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Home My WebLink AboutCC AG PKT 2010-06-14 #YAGENDA STAFF REPORT DATE: June 14, 2010 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Sean P. Crumby P.E., Director of Public Works SUBJECT: BEVERLY MANOR ROAD STREET IMPROVEMENT PROJECT NO. ST0903 BUDGET AMENDMENT AND INCREASE IN THE CONTRACT AMOUNT SUMMARY OF REQUEST: Staff recommends that the City Council adopt the draft Resolution No. 6016 to increase the budget by $150,000 for the Beverly Manor Road Street Improvement Project No. ST0903, direct the Administrative Service Department to transfer $150,000 previously designated for Streets to the Beverly Manor Road Street Improvement Project No. ST0903, and to authorize an increase in payment to the contractor from $435,519 to $632,447 (an increase of $196,928). BACKGROUND: On the April 14, 2008, City Council Meeting, the City Council added the Beverly Manor Street Improvement Project to the 5 -year capital improvement plan with an approved Budget of $950,000 of General Funds. At the December 14, 2009 City Council Meeting, Council awarded a contract to Tyner Paving Company in the amount of $435,519, which the engineer's cost estimate was for $870,000. To that end, the remaining funds were returned to the General Fund leaving a Budget of $550,000. During construction there were several unforeseen conditions such as, unknown utility lines, unstable sub -grade soil, and increase of bid line items. The unknown utility lines, which were not marked by Underground Service Alert, resulted in the contractor performing numerous potholing, some required backfilling, re- excavation and re- designing by the design engineer. Secondly, there were approximately 15,117 square feet of soil which was not compactable and pumping that needed sub -grade remediation. Lastly, an additional 212 cubic yards of haul away excess pulverized material were not accounted for in the cost estimate. Agenda Item Y Page 2 In addition, extra work was directed by staff to Tyner Paving Company to perform a 2" grind and overlay approximately 32,500 square feet from Seal Beach Blvd. to the beginning of the Beverly Manor Road knuckle. This work was included in the project originally specified by the City Council, but not originally included with the bid documents due to the construction of the Fire Station. At the time bid documents were advertised, the Fire Station 48 was under construction and undergrounding of the utilities in Beverly Manor Road was underway. Staff did not want to include this area in the project and have to trench into new pavement. The undergrounding of the utilities occurred faster than anticipated. This allowed staff to capitalize on the extremely competitive bids received on the Beverly Manor project and complete the project. FINANCIAL IMPACT: In the approved 09/10 Budget, $950,000 was approved for the Beverly Manor Road Street Improvement Project No. ST0903. The awarded contract amount was $435,519 and the remaining funds were returned to the General Fund leaving a Budget of $550,000. The estimated total change orders amount is $197,000. Staff is requesting an additional $150,000 for the project to cover the additional change orders, inspection and construction management. The funds will come from the $5,000,000 previously designated for street improvement by the City Council. Below is a breakdown of the funds: Estimated Expenses: Contract Award $ 435,518.51 Change Orders $ 197,000.00 Inspection $ 5,015.00 Professional Services $ 38,580.00 TOTAL $ 676,113.51 The estimated net cost for the project is $676,114. Staff is requesting $150,000 of designated General Funds to cover the shortfall. Page 3 RECOMMENDATION: Staff recommends that the City Council adopt the draft Resolution No. 6016 to increase the budget by $150,000 for the Beverly Manor Road Street Improvement Project No. ST0903, direct the Administrative Service Department to transfer $150,000 previously designated for Streets to the Beverly Manor Road Street Improvement Project No. ST0903, and to authorize an increase in payment to the contractor from $435,519 to $632,447 (an increase of $196,928). SUBMITTED BY: J=9w Sean P. Crumby P.E., Director of Public Works Prepared by: Cesar Rangel, Assistant Engineer NOTED AND APPROVED: Hof David Carmany, City Manager Attachment: A. Resolution No. 6016 RESOLUTION NUMBER 6016 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL AUTHORIZING A BUDGET AMENDMENT IN THE AMOUNT OF $150,000 AND INCREASING THE CONTRACT AMOUNT OF $435,519 BY $196,928 FOR THE BEVERLY MANOR ROAD STREET IMPROVEMENT PROJECT (PROJECT NO. ST0903) THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. On December 14, 2009, the City Council awarded a bid to the lowest responsive bidder Tyner Paving for the Beverly Manor Road Street Improvement Project (Project No. ST0903) for a total amount of $435,518.51. Section 2. As described in the staff report dated June 14, 2010, unforeseen conditions such as the discovery of undocumented utility lines, unstable subgrade soil and an increase of bid line items, have increased the construction costs. Based upon the staff report, staff recommends revising the contract amount for Project No. ST0903 from $435,519 to $632,447, an increase of $196,928. Section 3. The City Council hereby amends the budget for Beverly Manor Road Street Improvement Project No. ST0903 by increasing it by $150,000. Section 4. The City Council hereby authorizes payment of an additional $196,928 to Tyner Paving. In no event shall the City pay Tyner Paving in excess of $632,447 for all work performed by Tyner Paving in connection with Beverly Manor Road Street Improvement Project No. ST0903. Section 5. The City Council hereby directs the Administrative Service Department to transfer $150,000 previously designated for "Streets" to the Beverly Manor Road Street Improvement Project No. ST0903, and hereby authorizes the City Manager to execute all documents necessary to increase the amount paid to Tyner Paving from $435,519 to $632,447 for all work performed by Tyner Paving in connection with Beverly Manor Road Street Improvement Project No. ST0903. PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach, at a regular meeting held on the 14th day of June . 2010 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk Resolution Number 6016 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 6016 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of June , 2010. City Clerk