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4.
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| Finance Committee |
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| Subject: |
| Acceptance of Country Hills Subdivision Pavement and Water Improvements, Project No. 7322 |
| RECOMMENDATION |
- Authorize increasing the Contract Contingency by 1.8%;
- Accept project as complete and authorize City Clerk to record Notice of Completion;
- Accept the Warranty Bond; and
- Authorize City Clerk to release the Performance Bond upon acceptance of the Warranty Bond, and release the Payment Bond upon further notification from the Public Works Department.
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| BACKGROUND/DISCUSSION |
On August 17, 2021, the City Council awarded a Construction Contract ("Contract") to Williams Pipeline Contractors, Inc. ("Williams") for $4,791,264.52 for the Country Hills Subdivision Pavement and Water Improvements, Project No. 7322 ("Project") and approved a 10% construction contingency for a total approved construction budget of $5,270,390.97. The Project replaced and upgraded the existing water mains and appurtenances, completed street resurfacing, and reconstructed ADA ramps, sidewalks, and curb and gutters throughout the subdivision. See Attachment A for reference as to the project location.
Staff issued the Notice-to-Proceed with the construction on October 11, 2021 and on November 18, 2022, the contractor completed the Project. During the construction, there were several Contract Change Orders, including the final quantity balancing Change Order for the Project, totaling $567,079.35. The change orders exceeded the contract amount plus a 10% contingency by $87,952.90. Therefore, staff is requesting the City Council consider approving an increase of 1.8% to the contingency for the construction budget. The final accepted Contract cost is $5,358,343.87, 11.8% over the Construction Contract. The contractor completed the improvements and staff recommends the City Council approve the acceptance work performed by Williams.
The following is a summary of contract costs:
| Original Construction Contract Amount |
$4,791,264.52 |
| Approved Change Orders |
$567,079.35 |
| Final Construction Contract Amount |
$5,358,343.87 |
| Approved Construction Budget with 10% Contingency |
$5,270,390.97 |
| Remaining Construction Budget |
($87,952.90) |
| Requested Contingency Increase (1.8%) |
$87,952.90 |
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| SUMMARY/FISCAL IMPACT |
| The final Contract amount for the Project is $5,358,343.87, which is over the approved Construction Contract budget by $87,952.90. There are sufficient funds in the Project budget to cover the overage. Therefore, staff is requesting the City Council consider increasing the Construction Contract budget by $87,952.90. The source of funds for this Project is the Water Utility Fund (Fund 420), Gas Tax (Fund 220), Measure M (Fund 260), and RMRA (Fund 221). Therefore, there is no impact on the General Fund. The Project replaced and upgraded 19,300 linear feet of existing water mains with appurtenances, 500 new services and meters, 3.6 miles of new street resurfacing, and reconstructed ADA ramps, sidewalks, and curb and gutter within the Country Hills Subdivision. Williams has completed the Project and fulfilled its obligations to the City according to the subject Contract. Furthermore, Williams 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 recommends 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 Performance Bond upon acceptance of the Warranty Bond and release the Payment Bond upon further notification from Public Works Department. |
| RESPECTFULLY SUBMITTED |
William Gallardo, City Manager
Prepared by: Ryan Chapman, P.E., Assistant City Engineer
Concurrence: Michael Ho, P.E., Public Works Director / City Engineer |
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