HomeMy WebLinkAboutCC AG PKT 2012-07-09 #L .'�E
AGENDA STAFF REPORT _ .}
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DATE: July 9, 2012
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sean P. Crumby, Assistant City Manager/Public Works
SUBJECT: COLLEGE PARK EAST SEWER REHABILITATION
PROJECT NO. SS0901 - SEWER LOAN AND
PROJECT UPDATE
SUMMARY OF REQUEST:
It is requested that the City Council adopt Resolution No. 6587 approving
Amendment No. 1 to the contract with Charles King Company for additional
construction costs in the amount of $526,605.17; receive and file this staff report,
updating the State Revolving Fund Loan Program (Sewer Capital Fund); and
approve a budget amendment (see item "F") in the amount of $400,000 for final
project funding out of the Sewer Capital Fund Reserve.
BACKGROUND AND ANALYSIS:
On August 8, 2005, the City adopted the 2005 Sewer System Master Plan
Update, which identified over $15 million in required Capital Improvement
Projects. At the February 11, 2008 City Council Meeting, the City Council
directed staff to pursue the low/no interest loan with the State Revolving Fund
Loan Program administered through the State Water Resources Control Board.
The City was successful in securing a loan from the State and on July 14, 2008,
the City Council adopted Ordinance No. 1574 authorizing the City to borrow
money from the State Water Resources Control Board.
The first finance agreement, STATE REVOLVING FUND PROJECT NO. C-06-
5310-110, Finance Agreement No. 10-838-550 was intended to fund
rehabilitation of the sewer lines in College Park East. The rehabilitation includes
upsizing, replacing and lining existing sewer pipes.
The second finance agreement, STATE REVOLVING FUND PROJECT NO. C-
06-5310-120, AGREEMENT NO. 10-842-550 will rehabilitate the sewer lines in
the Old Town vicinity. The rehabilitation includes replacing and lining existing
sewer pipes. This project is currently being designed and is expected to be in
construction by the Fall of 2012.
Agenda Item L
At the June 27, 2011 City Council Meeting, Council awarded a construction
contract for the College Park East Sewer Rehabilitation Project No. SS0901 to
the lowest bidder, Charles King Company, Inc. for $2,424,356.00.
Finance Agreement No. 10-838-550 with the State Revolving Fund Program was
then amended, as required by the State, for a total construction cost of
$2,424,356 and includes $200,000 in additional loan funding to cover design,
inspection and construction support services. The State directed any change
order requests to be submitted with the project completion report at the end of
the project.
During construction, several change orders were encountered on the project.
Most originated from finding unmarked utilities while installing the sewer lines or
from modifying the sewer lining and manhole lining sections of the contract. One
large change order was for the repaving of Elder Avenue. The original plans
called for a modified grind and cap of Elder. However, during construction, the
conditions of the subgrade of Elder Avenue were much worse than the original
samples indicated, and a full reconstruction had to be performed.
The final project cost including design, construction, inspection and construction
support services is estimated to be approximately $3,020,000. The City Council
approved the Notice of Completion for this project on April 9, 2012. Staff
submitted a final project report and reimbursement request to the State on June
7, 2012 requesting approval of contract change orders to cover the additional
cost above the $2,424,356 originally awarded. On June 15, 2012, staff received
a letter (attached) from the State approving only a portion of the change order
amount requested. The approved amount brought the total available loan
funding for this project to $2,624,356. Therefore, the remaining balance of
approximately $400,000 is being requested to be funded by Sewer Capital
Reserves. Additionally, a contract amendment in the amount of $526,605.17 is
being requested to cover the additional costs to Charles King Company above
the original contract amount.
In anticipation of the State's guidelines for approval of change orders, the City
will request amending the second finance agreement, STATE REVOLVING
FUND PROJECT NO. C-06-5310-120, AGREEMENT NO. 10-842-550 which will
rehabilitate the sewer lines in the Old Town vicinity, to its fullest allowable
amount, prior to construction, which will cover contingency costs should change
orders be required during construction.
ENVIRONMENTAL IMPACT:
On March 26, 2009, the Initial Study/Mitigated Negative Declaration was
approved. This project complies with all requirements of the California
Environmental Quality Act (CEQA).
Page 2
LEGAL ANALYSIS:
The City Attorney has reviewed and approved as to form.
FINANCIAL IMPACT:
This project is funded through a loan from the State Revolving Fund Financing
program. The City has the ability to borrow up to $10,000,000. To date, two
agreements have been secured against the $10,000,000. They are: Finance
Agreement No. 10-838-550 "College Park East" for $2,624,356 and Finance
Agreement No. 10-842-550 "Southern City" for $1,100,000. The Sewer Capital
Fund will be drawn down over a period of years and as needed to support the
sewer projects.
