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    20.    
City Council Regular
Meeting Date: 11/13/2018  

SUBJECT:
NOTICE OF COMPLETION FOR CONSTRUCTION OF THE VILLAGE OAKS SADDLE REPLACEMENT – PHASE 1 PROJECT BY PALP, INC (DBA EXCEL PAVING COMPANY)
RECOMMENDATION:
  1. Accept Village Oaks Saddle Replacement - Phase 1 Project by PALP, Inc. DBA Excel Paving Company 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 $41,077.56, forty-five days after acceptance of the work by the City Council.
  4. Authorize the release of any remaining encumbrance after final payment of retention.
  5. Reduce the amount of the Performance Bond down to 15% for warranty purposes for a period of one year.
  6. Authorize the release of the Labor and Materials Bond six months after project acceptance.
BACKGROUND/ANALYSIS:
On February 13, 2018, the City Council awarded a contract to PALP, Inc. (DBA Excel Paving Company) in the amount of $769,776.42 for the Village Oaks Saddle Replacement – Phase 1 project.  The Council also provided authorization for the City Manager to approve change orders up to a cumulative amount of $76,977.64, or 10% of the contract amount.  Construction began on April 23, 2018, and was substantially complete on August 10, 2018. 
 
Prior to the start of construction, staff performed exploratory investigation and potholing to further assess the existing condition of service saddles in the proposed Phase 1 project area. Staff discovered that several existing water service saddles in certain neighborhoods and tracts already have the proper updated standard materials installed.  This caused staff to revise the Phase 1 project work area. Staff conferred with Excel Paving Company in identifying the changes in the contract bid unit prices, consistent with the adjustments of the project work area and additional repairs that were necessary.  As a result, Change Order Nos. 1 & 2 were generated to address the minor adjustments in the quantities, additional work, and material.  The City Manager authorized the two (2) change orders in the amount totaling $758.54.
 
At the completion of the work, quantities estimated in the bid documents had to be adjusted to reflect the actual field measurements.  The City Manager authorized Change Order No. 3 which included a complete list of all quantity adjustments with the amount totaling to $51,016.33.  The final contract amount, including the change orders, is summarized in the following table:
 
Original Contract $ 769,776.42
Change Order Nos. 1 thru 3 $   51,774.87
Revised Contract $ 821,551.29
 
Prior to closing the project, Excel Paving Company submitted a late change order requesting compensation for additional work which was not pre-approved in writing by staff, as required by the contract documents.  Staff attempted to resolve the matter with the contractor but, ultimately, determined that the change order is invalid due to the excessive and unjustified nature of the change order as well as the failure to notify and receive approval from the City in writing prior to executing the work. 
ENVIRONMENTAL (CEQA) REVIEW:
At the December 12, 2017, City Council meeting, the project was determined to be exempt as a Class 1(b) Categorical Exemption (Existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewage, or other public utility services), pursuant to Section 15301 of Guidelines for the California Environmental Quality Act of 1970, as amended, Public Resources Code Section 21000 et seq.
FISCAL IMPACT:
The total estimated cost for this project is as follows:
 
Item Amount
Phase I Expenditures (Design, Construction Contracts, Change Orders No. 1 thru 3, Inspection, Project Management, and Miscellaneous) $1,052,000
Phase 2 and Phase 3 $1,635,000
Grand Total Project Funding $2,687,000
 
Funding for this project will come from the following source:
 
Project No. Funding Source Amount
W17001 Water Utility Fund $2,687,000
  Grand Total Project Funding $2,687,000
 
The total approved budget for this project is $2,687,000 with funding coming from the Water Utility Fund.  No additional appropriation is needed.  There will be no impact to the General Fund.
REVIEWED BY OTHERS:
This agenda item has been reviewed by the Finance Director and the City Attorney.
 
Attachments
Notice of Completion

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