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    6.    
Finance Committee
Meeting Date: 10/12/2021  
FROM: Bill Gallardo

Subject:
Acceptance of Brea Water Main Replacement North Hills West and East Tracts, Project Nos. 7459 and 7460 
RECOMMENDATION
  1. Accept the Project as complete and authorize City Clerk to record a Notice of Completion; and
  2. Authorize City Clerk to release the Payment and Performance Bond upon notification from the Public Works Department.
BACKGROUND/DISCUSSION
On July 7, 2021, City Council awarded a Construction Contract (“Contract”) to Big Ben Engineering, Inc. ("Big Ben”) in the amount of $5,138,722.64 for Brea Water Main Replacement North Hills West and East Tracts, Project Nos. 7459 and 7460 (“Project”) and approved a $513,872 construction contingency for a total approved construction budget of $5,652,594.64. The Project replaced and upgraded existing water mains and appurtenances, replaced three pressure regulating systems, and completed street resurfacing throughout West and East Tracts. In addition, the Project also included reconstructing ADA ramps to latest standards and reconstruction of sidewalks, and curb and gutters (see Attachment A for location). 

A Notice-to-Proceed with construction was issued on August 24, 2020, and the Project was considered substantially complete on August 27, 2021.  There were several Contract Change Orders approved for the Project in the cumulative amount of $419,164, which is 8% of the Contract Amount.  Contract Change Orders were primarily due to the following changes:
 
  • Additional asphalt grinding and pavement overlay work on Northwood Ave.
  • Additional ADA ramp removal and replacements
  • Additional Waterline Pipe Installation for a bypass line on Northwood 
  • Additional Pressure Reducing Station work
  • Additional water valves at several Fire Hydrant locations

As a result, the total final Contract cost is $5,557,886.71.  Improvements have been completed and staff is recommending City Council approve acceptance of work performed by Big Ben.

Following is a summary of contract costs:

Brea Water Main Replacement North Hills West and East Tracts Construction Budget Summary
 
Original Construction Contract Amount $5,138,722.64
Approved Change Orders $419,164.07
Big Ben Final Construction Contract Amount $5,557,886.71
Approved Construction Contract Budget $5,652,594.64
Remaining Construction Contract Balance $94,707.93

SUMMARY/FISCAL IMPACT
The Final Contract amount for the Project is $5,557,886.71, which is under the approved construction Contract budget. The source of funds for this Project is from the Water Utility Fund (Fund 420), Sewer Utility Fund (Fund 430), Gas Tax (Fund 220), and Measure M (Fund 260). Therefore, there is no impact to the General Fund. Once the Project is closed-out, any remaining unspent funds will be re-allocated back to appropriate funds. 
 
The project replaced and upgraded existing water mains and appurtenances, replaced three pressure regulating systems, completed street resurfacing, and reconstructed ADA ramps, sidewalks, and curb and gutter within North Hills West and East Subdivisions. Big Ben has completed the Project and fulfilled its obligations to the City pursuant to subject Contract. Therefore, staff is recommending City Council consider accepting the Project as complete and authorize City Clerk to record a Notice of Completion (Attachment B). Additionally, staff is recommending authorizing City Clerk to release Payment and Performance Bonds upon notification from 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
Attachment A - Notice of Completion
Attachment B - Location Map

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