TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Stephanie Katsouleas, Public Works Director
Prem Kumar, City Engineer
Ish Medrano, Engineering Technician II
SUBJECT:Title
Accept as Complete the Following Construction Projects Constructed by Palp Inc., dba Excel Paving Company (Excel): 1) Manhattan Beach Boulevard Pavement Resurfacing Project and Other Right-of-Way Modifications Between Sepulveda Boulevard and Aviation Boulevard, and 2) Resurfacing of Redondo Avenue, 10th Street, 11th Street and Oak Avenue Project; Authorize Filing a Notice of Completion with the County Recorder; Release the Retention Amount of $65,011; Approve an Increase to the Authorized Contract Amount by $51,259, Needed to Process Final Change Order No. 3 for $51,851 (Public Works Director Katsouleas).
APPROVE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
1. Formally accept as complete the following projects constructed by Excel: 1) the Manhattan Beach Boulevard Pavement Resurfacing Project and Other Right-of-Way Modifications between Sepulveda Boulevard and Aviation Boulevard, and 2) the Resurfacing of Redondo Avenue, 10th Street, 11th Street and Oak Avenue Project;
2. Authorize filing of the Appropriate Notice of Completion with the County Recorder’s Office;
3. Approve the release of retention for $65,011 to Excel Paving Company; and
4. Approve an increase to the contract amount by $51,259, which is needed to process final Change Order No. 3 for $51,851 and close out the project.
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FISCAL IMPLICATIONS:
A contract was awarded to Excel for $1,156,428 for the two Capital Improvement Projects (CIP) listed above, with an additional authorized construction contingency of $92,515 (8%), for a total construction budget of $1,248,943 from the Streets and Highways (gas tax) Fund. Considering the total quantities used on the project as well as approved and pending change orders, the final scope of work completed by Excel totaled $1,300,202, which is $51,259 or 4% above the authorized contract and contingency amount of $1,248,943.
To cover the total project costs, staff recommends that City Council approve an increase of $51,259 to the contract with Excel amount so that final Change Order No. 3 for $51,851 can be processed. There are sufficient funds in the existing project budget to cover the requested increase of $51,259.
BACKGROUND:
On June 6, 2017, City Council awarded a construction contract to Excel for various public right-of-way improvements. The project scope of work included resurfacing Manhattan Beach Boulevard (MBB) and other right-of-way improvements between Sepulveda Boulevard and Aviation Boulevard, including traffic signal and crosswalk modifications at the Target store driveway, extension of the existing raised median just west of Aviation Boulevard, and upgrades to curb ramps adjacent to MBB to meet Americans with Disabilities Act (ADA) compliance. The scope of work also included resurfacing the following neighborhood streets:
• Redondo Avenue, between Manhattan Beach Boulevard and 11th Street;
• 10th Street, between Peck Avenue and Herrin Avenue;
• 11th Street, between Peck Avenue and Redondo Avenue; and,
• Oak Avenue, between Rosecrans Avenue and 35th Street.
New pavement striping, markings and traffic signal detection loops were also installed.
DISCUSSION:
Construction began in August 2017 and was substantially completed in March 2018. During the course of construction, the City processed three change orders resulting from unforeseen conditions, including:
Change Order Number 1: $15,991.00
• Modifications to the new safety light fixture on the signal located at the Target driveway
• Unforeseen buried obstacles encountered during trenching operations
• Striping reconfiguration at Fire Station #2
• Additional red curb painting and additional striping along Manhattan Beach Blvd, separating the parking lane from the #2 travel lane
• Additional concrete patch work as part of traffic signal loop detection installation.
Change Order Number 2: $75,932.91
• Extending work area limits beyond their original boundaries in order to achieve best effort compliance with ADA compliant curb ramp installations given the existing steep terrain and physical obstructions in several ramp locations.
• Reconstruction of some work areas to mitigate unforeseen conflicts with existing utilities in the area.
• Unforeseen additional trench excavations and surface improvements.
Change Order Number 3: $51,850.11
Change Order #3 includes final adjustments to the quantities used to complete the project, which include:
• Removal and replacement of additional sidewalk areas
• Removal and replacement of concrete cross gutters
• Increased quantities of base material used
• Increase quantities for asphalt rubber hot mix
While the authorized contingency was sufficient to cover the first two change orders, it was insufficient to cover Change Order #3, resulting in a shortfall of $51,259.02. Thus, additional funds are needed to supplement the original project budget for the completed work. There are sufficient funds in the project budget allocation to cover the $51,259.02 balance and no additional appropriation is needed.
$1,156,427.35 Original Contract Award
$92,515.00 Authorized Contingency
$1,248,942.35 Total Construction Budget
$1,156,427.35 Cycle 1 Storm Drain Construction Costs
$15,991.00 Change Order #1
$75,932.91 Change Order #2
$51,850.11 Change Order #3
$1,300,201.37 Total Construction Expenditures
[$51,259.02] Overage - Additional Funding Needed
The contractor has completed all the contract work and is requesting formal acceptance of the project. The five (5%) retention amount of $65,010.07 would be released upon 35 days after recordation of the Notice of Completion with the County Recorder. All work inspected by the Public Works Department has been found to be in conformance with the plans and specifications. Therefore, staff recommends that City Council approve an additional $51,259.02 increase to the contract amount from original project budget for the extra work itemized above so that Change Order #3 can be approved and the contract closed out.
ENVIRONMENTAL REVIEW:
Per the CEQA Guidelines, the project is exempt pursuant to the following provision: Section 15301, Class 1(c). A Notice of Exemption was filed with the Los Angeles County Clerk’s office.
LEGAL REVIEW
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.