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
Justin Murray, Engineering Technician ll
SUBJECT:Title
Consideration of a Resolution to Reappropriate Funds in the Amount of $318,000 and Increase the Construction Contingency on the Construction Agreement with Gentry General Engineering, Inc. by $299,981.97 for the Manhattan Village Senior Villas ADA Pathway Project (No Budget Impact) (Public Works Director Lee).
A) ADOPT RESOLUTION NO. 25-0005
B) REAPPROPRIATE FUNDS
Body
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RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 25-0005 authorizing the City Manager or her designee to approve additional construction work by Gentry General Engineering, Inc. (Gentry) for the Manhattan Village Senior Villas ADA Pathway Project up to $392,999.97, increasing the construction contingency by $299,981.97; and
2. Reappropriate funds totaling $318,000 within the Capital Improvements Program (CIP) Fund from the Replace Light Controllers at Manhattan Village Field Project to the Manhattan Village Senior Villas ADA Pathway Project (Project).
FISCAL IMPLICATIONS:
The Manhattan Village Senior Villas ADA Pathway Project budget consist of $534,384.89 in Community Development Block Grant (CDBG) funds, $200,000.00 from the Gas Tax Fund, and $710,895.00 from the CIP Fund for total budget of $1,445,279.89. An additional appropriation of $318,000 is needed to fully fund the project. Sufficient funds of $318,000 are currently available for the project as a reappropriation from the available funds for the Replace Light Controllers at Manhattan Village Field Project in the CIP Fund. A Project Budget and Expenditures Summary is attached.
BACKGROUND:
The City of Manhattan Beach is a participant in the Los Angeles Urban County CDBG Program. The Los Angeles Urban County CDBG Program is administered by the Los Angeles County Development Authority (LACDA), which acts as the administrative pass-through agency for CDBG funds allocated by the U.S. Department of Housing and Urban Development (HUD). On June 4, 2014, the City entered into a Participating City Cooperation Agreement with LACDA for a three-year funding cycle beginning July 1, 2015, and ending June 30, 2018. Automatic amendments thereafter to the Cooperation Agreement authorized the City’s continued participation in the Urban County CDBG Program. On August 7, 2018, the City Council authorized the expenditure of CDBG funds for the Manhattan Village Senior Villas Americans with Disabilities Act (ADA) Pathway Project, consistent with the City’s approved Fiscal Year 2017 through 2021 Five-Year CIP Plan.
In 2019, the City completed an update to the ADA Transition Plan, as required by law, which identified existing obstacles limiting accessibility and described the steps that are being or will be taken to ensure that City facilities, including those within the public rights-of-way, are made accessible to all individuals. At the entrance to Manhattan Village Field and Senior Villas on Parkview Avenue, the ADA Transition Plan identified that there was no compliant accessible route from the public right-of-way to the accessible entrance of the facility and recommended providing at least one accessible route.
On December 10, 2018, the City Council approved a Professional Services Agreement with Quantum Consulting, Inc. for engineering design.
On October 19, 2021, the City Council awarded a Construction Agreement to Gentry General Engineering, Inc. In 2022, Building Permits were issued, and groundbreaking occurred on November 14, 2022.
DISCUSSION:
Construction of the Project was substantially completed in October 2024. The Project experienced several challenges during construction including encountering an unforeseen abandoned gas line requiring redesign of the shoring and re-permitting. Additionally, there were multiple weather delays due to significant rain events. These challenges required construction work beyond the scope of the Construction Agreement with Gentry. The additional work has been combined into Change Order No. 1 and will be accounted for as the final change order for the Project. Change Order No. 1, which requires an increase in the amount of the approved construction contingency funds, includes the following:
1. Redesign of the ramp following Notice to Proceed and delayed issuance of Building Permits and start of construction;
2. Delays associated with inclement weather, shoring redesign, and unforeseen circumstances;
3. Final bid schedule quantities reconciliation, which consist of additional concrete for the ramp structure, handrails, sidewalk, mountable curb, and grind and cap; and
4. Modification to the handrails, drainage system, and traffic elements required by building codes.
The total value of Change Order No. 1 will increase the contract amount by $392,999.97, approximately 33.8% of the original Construction Agreement, resulting in a final amount of $1,555,732.90. The Contract Time of 80 working days will be extended by an additional 655 compensable days to account for the additional work.
Gentry Construction Budget:
$1,162,732.93 Original Contract Award
+ $ 93,018.00 Original Contingency Authorization
$1,255,750.93 Total Available Gentry Contract Budget
Gentry Construction Expenditures:
$1,162,732.93 Contracted Work Completed
+ $392,999.97 Pending Change Order No. 1 - Additional Work and Working Days
$1,555,732.90 Total Contract Work and Change Order
Gentry Construction Revised Budget with Additional Contingency Authorization:
$1,162,732.93 Original Contract Award
+ $ 93,018.00 Original Contingency Authorization
+ $ 299,981.97 Additional Contingency Authorization
$1,555,732.90 Total Revised Gentry Contract Budget
Gentry has completed all work, except the installation of three solar lights, for a total construction cost of $1,555,732.90, pending the execution of Change Order No. 1. Staff is requesting an additional $18,018.03 in the appropriation which will cover the additional inspection services for the solar light installation and other miscellaneous construction costs (i.e. permit for solar installation).
On October 25, 2024, a temporary Certificate of Occupancy was issued as the Project was complete except for the installation of the solar lights for lighting the ramp portion of the pathway at night. Currently, the ramp is open from 7:00 a.m. to 4:00 p.m. and is closed by City personnel each night to comply with Building Code requirements. Staff anticipates issuance of Building Permits to construct the lights in February 2025.
Additionally, staff has worked with LACDA for a time extension request for the CDBG funds associated with the Project. The grant expiration date of December 30, 2024, has been extended to March 31, 2025. If the reappropriation of funds from the Replace Light Controllers at Manhattan Village Field Project is approved by the City Council, that project will not be completed in Fiscal Year 2024-2025. Instead, that project will be re-prioritized for funding as part of the 5 Year CIP Program Update to be considered by the City Council in May 2025. Staff anticipates funding would be available to complete that project in Fiscal Year 2025-2026.
PUBLIC OUTREACH:
The project scope was developed based on requests for improvements from the community and ongoing engagement with the Manhattan Senior Villas residents and facility users over prior years. Specifically, the City engaged Manhattan Senior Villa residents, Manhattan Village Mall, and Village Athletic Field user groups to develop a plan for improvements in the community. The City received approximately 50 letters of support for the project.
During the construction phase, mailed notices to adjacent properties and public outreach consisted of monthly status updates posted to the project webpage.
ENVIRONMENTAL REVIEW:
The proposed project is exempt from the provisions of the California Environmental Quality Act (CEQA). Per the CEQA Guidelines, the project is exempt pursuant to the following provision: Section 15301, Class 1(c). A Notice of Exemption has been filed with the Los Angeles County Clerk’s office for the project.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0005
2. Budget and Expenditures Summary Report
3. Location Map