The total project expense for College Park East is approximately $3,020,000.
The loan for College Park East work was amended and approved for $2,624,356.
The budget breakdown for College Park East Project is as follows:
Budget Breakdown Amount
Estimated Final Project Cost $ 3,020,000.00
Approved Loan Financing $ 2,624,356.00
Sewer Capital Funding Required $ 395,644.00
The loan financing will be paid off by the Sewer Capital Fund. It is recommended
that an additional budget amendment in the amount of $400,000 be approved to
fund the remaining portion of this project.
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 6587 approving
Amendment No. 1 to the contract with Charles King Company for additional
construction costs in the amount of $526,605.17; receive and file this staff report,
updating the State Revolving Fund Loan Program (Sewer Capital Fund); and
approve a budget amendment (see item "F") in the amount of $400,000 for final
project funding out of the Sewer Capital Fund Reserve.
SUB i ITTED : NOTED AND APPROVED:
- rt /_gle „Pitil
Sean P. Crumby •'. Ingram, City . ager
Assistant City Manager/Public Works
Prepared by: David Spitz, Associate Engineer
Attachments:
A. Resolution No. 6287
B. Contract Amendment No 1
C. State Water Resources Control Board Letter
Page 3
RESOLUTION NUMBER 6287
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING AMENDMENT NO. 1 TO THE CONTRACT WITH
CHARLES KING COMPANY FOR CONSTRUCTION FOR THE
COLLEGE PARK EAST SEWER REHABILITATION PROJECT
NO.SS0901
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves that certain Amendment No. 1 to
the contract between the City and Charles King Company, dated June 27, 2011,
adding an additional$526,605.17 for construction services.
SECTION 2. The City Council hereby authorizes and directs the City Manager to
execute the amendment on behalf of the City.
SECTION 3. The City Clerk shall certify to the passage and adoption of this
resolution.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 9th day of July , 2012 by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6287 on file
in the office of the City Clerk, passed, approved, and adopted by the Seal Beach
City Council at a regular meeting held on the 9th day of July , 2012.
City Clerk
AMENDMENT T •- PUBLIC WORKS
AGREEMENT
COLLEGE PARK EAST SEWER REHA -1LOTATION
1
PROJECT
CIP NOYSS09®I
between
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City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
Charles King Company
2841 Gardena Avenue
Signal Hill, CA 90755
(562) 426-2974
(562) 426-9714- FAX
THIS AMENDMENTis made as of July 9, 2012, by and between the City of Seal
Beach, a California charter city ("City"), and Charles King Company, a General -
Contractor("Contractor").
1
•
•
RECITALS
A. WHEREAS, the City Council approved the plans and specifications
• for the College Park East Sewer Rehabilitation Project, CIP No. SS0901
("Project") with respect to design criteria;
B. WHEREAS, Contractor has submitted a bid to City for the Project
dated June 27, 2011 in the amounts of $2,424,356for the Construction of new •
sewer lines in College Park East;
•
AGREEMENT
•
NOW, THEREFORE, in consideration of performance by the parties of the
mutual promises, covenants, and conditions herein contained, the parties hereto
agree as follows:
1. • Section 3 (Payment) of the June 27, 2011 Agreement is hereby
amended to read as follows:
• "3. Payment. For performing and completing the Work in accordance
with . the Contract Documents, City shall pay Contractor, in full
compensation therefor, the amount of $2,950,961.17, subject to any
additions and deletions pursuant to the terms of the Contract Documents.
Said sum shall constitute payment in full for all work performed hereunder,
'including, without limitation, all labor, materials, equipment, tools and
services used or incorporated in the •Work, supervision, administration,
overhead, expenses and any and all other things required, furnished or
incurred for completion of the Work as specified in the Contract
Documents. City shall make payments to Contractor on account of the
contract sum at the time, in the manner, and upon the conditions specified
in the Contract Documents.
IN WITNESS•WHEREOF, the parties, through their respective authorized
representatives, have executed this Amendment as of the date first written
above.
•
CITY OF SEAL BEACH Charles King Company
By: By:
Jill R. Ingram, City Manager Nam : ' / .l?i
Title: ?re,Si'o%rnI .
•
By:
•
Name:
•
Title:
2
•
•
Attest:
By: .
Linda Devine, City Clerk
Approved as to Form:
By:
QuinnM. Barrow, City Attorney
3
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CALIIOMMIA
'Water Boards I..:.Q•..•I.I.r G„,rlr.I,�:.
