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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR/PUBLIC SERVICES & INFRASTRUCTURE APRIL 16, 2024
ACCEPTANCE OF CONSTRUCTION WORK AND NOTICE OF COMPLETION
FOR CONSTRUCTION OF THE TOD CROWTHER SEWER LINE
REPLACEMENT PROJECT
EXPENSE: $
BUDGET: $
4,696,973.63
335,782.13
(187,016.14)
4,845,739.62
5,445,645.90
3,829,676.56
1,615,969.00
ORIGINAL CONSTRUCTION CONTRACT
CONTRACT CHANGE ORDERS 1-9
CONTRACT CHANGE ORDER 10
TOTAL CONTRACT AMOUNT
TOTAL PROJECT BUDGET
(103101-6750) ARPA FUNDS
(713101-6750) TOD SEWER DEVELOPMENT
IMPACT FEES
On November 16, 2021, the City Council approved a contract with Kana Pipeline Inc., (Kana) to construct the Transit -Oriented Development (TOD) Crowther Sewer Pipeline Replacement project. The existing sewer line serving the TOD District required upgrading to provide adequate capacity for the new developments along Crowther Avenue. This was a challenging project, since the new 1 -1/2 -mile -long sewer had to cross under the 57 Freeway, the Orange County Flood Control District's channel, and the BNSF railroad track. The new line also had to travel through the City of Fullerton and finally connect to the OC Sanitation District's trunk line on State College Boulevard. Since the start of construction, the project encountered numerous delays due to unforeseen underground utility conflicts and adverse soil conditions. Additionally, coordination conflicts with major public improvement work within the City of Fullerton caused delays.
Kana started the project on January 17, 2022, with an original completion date of October 5, 2022.
However, this date had to be extended multiple times with a new completion date of September 15, 2023, due to work that had to be redone by the Contractor due to three (3) sags in the new line. The City finally accepted the project as complete on February 1st, 2024.
On October 3, 2023, City Council approved Change Orders No's 8 and 9. There have been seven previous Change Orders that were approved by the City Administrator within his administrative approval limit. These Change Orders were a result of additional sewer pipe, concrete, and asphalt pavement restorations needed to complete the project. City staff has prepared Change Order No. 10 which includes additional material quantity overages and a credit back to the City for liquidated damages since construction work continued past the contract completion date. This L o, o
pviP 16, 2024
City Council Agenda
April 16, 2024
Change Order No. 10 will finalize the balance of the cost on the project and will close out the Contract by asking the City Council to accept the project and proceed with issuance of a Notice of Completion.
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Accept the work performed by Kana Pipeline Inc., for a grand total amount of $4,845,739.62; and
2. Authorize the City Administrator to approve Contract Change Order No. 10 with Kana Pipeline, Inc. in the credit amount of $187,016.14; and
3. Authorize the City Administrator to file a Notice of Completion with the Orange County Clerk -Recorder's Office for the Project; and
4. Authorize the City Administrator to release retention funds in accordance with the terms of the contract.
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Planning Goal or Objective associated with this item.
DISCUSSION:
After receiving two bids for this project back in July 2021, Kana was selected as the lowest responsive bidder on the project. Subsequently, on November 16, 2021, the City Council approved a contract with Kana to provide construction services on the TOD Crowther Sewer Pipeline Replacement project. The existing sewer line serving the TOD District required upgrading to provide adequate capacity for the new developments along Crowther Avenue. This was a challenging project, since the new 1 -1/2 -mile -long sewer had to cross under the 57 Freeway, the Orange County Flood Control District's channel, and the BNSF railroad track. The new line also had to travel through the City of Fullerton and finally, connect to the OC Sanitation District's trunk line on State College Boulevard. Since the start of construction, the project encountered numerous delays due to unforeseen underground utility conflicts and adverse soil conditions.
Additionally, coordination conflicts with major public improvement work within the City of Fullerton caused delays. These obstacles forced the project to be re -sequenced and, in some cases, re -designed. However, during the final inspection for the project, it was discovered that the new line was not installed per the design specifications in three different segments leading to sags within the new line. The contractor had to come back to fix these problem locations to ensure the entire pipeline maintains a positive gravity flow to the Sanitation District trunk Zine on State College Boulevard.
City Council Agenda
April 16, 2024
Kana began construction on January 17, 2022, with an original completion date of October 5, 2022. However, this date had to be extended multiple times with a new completion date of September 15, 2023, due to fixing the three (3) sags in the new line. The City finally accepted the project as complete on February 1st, 2024.
On October 3, 2023, City Council approved Change Orders Nos. 8 and 9. There have been seven previous Change Orders that were approved by the City Administrator within his administrative approval limits. These Change Orders were a result of additional sewer pipe, concrete, and asphalt pavement restorations needed to complete the project. City staff has prepared Change Order No. 10 to finalize the balance of the cost on the project and to close out the Contract by asking the City Council to accept the project and proceed with issuance of a Notice of Completion.
FISCAL IMPACT:
The total contract cost amounts to $4,845,739.62. This cost consists of the bid amount submitted by Kana, in the amount of $4,696,973.63, an additional $335,782.13 in previously approved contract change orders and -$187,016.14 for final Change Order No. 10. Sufficient funds are budgeted and available in the Fiscal Year 2023-24 Capital Improvement Program Budget to cover this expense. As such, sufficient funds exist for the recommended actions.
Prepared by: Reviewed and approved:
Chris Tanio, P.E.,
Jennifer Lampman
Deputy Director of Public Works/City Engineer Director of Finance Reviewed and approved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
Damien R. Arrula
City Administrator
Attachments:
1. Contract Change Order No. 10
2. Notice of Completion — Kana Pipeline Inc.