Report to Mayor and City Council
Tuesday, July 07, 2020
Consent
SUBJECT:
Title
CONSIDERATION TO ACCEPT THE PROJECT AS COMPLETE, PROJECT NO. 1603: ALBERTONI STREET REHABILITATION FROM FIGUEROA STREET TO CENTRAL AVENUE AND CONSIDER RESOLUTION NO. 20-109, AMENDING THE FISCAL YEAR 2020-21 BUDGET TO INCREASE THE CONTINGENCY BUDGET IN THE PROJECT (CITY COUNCIL)
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I. SUMMARY
On March 19, 2019, a Construction Contract was awarded to R.J. Noble Company (RJN) for $1,476,609.35 for Project No. 1603: Albertoni Street Rehabilitation from Figueroa Street to Central Avenue (Exhibit No. 1). This project is the City’s second SB-1 project funded by Road Maintenance and Rehabilitation Account (RMRA) funds. The expenditure of construction contingencies for $221,491.40 (15%) was also authorized for any unforeseen construction work that may be necessary to complete the project, for a total budget of $1,698,100.75.
Additional work for $37,255.01 requested by staff during construction was added to the original scope of work, which requires authorization of expenditures of additional contingency fund from City Council to allow staff to pay the final invoice submitted by RJN and close out the project. This was well within the contingency authorization. There is an additional amount of $28,171.04 requested to reimburse the City for staff time related to the project.
Project No. 1603: Albertoni Street Rehabilitation from Figueroa Street to Central Avenue has been completed in accordance with the approved plans and specifications. It is requested that the City Council accept the work as complete and authorize staff to file the Notice of Completion with the Los Angeles County Registrar-Recorder / County Clerk Office.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. ACCEPT as complete Project No. 1603: Albertoni Street Rehabilitation from Figueroa Street to Central Avenue.
2. AUTHORIZE staff to file a Notice of Completion.
3. AUTHORIZE the expenditure of additional construction contingencies in the amount of $66,000.00 from SB1 account 288-80-820-904-8009 to augment the amount currently budgeted for the project.
4. WAIVE further reading and ADOPT RESOLUTION No. 20-109, ”A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2020-21 BUDGET IN THE GENERAL FUND”
1.
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III. ALTERNATIVES
1. DO NOT ACCEPT the project as complete. However, Civil Code section 9204 requires a public entity record a Notice of Completion after work completion, upon the completion and settlement of all public works project claims, if any.
2. DO NOT AUTHORIZE the expenditure of additional $66,000 construction contingencies.
3. TAKE another action the City Council deems appropriate consistent with the requirements of the law.
IV. BACKGROUND
On March 19, 2019, City Council approved Item No. 21 awarding a Construction Contract to R.J. Noble Company (RJN) for $1,476,609.35 for the construction of Project No. 1603: Albertoni Street Rehabilitation from Figueroa Street to Central Ave. City Council also authorized the expenditure of construction contingencies for $221,491.40 (15%) for any unforeseen construction work that may be necessary to complete this project, for a total budget of $1,698,100.75.
This project consists of grinding existing asphalt pavement surface, removal and reconstruction of deteriorated roadway section, laying-down of AC leveling course and asphalt rubberized hot mix (ARHM), as outlined in the City’s most recent Pavement Management Program (PMP). It also consists of installation of pavement markings, re-striping, repair of damaged sidewalks, tree removals, driveway approaches, cross gutter, curbs and gutters, and access ramps as outlined in the 2017 Sidewalk Assessment Report (SAR).
During the course of construction, staff was working simultaneously on the design of another project (Traffic Signal Improvements along Broadway) which is planned to start construction in the near future; this improvement project intersects Albertoni Street and would require installation of conduits crossing Albertoni Street for cables and wiring purposes. Because installation of these conduits requires trenching, removal and replacement of other concrete related infrastructure, it was determined that the most ideal time to install the conduits was before the final paving and completion of improvements at the intersection of Albertoni Street and Broadway, rather than returning in the future after the street is fully improved. It was concluded that it would be in the City’s best interest to add the conduit installation to the original scope of work; staff requested a proposal from RJN and negotiated the additional fee of not to exceed $37,255.01 for the extra work. Addressing the conduit installation for Broadway project during the construction of Albertoni Street project is the most economical way, it helps avoid future reconstruction of newly completed street improvements, avoids traffic delay, and will benefit the City in terms of cost saving.
The construction of this project has been completed in a satisfactory manner and the street is open for public use. The COVID-19 pandemic contributed to the delay of completing the punch list items. Staff is requesting the City Council to accept the project as complete and authorize staff to proceed with the filing of the Notice of Completion. Staff also requests that City Council authorize the expenditures of additional contingency to allow staff to process payment of the final invoice submitted by RJN and close out the project.
V. FISCAL IMPACT
There will be no impact on the City’s General Fund, as this project is funded by SB1 Road Maintenance and Rehabilitation Account (RMRA). Funds for this project were included but under-budgeted in the FY 2019/20 budget; therefore, if the increase for funding is allowed, the budget for this project (PW1603) will need to be increased by $66,000.00, in part to reimburse the City for related staff costs on the project. Funds should be appropriated from SB1 account no. 288-80-820-904-8009. The available balance in SB1 account is $1,551,473.60. Budget and subsequent appropriations are summarized below:
Fund Source |
Description |
Account |
Amount |
SB1 |
Original Contract |
RJ Noble Company |
$1,476,609.35 |
SB1 |
Contingencies |
RJ Noble Company and Others |
$221,494.04 |
|
|
Total Budgeted Funds |
$1,698,103.39 |
Actual expenditures are summarized in the table below:
Task |
Actual Expenditures |
Construction Cost - RJ Noble Company |
$1,476,609.35 |
Construction Contingency - RJ Noble Company |
221,494.04 |
Additional expenditures |
37,255.01 |
Staff salaries and benefits |
28,171.04 |
Total Expenditures |
1,763,529.44 |
The actual expenditures were $65,428.69 higher than the amount budgeted for this project. Part of this difference in cost is for the additional conduit and part is to allow the City to reimburse itself for staff time associated with this project. The requested additional contingency of $66,000.00 will cover this shortfall if approved by the City Council, and will allow staff to proceed with the closing of the project (Exhibit No. 2).
VI. EXHIBITS
1. Project Location Map for Project No. 1603 (pg. 5)
2. Resolution No. 20-109 (pgs. 6-7)
Prepared by: Gilbert Marquez, P.E., City Engineer