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Finance Committee

Meeting Date:	06/30/2020
FROM:	Bill Gallardo

Subject:

Acceptance of Contract and Notice of Completion for Contract with Big Ben, Inc. for 375-395 Central Avenue Sewer Improvements, CIP No. 7627

RECOMMENDATION

Accept project as complete and authorize City Clerk to record Notice of Completion; and
Authorize City Clerk to release the Payment and Performance Bond upon notification from the Public Works Department.

BACKGROUND/DISCUSSION

The City Council awarded a Construction Contract (“Contract”) to Big Ben, Inc. ("Big Ben”) on November 19, 2019, in the amount of $296,167.50 for the 375-395 Central Avenue Sewer Improvements, Capital Improvement Program (CIP) No. 7627 (“Project”), and approved up to a 10% Contract contingency for a total approved Contract budget of $325,000.

The scope of work for the Project included removal of an existing 6” sewer main, upsizing this line to an 8” sewer main, replacement of sewer manholes, and sewer main tie-in’s at Site Drive and Central Avenue. The new 8” sewer line traverses through the commercial property at 375-395 Central Avenue within an existing sewer easement dedicated to the City (Attachment A). The project was completed on April 22, 2020.

The amount of Contract Change Orders (“CCO”) approved on the Project is $27,117.68, which equates to 9.2% of the original Contract amount of $296,167.50. There were two main CCO’s to the Project, with some minor quantity adjustments as follows:

CO#1 - Unforeseen obstruction within the pipe trench area related to a storm drain crossing.
CCO#2 - Trench issues within the existing 6” sewer line trench, which required added time and materials to remove the existing line and install the new 8” sewer line.

Therefore, with the CCO’s, the final Contract total cost is $323,285.18. The improvements have been completed and staff is recommending the City Council approve the Acceptance of Work performed by Big Ben.

The following is a summary of contract costs:

Original Construction Contract Amount	$296,167.50
Approved Change Orders	$27,117.68
Big Ben Construction Contract Amount	$323,285.18
Approved Construction Contract Budget	$325,000.00
Remaining Construction Contract Balance	$1,714.82

SUMMARY/FISCAL IMPACT

The final Contract amount is $323,285.18, which is under the approved construction Contract budget. The source of funds is from the Sewer Utility Fund (Fund 430) ($325,000). Once the Project is closed-out, any remaining unspent funds will be re-allocated back to Fund 430.

The Project removed and capped/plugged the existing 6” sewer main, upsized the pipe to an 8” sewer main, replaced the existing sewer manholes, and connected the new line into the main at Site Drive and Central Avenue. The Project was completed to the satisfaction of the City Engineer, and Big Ben has completed the Project and fulfilled its obligations to the City pursuant to the Project Contract. Therefore, staff is recommending the City Council accept the Project as complete and authorize the City Clerk to record a Notice of Completion (Attachment B). Additionally, staff is recommending authorizing the City Clerk to release the Payment and Performance Bonds upon notification from the Public Works Department.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Michael Ho, P.E., Deputy Director of Public Works/City Engineer
Concurrence: Tony Olmos, P.E., Public Works Director

Attachments
Location Map
Notice of Completion