Back to Calendar
Return
|
|
Agenda Item 26.
|
City Council Meeting |
|
|
Subject: |
Acceptance and Appropriation of Funds for Lagos De Moreno Park Upgrades, CIP Project No. 7929 |
RECOMMENDATION |
- Adopt resolution to appropriate $646,100 from the Capital & Mitigation Improvement Fund (Fund 560);
- Accept Project as complete and authorize City Clerk to record Notice of Completion; and
- Authorize City Clerk to release Payment and Performance Bonds.
|
BACKGROUND/DISCUSSION |
On June 6, 2017, City Council awarded a contract in the amount of $1,799,000 to Lucas Builders, Inc. (LBI) of La Habra, California for Laurel Elementary Magnet School/Lagos De Moreno Park Upgrades, Project 7929 (Project). The Project made upgrades to school playgrounds and park with installation of ADA access improvements, a new restroom building, asphalt playground, ball walls, benches and tables, swings, playground equipment, and a 30' x 30' shade structure between two playgrounds.
During construction, various unforeseen conditions along with Contractor delays led to an increase in overall cost and time. Main items that contributed to increases included the replacement of school sewer lateral, discrepancies in contract requirements, over-excavation, handball wall change, an additional retaining wall, and storm drain modifications. Most of these cost increases requested by Contractor were ultimately filed as part of a claim that was recently settled through mediation and approved by City Council in the amount of $591,000. The $591,000 settlement includes a final progress payment in the amount of $73,625, retention in the amount of $97,102 and $420,273 to settle all remaining outstanding claims. The final contract amount including the settlement amount is $2,378,273. Additionally, legal fees (approx. $53,500) and minor incidental costs totaled $55,100, for a total of $646,100 which requires an additional appropriation of funds at this time.
Settlement |
$591,000 |
Legal Fees and Minor Incidental Costs |
$55,100 |
Proposed Appropriation |
$646,100 |
Final payment and filing of the Notice of Completion will formally close-out this project. Construction of the park was completed in 2019 and there are no outstanding items associated with this contract. |
COMMISSION/COMMITTEE RECOMMENDATION |
The Finance Committee reviewed staff's recommendation at their October 12, 2021 meeting and recommended to proceed. The Finance Committee also emphasized that if Park Development Funds are approved to reimburse this project, the funds shall go to Fund 560. |
FISCAL IMPACT/SUMMARY |
The total approved budget for the Project was $3,269,581 with funding from a combination of Capital & Mitigation Improvement Fund (Fund 560), $1,200,000; Park Development Fund (Fund 250), $1,619,581 and Brea Olinda Unified School District, $450,000. This amount was expended as of June 30, 2019. An additional $646,100 is required to cover all remaining expenditures including LBI and legal fees/incidental costs.
Per approved Settlement Agreement, payment must be made no later than 30 calendar days from September 21, 2021. Staff is recommending use of Fund 560 in the amount of $646,100 to pay for the settlement now, and then meet with Parks, Recreation & Human Services Commission at a later date to request for Park Development Funds (Fund 250) to reimburse 50% of the Fund 560 used to be somewhat consistent with the original funding.
Therefore, a Resolution appropriating added funds from the Capital & Mitigation Improvement Fund (Fund 560) to the Project is attached for City Council's consideration and approval (see Resolution). There is no General Fund impact from this action. |
RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Raymond Contreras, Associate Engineer
Concurrence: Michael Ho, P. E., Deputy Director of Public Works / City Engineer
Tony Olmos, P. E., Public Works Director |
|
|