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Home My WebLink About23B - CHANGE ORDER FOR CONTRACT FOR PROJECT NO. 19-6941REQUEST FOR COUNCIL ACTION IMIII walfiellill,[•310J11=I =1111I1,lei •7e%9:9 MAY 5, 2020 TITLE: AUTHORIZE THE ISSUANCE OF A CHANGE ORDER TO INCREASE THE CONSTRUCTION CONTRACT WITH R.J. NOBLE (PROJECT NO. 19-6941) BY $952,978 TO PERFORM ADDITIONAL STREET IMPROVEMENTS, FOR A NEW ESTIMATED TOTAL PROJECT DELIVERY COST OF $1,985,538 (PROJECT NOS.19-6941, 19-6617) (GENERAL FUND) /s/Kristine Ridge CITY MANAGER APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2" ° Reading ❑ Implementing Resolution ❑ Set Public Hearing For rK•�rnutn�.;rc. FILE NUMBER RECOMMENDED ACTION Authorize the issuance of a change order to increase the existing construction contract with R.J. Noble (Project No. 19-6941) to perform additional street improvements in the amount of $952,978, for a new total not to exceed $1,986,338, to be completed by June 30, 2020, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION Every year, the Orange County Transportation Authority (OCTA) determines whether a local jurisdiction is eligible to receive Measure M funding, which is the half -cent sales tax for transportation improvements in Orange County, by confirming certain eligibility requirements are satisfied. Measure M funds are intended to augment, rather than replace, existing transportation expenditures; therefore, local jurisdictions are required to utilize General Funds for maintenance, construction and other transportation -related expenditures. Each fiscal year, OCTA sets a benchmark amount local jurisdictions must spend. The Fiscal Year 2019-20 MOE benchmark requirement for the City of Santa Ana is close to $8 million. To ensure the benchmark is met, a Maintenance of Effort certification must be submitted. The City has used Measure M funding to complete a variety of capital projects throughout the City and is currently eligible to receive close to $20 million. Along with submittal of the MOE certification, this year, the City will be undergoing an MOE compliance audit in the fall of 2020. Currently, the City has made over $8 million in MOE eligible expenditures. In order to confidently meet the benchmark and maintain access to Measure M funds, an additional amount of MOE work is proposed to be completed this fiscal year. The City's Pavement Management System has identified several locations and high -priority roads in need of 23B-1 Approve Increase of Contingency Funds to Existing Construction Contract May 5, 2020 Page 2 rehabilitation including Ramona Street, Olive Street, and residential streets surrounding the Memorial Park area (Exhibit 2). Staff recommends carrying out eligible street improvements in the amount of $952,000 to meet the requirement. Staff considered several contractors currently working on City construction projects to gauge their ability to complete the above work by June 30, 2020. When choosing which contract to add funds and accommodate the proposed work, key considerations included favorable unit prices in order to leverage the most cost effective work, continued compliance with the Community Workforce Agreement, the location of their current projects, and a contractor's ability to complete their current projects in a timely manner. Staff seeks approval to add monies to the existing contract with R.J. Noble Company (Project No. 19-6941) to deliver the street improvement projects by the end of the fiscal year, and confidently meet the MOE requirement. Not doing so will jeopardize close to $20 million in future funding. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the recommended action is exempt from further review. FISCAL IMPACT Funds are budgeted and available in the following accounts: Accounting Unit — Accounting Unit -Account No. Fiscal Year Account No. Fund Description Description Amount Project No. ORIGINAL CONSTRUCTION DELIVERY COST FY 2019-20 05917665-66220 Select Street HUTA Gas Tax-RMRA-Improvement $958,000 19-6941 Construction Other Than Building FY 2019-20 22317660-66220 Local Drainage Public Work Strom Drain Construction- $75,360 19-6617 Area III Improvement Other Than Building ADDITIONAL FUNDS 01117620-66220 Public Works Traffic & Transportation FY 2019-20 (19-6941) General Fund Engineering, Improvements Other $952,978 Than Building New Project Cost $1,986,338 NS:PG Exhibits: 1. Cost Analysis — Project 19-6941 & 19-6617 2. Location Map 23B-2 RJ EXHIBIT 1 COST ANALYSIS PROJECT NO. 19-6941 & 19-6617: ALTON REHABILITATION FROM RAITT TO BRISTOL AND ALTON DRAINAGE REPAIR AT D-03 CHANNEL EXPENDITURE CATEGORY ORIGINAL AMOUNT CHANGE NEW TOTAL Construction Contract $843,301 $843,301 Construction Administration $40,789 $40,789 Inspection and Testing $65,000 $65,000 Contingencies $84.270 $952,978 $1.037,248 TOTAL $1,033,360 $952,978 $1,986,338 23B-3 EXHIBIT 2 SANTA ANA PWA LOCATION MAP POBLICV KSM.ENCY 23B-4