Administrative
Report
H.9., File # 22-4502 Meeting Date: 7/19/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
ADOPT BY 4/5THS VOTE AND TITLE ONLY RESOLUTION NO. CC-2207-052, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING A 2022- 2023 FISCAL YEAR BUDGET MODIFICATION TO APPROPRIATE $800,000 IN MEASURE M FUNDS ASSOCIATED WITH THE KINGSDALE RESURFACING CIP JOB NO. 40880, AND $604,489 FROM THE WASTEWATER FUND UNALLOCATED FUND BALANCE TO THE
TORRANCE BOULEVARD RESURFACING PROJECT FROM TORRANCE CIRCLE TO PROSPECT AVENUE, JOB NO. 41230 AND THE TORRANCE BOULEVARD & FRANCISCA AVENUE TRAFFIC SIGNAL MODIFICATION PROJECT, JOB NO. 41070, AND
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2207-053, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AWARDING A CONTRACT TO HARDY & HARPER, INC., A CALIFORNIA CORPORATION, IN THE AMOUNT OF $3,950,000 FOR
THE CONSTRUCTION OF THE TORRANCE BOULEVARD RESURFACING PROJECT FROM TORRANCE CIRCLE TO PROSPECT AVENUE, JOB NO. 41230 AND THE TORRANCE BOULEVARD & FRANCISCA AVENUE TRAFFIC SIGNAL MODIFICATION PROJECT, JOB NO. 41070
EXECUTIVE SUMMARY
The Torrance Boulevard Resurfacing Project from Torrance Circle to Prospect Avenue, Job No. 41230 and the Torrance Boulevard & Francisca Avenue Traffic Signal Modification Project, Job No. 41070, (together, “Project”), are continuing projects included in the recently adopted FY 2022-23 Capital Improvement Program.
Per the approved plans, the Project will resurface and rehabilitate the pavement of Torrance Boulevard from the western terminus to the East City limit with the City of Torrance. Bicycle lanes will be implemented along the corridor. Median, curb and traffic signal upgrades at Torrance Blvd. and Catalina Ave. will be installed to accommodate Class II lanes and will complete the route to connect cyclists from east to west City Limits. The project will also upgrade the traffic signals at the intersection of Torrance Blvd. and Francisca Ave., as well as at Catalina Ave., to bring them to current standards. Access ramps, curbs and gutters, and sidewalk along the route will be repaired as necessary.
On May 17, 2022, the City Council approved plans and specifications for the Project and authorized competitive bidding. On June 23, 2022, five (5) bids were received and publicly opened. Hardy & Harper, Inc. with a bid of $3,950,000, was found to be the lowest responsive bidder. The project
H.9., File # 22-4502 Meeting Date: 7/19/2022
Harper, Inc. with a bid of $3,950,000, was found to be the lowest responsive bidder. The project budget in the adopted Five-Year CIP is $3,357,647, therefore a budget resolution appropriating an additional $1,404,489 for a project total of $4,762,136 is needed to award the contract, provide a $197,500 contract contingency (5%), and provide $422,308 for project and construction management, inspection support, and incidental costs. The increased cost of construction is attributed to the high demand for related contract work, national supply chain pressures and the associated impact on the cost of materials and record inflation.
In order to cover the increased cost, it is recommended that the proposed budget resolution be approved to transfer $800,000 in Measure M funds associated with the Kingsdale Resurfacing CIP Job No. 40880, and $604,489 from the Wastewater unallocated fund balance to cover the remaining funding gap and construct the Project as designed. The $800,000 in Measure M funds are currently programmed in the CIP for the Kingsdale Resurfacing Project between Grant Avenue and 182nd Street (not a part of the Transit Center project). The Kingsdale project is in the design phase and is not expected to begin construction until Fiscal Year 2023-24. Additional Measure M funds will be available in FY 2023-24 to offset the $800,000 transfer. The Wastewater appropriation is needed to cover costs related to relocation of sewer lines that interfere with the location of the new traffic signals.
Staff recommends the Council adopt both the attached budget resolution (by 4/5ths vote) and the attached award of contract resolution to authorize construction of the Project. If approved, Project construction is expected to begin in September 2022 and be completed within one hundred ten (110) working days.
