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  Agenda Item   20.    
City Council Meeting
Meeting Date: 09/21/2021  
FROM: Bill Gallardo

Acceptance of the Napoli Tract Water Improvements, CIP Project No. 7458
1. Accept project as complete and authorize City Clerk to record Notice of Completion; and
2. Authorize City Clerk to release the Payment and Performance Bond.
On December 15, 2020, the City Council awarded a Contract to Sully-Miller Contracting Company ("Sully Miller") in the amount of $1,323,100 for the Napoli Tract Water Improvements, CIP Project No. 7458 ("Project") and approved a $132,300 construction contingency for a total approved construction budget of $1,455,410. The Project replaced and upgraded the existing water mains and appurtenances, as well as completed street resurfacing throughout the Tract. In addition, the project also included reconstructing the ADA ramps to the latest standards and the reconstruction of sidewalks, curbs, gutters and spandrels. 

The Notice-to-Proceed with construction was issued on March 1, 2021 with a completion date of July 7, 2021 per the allotted number of working days in the contract. However, due to unforeseen conditions related to the inability to acquire the necessary appurtenances as a result of COVID-19, the project was substantially completed on July 27, 2021. The dollar amount of the change orders approved for the project is approximately $66,941, which equates to approximately 5% of the original contract amount. The change orders were primarily the result of the following changes:
  • Additional 9" deep AC dig outs
  • Additional PCC spandrel removal and replacements
  • Waterline trench compaction dispute
The final total Contract cost is $1,390,041.47. The improvements have been completed and staff is recommending the City Council approve the acceptance of work performed by Sully Miller.

The following is a summary of contract costs:

Napoli Tract Waterline Improvements Construction Budget Summary
Original Construction Contract Amount $1,323,100
Approved Change Orders $66,941.47
Sully Miller Final Construction Contract Amount $1,390,041.47
Approved Construction Contract Budget $1,455,410.00
Remaining Construction Contract Balance $65,368.53
The Finance Committee reviewed staff's recommendation at their September 14, 2021 meeting and recommended for City Council approval.  
The final Contract amount is $1,390,041.47, which is under the approved construction budget. The source of funds is from the Water Fund (Fund 420) and Measure M (Fund 260). There is no General Fund (Fund 110) impact.

This Project installed new water mains with water appurtenances and completed street pavement rehabilitation within the Napoli Tract Subdivision. Sully Miller has completed the Project and fulfilled its obligations to the City per the subject Contract. Therefore, staff is recommending the City Council accept the Project as complete and authorize the City Clerk to record a Notice of Completion. Additionally, staff is recommending authorizing the City Clerk to release the Payment and Performance Bonds.
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
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