For City Council Meeting [September 24, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to (1) Accept the Annual Street Overlay Project, City Project No. 180804; (2) Authorize an Additional $36,775.21 for Construction Contract Change Orders; (3) Authorize Filing of the Notice of Completion; and (4) Authorize Release of Retention to Matich Corporation.
(ACTION)
Body
BACKGROUND
On August 14, 2018, the City Council authorized the release of Request for Bid No. 19-005 for the 2017/18 Annual Street Overlay Project, City Project No. 180804.
On November 27, 2018, the City Council awarded a construction contract to Matich Corporation, in the amount of $3,637,964.93 for the 2017/18 Annual Street Overlay Project, City Project No. 180804.
ANALYSIS/DISCUSSION
On July 16, 2019, the Contractor satisfactorily completed the Annual Street Overlay Project. Staff conducted a final inspection and found the work to comply with the plans, specifications, and standards of the City of Rialto. Upon acceptance by the City Council, staff will file a Notice of Completion for recordation at the County Recorder’s office. A copy of the Notice of Completion is included as Attachment 1.
During the project, the Contractor provided a cost reduction proposal that provided a $50,000.80 construction credit. Contract Change Order No. 1 documents work changes related to the cost reduction proposal. Contract Change Order No. 1 is included as Attachment 2.
An additional authorization of $36,775.21 is required to cover the cost of Contract Change Order No. 2. Contract Change Order No. 2 accounts for work quantities that that were higher than the original estimated quantities, and several additional work items. The additional work items are documented in Contract Change Order No. 2 and briefly described in Table 1 below. Contract Change Order No. 2 is included as Attachment 3.
Table 1 below summarizes the total construction costs associated with Matich Corporation’s work on the Annual Street Overlay Project.
Table 1
The total construction cost is under the amount budgeted and available, but exceeds the previously authorized amount by $36,775.21.
ENVIRONMENTAL IMPACT
Section 21084 of the California Public Resources Code requires that the guidelines for implementation of the California Environmental Quality Act (CEQA) include a list of classes of projects that have been determined not to have a significant effect on the environment and which shall, therefore, be exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment, and are declared categorically exempt from the requirement for the preparation of environmental documents. In accordance with 14 CCR Section 15301 “Existing Facilities,” Class 1 projects consist of the repair, maintenance, or minor alteration of existing public structures or facilities; therefore, the 2017/18 Street Overlay Project, City Project No. 180804 is considered categorically exempt from CEQA. Staff has filed a Notice of Exemption for the project, included as Attachment 4.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action complies with the following City of Rialto General Plan Goal and Policy:
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Policy 4-1.1: Establish and maintain standards for a variety of street classifications to serve both local and regional traffic, including Major Arterial Highways, Major Arterials, Secondary Arterials, Collector Streets, and Local Streets.
LEGAL REVIEW
The City Attorney has reviewed this staff report.
FINANCIAL IMPACT
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
Table 2 shows the project funding sources and related expenditures.
Table 2
The construction contract was awarded in the amount of $3,637,964.93. The total construction cost was $3,674,740.14. The additional authorization amount of $36,775.21 is available within the allocated project budget in the Measure I Fund Account No. 201-500-4310-3001-180804-35.
The City is holding retention of $183,737.01 for Matich Corporation. The Public Contract Code provides for retention release 60 days after construction completion or 35 days after filing of the Notice of Completion. Since the construction has been complete for more than 60 days, the City will release the retention upon acceptance of the work and filing of the Notice of Completion.
The project is considered maintenance and no new asset was created; therefore, the Finance Department will not add the value of this project to the City’s fixed asset system, in compliance with the Governmental Accounting Standard Board (GASB) 34 Standards for Financial Reporting of Infrastructure Assets.
Licensing
A Business License tax at the Professional Services rate in the amount of $25.00 based on the increased construction amount of $36,775.21 will be assessed against the project and paid by interoffice transfer.
RECOMMENDATION
Staff recommends that the City Council:
• Accept the Annual Street Overlay Project, City Project No. 180804.
• Authorize an additional $36,775.21 for Construction Contract Change Orders.
• Authorize the Public Works Director to file the Notice of Completion at the County Recorder’s Office.
• Authorize release of retention to Matich Corporation.