Administrative
Report
H.9., File # 23-5552 Meeting Date: 3/14/2023
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
AUTHORIZE AN INCREASE TO THE CITY ENGINEER’S CONSTRUCTION CONTRACT CHANGE ORDER AUTHORITY FOR AN ADDITIONAL $500,000 ABOVE THE CURRENT APPROVED LIMIT,
TO ASSIST IN EXPEDITING COMPLETION OF THE REDONDO BEACH TRANSIT CENTER PROJECT, JOB NO. 20120 AND THE KINGSDALE AVENUE WIDENING PROJECT, JOB NO 41150..end
EXECUTIVE SUMMARY
The Redondo Beach Transit Center Project, Job No. 20120 and Kingsdale Avenue Widening, Job No. 41150 (Project), is the City’s largest active infrastructure improvement project. The Project was initially funded in FY 2007-08, and design began in 2009. The Project was divided into two phases, the Transit Center Terminal and the associated widening of Kingsdale Avenue. Transit operations commenced at the new Redondo Beach Transit Center on January 29, 2023 and an official ribbon cutting opening was held on February 7, 2023. Phase 1 of the project is nearly completed with only punch list items left to be finalized and some disputed items to be reconciled administratively.
Per Administrative Policy/Procedures (APP) 14.1, Change Orders, the City Engineer is authorized to issue CCOs up to 10% of the contract amount or $125,000, whichever is greater. The project construction contract was awarded to M.S. Construction Management Group in 2020 for a total of $11,500,000, and carried an initial construction change order (CCO) authority of $1,150,000. The project had many delays and issues that arose during construction due to the long duration of the design period, loss of the original design firm, and the gap between completion of design and beginning of construction in September of 2020. As a result, staff requested a 5% increase to the CCO authority, plus an additional $500,000 for the repaving of the upper lot, which was a contract scope modification. The City Council authorized these requests on February 15, 2022, which added an additional $1,075,000 in CCO authority for a total CCO authority of $2,225,000. To date, thirteen CCO’s, totaling $2,201,395 have been issued to accommodate the significant design deficiencies, unforeseen field conditions and required scope modifications. Currently, the CCO authority balance is $23,605.
This amount provides little capacity for the authorization of punch list items, resolving disputed items remaining for Phase 1 or any CCOs that potentially will occur during Phase 2 of the project. Rather than requiring a return to City Council for each forthcoming CCO, staff requests authorization from the City Council to increase the City Engineer’s CCO authority an additional $500,000, in order to complete both elements of the Project in the most efficient way possible.
There is approximately $379,921 of available funding currently appropriated for the project, all of
H.9., File # 23-5552 Meeting Date: 3/14/2023
There is approximately $379,921 of available funding currently appropriated for the project, all of which is allocated from restricted transportation grant funding. The additional CCO authority will be funded with available project funds, which include Regional Measure M funds and Local Return funds. Furthermore, it also will incorporate a portion of an additional $500,000 in Regional Measure M funds for Phase 1 and an additional $1,000,000 in Regional Measure R for Phase 2 from Metro, which were recently requested and approved by the South Bay Cities Council of Governments (SBCCOG) Board of Directors. Staff will work with Metro staff to amend the funding agreement and present it to City Council at a future date. Phase 2 of the project is estimated to be completed in June 2023.
BACKGROUND
On May 19, 2020, the City Council awarded a construction contract in the amount of $11,500,000 for two related projects (also called two phases) involving the City’s new transit center. The first phase includes the construction of the new transit center and improvements to the parking area, which began operations on January 29, 2023. The second phase (formally known as the Kingsdale Avenue Widening Project, Job No. 41150) is currently under construction and includes demolition of the old transit center, restoration of the site, and widening of the northbound side of Kingsdale Avenue between Grant Ave. and Artesia Blvd. with a scheduled completion date of June 2023.
To date, thirteen CCO’s for a total of $2,201,395 have been authorized by the City Engineer for Phase 1 of the project. These have addressed items which are needed but not included in the bid plan set, including:
· Unforeseen demolition of prestressed concrete structures · Design changes
· Extra work due to discovery of buried debris and unsuitable soils within the footprints of the building
· A drainage detention basin interfering with water and electrical trenches · Requests from Metro regarding signage and the automated ticket vending machines · Reengineering of the building and site electrical system to meet new demands and owner needs
· Additional framing
· Site and utility work
· Reconstruction of the entire upper parking lot
The reconstruction of the upper parking lot accounts for over 20% of the approved change orders but was necessary to ensure a serviceable parking facility.
With Phase 1 nearing completion and Phase 2 underway, staff is recommending increasing CCO authority an additional $500,000 to address potential and foreseeable CCOs. This would streamline the process and eliminate lag associated with having to place each future CCO on a City Council agenda.
Staff has requested an additional $1,500,000 from Metro to fund any additional items or unforeseen conditions associated with the completion of Phase 1 and the ongoing construction of Phase 2 of the project. Metro relies on the recommendation of the SBCCOG Board of Directors regarding support of project funding for this regionally restricted funding source. The SBCCOG Board of Directors recently approved the additional funding at their February 23, 2023 meeting and forwarded the action
H.9., File # 23-5552 Meeting Date: 3/14/2023
recently approved the additional funding at their February 23, 2023 meeting and forwarded the action to Metro. The Metro Board is tentatively scheduled to consider approval of the additional funding, along with other requests, in June. Staff has been in communication with both Metro and SBCCOG staff, and is confident that the increased CCO authority will cover costs expended prior to the formal amendment being finalized.
If approved, the recommended action would authorize the City Engineer to approve up to an additional $500,000 of CCOs to address known and potential change orders.
COORDINATION
The Engineering Service Division is working with the Transit Division and the project consultants to track, negotiate and manage the change order and contract administration process.
FISCAL IMPACT
At the time of construction contract award, the City had approved $14,052,254 for the two projects.
These funds had multiple sources including Federal, County and Regional programs. The approved FY 2021-22 CIP included another $2,750,000 in Regional Measure M funds for Phase 1. Staff has also requested an additional $500,000 in Regional Measure M funding for Phase 1 (Transit Center) and $1,000,000 in Regional Measure R funding for Phase 2 (Kingsdale Widening). When counting these additions, the total funding for the project totals $18,302,254, all of which are transportation restricted monies. No General Fund money has been used to design or construct these projects.
APPROVED BY:
Mike Witzansky, City Manager