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City Council Regular
Meeting Date: 10/08/2019  

  1. Accept the Rancho Hills Drive emergency project by GM Sager as complete.
  2. Authorize the City Clerk to cause the Notice of Completion to be recorded.
  3. Authorize the release of retention monies in the amount of $17,000, forty-five days after acceptance of the work by the City Council.
  4. Authorize the release of any remaining encumbrance after payment of retention.
On March 17, 2019, staff received multiple calls regarding a water leak on Rancho Hills Drive. A six-inch water line connecting a fire hydrant to the eight-inch water mainline had failed. Water undermined the pavement, severely damaging 400 feet of the roadway. An additional 800 feet of damaged asphalt related to the leak required reconstruction for a total of 1,200 feet of the roadway. Since the impact of the water leak caused extensive street damage and residents were unable to access their properties, the work was deemed an emergency. The City had a contract with G.M. Sager Construction, Inc. (GMS) for on-call maintenance work in the amount of $250,000. Staff contacted GMS to address the emergency, and GMS responded immediately. Since the work required was beyond the scope of the maintenance agreement, it was necessary to declare an emergency and issue a separate contract for the repairs. 
On March 26, 2019, the City Council, pursuant to Public Construction Code 22050 and the emergency authority under Chino Hills Municipal Code 3.18.050, determined the situation was an emergency and authorized the City Manager to negotiate and execute an agreement with GMS. The City Manager executed the agreement with GMS in the amount of $340,000 on March 28, 2019. On April 23, 2019, the City Council determined there was no further need to continue the emergency actions and the emergency status was terminated. 

All repairs have been completed and retention may now be released.

The contract amount is summarized below:
Original Contract Amount $340,000
Change Orders $0
Total Construction Amount $340,000
This action is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15269b and is exempt from CEQA.  CEQA does not apply to emergency repairs to publicly or privately owned service facilities necessary to prevent or mitigate an emergency in maintaining service essential to the public health, safety, or welfare.
Funding for this emergency was approved by the City Council on March 26, 2019, in the amount of $400,000 from the Water Fund. The final cost of the project was $340,000; therefore, the remaining budget of $60,000 went back to the Water Fund balance. There is no impact to the General Fund.
Notice of Completion - GM Sager Construction Company, Inc

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