For City Council Meeting [June 26, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Robb R. Steel, Interim City Administrator
FROM: Robert G. Eisenbeisz, P.E., Public Works Director/City Engineer
Title
Request City Council to Approve Contract Change Orders to Matich Corporation in the amount of $245,689.63, for a Total Contract Amount of $2,689,689.63, for the Annual Street Overlay Project, City Project No. 160801.
(ACTION)
Body
BACKGROUND:
On November 8, 2016, the City Council authorized release of Request for Bid No. 17-030 for the 2015/16 Annual Street Overlay Project, City Project No. 160801.
On July 11, 2017, the City Council awarded a construction contract to Matich Corporation, in the amount of $2,444,000 for the 2015/16 Annual Street Overlay Project, City Project No. 160801.
ANALYSIS/DISCUSSION:
During construction, the Contractor performed additional work not included in the original contract. The additional work identified during construction generally included additional curb, gutter, and sidewalk repairs; miscellaneous work related to curb ramp construction and median curb repairs, the addition of bike lane signs; and the addition of asphalt concrete leveling courses constructed in order to improve street rideability.
In addition, during construction a shallow gas line needed to be relocated because it conflicted with the proposed storm drain culvert replacement and during the gas line relocation it was discovered that the roadway subgrade was in very poor condition because of the damaged and leaking storm drain. This requires extensive removal, replacement, and compaction of the subgrade prior to construction of the pavement. In addition, the pavement condition on Linden Avenue in the vicinity of Randall Avenue requires extensive rehabilitation to address a failing sewer trench. This additional work includes removal, replacement and compaction of the subgrade along the sewer line as well as cold milling, overlay, and pavement rehabilitation on this portion of Linden Avenue north of Randall Avenue. Contract Change Order Nos. 1 and 2 provide detailed descriptions of the additional work and are included as Attachments 1 and 2.
Table 1 below summarizes the total anticipated construction costs associated with Matich Corporation’s work on the Annual Street Overlay Project.
Table1
The total construction cost is under the amount budgeted and available, but exceeds the authorization amount by $245,689.63, which is approximately 10.1 percent of the original contract amount.
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 2015/16 Annual Street Overlay Project, City Project No. 160801 is categorically exempt from CEQA. Staff has prepared and filed a Notice of Exemption for the project, included as Attachment 3.
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 City of Rialto General Plan Goal 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 approved this staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
Table 2 below shows the project funding sources and related expenditures.
Table 2
The construction contract was awarded in the amount of $2,444,000. The total anticipated construction cost is 2,689,689.63. The additional authorization amount of $245,689.63 is available within the allocated project budget.
Licensing
Prior to execution of the Professional Service Agreement/Purchase Order/Construction Contract, the vendor shall submit a business license application and pay a Business License tax at the rate of $250, as well as Administration and State fees.
RECOMMENDATION:
Staff recommends that the City Council Approve Contract Change Orders to Matich Corporation in the amount of $245,689.63, for a Total Contract Amount of $2,689,689.63, for the Annual Street Overlay Project, City Project No. 160801.