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  Agenda Item   19.    
City Council Meeting
Meeting Date: 03/02/2021  
FROM: Bill Gallardo

Subject:
Acceptance of the Alley Rehabilitation Projects, CIP 7319, 7320 & 7321
RECOMMENDATION
  1. Accept projects as complete and authorize City Clerk to record Notice of Completion(s); and
  2. Authorize City Clerk to release the Payment and Performance Bond(s).
BACKGROUND/DISCUSSION
On July 7, 2020, the City Council awarded a construction contract to R.J. Noble Company in the amount of $458,507.50 and approved a construction contingency of $45,850.75 for the Alley Rehabilitation Projects (Project Nos. 7319, 7320, and 7321). These projects rehabilitated the alley west of Flower Avenue between Date Street and Imperial Highway (PN 7319); the alley west of Sycamore Avenue between Elm Street and Date Street (PN 7320); and the alley west of Walnut Avenue between Acacia Street and Fir Street (PN 7321). The selection of these alleys was based on their rankings in accordance with the City's Pavement Management Plan (PMP) and were combined into a single project to benefit from economies of scale and save time in project administration.

The rehabilitation of the alleys began construction in September 2020 and was anticipated to be completed by October 2020. However, during construction, the Contractor encountered unforeseen conditions on the alley associated with PN 7320 that resulted in significant delays and additional costs. The unforeseen conditions were related to shallow water service laterals, additional pipe fittings, and a dilapidated 18" and 30" corrugated metal pipe (CMP) utilized for storm water just below the existing asphalt section.

These unforeseen conditions resulted in ultimately removing the remainder of the scope of work from R.J. Noble, as well as the storm drain repair work for the alley associated with PN 7320, due to unfavorable cost proposals. Therefore, once staff received approval from City Council on October 20, 2020 to amend the project budget, the reconstruction of the storm drain and remainder of the surface improvements were awarded to Valverde Construction, Inc. and All American Asphalt, respectively.  The improvements to all three alleys were significantly completed on December 21, 2020, with a total Contract cost of $611,936.32.  Staff is recommending the City Council approve the acceptance of the work performed by R.J. Noble, Valverde Construction, Inc., and All American Asphalt.



The following is a summary of the contract costs:
 
Approved Construction Contract Budget $615,851.00
R.J. Noble Final Construction Contract $348,983.80
Valverde Construction, Inc. Final Construction Contract $119,893.00
All American Asphalt Final Construction Contract $143,059.52
Total Combined Final Construction Contracts $611,936.32
Remaining Construction Contract Budget $3,914.68
COMMISSION/COMMITTEE RECOMMENDATION
The Finance Committee reviewed staff's recommendation at their February 23, 2021 meeting and recommended to proceed.
FISCAL IMPACT/SUMMARY
The final construction contract amount for all three contracts is $611,936.32, which is under the approved construction contract budget. The source of funds is from Fund 220 – Gas Tax and Fund 260 – Measure M.  There is no General Fund impact. The remaining unspent funds will return back to the original source Fund.
 
The Project rehabilitated three alleys located in the southwest portion of the City.  The Project also reconstructed the storm drain line for the alley located west of Sycamore Avenue between Elm Street and Date Street.  The Project was completed to the satisfaction of the City Engineer and R.J. Noble. Valverde Construction, Inc., and All American Asphalt have completed their respective Project Scopes and fulfilled its obligations to the City per their respective Contracts. Therefore, staff is recommending the City Council accept the Projects as complete and authorize the City Clerk to record the Notices of Completion.  Additionally, staff is recommending authorizing the City Clerk to release the Payment and Performance Bonds.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:   Michael S. Ho, P.E., Deputy Director/City Engineer
Concurrence:  Tony Olmos, P.E., Director of Public Works
Attachments
NOC - RJ Noble
NOC - Valverde
NOC - AAA
MAP - 7319
MAP - 7320
MAP - 7321

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