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4.
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| Finance Committee |
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| Subject: |
| Acceptance of the Brea Water Main Replacement Steele Drive Tract and Pleasant Hills Tract, Project Nos. 7453 and 7457 |
| RECOMMENDATION |
- Accept the Project as complete and authorize the City Clerk to record a Notice of Completion;
- Accept the Warranty Bond; and
- Authorize the City Clerk to release the Payment and Performance Bond upon notification from the Public Works Department.
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| BACKGROUND/DISCUSSION |
On December 15, 2020, the City Council awarded a Construction Contract ("Contract") to All Cities Engineering, Inc. ("ACE") for $3,916,292.65 for the Brea Water Main Replacement Steele Drive Tract and Pleasant Hills Tract, Project Nos. 7453 and 7457 ("Project"), and approved a 10% construction contingency for a total approved construction budget of $4,307,921.92. The Project replaced and upgraded the existing water mains and appurtenances, replaced four pressure regulating systems, and completed street resurfacing throughout the two subdivisions. In addition, the Project also included reconstructing the ADA ramps to the latest standards and reconstruction of sidewalks, and curb and gutters (Attachment A Location Map).
The Notice-to-Proceed with the construction was issued on April 19, 2021, and the Project was considered substantially complete on February 11, 2022, with final acceptance of the work on November 8, 2022. There were several contract change orders, including the final quantity balancing change order approved for the Project that resulted in a reduction of ($203,096.39) from the contract amount. Therefore, the final total accepted contract cost was $3,713,196.26. The improvements have been completed, and staff recommends the City Council approve the acceptance of work performed by ACE.
The following is a summary of contract costs:
| Original Construction Contract Amount |
$3,916,292.65 |
| Approved Change Orders |
(-$203,096.39) |
| ACE Final Construction Contract Amount |
$3,713,196.26 |
| Approved Construction Budget with 10% Contingency |
$4,307,921.92 |
| Remaining Construction Budget |
$594,725.66 |
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| SUMMARY/FISCAL IMPACT |
The final Contract amount for the Project is $3,713,196.26, which is under the approved construction Contract budget. The source of funds for this Project is from the Water Utility Fund (Fund 420), Gas Tax (Fund 220), and Measure M (Fund 260). Therefore, there is no impact to the General Fund. Once the Project is finally closed out, any remaining unspent funds will be reallocated to the appropriate funds for other approved CIP Projects.
The Project replaced and upgraded the existing water mains and appurtenances, replaced four pressure regulating systems, completed street resurfacing, and reconstructed ADA ramps, sidewalks, and curb and gutter within the Steele Drive and Pleasant Hills subdivisions. ACE has completed the Project and fulfilled its obligations to the City under the subject Contract. Furthermore, ACE provided a Warranty Bond of 100% of the final Contract amount to guarantee the work for one year after the recordation of the Notice of Completion. Therefore, staff is recommending the City Council consider accepting the Project as complete, accept the Warranty Bond (Attachment B), and authorize the City Clerk to record a Notice of Completion (Attachment C). Additionally, staff recommends authorizing the City Clerk to release the Payment and Performance Bonds upon notification from the Public Works Department. |
| RESPECTFULLY SUBMITTED |
William Gallardo, City Manager
Prepared by: Ryan Chapman, Assistant City Engineer
Concurrence: Michael Ho, Public Works Director/City Engineer |
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