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Agenda Item 20.
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| City Council Meeting |
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| Subject: |
| Acceptance of Contract and Notice of Completion for Contract with Los Angeles Engineering, Inc. for the Tracks at Brea Segment 6 Trail Construction Project 7873. |
| RECOMMENDATION |
| 1) Accept Construction Contract as complete and authorize City Clerk to record Notice of Completion; 2)Increase the construction contingency from 10% to 11.3%; and 3) Authorize City Clerk to release the Payment and Performance Bond upon notification from the Public Works Department |
| BACKGROUND/DISCUSSION |
On December 6, 2016, the City Council awarded a Construction Contract to Los Angeles Engineering, Inc. ("LAE”) in the amount of $1,154,641.50 and approved a $115,464.15 (10%) construction contingency for a total approved construction budget of $1,270,105.65 for the Tracks at Brea, Segment 6, Trail Construction, CIP Project No. 7873 ("Project"). The Project constructed 3,500 linear feet of Class I bicycle trail, a parallel pedestrian path from Kraemer Boulevard to Surveyor Avenue and a Class II bicycle trail from Surveyor Avenue through Nasa Street, terminating at Valencia Avenue. The major improvements included a ten (10) foot wide striped asphalt bicycle trail, a ten (10) foot wide decomposed granite pedestrian path, a retaining wall at the Kraemer Boulevard entrance, benches, cable rail fencing atop the Orange County Flood Control Channel, and landscaping.
On February 8, 2017, staff issued a Notice to Proceed to begin the construction with a completion date of June 22, 2017. However, due to various Contract Change Orders ("CCO") and Contractor delays, the Project completion was extended by 32 working days and was deemed substantially complete on August 17, 2017. The trail was officially opened to the public on November 30, 2017. Prior to the final acceptance of the Contract, the total approved CCO's for this Project amounted to $97,045.80 or 8% of the Original Contract price.
Some of the major CCO's to the Project were as follows:
- Re-grading of trail to accommodate the existing topography
- Realignment of retaining wall to better suit the entrance at Kraemer Boulevard
- Unsuitable soils and trail re-alignment
Subsequent to the final acceptance of the Contract and final payment, LAE submitted a claim of approximately $62,890 associated with the added CCO days for extended overhead. These costs included direct costs (i.e. supervision, project management, site dust control, temporary fencing, etc.) and indirect costs (i.e. home office overhead, office administration, office rent, insurance etc.). Staff successfully negotiated this claim and final CCO with the Contractor, which resulted in a mutually agreed CCO amount of $33,717.04. Therefore, the total amount of the final CCO's is $130,762.84 ($97,045.80 plus $33,717.04), which exceeds the 10% contingency budget by $15,298.69. Therefore, staff is requesting the City Council consider increasing the Project construction contingency amount from $115,464.15 (10%) to $130,762.84 (11.3%) to cover the final negotiated CCO. |
| FISCAL IMPACT/SUMMARY |
| Description |
Amount |
| Original Construction Contract Amount |
$ 1,154,641.50 |
| Approved Change Orders |
130,762.84 |
| LAE Final Construction Contract Amount |
$ 1,285,404.34 |
| Approved Construction Budget w/ 10% Contingency |
1,270,105.65 |
| Added Contingency Amount |
$15,298.69 |
| Revised Construction Contract with 11.3% Contingency |
$ 1,285,404.34 |
| Approved Construction Budget |
$ 1,480,634.00 |
As indicated within the table, the total approved construction budget allocated for the Project is $1,480,634.00 with funding coming from a combination of Bicycle Corridor Improvement Program, Active Transportation Program, Clean Transportation Funding, Air Quality Management District, and Park Development Funds. The final CCO's for this Project exceeded the approved contingency of $115,464.15 (10%) by $15,298.69 bringing the total construction contingency to $130,762.84 (11.3%). Therefore, staff is requesting the City Council consider increasing the Contract contingency from 10% to 11.3% to allow staff to process the Final Payment for the Construction Contract inclusive of the final CCO. Staff was able to keep the Contract under the approved construction budget with a final Contract amount of $1,285,404.34. Therefore, there will be no General Fund (Fund 110) impact.
This Project constructed a pedestrian path and bike trail adjacent to the Loftus Flood Control Channel from Kraemer Boulevard to Surveyor Avenue. In addition, bike lane striping and signs were installed along Surveyor Avenue and Nasa Street to Valencia Avenue. LAE has completed the Project and fulfilled its obligations to the City pursuant to the Contract. Therefore, staff is recommending the City Council accept the Contract as complete and authorize the City Clerk to record a Notice of Completion, increase the construction contingency from $115,464.15 (10%) to $130,762.84 (11.3%) to make final payment to LAE, and to authorize the City Clerk to release the Payment and Performance Bonds upon notification from Public Works Department.
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| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Raymond Contreras, Assistant Engineer
Concurrence: Steve Kooyman, P.E., City Engineer and Tony Olmos, P.E., Public Works Director |
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