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HomeMy WebLinkAboutItem 24 - Memo and Revised Staff ReportMEMORANDUM To: Mayor and City Council Members Date: November 3, 2023 From: Nabil Saba, P. E., Executive Director - Public Works Agency Subject: AGENDA ITEM #24, GLENWOOD PLACE WATER IMPROVEMENTS Upon review of Item #24, Glenwood Place Water Improvements, there has been a change in additional funding source from Measure M2 Local Fairshare, Improvements Other Than Building to Residential Street Improvement, Improvements Other Than Buildings. Attached is the updated staff report reflecting the correct funding sources. If you have any questions, please do not hesitate to call or email me. Thank you, Nabil Saba, P. E. Executive Director Public Works Agency Public Works Agency https://www.santa-ana.org/pw Item # {{item.number}} City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report November 7, 2023 TOPIC: Glenwood Place Water Improvements AGENDA TITLE Approve an Appropriation Adjustment to Add Contingency Funds in the Amount of $310,000 for an Existing Construction Contract with Vido Samarzich, Inc., and Additional Contract Administration, Inspection and Testing in the Amount of $40,000 with an Estimated Project Delivery Cost of $1,650,000 for the Glenwood Place Water Improvements Project (Project No. 23-6476) (Non -general Fund) RECOMMENDED ACTION 1. Approve an appropriation adjustment recognizing prior year fund balance $350,000 in the Residential Street Improvement fund, Prior Year Carry Forward revenue account and appropriating the same amount into the Residential Street Improvement fund, Improvements Other Than Building expenditure account for FY 2023-2024 capital operating expenses. (Requires five affirmative votes). 2. Approve an amendment to the Project Cost Analysis in the amount of $350,000 for $310,000 in additional contingency funds and $40,000 in additional contract administration, inspection and testing for a new estimated total construction delivery cost of $1,650,000. The new estimated total construction delivery costs include $978,455 for the construction contract, $186,768 for contract administration, inspection and testing, and a $484,777 project contingency for unanticipated or unforeseen work, subject to non -substantive changes approved by the City Manager and City Attorney. 3. Approve an amendment to the Fiscal Year 2023-24 Capital Improvement Program for $350,000 for construction contingency funds, for the Glenwood Place Water Improvements Project (Project No. 23-6476). DISCUSSION On May 2, 2023, City Council authorized the award of a construction contract to Vido Samarzich, Inc. to replace the existing water main on Glenwood Place (Exhibit 1). The project is currently under construction and additional street improvements have been identified that surpass the existing contingency of $174,777. To capitalize on the favorable pricing of the existing contract with Vido Samarzich, Inc., Staff recommends increasing the project contingency by $310,000 and the contract administration, inspection and testing funds by $40,000 to complete the water main replacement project. Glenwood Place Water Improvements November 7, 2022 Page 2 The recommended action will increase the project contingency and contract administration, inspection and testing by $350,000, thereby increasing the total estimated construction delivery cost to $1,650,000, as indicated in the Cost Analysis (Exhibit 2) and as summarized in the table below: Project Item Current Total Additional Funding New Total Construction Contract Bid Amount $978,455 $978,455 Construction Administration, Inspection, $146,768 $40,000 $186,768 Testing Contingencies $174,777 $310,000 $484,777 TOTAL ESTIMATED CONSTRUCTION $1,300,000 $350,000 $1,650,000 DELIVERY COST ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $1,650,000, which includes the construction contract, contract administration, inspection, testing, and an authorized contingency. Funds for this action, in the amount of $350,000, are being appropriated from the Residential Street Improvement Fund. The following table summarizes the funds budgeted and available in current FY 23-24 for expenditure to deliver construction of this project. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 24-25. Fiscal Accounting Unit - Fund Accounting Unit - Y Year Account No. Description Account No. Amount (Project No.) Description ExistingProject Budget 2023-24 06617647-66301 Acquisition & Water Utility Capital Projects, Water Capital $1,300,000 (23-6476) Construction Project Additional Funding Residential Residential Street 2023-24 05817660-66220 Street Improvement, Improvements Other $350,000 Improvement Than Buildings Total $1,650,000 Glenwood Place Water Improvements November 7, 2022 Page 3 EXHIBIT(S) 1. Location Map 2. Cost Analysis Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Steven Mendoza, Acting City Manager