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Home My WebLink About20C - AA - GRAND AVE IMPROVEMENTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 4, 2015 TITLE: INCREASE CONTINGENCY FOR GRAND AVENUE ROADWAY AND STORM DRAIN IMPROVEMENTS PROJECT (PROJECT NOS. 081732 & 126604) (STR pi EGIC PLAKNOS. 6, 1B, 1C, 1G) n CA1ss�� CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED As Recommended As Amended ❑ Ordinance on to Reading ❑ Ordinance on a Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Increase the contingency for construction of the Grand Avenue Roadway and Storm Drain Improvements from First Street to Fourth Street by $250,000, which increases the total estimated construction delivery to $4,183,432.39. 2. Approve an appropriation adjustment to recognize expense reimbursement from Southern California Edison in the amount of $42,961.27 into the Measure M Street Construction revenue account and appropriate the funds in the Measure M2 Local Fairshare expenditure account. 3. Approve an appropriation adjustment to appropriate $50,000 from the Public Works Storm Drain Construction revenue account to the Public Works Storm Drain Construction expenditure account. DISCUSSION On June 17, 2014, the City Council awarded a contract to Excel Paving Company In the amount of $3,179,058.24 to construct the Grand Avenue Improvements, Included in the scope of work is the installation of Class 2 bike lanes, landscaped parkways, sidewalks, bus turnouts, raised landscaped median, and the relocation of existing utilities along the project, The project also includes constructing a 78 -Inch storm drain to provide additional drainage capacity to minimize the potentlal for flooding in this area. The approved total project delivery cost of $3,933,432.39 Includes $367,421 in construction management and inspection costs, as well as a $386,953.15 contingency to cover construction quantity adjustments and miscellaneous cost extras. During construction of the 78 -inch, 13- foot -deep storm drain, significant unforeseen conditions were encountered In Grand Avenue from the south side of First Street to the centerline of Fourth Street. Several utility lines needed to be adjusted and rerouted because they Interfered with the 20C -1 Increase Contingency for Grand Avenue Roadway and Storm Drain Improvements August 4, 2015 Page 2 storm drain placement. These utility lines included water and sewer main lines; two, large communication duct banks; and two, high - pressure gas mains. Also approved by Council on June 17, 2014, was a $49,000 payment to Southern California Edison (SCE) to prepare engineering drawings and install the street light poles and lights. Subsequently, the City began the process to purchase all SCE -owned street lights within the City limits. Because it would be more expensive to purchase the newly installed street lights back from SCE, it was determined to be more cost effective for the City to use the engineering drawings prepared by SCE, purchase the poles and lights, and have the Excel Paving Company install them with the required conduit. As a result, SCE will be reimbursing the City $42,961.27 for the initial payment less the cost of the engineering work. Presently, the Grand Avenue project is approximately 68 percent complete. Total amount of the change orders to date for the utility adjustments and the street light installation is $259,115.41. It is anticipated that additional change orders will be needed before the project is completed. Job site conditions have been significantly different from the information provided in the plans, primarily related to interfering underground utilities associated with the storm drain improvements. Therefore, staff is recommending a contingency increase of $250,000 to ensure that if expenditures continue to exceed the Council authorized construction contract amount awarded in 2014, construction may proceed uninterrupted, until completed. With the increased contingency, the new total delivery cost will be $4,183,432.39, including the construction contract, construction administration, inspection, testing, and survey (Exhibit 1). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. 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 B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users), 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), and Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans FISCAL IMPACT $250,000 will be added to the Grand Avenue Roadway and Storm Drain Improvements project contingency budget for expenditure in Fiscal Year 2015/2016 from the following sources: 20Ci-2 Increase Contingency for Grand Avenue Roadway and Storm Drain Improvements August 4, 2015 Page 3 An appropriation adjustment will be prepared to recognize expense reimbursement from Southern California Edison in the amount of $42;961.27 into the Measure M Street Construction revenue account (No. 03217002-57000) and appropriate the funds in the Measure M2 Local Fairshare expenditure account (No. 03217662- 66220) for Project 08 -1732. 2. $157,038.73 in Measure M2 Local Fairshare Funds already appropriated to the project in prior fiscal years will be reallocated to the project contingency (Account No. 03217662- 66220, Project 08- 1732). 3. A second appropriation adjustment will appropriate $25,000 from Fund 224 Local Drainage Area IV revenue account (No. 22417002- 50001) and $25,000 from Fund 225 Local Drainage Area V revenue account (No. 22517002 - 50001) to the respective expenditure accounts (Nos. 22417660 -66220 and 22517660- 66220) for Project 12 -6604. J' re Mousavipour Executive Director Public Works Agency FMIEWG/KW APPROVED AS TO FUNDS AND ACCOUNTS: Fro ' isco Gutierr z Executive Director Finance & Management Services Agency Exhibit 1: Cost Analysis 2: Grand Avenue Widening Location Map 3: Request for Council Action dated June 17, 2014 20C -3 20C -4 COST ANALYSIS INCREASE CONTINGENCY FOR GRAND AVENUE IMPROVEMENTS AND WIDENING FROM FIRST STREET TO FOURTH STREET AND GRAND AVENUE STORM DRAIN FROM FIRST STREET TO FOURTH STREET (PROJECT NOS. 081732 & 126604) Construction Contract $3,179,058.24 Contract Administration $103,207.00 Inspection and Testing $208,654.00 Survey Staking & Street Light Design $12,599.00 Southern California Edison Reimbursement $42,961.00 Original Contingencies $386,953.15 Increased Contingencies $250,000.00 TOTAL ESTIMATED CONSTRUCTION COSTS $4,183.432.39 Exhibit 1 20C -5 20C -6 4 (NTS) Z a FOURTH STREET THIRD STREET 1 , , i SECOND STREET FIRST STREET LEGEND PROJECT LIMITS Exhibit 2 SANTA ANA .. . - Lo 410 200-7 20C -8