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HomeMy WebLinkAboutItem 2f - Accept Morlan Place Underground Utility District as Complete DATE: January 16, 2018 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Philip A. Wray, Deputy Director of Development Services/City Engineer By: Tim Kelleher, Assistant Engineer SUBJECT: ACCEPT ALL WORK PERFORMED BY HOT LINE CONSTRUCTION INC. AS COMPLETE FOR THE MORLAN PLACE UNDERGROUND UTILITY DISTRICT Recommendation: Approve SUMMARY On July 18, 2017, the City Council awarded a contract to Hot Line Construction, Inc. in the amount of $475,875.50, plus a 10% contingency, for the Morlan Place Underground Utility District. There was a $29,602 (6.2%) increase to the original contract amount, due to adjustments for actual quantities, which increased the contract to $505,477.50. The terms and conditions of this project have been complied with, and the contractor has performed the required work in a satisfactory manner, for a final cost of $505,477.50. It is recommended that the City Council accept the project as complete, and authorize final payment in accordance with the contract documents. BACKGROUND On December 15, 2015, the City Council adopted Resolution 7103 establishing the Morlan Place Underground Utility District. The District meets the eligibility requirements for a Rule 20B Underground Utility District, which is non-utility company funded except for certain credits for overhead systems, and the removal cost of the current facilities. The City Council also approved an Agreement with Santa Anita LLC (Rusnak Mercedes-Benz Dealership) for cost sharing of the undergrounding of the overhead utilities, on a 75%/25% share respectively, and approved an appropriation for the City’s share of $750,000 (75% of the $1 million estimate) with an increase of up to $200,000 (20% of total cost) for updated estimates. Accept Morlan Place Underground Utility District as Complete January 16, 2018 Page 2 of 3 This project is administered in two phases. The first phase is the installation of the underground facilities to house the utility lines, administered and paid for by the City – proportionally reimbursed by Rusnak – as a Capital Improvement Project. The second phase is the removal of all overhead facilities and the installation of new underground lines. The second phase is performed by the utility companies and paid for by the City. On July 18, 2017, the City Council awarded a contract to Hot Line Construction, Inc. in the amount of $475,875.50 and authorized an additional 10% for contingencies. DISCUSSION Hot Line Construction, Inc. began work on August 28, 2017, and was substantially complete by October 18, 2017. The only change to the contract amount came as a result of adjustments to the bid quantities from the actual measured quantities. The cost increase was due to soil conditions encountered during trenching operations. A large part of the contract cost was removing soil in the trench line (trenching) to place utility conduits and vaults, and backfilling with concrete slurry. The trenching and backfilling items of work were bid on a unit price basis, with the quantities based on an estimate of the anticipated volumes. The estimates were based on normal soil conditions characteristic of Arcadia. Unfortunately, the contractor encountered sandy soil, which caused the trench to cave-in from the sides, creating greater than anticipated soil removal and slurry backfill quantities. The additional trenching and slurry backfill costs, along with minor adjustments to other bid items, resulted in a net increase of $29,602, increasing the original contract by approximately six-percent (6%). FISCAL IMPACT The original contract with Hot Line Construction, Inc. for the Morlan Place Underground Utility District was $475,875.50. The final contract amount is $505,477.50, which includes a final adjustment in quantities of $29,602 (6.2% increase), and is within the approved contingency. This total amount is shared between the City and Rusnak Mercedes Benz at a 75%/25% share respectively, with the City paying $379,108.12. Rusnak has previously deposited its share of the cost with the City. Accept Morlan Place Underground Utility District as Complete January 16, 2018 Page 3 of 3 RECOMMENDATION It is recommended that the City Council accept all work performed by Hot Line Construction, Inc. for the Morlan Place Underground Utility District as complete, and authorize the final payment to be made in accordance with the contract documents.