossing south of Albertoni Street, (3) Albertoni Street, (4) Gardena Boulevard, and (5) Alondra Boulevard. The project will improve the operation, efficiency, safety and visibility of these five signalized intersections.
On October 6, 2020, a construction contract (exhibit No. 2) was awarded to the lowest responsive/responsible bidder in the amount of $1,188,835.00, and a construction contingency of $118,883.50 (10%) was also authorized.
There have been several unforeseen items such as additional foundation removal, unmarked utility lines, conduits, and material price increases that need to be addressed to complete this project. To cover pending change order requests submitted by the contractor, other additional work, and other unforeseen construction work that may be required to complete the project, the City Council is requested to authorize the expenditure of additional funds in the amount of $90,000.00.
Staff requests that City Council adopt a Resolution No. 21-111 amending current Fiscal Year 2021-2022 Budget in Special Revenue Fund, to increase the City Council budget for this project by $90,000.000 (Exhibit No. 3).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AUTHORIZE additional contingency funds in the amount of $90,000.00 to cover pending change orders, other additional work, and other unforeseen construction work that may be required to complete Project No. 1422: Broadway Intersection Improvements - Traffic Signal Modifications.
2. APPROPRIATE funds in the amount of $90,000.00 from the Measure M and Measure R funds balance to augment the amount currently budgeted for Project No. 1422 - Broadway Intersection Improvements - Traffic Signal Modifications.
3. ADOPT Resolution No. 21-111, “A Resolution of the City Council of the City of Carson amending the fiscal year 2021-22 budget in the Special Revenue Funds.”
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III. ALTERNATIVES
1. DO NOT AUTHORIZE the expenditure of an additional construction contingency, however, this alternative may not allow for the full completion of the scope of work for the project as planned.
2. TAKE another action the City Council deems appropriate consistent with the requirements of the law.
IV. BACKGROUND
Project No. 1422: Broadway Intersection Improvements - Traffic Signal Modifications on Broadway from Victoria Street to Alondra Boulevard is one of the projects in the City’s Capital Improvement Program (CIP).
On October 6, 2020, a construction contract was awarded to the lowest, responsive/responsible bidder, Elecnor Belco Electric Inc., in the amount of $1,188,835.00. The City Council also authorized the expenditure of a construction contingency in an amount not to exceed $118,883.50 for change orders such as the removal and remediation of contaminated soil, substructure conflicts, and other unforeseen construction work that may be required to complete this project.
Due to field conditions, the project experienced the following additional work needs that impacted the budget and depleted the project contingency:
1. Additional cost to furnish and install unforeseen GPS Time Source Unit for the Broadway intersections at Albertoni Street and at Alondra Street = $4,730.93.
2. Unforeseen removal of the conflicting foundation at the intersection of Broadway and Gardena Boulevard = $3,423.09
3. Unexpected material price increase per pole manufacturer and the pole revisions = $23,529.09
4. Unforeseen service pedestal change = $2,772.62
5. Unmarked utility potholing cost = $54,401.12
6. Additional grind and overlay on the two crosswalk ramps at the intersection of Broadway and Albertoni Street = $7,665.90
7. Installation of cantilever foundation at the intersection of Broadway and Victoria Street due to the unforeseen conflict with utility lines = $11,632.37
8. Installation of additional 2” conduit for Detector Lead in Cable (DLC) at the intersection of Broadway and Alondra Boulevard = $25,813.12
9. Unexpected time and material of daily extra works including setting-up traffic control devices, re-opening potholes, digging trenches for conduits and pull boxes, breaking out concrete, backfilling, picking up spoils, cleaning up, handling unanticipated utility lines, and additional PVC installation = $45,864.16
At this point, it is very difficult to stretch the budgeted funds to cover the additional scope of work. Additional funding is necessary to move forward with the completion of the project. It is quite difficult to accurately estimate the appropriate amount that would suffice for the remaining work due to the unpredictable nature and complexity of the project. However, once the above items are completed, and the additional materials are installed, staff is anticipating that the work will continue its steady pace and be accomplished by end of October 2021.
V. FISCAL IMPACT
The total construction bid amount for this improvement project is $1,188,835.00. A construction contingency in the amount of $118,883.50, representing 10% of the total construction bid, is available for change orders and other unforeseen construction work that may be required to complete this project. The cost of change orders has consumed most of the budgeted construction contingency fund for this project. An additional amount of $60,948.90 is needed to complete the project and to cover the cost of the extended services by Elecnor Belco Electric, Inc. Given the difficulty in precisely estimating the appropriate amount that would suffice for the remaining work, staff is also requesting an additional $29,051.10 for any potential unforeseen work / potential change order to complete the project. In total, the contingency funds of $90,000 ($60,948.90 + an additional $29,051.10) are being requested.
These funds were not included in FY 21/22 budget, therefore, the budget will need to be increased by $90,000.00. Funds of $90,000.00 should be appropriated in equal amounts from Measure R and Measure M.
VI. EXHIBITS
1. Location Map. (pg. 5)
2. Construction contract with Elecnor Belco Electric Inc (pgs. 6-12)
3. Resolution No. 21-111 (pgs. 13-14)
Prepared by: Ryan Kim, P.E. Traffic Engineer, and Gilbert Marquez, P. E., Principal Civil Engineer/City Engineer