TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Marzena Laskowska, Senior Civil Engineer
SUBJECT:Title
Consideration of a Resolution to Increase the Contingency Amount on the Construction Agreement with RAMCO General Engineering Contractors, Inc. by $15,502.15 for the Ceramic Studios Renovation Kiln Installation Project and Accept as Complete the Work Performed by RAMCO Engineering Construction, Inc. (No Budget Impact) (Public Works Director Lee).
A) ADOPT RESOLUTION NO. 25-0008
B) ACCEPT
C) AUTHORIZE
Body
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RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 25-0008 to authorize the City Manager and/or his or her designee to approve additional construction work by RAMCO General Engineering Contractors, Inc. (RAMCO) for the Ceramics Studios Kiln Installation Project (Kiln Project) up to $42,879.45, increasing the construction contingency by $15,502.15;
2. Formally accept as complete the RAMCO construction agreement for the Kiln Project;
3. Authorize the filing of the Notice of Completion with the Los Angeles County Clerk’s office; and
4. Approve the release of retention for $15,832.62 to RAMCO.
FISCAL IMPLICATIONS:
Sufficient funds of $15,502.15 are currently available for the increased construction contingency on the construction agreement with RAMCO in the Kiln Project Capital Improvement Program (CIP) budget within the CIP Fund. A Project Budget and Expenditures Summary Report is attached.
BACKGROUND:
The Kiln Project installed a new ceramics kiln adjacent to two existing kilns in the outside area of the Ceramic Studios building located in Live Oak Park. The new kiln will replace the two existing kilns that have reached the end of their useful lives and will become backup systems, thereby enhancing offerings of the Ceramic Studio programs and classes available through the Parks and Recreation Department. The major components of the project included:
• Constructing a shading structure with equipment pad, relevant utility hook-up, and lighting;
• Removal and replacement of concrete path of travel to meet current Americans with Disabilities Act (ADA) standards; and
• Removal of existing fence and replacement with new perimeter fencing and gate.
In December 2022, a revised design incorporating additional features on the project, including the ADA path-of travel walkway and exterior lighting, was completed. Permit approval from the Building Division was received in May 2023.
In August 2023, the project was advertised and received no bids. Staff advertised the repackaged bid solicitation in November 2023 with extended completion days, inclusion of a construction laydown area, and simplified bid items.
One bid was received in December 2023, and City Council awarded a construction contract to RAMCO General Engineering Contractors, Inc. on January 16, 2024.
The Kiln Project began construction in February 2024 and was substantially completed in December 2024.
DISCUSSION:
Construction of the Kiln Project required two change orders for additional work. Executed Change Order No. 1 in the amount of $27,233.46 covered changes in gas line routing, additional concrete, additional electrical work, unforeseen existing drain issues, and detail modifications to the exterior wall.
Pending Change Order No. 2 in the total amount of $15,655.99 covers additional work due to unforeseen footing dimensions that required re-design and permit revisions of the kiln roof structure footings which involved additional site and structural work. The contractor fulfilled the remaining punch list items and change order work in December 2024.
The total value of the change orders is $42,879.45, which exceeds the previously authorized construction contingency amount of $27,377.30 by $15,502.15. Increasing the construction contingency to $42,879.45 equates to approximately 15.7% of the construction amount. Below is a summary of the budget and expenditures.
RAMCO Contract Budget:
$ 273,773.00 Original Contract Award for Project
+ $ 27,377.30 Original Contingency Authorization
$ 301,150.30 Total Available RAMCO Contract Budget
RAMCO Contract Expenditures:
$ 273,773.00 Contracted Work Completed
+ $ 27,223.46 Executed Change Order #1 - Additional Work and Working Days
+ $ 15,655.99 Pending Change Order #2 - Additional Work and Working Days
$ 316,652.45 Total Contract Work and Change Orders
RAMCO Contract Revised Budget with Additional Contingency Authorization:
$ 273,773.00 Original Contract Award
+ $ 27,377.30 Original Contingency Authorization
+ $ 15,502.15 Additional Contingency Authorization Requested
$ 316,652.45 Total Revised RAMCO Contract Budget
RAMCO has satisfactorily completed all work and is now requesting formal acceptance of the Project. The retention amount of $15,832.62 will be released 35 days after the recordation of the Notice of Completion with the County Recorder. All work inspected by the Public Works Department was found to be in conformance with the plans and specifications and of a good quality.
A warranty inspection, consistent with industry standards, will be conducted in winter 2025/2026. Any areas observed during that warranty inspection which require remediation will be repaired at that time. This warranty work is included in the City’s construction contract.
PUBLIC OUTREACH:
The Project was developed based on direct requests for improvements from the Parks and Recreation Department. Additionally, staff provided frequent updates about this project to the regular users of the Ceramics Studio throughout the design and construction process. During planning, the Community Development Department issued notices to residents of the project pursuant to the City’s Local Coastal Permit requirements.
On February 15, 2024, the City mailed a Public Notice notifying residents adjacent to the work about the commencement of the construction phase in late February 2024. Throughout the duration of the project, construction updates were posted on the project specific page on the City website. During the phased concrete pathway work printed construction notices were posted at entrances to Live Oak Park by 17th Street, 19th Street, 24th Place, and Valley Drive. Notices were also posted at the Tennis Office window and both restrooms within the park.
RAMCO distributed construction notices to area residents, and City staff maintained
regular communication with the area users to keep them abreast of the project schedule and impacts during construction.
ENVIRONMENTAL REVIEW:
As determined in the Coastal Development Permit for this project received on July 28, 2023, the Project is Categorically Exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to State CEQA Guidelines Section 15303 (New Construction or Conversions of Small Structures) based on staff's determination that the proposed new construction of accessory structures (kiln and shade structure) is a negligible expansion of the existing kiln facilities located in Live Oak Park (public park), in an area where all public services and facilities are available to allow for the proposed development permissible in the General Plan, and the area in which the project is located is not environmentally sensitive. The Project will neither individually nor cumulatively have an adverse effect on wildlife resources, as defined in Fish and Game Code Section 711.2. Furthermore, there are no features that distinguish this project from others in the exempt class; therefore, there are no unusual circumstances.
A Notice of Exemption was filed with the Office of Planning and Research State Clearing House and Los Angeles County Clerk’s Office for the Project, and no further environmental review is necessary for this action.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form and has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0008
2. Budget and Expenditures Summary Report
3. Location Map