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Staff Report
City Council
Item No. 3.F
Meeting Date: June 14, 2023
From: John Corella, Director of Engineering/Public Works Title: Notice of Completion for FY 22-23 Citywide Rubberized Emulsion Aggregate Slurry (REAS) Projects
City Council
RECOMMENDATION:
To accept and approve the following REAS Projects: La Pasada Neighborhood (C08664), Avenida Maravilla (C08658), Date Palm Drive (I-10 to Varner Road) (C08657), and Avenida La Vista/La Paz (C08655), as final; and, authorize the City Manager to file a Notice of Completion with the Riverside County Recorder's office; and authorize the release of retention funds to Petrochem Materials Innovation, LLC (PMI) upon expiration of the Notice of Completion.
BACKGROUND:
On March 8, 2023, the City Council approved a construction contract with Petrochem Materials Innovation LLC. (PMI) in the amount of $1,038,633.92 with a 15% contingency of $155,796.08 for unforeseen construction circumstances, inspection and other technical services related to the Project, thereby making the total construction budget $1,194,430 for the Project.
The scope of the Project consists of application of Rubberized Emulsion Aggregate Slurry (REAS) on La Pasada Neighborhood streets, Avenida Maravilla, Avenida La Paz, Avenida La Vista, and Date Palm Drive, including traffic control, crack seal, and striping replacement.
DISCUSSION:
Construction started on March 22, 2023, and was completed on May 24, 2023.
City Staff reviewed and inspected the improvements and found the Project was built in accordance with all contract requirements, and therefore recommends the City Council accept the Project as complete.
City Council acceptance is required to approve the Project’s final contract amount and release retention funds. Retention funds are monies earned by the Contractor that are
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withheld from progress payments pending satisfactory completion and final acceptance of the Project. City Staff reviewed and inspected the improvements and found the Project was built in accordance with all contract requirements, and therefore recommends acceptance of the Project as complete.
Additionally, City Council acceptance of the Project requires that a Notice of Completion (NOC) be filed with the Riverside County Recorder’s office. The NOC is a written notice issued by the owner of a Project, or their agent, to notify concerned parties that all work on the Project has been completed. This notice also sets the period, which is 30 days from the date the NOC is filed, within which concerned parties may exercise their lien rights against one another. Once the thirty-day period has expired, and provided no claims or liens are received, the City can release retention funds.
City Staff recommends that the City Council accept and approve the following REAS Projects: La Pasada Neighborhood (C08664), Avenida Maravilla (C08658), Date Palm Drive (I-10 to Varner Road) (C08657), and Avenida La Vista/La Paz (C08655), as final; and authorize the City Manager to file a Notice of Completion with the Riverside County Recorder's office on behalf of the City Council; and authorize the release of retention funds to Petrochem Materials Innovation, LLC (PMI) upon expiration of the Notice of Completion.
FISCAL IMPACT:
The fiscal impact of the construction contract with PMI is as follows:
Construction Budget
Project Funding
Source
CIP
Budget
PMI
Estimated
Amount
15%
Contingency
Total
La Pasada
Neighborhood
SB-1/RMRA
Fund 248
$650,000 $424,009.35 $63,601.65 $487,611
Avenida
Maravilla
FY 22-23
MOE Fund
100
$280,000 $273,440.40 $41,016.60 $314,457
Avenida La
Vista/La Paz
FY 22-23
MOE Fund
100
$225,000 $211,423.62 $31,713.38 $243,137
Date Palm
Drive
FY 22-23
MOE Fund
100
$280,000 $129,760.55 $19,464.45 $149,225
TOTALs $1,435,000 $1,038,633.92 $155,796.08 $1,194,430
Construction Cost
The total contract amount for PMI, including all additions and subtractions for constructed quantities, came to $1,038,633.92. Therefore, the comparison between actual budget and charges are as follows:
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Council
Authorization
Project
Budget Actual Charges Remaining
Budget
Original Contract $1,038,633.92 $1,023,628.43 $15,005.49 Contingency $155,796.08 $0.00 $155,796.08
Change Orders $0.00 $0.00 $0.00
Payments to Date $927,447.00 $0.00
Retention Due $51,181.42
The final invoice (5% retention) in the amount of $51,181.42 will be released 30 days from the date that the NOC is filed if there are no claims or discrepancies in the work completed.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
Notice of Completion