BACKGROUND
On July 7, 2020, the City Council authorized a professional services agreement with Onward Engineering in the amount of $119,756 for the term July 7, 2020 to July 6, 2022 to provide design engineering services related to the Torrance Boulevard Resurfacing Project from PCH to Prospect Avenue.
On February 16, 2021, the City Council adopted a resolution modifying the FY 2020-21 Operating Budget and approved Decision Package #6 to expand the project limits from Torrance Circle to Prospect Avenue and appropriated $100,000 in additional Proposition C Funds to the Project.
On March 16, 2021, the City Council approved an agreement with KOA that served to complete the outstanding items from a previous November 2018 contract which specified traffic engineering design services that included the Torrance Boulevard and Francisca Avenue Traffic Signal design. The City Council also approved the first amendment to Onward Engineering for additional engineering services to expand the Project limits to include the portion of Torrance Boulevard west of PCH including Torrance Circle. The First Amendment to the agreement increased the contract by $52,572 to a new not to exceed amount of $172,328. The expanded scope included additional coordination with Caltrans and traffic signal design at the intersection at Catalina Ave. In addition, sewer improvements at the 300 block of Lucia Avenue were proposed to divert wastewater to a new sewer main to Torrance Boulevard.
There was potential overlap of the Torrance Blvd. Resurfacing Project and the Torrance/Francisca Signal Project. Staff determined bundling the two projects together would save procurement time, achieve economies of scale, and minimize contractor conflicts created when more than one project is
H.9., File # 22-4502 Meeting Date: 7/19/2022
achieve economies of scale, and minimize contractor conflicts created when more than one project is being completed within the same area. On May 17, 2022, the City Council approved plans and specifications for the combined projects, authorized competitive bidding, and appropriated additional funds.
On June 23, 2022, five (5) bids were received and publicly opened (see attached bid results). After reviewing the bids, Hardy & Harper, Inc., with a bid of $3,950,000, was determined to be the lowest responsible bidder.
The available budget for the Project is $3,357,647 and is funded by Proposition C, Gas Tax, and Wastewater Funds. The bid amounts were higher than the Engineer’s estimate but consistent with the current bid environment. In order to cover the increased cost, staff recommends a transfer of $604,489 from the Wastewater unallocated fund balance to pay for eligible and pertinent wastewater improvements included in the project scope. In addition, staff recommends $800,000 of Measure M funds associated with the Kingsdale Resurfacing CIP Job No. 40880 be reassigned to construct the Project as designed. The Kingsdale Resurfacing project, in not related to the current Transit Center project, but is to occur after the new Transit Center and the widening of Kingsdale between Grant Ave. and Artesia is completed. Funds to implement the Kingsdale Resurfacing project are not expected to be needed in the current fiscal year. The project is currently in the design phase, which is fully funded, and construction is not expected to begin until FY 2023-24. New Measure M funds will be available to offset the $800,000 transfer at the time of construction.
Staff has prepared two resolutions, which are attached and recommended for adoption by the City Council. The first is for the budget appropriations / modifications, which requires a 4/5ths vote to pass. The second is a resolution of award, to assign the project to Hardy & Harper and allow for the execution of the contract documents. If approved by the City Council as presented, Project construction is expected to begin in September 2022 and be completed within one hundred ten (110) working days.
It should be noted that a related item, the award of a contract to KOA, Inc. for construction management and inspection services, is included on the July 19 City Council meeting agenda under separate cover. Expenses for the KOA contract are included in the Fiscal Impact consideration presented below.
COORDINATION
City Attorney’s Office approved the resolutions as to form.
FISCAL IMPACT
Funding Expenditures
CIP Job No. 41230 $2,907,133 Design (2 Projects) $ 192,328 CIP Job No. 41070- Prop C $ 249,714 Hardy & Harper Constr. $3,950,000 CIP Job No. 50150- W’water $ 200,800 Contingency (5%) $ 197,500 Approp. Wastewater Fund $ 604,489 CM & Insp. $ 224,808
CIP Job No. 40880- Meas. M $ 800,000 Project Mgmt. (5%) $ 197,500 Total $4,762,136 Total $4,762,136
H.9., File # 22-4502 Meeting Date: 7/19/2022
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - Budget Modification
· Reso - Contract Award
· Bid Results