For City Council Meeting July 25, 2023
TO: Honorable Mayor and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Tim Sullivan, Director of Maintenance and Facilities
Title
Request City Council to: (1) Delegate Additional Authority for Change Orders in the Cumulative Amount of $500,000 to Calmex Engineering Inc., a California Corporation for the Street Overlay & Reconstruction Project Riverside Avenue from I-10 to the Southern City Boundary, City Project No. 180807; and (2) Authorize the Acting City Manager to Execute all Related Documents.
(ACTION)
Body
BACKGROUND:
On May 10, 2022, the City Council awarded a Construction Contract to Calmex Engineering Inc., a California corporation, in the amount of $9,736,123.06 for the Street Overlay & Reconstruction Project (Riverside South), City Project No. 180807.
On January 25, 2023, the City Council approved the delegation of additional change order authority in the cumulative amount of $850,000 for the addition of two (2) new right turn lanes at Santa Ana Avenue and Resource Drive from southbound Riverside Avenue.
On April 25, 2023, the City Council approved the delegation of additional change order authority in the cumulative amount of $350,000 to correct the Continuously Reinforced Concrete Pavement (CRCP).
ANALYSIS/DISCUSSION:
The Riverside South project has been substantially completed and is in the process of project closeout. Staff is recommending the appropriation of additional change order authority in the amount of $500,000 to compensate Calmex Engineering Inc. for close out work. Costs include additional unclassified excavation to eliminate the existing varied crossfall and “quarter crowns” ranging from 2.5% to 6% and provide a consistent roadway crossfall closer to 2%. This improvement results in better drainage, increased commuter safety, and an overall smoother road. Other costs include increased asphalt quantities and unforeseen site conditions encountered upon the construction of the new right-turn lanes at Santa Ana Avenue and Resource Drive.
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 structures and facilities; therefore, the Street Overlay & Reconstruction Project Riverside Avenue from I-10 to the Southern City Boundary, City Project No. 180807 is considered categorically exempt from CEQA. Staff has prepared and filed a Notice of Exemption for the project.
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 also complies with the following City of Rialto General Plan Goals and Policies:
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 and supports this staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The currently adopted project budget for the Street Overlay & Reconstruction Project Riverside Avenue from I-10 to the Southern City Boundary, City Project No. 180807, is $13,146,000 within the following funds:
• Measure I Fund, Account Number 22014310-53001 in the amount of $5,696,000.
• Gas Tax Fund, Account Number 22024317-53001 in the amount of $1,400,000
• Gas Tax SB1 Fund, Account Number 22037305-53001 in the amount of $5,700,000
• Grant Projects Fund, Account Number 22234414-53001-180807-15 in the amount of $350,000.
The project currently does not have sufficient budget for the proposed change order. However, staff has analyzed projects currently in construction and near completion and identified that the Overlay and Reconstruction of Riverside Avenue Central, Project No. 220804, is projected to have a remaining balance of $860,000 from its initial budget.
Therefore, staff recommends that the City Council approve the transfer of $500,000 from the Riverside Central Project's Capital Project Fund, Account No. 33007305-53001-220804-16, to the Street Overlay & Reconstruction Project Riverside Avenue from I-10 to the Southern City Boundary, City Project No. 180807, to cover Calmex's final invoice and closeout of the project. This action will not require a budget resolution as the funds have already been appropriated and are readily available.
Licensing
Prior to the execution of the Construction Contract Change Order, the vendor shall submit a business license application and pay a Business License tax as well as Administration and State fees if their current license has expired.
RECOMMENDATION:
Staff recommends that the City Council:
1. Delegate Additional Authority for Change Orders in the Cumulative Amount of $500,000 to Calmex Engineering Inc., a California Corporation for the Street Overlay & Reconstruction Project Riverside Avenue from I-10 to the Southern City Boundary, City Project No. 180807; and
2. Authorize the Acting City Manager to Execute all Related Documents.