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Finance Committee
Meeting Date: 06/08/2021  
FROM: Bill Gallardo

Acceptance of Contract and Notice of Completion for Contract with Stephen Doreck Equipment Rentals, Inc., CIP No. 7311, CIP No. 7453, and CIP No. 7464
  1. Accept project as complete and authorize the City Clerk to record a Notice of Completion; and
  2. Authorize the City Clerk to release the Payment and Performance Bond upon notification from the Public Works Department.
The City Council awarded a Construction Contract (“Contract”) to Stephen Doreck Equipment Rentals, Inc. ("Stephen Doreck”) on March 3, 2020, in the amount of $4,382,734 for the Puente Street from Imperial Highway to Lambert Road Improvements, Capital Improvement Program (CIP) No. 7311; Gemini Avenue and Titan Way Improvements, CIP 7453; and Puente Street from Briarwood Road to Imperial Highway Improvements (“Project”) and approved up to a 10% Contract contingency for a total approved Contract budget of $4,821,007.

The scope of work for the Project included installation of 6-inch, 8-inch, 10-inch, and 12-inch water mains and fittings, water services connections, capping/plugging old water mains, pavement resurfacing, re-striping, updating ADA ramps, removal and replacement of center medians, and adjusting water valve and utility manholes as required on Puente Street from Briarwood to Lambert Road, Gemini Avenue, and Titan Way (See Attachment A).  The Project started construction on May 18, 2020 and was completed on March 12, 2021.

The amount of Contract Change Orders (“CCO”) approved on the Project is $258,950, which equates to approximately 6% of the original Contract amount.  The CCO’s included adding additional 3” water service, new gate valves and water line, additional pothole work at the Union Pacific Railroad crossing, new bollards and slough walls around several new Fire Hydrants and Air Vac units, and additional grinding and AC overlay work on Lambert/Puente and Imperial/Puente intersections.

Therefore, with the CCO’s, including the final Contract bid quantity balancing CCO, the final Contract total cost is $4,664,458.37.  The improvements have been completed and staff is recommending the City Council approve the Acceptance of Work performed by Stephen Doreck.

The following is a summary of contract costs:
Original Construction Contract Amount $4,382,734.00
Approved Change Orders $258,950.01
Final Balancing Change Order $22,774.36
Stephen Doreck Final Construction Contract Amount $4,664,458.37
Approved Construction Contract Budget $4,821,007.00
Remaining Construction Contract Balance $156,548.63
The final Contract amount for the Project is $4,664,458.37, which includes the final balancing change order based on final quantities, and 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), Measure M (Fund 260), and RMRA (Fund 221).  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 the appropriate funds within each CIP Project. 

The Project installed various sized water mains and fittings, removed and placed AC pavement overlay, re-striped, updated ADA ramps, removed and replaced center medians, and adjusted water valve and utility manholes as required within Puente Street from Briarwood to Lambert Road, Gemini Avenue, and Titan Way.  The Project was completed to the satisfaction of the City Engineer and Stephen Doreck has completed the Project and fulfilled its obligations to the City pursuant to the Project Contract. Therefore, staff is recommending the City Council to consider accepting the Project as complete and to authorize the City Clerk to record a Notice of Completion (See Attachment B).  Additionally, staff is recommending to authorize the City Clerk to release the Payment and Performance Bonds upon notification from Public Works Department.
William Gallardo, City Manager
Prepared by: Michael Ho, P.E., Deputy Director Public Works/City Engineer
Concurrence: Tony Olmos, P.E., Public Works Director
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