Staff Report
City Council
Item No. {{section.number}}.G
Meeting Date: August 14, 2024
From: John A. Corella - Director of Public Works
Title: Notice of Completion for Landau Boulevard/McCallum Way Intersection Improvements
RECOMMENDATION:
To accept and approve the Landau Boulevard/McCallum Way Intersection Improvements (C08662), as final; 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 DBX, Inc. upon expiration of the notice of completion.
BACKGROUND:
On June 28, 2023, the City Council approved a construction contract with DBX, Inc. in the amount of $1,021,888.50 with a fifteen percent (15%) contingency of $153,283.28 for unforeseen construction costs, thereby making the total construction budget of $1,175,171.78.
The project consisted of the removal and demolition of existing pavement and outdated curb ramps, construction of concrete approach lanes, installation of Class II aggregate base, asphalt concrete pavement, construction of updated curb ramps, pavement striping and markings, traffic signage, and the installation of a new traffic signal.
DISCUSSION:
Construction started on February 26, 2024, and was completed on July 18, 2024.
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 withheld from progress payments pending satisfactory completion and final acceptance of the project.
Additionally, City Council acceptance of the project requires 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 the 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 thirty-five (35) days from the date the NOC is filed, within which concerned parties may exercise their lien rights against one another. Once the thirty-five-day period has expired, and provided no claims or liens are received, the City can release retention funds.
City staff recommends the City Council accept and approve the Landau Boulevard/McCallum Way Intersection Improvements (C08662), as final; 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 DBX, Inc. upon expiration of the notice of completion.
FISCAL IMPACT:
The fiscal impact of the construction contract with DBX, Inc. is as follows:
Authorized Construction Funding
Project Funding Source Amount
Landau Blvd./McCallum Way
Intersection Improvements SB-1 - Fund 248 $1,021,888.50 Project Estimated Amount = $1,021,888.50
15% Contingency = $ 153,283.28
Total Authorized Construction Funding = $1,175,171.78
Final Construction Cost
The final construction expenditures with DBX, Inc. were in the amount of $1,021,888.50, which include a change order in the amount of $98,649.28.
The total final contract cost is summarized below:
Base Contract Amount $1,021,888.50
Change Orders $98,649.28
Final Construction Cost $1,120,537.78
The final invoice (5% retention) in the amount of $56,028.39 will be released to DBX, Inc. thirty-five (35) days from the date that the NOC is filed should there be 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:
1. Notice of Completion - DBX, Inc.