Report to Mayor and City Council
Tuesday, June 18, 2024
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 2 TO AGREEMENT WITH R.J. NOBLE COMPANY FOR PROJECT NO. 1393-4: CITYWIDE ANNUAL OVERLAY PROGRAM AND PROJECT NO. 1411-4: CITYWIDE ANNUAL CONCRETE REPLACEMENT PROGRAM, MAIN STREET FROM CARSON STREET TO VICTORIA STREET (CITY COUNCIL)
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I. SUMMARY
On February 7, 2023, the City Council awarded a construction contract to R.J. Noble Company for Project No. 1393-4: Citywide Annual Overlay Program, and Project No. 1411-4: Citywide Annual Concrete Replacement Program, in the amount of $3,457,469.37 and authorized the expenditure of construction contingencies in the amount of $518,620.40 (15%) for change orders and any unforeseen construction work. These projects include the improvement of Main Street from Carson St. to Victoria St.
On April 2, 2024, the City Council approved Amendment No. 1 to agreement with R.J. Noble Company. Amendment No. 1 authorized staff to approve increases greater than 10% of the contract sum for change orders and added scope up to the amount of the contingency (15%) approved by the City Council at the time the project was awarded to the contractor.
Staff is requesting City Council to consider approval of Amendment No. 2 to existing agreement with R.J. Noble Company. Amendment No. 2 (Exhibit 1) will increase contingency funds in the amount of $350,106.00 to cover the cost of the increase of Asphalt Rubber Hot Mix tonnage used on Main Street from Carson St. to Victoria St.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AUTHORIZE additional construction contingency funds in the amount of $350,106.00 to cover cost of the increase of Asphalt Rubber Hot Mix tonnage used to complete the street improvement project on Main Street from Carson St. to Victoria St.
2. APPROVE Amendment No. 2 to Public Works Agreement with R.J. Noble Company, Inc.
3. AUTHORIZE the Mayor to execute Amendment No. 2 following approval as to form by the City Attorney.
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III. ALTERNATIVES
1. DO NOT APPROVE Amendment No. 2. However, staff will not be able to process an invoice for the increased tonnage of asphalt used for the project.
2. TAKE another action the City Council deems appropriate consistent with the requirements of the law.
IV. BACKGROUND
Project No. 1393-4: Citywide Annual Overlay Program and Project No. 1411-4: Citywide Annual Concrete Replacement Program is included in the City’s Capital Improvement Program (CIP) list. The Annual Overlay and Concrete Replacement Program will improve Main Street from Carson Street to Victoria St. It consists of removal and reconstruction of street pavement section and grinding two inches of the existing asphalt pavement and overlay with a 2” Asphalt Rubber Hot Mix. The project also includes improving concrete pavement, sidewalk, driveway approaches, curb and gutter, and restoring striping and traffic loops.
City Council awarded a construction contract to R.J. Noble Company in the amount of $3,457,469.37 and authorized the expenditure of construction contingencies in the amount of $518,620.40 (15%) for change orders and any unforeseen construction work.
On April 2, 2024, the City Council approved Amendment No. 1 to the agreement with R.J. Noble Company. Amendment No. 1 authorized staff to approve increase in cost greater than 10% of the contract sum for change orders and added scope of work up to the amount of the contingency (15%) approved by the City Council at the time the project was awarded to the contractor.
Due to severe damage to the roadway pavement on Main Street, there was an increase in volume of asphalt tonnage needed to complete the project, which translates to CO # 9 in the amount of $350,106.00. Amendment No. 2 to the existing contract is necessary to cover this cost.
The other change orders listed below will be allocated to the contingency funds currently available and other current unused funds from the bid quantities:
CO #10 -Main St. / Del Amo Blvd Concrete Pavement Replacement $74,357.41
CO #11 - Sidewalk Construction adjacent to 405 Fwy $50,000.00
CO #12 - Increase in Traffic Loop Replacements $6,300.00
CO #13 - Reconstruct curbs at ADA driveways $10,000.00
CO #14 - Santa Fe Ave, North of Dominguez, Sidewalk $35,000.00
The anticipated completion date for Project No. 1393-4: Citywide Annual Overlay Program and Project No. 1411-4: Citywide Annual Concrete Replacement Program is August 2024.
Staff is requesting City Council to approve Amendment No. 2 to increase contingency funds in the amount of $350,106.00 to cover the cost of the increase of Asphalt Rubber Hot Mix tonnage used on Main Street from Carson Street to Victoria Street (Change Order 9).
V. FISCAL IMPACT
None. The requested $350,106.00 for change order 9 is budgeted in FY 2023-2024 Measure R account 254-80-820-904-8009.
VI. EXHIBITS
1. Amendment No. 2 to Agreement with R.J. Noble Company (pgs. 4-9)
Prepared by: Dr. Arlington Rodgers,Jr. Director of Public Works and Gilbert M. Marquez, P.E., City Engineer