State Water Resources Control Board
JUN 1 5 2012
Ms. Jill R. Ingram
City Manager
City of Seal Beach
211 8`h Street
Seal Beach, CA 90740
Dear Ms. Ingram:
APPROVAL OF CONTRACT CHANGE ORDER (CO); CITY OF SEAL BEACH (CITY);
SEWER CAPITAL IMPROVEMENT PROJECT (PROJECT); CLEAN WATER STATE
REVOLVING FUND (CWSRF) PROGRAM PROJECT NO. C-06-5310-110
Thank you for submitting the City's request for contract CO approval. The CO request,
received June 7, 2012, included information for various COs for the City's Project. The City
had project COs totaling $659,536. The CWSRF Program limits the total amount of eligible
contract COs to funds remaining in a Project's construction budget. CO costs incurred above
a Project's construction budget amount are not eligible for CWSRF funding. Therefore, eligible
CO costs may be approved up to the total CWSRF financing agreement amount.
We have reviewed the contract COs for CWSRF program eligibility. Enclosed is a copy of the
CWSRF CO approval form for the City's records. The contract COs are consistent with the
approved Project Facilities Plan Approval and the final financing agreement eligibility
determinations.
The total funding provided may not exceed the CWSRF financing agreement amount of
$2,644,356. We hereby approve the City's COs for CWSRF funding in the amount of
$328,187, provided the City satisfactorily complies with the conditions noted in the CWSRF
funding agreement.
If you have any questions regarding this letter, please contact Ms. Crysten R. Samudio at
(916) 341-5693, or by email at csamudio @waterboards.ca.gov.
Sincerely,
Cza) woo' _
Crysten R. Samudio
Water Resources Control Engineer
Enclosure
cc: Mr. Michael Ho
City,of Seal Beach
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tiYJt I Street,S3c,ernento,CA 9:314 I tdauir•.3 auc!ress P.O.E:.a 100.Sarrarnento,CA 95312.0100 I v.w:•:•.saterboain,.ca acv
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• Clean Water State Revolving Fund Program
Change Order(CO)Approval Form
Name of Agency: City of Seal Beach
Project No: C-06-5310-111
Date Received: 6/7/2012
Approved Construction Budget: $2,644,356.00
Positive Approved
CO CO Amount
CO Number • CO Description Amount($) ($)
1 Add State Water Board Construction Sign $1,338 $0
2 Unmarked Time Warner Utility Lines $9,961 $0
3 Unknown, unmarked utility conduits on Lampson Avenue $4,257 " $0
4 XO Communications conduit in wrong location $4,430 $0
5 Gas utility line located incorrectly. Needed to hand dig twice $4,751 $0
6 Water Line marked incorrectly on wrong side of road $5,987 $0
7 New thrust block poured for incorrectly marked water line $2,585 $0
8 Bracing to cross old AC water line for safety against main break $7,848 $0
• 9 4 inch power conduit unmarked in field on Ironwood Avenue $1,715 $0
10 Water Line crossing at Elder and Ironwood not marked on plans $1,931 $0
11 Unknown, unmarked utility conduits on Elder Avenue $1,133 $0
12 3 unknown, unmarked conduits on Elder Avenue $1,452 $0
13 Patching and sweeping of Elder Avenue for December 2011 $5,273 $0
15 Paving Lampson Avenue to lane limits $8,722 $0
18 Patching and sweeping of Elder Avenue for January 2012 • $2,380 $0
19 Calcium removal in pipes to be CIPP Lined $3,083 $0
20 remove old peeling lining from manholes to be newly lined $10,528 $0
21 Raise manhole lids, water valves and gas valves on Aster Street $2,680 $0
23 Full reconstruction of Elder Avenue $555,981 • $328,187
24 water seal manholes to be lined $23,500 $0
Total:1 $659,5361 $328,187
Summary
Remaining Construction Budget: $940,049
Pending Funding Requests: $611,862
Approved CO: $328,187
Balance Remaining: $0
The agency is responsible for notifying the State Water Resources Control Board(SWRCB)if the cumulative value of change orders exceeds the
available funds in the approved construction budget. SWRCB is not obligated to pay for costs incurred in excess of the approved construction budget,
as indicated in Table 2 of exhibit A-1,of the financing agreement. The decision contained herein is considered a staff eligibility decision by the
SWRCB and is not subject to further appeal unless within 30 days you request a final staff eligibility decision from the Division of Financial
Assistance. The agency must ensure that any deductive COs are reflected on the final Form 259.
Remarks:
Recommended by Project Manager
Ms. Crysten R.Samudio ,� I
Name Signature Date
Approv fo funding by Senior WRCE•
Mr. Robert Pontureri P.E. <c�`��v`✓, M1
Name Signature Date
S:\Funding Programs\SRFlProjects\Seal Beach, City oflSeal Beach 5310-1101Project Management\Change Order
Approval Docs1Seal Beach 5310-110 CO Form Revised 10/31/11