Placentia City Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DATE: JULY 25, 2023
SUBJECT: ACCEPTANCE OF CONSTRUCTION WORK AND NOTICE OF COMPLETION
FOR OLD TOWN PLACENTIA FACADE IMPROVEMENT PROJECT
FISCAL
IMPACT: EXPENSE: $ 205,838.00 ORIGINAL CONSTRUCTION CONTRACT $ 12,536.26 CONTRACT CHANGE ORDERS NO. 1-3
$ 218,374.26 TOTAL CONSTRUCTION COST
BUDGETED: $ 226,421.80 COMMUNITY DEVELOPMENT BLOCK GRANT FUND (302535-6401 JL# 232501)
SUMMARY:
On December 5, 2017, the City Council approved the Old Town Placentia Facade Improvement Program (Program) as an effort to remove blight and provide for the expansion of the City's tax base using Community Development Block Grant (CDBG) funds for eligible facade improvements to local businesses within the Old Town Placentia District (OTPD), which is within the eligible census tracts for CDBG funds. The Program provides financial assistance in the form of a grant to commercial property and/or business owners to make facade improvements to the exterior of their commercial buildings. The City Council Housing, Community and Economic Development Ad -Hoc Committee (Committee) previously worked with Staff to develop a facade improvement program with the overall goal of promoting the historic OTPD as a positive venue for quality business, incentivize property and business improvements and attractions to enhance local economic growth. In addition, the Committee emphasized consolidating funds to facilitate worthwhile improvements on commercial corners, which have a key visual impact to attracting visitors to the OTPD.
On December 6, 2022, the City Council awarded a Public Works Agreement to Loengreen, Inc., in the amount of $205,838 for the fifth project to be funded under the Program to renovate the existing building facade of the commercial property located at 101 W. Santa Fe Avenue. The Project has been completed to the satisfaction of the City. This recommended action concludes the Project and authorizes filing a Notice of Completion with the Orange County Clerk -Recorder's Office in the amount of $218,374.26.
1.d.
July 25, 2023
City Council Agenda
July 25, 2023
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Accept the work performed by Loengreen Inc., for the Old Town Placentia Facade Improvement Project, for a grand total amount of $218,374.26; and
2. Authorize the City Administrator to file a Notice of Completion with the Orange County Clerk -Recorder's Office for the Project; and
3. Adopt Resolution No. R-2023-69, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2023-24 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures; and
4. Authorize the City Administrator to release retention funds in accordance with the terms of the contract.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal #6 to Improve City Beautification under Objective #6.3, which is to allocate more funding for facade improvement projects within eligible census tracts.
DISCUSSION:
On December 6, 2022, the City Council awarded a construction contract to Loengreen, Inc., (Loengreen), in the amount of $205,838 for Old Town Placentia Facade Improvement Project at 101 W. Santa Fe Avenue. The scope of work for this project included:
• Replacement of existing storefront doors and windows, frame, and hardware. • Replacement of existing lighting with new LED light fixtures at exterior. • New architectural and decorative foam and cast concrete. • New painting of exterior walls and decorative facade elements.
During the course of construction, there were unforeseen conditions that were encountered during the demolition of the existing facade of the building that resulted in additional work to remove asbestos, modify the window sizes, and secure the perimeter wall of the building. As a result, a total of three (3) change orders were issued for this project that totaled $12,536.26, which was Tess than 10% of the total contract amount and was approved by the City Administrator under his administrative approval limit. The total construction cost of this work amounts to $218,374.26. This amount includes the bid received by Loengreen in the amount of $205,838 and change orders in the amount of $12,536.26.This recommended action concludes the Project and authorizes filing a Notice of Completion with the Orange County Clerk -Recorder's Office in the amount of $218,374.26 and starts the 30 -day window to file claims against the contractor's retention payment.
City Council Agenda
July 25, 2023
FISCAL IMPACT:
The final construction cost amounts to $218,374.26. This cost consists of the bid amount submitted by Loengreen, Inc., in the amount of $205,838 and an additional $12,536.26 in approved contract change orders. Sufficient funds were budgeted and available in the Fiscal Year (FY) 2022-23 Operating Budget to cover this expense. Approval of Resolution R-2023-69 (Attachment 2) is recommended to carryover the funds from FY 2022-23 Budget to the FY 2023- 24 Budget. As such, sufficient funds exist for the recommended actions.
Prepared by:
, /(ter—
Elsa Robinson
Senior Management Analyst
Reviewe roved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Jennif'r Lampman
Director of Finance
Reviewed and approved:
//V 1
Damien R. Arrula'
City Administrator
Attachments:
1. Notice of Completion — Loengreen, Inc.
2. Budget Amendment Resolution No. 2023-69