City Council Agenda Report
November 7, 2023
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Glen W.C. Kau, P.E., Director of Public Services/City Engineer Jana Stuard, Director of Finance/City Treasurer
Jacqueline Koontz, P.E., Senior Civil Engineer
Julio Gonzalez, Associate Engineer
SUBJECT: PROJECT NO. 7442 – RESOLUTION NO. 23-63 BUDGET AMENDMENT –
CHANGE ORDER AND AGREEMENT AMENDMENT FOR STEPHEN DORECK EQUIPMENT RENTALS, INC. FOR WATER MAIN REPLACEMENT ON
PIONEER BOULEVARD FROM 160TH TO 166TH STREET
Background:
On June 7, 2023, City Council approved a Public Works Construction Contract agreement with Stephen Doreck Equipment Rentals, Inc. (Contractor) for City Project No. 7442, Water Main Replacement on Pioneer Boulevard from 160th to 166th Street. The following is a breakdown of the project’s original estimated total costs:
Construction Cost $ 2,747,515 Contingency (15%) $ 412,127 Management, Inspection, and Testing $ 287,284
City Staff Time (4%) $ 109,901 Total Estimated Cost: $ 3,556,827
Project No. 7442 is essentially complete. All new water main pipes, fire hydrants, automated read water meters (AMR), and appurtenances are installed and operating. All locations impacted for concrete restoration are completed. The remaining construction items to complete are the roadway pavement, valve cover and manhole grade adjustments, and pavement markings.
To date, Project No. 7442 incurred delays and increased costs due to weather, sampling stations, conflicts with unknown underground utilities, and additional water service connections
City Council
Agreement and Budget Amendment Resolution No. 23-63
Stephen Doreck Equipment Rentals – Project No. 7442
November 7, 2023
Page No. 2
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9 and excavation. In addition, project cost savings were generated from two water valves that were not installed; substitution of trench restoration materials; and a reduction in the number of pipe connections. The following is a breakdown of current construction contractor costs.
Original Bid $ 2,747,515 Change Orders $ 202,918 Current Construction Costs: $ 2,950,433 City Streets Improvements
Typically, water main projects only involve the replacement of the affected pavement section above the new water main trench. Water main projects do not replace pavement beyond the affected section unless under special circumstances and where appropriate funding sources are used. Total costs for Project No. 7442 include pavement restoration work previously part of and funded by Project No. 7926.
Construction for Project No. 7926 was scheduled to start before Project No. 7442. Since water main construction would disturb the newly paved streets, resurfacing of those streets was moved to Project No. 7442 for logistical reasons (Attachment 2).
Grind and overlay was the original roadway resurface method for the above streets. Resurfacing of these streets includes only the pavement surface section. However, it was discovered during water main construction that the roadway structural section was in poor condition on 162nd, 163rd and 164 th Streets. The structural sections for these streets requires replacement before paving. Had these streets remained in Project No. 7926, the substandard structural sections would require replacement. (Attachment 2)
Proper rehabilitation requires removal and replacement of the structural sections to insure proper pavement performance and service life. Fortunately, only these three streets require full depth reclamation to restore the roadway pavement. Total estimated additional costs for 162 nd, 163rd and 164 th Streets is $350,000. Proposition C funding would be appropriated for the streets resurfacing work to be added to Project No. 7442.
The intersection of 166 th Street and Pioneer Boulevard is also within the Project No. 7442 limits. Part of the project improvements installed a new fire hydrant through the intersection to provide enhanced fire protection for this area. The intersection pavement requires resurfacing and requires the crosswalks to be brought up to the current “continental crosswalk” standard. Doing this work now offers benefit of both improved logistics and reduced costs under a current contract with the same work type when compared to if the work were done under a separate contract. In addition, the southerly half of intersection is within the City of Artesia’s jurisdiction. Staff discussed the additive work with the City of Artesia and they agreed with both the benefits and logistics, and are very interested in participating with the intersection improvements. The estimated cost for this work is $111,500. Proposition C funds would be appropriated again for this intersection resurface work to be added to Project No. 7442.
City Council
Agreement and Budget Amendment Resolution No. 23-63
Stephen Doreck Equipment Rentals – Project No. 7442
November 7, 2023
Page No. 3
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9 Project No. 7442 Accounting to Date
Original Contract Value $2,747,515
Contingency (15%) $ 412,127
Add’l Funding (Requested) $1,001,500
Change Orders to Date $202,918 $2,950,433 $1,210,709
162nd, 163rd, 164th Streets $350,000 $3,300,433 $ 860,709 166th & Pioneer Intersection $111,500 $3,411,933 $ 749,209 Cap Pavement Other Streets $540,000 $3,951,933 $ 209,209 Fiscal Impact:
Total costs for all street improvement related work added to Project No. 7442, including pavement restoration work for 162nd, 163rd and 164th Streets, 166th Street and Pioneer Boulevard intersection pavement and the cap pavement other streets work is $1,001,500.
Adequate funds are available for Project No. 7442 from the Water Enterprise account per the approved Fiscal Year 2023/24 CIP Budget. Current Project No. 7442 status has expenditures below approved budget value. No General Fund monies will be used.
The City has available Proposition C funds for the additional roadway restoration work for this project. Staff is proposing that additional funds in the amount of $1,001,500 from Proposition C funds be appropriated for the additional pavement work for this project. Full project accounting will be provided at project close out.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 2: Work in Partnership with Our Community to Achieve Safe and Livable Neighborhoods; Objective 1- Re-invest in existing and aging infrastructure.
City Council
Agreement and Budget Amendment Resolution No. 23-63
Stephen Doreck Equipment Rentals – Project No. 7442
November 7, 2023
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9 Recommended Action:
Staff recommends City Council:
a. adopt Resolution No. 23-63, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2023/24
ADOPTED BUDGET TO APPROPRIATE AVAILABLE PROPOSITION C FUNDING TO PROJECT NO. 7442 - WATER MAIN REPLACEMENT ON PIONEER BOULEVARD FROM 160th TO 166th STREETS, in the amount of $1,001,500; and b. authorize the City Manager to approve a change order and execute an amendment to the agreement, in the not-to-exceed amount of $1,001,500 for Project No. 7442 with Stephen Doreck Equipment Rentals, Inc., provided there is funding in the budget, on behalf of the City, in a form approved by the City Attorney.
Attachments:
1. Resolution No. 23-63
2. Location Map