TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Ted Semaan, Interim Public Works Director
Gilbert Gamboa, Acting City Engineer
Marzena Laskowska, Senior Civil Engineer
SUBJECT:Title
Consideration of Accepting as Complete Work Performed by Stephen Doreck Equipment Rentals, Inc. for the Cycle 2 Water Infrastructure Improvements and Resurfacing Project (No Budget Impact) (Interim Public Works Director Semaan).
A) ACCEPT
B) AUTHORIZE
Body
_________________________________________________________
RECOMMENDATION:
Staff recommends that the City Council:
1) Formally accept as complete the Stephen Doreck Equipment Rentals, Inc. (Doreck) construction agreement for the Cycle 2 Water Infrastructure Improvement and Street Resurfacing Project (“Cycle 2 Water Project”);
2) Authorize the filing of the Notice of Completion with the County Recorder; and
3) Authorize the release of retention of $134,141.84 to Doreck.
FISCAL IMPLICATIONS:
A $2,354,319.00 construction agreement was awarded to Doreck on November 21, 2023, for the Cycle 2 Water Project with an authorized contingency of $588,579.00. Two change orders were approved for the project, and the total amount expended on the contract was $2,682,836.85. After acceptance of the work, filing the Notice of Completion, and expiring the 35-day lien period, the retention amount of $134,141.84 will be released to the contractor.
BACKGROUND:
The Cycle 2 Water Infrastructure Improvement and Street Resurfacing Project involved trench excavation and the installation of approximately 3,300 linear feet of 6-inch ductile iron pipe, the installation of 30 gate valves, curb-to-curb pavement rehabilitation, 15 Americans with Disabilities Act (ADA) compliant curb ramp replacements, and all related work as indicated in the plans and specifications.
On May 2, 2022, City Council approved Amendment No. 2 to a Professional Services Agreement for engineering design with Hazen and Sawyer. The design was completed in July 2023.
On November 21, 2023, City Council awarded a construction agreement to Doreck for this project.
On March 5, 2024, City Council approved a Professional Services Agreement with Pacifica Services, Inc. for Construction Management and Inspection Services.
As a result of this project, the pavement condition of the affected streets worsened due to the trenching. The pre-existing Pavement Condition Index (PCI) for each street is included in the list below.
1. Flournoy Road from 18th to 19th Street had a PCI of 80.
2. Agnes Road from 18th to 23rd Street had a PCI of 75.
3. 19th Street from Herrin to Redondo Avenue had a PCI of 36.
4. 21st Street from Herrin to Redondo Avenue had a PCI of 34.
5. Herrin Avenue from 18th to 21st Street had a PCI of 24.
6. 14th Street from Ardmore Avenue to Deegan Place (did not include street resurfacing).
The five street segments identified above were resurfaced across the entire width of the roadway, and the corresponding PCI on all repaved streets was increased to 100.
DISCUSSION:
The Cycle 2 Water Project began construction in May 2024 and was substantially completed in October 2024. The project scope included the replacement of approximately 3,300 linear feet of 6” ductile iron pipe, 30 gate valves, 107 residential water meters and services, curb-to-curb pavement restoration, a pervious gutter at Herrin between 18th and 19th Street, and 15 Americans with Disabilities Act (ADA) ramps at the following locations:
1. Flournoy Road from 18th to 19th Street (Including Street Resurfacing)
2. Agnes Road from 18th to 23rd Street (Including Street Resurfacing)
3. 21st Street from Herrin to Redondo Avenue (Including Street Resurfacing)
4. 19th Street from Herrin to Redondo Avenue (Including Street Resurfacing)
5. Herrin Avenue from 18th to 21st Street (Including Street Resurfacing)
The contractor fulfilled punch list items and change order work in January 2025.
Two change orders were required to complete the project. Change Order No. 1 was necessary due to an emergency storm drain repair that occurred during the project. This involved replacing approximately 85 linear feet of 22-inch and 24-inch corrugated metal pipe in a City easement located in the backyards of properties along Rosecrans Avenue, between Palm and Poinsettia Avenues. Additionally, the entire length of the existing storm drain from Poinsettia to Palm Avenue was slip-lined. Change Order No. 2 addressed additional waterline work required due to field conditions. This included adding water service lines of different sizes and performing extra concrete work within the project limits, such as repairing ribbon gutters.
Cycle 2 Water Infrastructure Improvement and Street Resurfacing Project
$ 2,354,319.00 Original Contract Award
+ $ 588,579.00 Original Contingency Authorization
$ 2,942,898.00 Total Available Budget
$ 2,354,319.00 Contract Work Completed
+ $ 130,459.27 Change Order No. 1 - Additional Work and Working Days
+ $ 198,058.58 Change Order No. 2 - Additional Work
$ 2,682,836.85 Total Contract Work and Change Orders
$ 2,942,898.00 Total Available Budget
- $ 2,682,836.85 Total Contract Work and Change Order Nos. 1 and 2
$ 260,061.15 Total Remaining Budget
Doreck has completed all work and is now requesting formal acceptance of the project. The five percent retention amount of $134,141.84 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 good quality.
Consistent with industry standards, a warranty inspection will be conducted in winter 2025/2026. Any areas observed during the warranty inspection that require remediation will be repaired at that time. This warranty work is included in the construction contract.
PUBLIC OUTREACH:
The Project was presented to the Parking and Public Improvements Commission (PPIC) on October 26, 2023. Additionally, a public outreach meeting with stakeholders was held on November 6, 2023, in the City Council Chambers to present the Project design and discuss the benefits to the community and construction impacts. During the construction phase, construction notices and subsequent water shutoff notices were sent to Manhattan Beach School District staff, American Martyrs School staff, and residents.
Throughout the project, construction updates were posted on the project-specific page on the City website.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption pursuant to Section 15301 Class 1(d) (repair and maintenance of existing public facilities, involving negligible or no expansion of use) of the State CEQA Guidelines.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. Location Map