DATE: July 12, 2022
TO: Mayor and City Council
FROM: Director of Public Works
City Attorney
SUBJECT: Adopt a Resolution Approving the Transfer and Appropriation of $140,671.91 for the Tract 8058 Access and Utilities Project, Project No. 08058, and Approving a Total Construction Contingency/Administrative Change Order Budget of $229,901.91
RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the transfer and appropriation of $140,671.91 for the Tract 8058 Access and Utilities Project, Project No. 08058 and approving a budget for administrative change orders in an aggregate amount not exceeding $229,901.91.
SUMMARY
Staff recommends appropriation of $140,671.91 of the currently available subdivision improvement security to the construction contingency budget for the construction contract with GBC, Contract No. 22132, for Tract 8058 Access and Utilities Improvements Project, Project 08058. The additional funds are required for extending utility services to all lots in Tract 8058. This project involves construction of specific subdivision improvements for the Golden Oaks II, Tract 8058 project and payment for certain utility charges to PG&E. Once completed, these improvements will allow the property owners within the tract to connect their homes to utility services and apply for certificates of occupancy.
BACKGROUND
In February 2017, the subdivider, Ron Esau Development Company, entered into a Subdivision Improvement Agreement with the City to complete improvements for the subdivision within 365 days of the agreement. To secure performance obligations under the agreement, the developer posted a cash deposit in the amount of $209,140.76. The subdivider did not meet all construction obligations per the Agreement within the given term length and improvements remained incomplete through 2021. In January 2022, Council authorized the Director of Public Works to pursue completion of the improvements in the open market pursuant to Hayward Municipal Code Section 2-8.01. In February 2022, the Department prepared construction bid documents and collected six (6) bids. In March 2022, Council adopted Resolution No. 22-057 awarding a construction contract to GBC in the amount of $713,831 and a contingency/administrative change order amount of $89,230. This item transfers and appropriates the remaining security deposit balance of $140,671.91 to complete the project, for a total administrative change order budget of $229,901.91.
DISCUSSION
The construction contract involved improvements related to the sanitary sewer system, natural gas, electricity, and telecommunication lines, and removal of surplus dirt, among other improvements. The improvements will allow the respective owners to connect their homes to public utilities and apply for certificates of occupancy.The transfer of the security deposit funds will support the added costs of:
Removing stockpiled excess dirt
Completing grading and drainage improvements
Extending the City’s water and sewer services
Extending PG&E’s gas and electric services to all five homes in the subdivision Completing of all-weather access to the houses
Constructing a sidewalk along the project frontage on Hayward Blvd A CEQA review was conducted as part of the original entitlement process for the Project. Pursuant to Section 15332 of the CEQA Guidelines for infill development, the Project was found to be categorically exempt from environmental review. The Project is not subject to the Community Workforce Agreement with the Alameda County Building Trades Council since the project construction estimate is less than $1,000,000.
ECONOMIC IMPACT
This item is not anticipated to have a significant economic impact to the City.
FISCAL IMPACT
The current outstanding balance of the cash deposit is $140,671.91. This amount will be transferred from the customer deposit account (in Fund 115), and appropriated to the Tract 8058 Access and Utilities Project, Project No. 08058, in the General Fund (Fund 100). The security deposit balance will be expended before other contract fund sources. Unused funds in the construction project budget will be refunded to the City Attorney’s Risk Fund.
STRATEGIC ROADMAP
This item is a routine operational item and does not relate to any of the projects outlined in the Council’s Strategic Roadmap.
SUSTAINABILITY FEATURES
This item is not anticipated to have significant sustainability features. However, the contractor is required to adhere to the City’s construction recycling procedures.
PUBLIC CONTACT
No public contact is required for this item.
NEXT STEPS
If Council approves, staff will transfer and appropriate $140,671.91 to the Project.
Prepared by: Manny Grewal, Management Analyst
Mo Sharma, Senior Civil Engineer
Kathy Garcia, Deputy Director of Public Works
Michael G. Vigilia, Senior Assistant Civil Attorney
Recommended by: Alex Ameri, Director of Public Works
Michael S. Lawson, City Attorney
Approved by:
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Kelly McAdoo, City Manager