May 21, 2024
Public Works
DATE: May 21, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works/City Engineer
Ken Cheng, PE, Senior Civil Engineer
Subject:
Construction Contract Amendment and Appropriation of
Funds for Santa Rita Road Stabilization Project, Including Funding for Construction Management and Engineering
Consultants
FINANCIAL IMPACT: Funds to be transferred from Risk Management Funds (5001) to General Capital Fund (2001) in the amount of
$200,000 (Account String 20136031-400642 – 23037).
PREVIOUS COUNCIL
ACTION:
Resolution 81-23 - Council adopted a resolution to
transfer $650,000 of monies from the General Capital
Fund (Santa Rita Road Piling Project) to the Flood Risk Reduction in Rheem Creek Watershed Project. (Adopted
July 11, 2023)
September 26, 2023, City Council authorized the transfer and appropriation of funds from Insurance Reserve Fund
to General Capital Fund for the Santa Rita Road
Stabilization Project
Resolution 117-23 – City Council adopted a resolution
authorizing the execution of a construction contract in accordance with the approved plans and specifications
with Northwest Demolition, Inc. for the Santa Rita Road Stabilization Project in an amount not to exceed
$715,500. (Adopted October 24, 2023)
AGENDA
REPORT
May 21, 2024
STATEMENT OF THE
ISSUE:
Due to unforeseen weather delays that impacted on the
construction schedule of the Santa Rita Road
Stabilization Project, additional funds need to be
allocated to consultants for additional services and
extended services. Furthermore, the construction
contract with Northwest Demolition needs additional
capacity to address a separate landslide approximately
250 feet upstream from the original project location.
Therefore, additional appropriation is required for the landslide remediation.
RECOMMENDED ACTION:
ADOPT a resolution to transfer and appropriate funds in the amount of $200,000 from the Risk Management Fund
(5001) to General Capital Fund (2001) for the Santa Rita Road Stabilization Project (CIP#23037); AUTHORIZE an
amendment to the construction contract with Northwest
Demolition, Inc., for Santa Rita Road Stabilization
Project, to increase the not-to-exceed amount by
$25,419, for an amended total contract amount not to
exceed $884,019; and AUTHORIZE the Director of
Public Works to approve construction change orders, if
necessary, up to $61,000, to potentially increase the total not-to-exceed contract amount to $945,019 – Public
Works Department (Robert Armijo 510-620-5477/ Ken
Cheng 510-621-1612).
DISCUSSION:
On June 27, 2023, City staff reported the long-standing issue with the slope stability at the project site. The site was temporarily secured with tarping to stabilize the slopes of this natural water way. On October 24, 2023, City Council adopted the resolution authorizing the execution of a construction contract in accordance with the approved plans and specifications with Northwest Demolition, Inc. for the Santa Rita Road Stabilization Project in an amount not to exceed $715,500 with an approved contingency in an amount of $143,100. This project aimed to provide a long-term solution for stabilizing Santa Rita Road which was showing signs of compromise.
The Santa Rita Road Stabilization Project, located near 2929 Salvino Court, commenced at the start of the rainy season and was initially slated for completion by the end of February 2024. Concurrently, with the selection of Questa for the on-call design engineering of the retaining wall, the construction contract was awarded to Northwest Demolition, Inc. To ensure smooth operations throughout the project, Public Works staff engaged mack5, the City’s on-call construction management consultant, to oversee, manage, and facilitate all aspects of the project under construction.
The 2023/2024 El Nino event started in December 2023 and continuing through March 2024 has played a challenging element in the construction schedule, as it delayed
May 21, 2024
construction completion date to May 2024. Northwest Demolition, Inc will complete the originally scoped project by May 2024.
However, unpredictable weather, wet conditions, and concurrent construction activities by another agency led to a bank failure adjacent to Santa Rita Road, located approximately 250 feet northeast and upstream from the original landslide project near 2929 Salvino Court. This new landslide, discovered on March 18, 2024, is unrelated to the main stabilization effort. With Northwest Demolition, Inc. nearing completion of the primary project, Public Works staff recommends employing their services to immediately address this new landslide, as detailed in Attachment 4 - Construction Change Order, while their equipment is still on site.
To compensate for the construction schedule for additional construction management and design services, the additional funds requested will be used to extend the construction agreement until the completion of the Santa Rita Road Stabilization Project and the secondary landslide.
City staff recommends that the City Council approve the transfer and appropriation of $200,000 from the Risk Management Fund to General Capital Fund for the Santa Rita Road Stabilization Project. Additionally, the City Council is requested to authorize an amendment to the construction contract with Northwest Demolition, Inc., increasing the not-to-exceed amount of the contract by $25,419 to a new total not-to-exceed amount of $884,019. The City Council is also asked to authorize the Director of Public Works to approve necessary construction change orders up to $61,000.
ENVIRONMENTAL DOCUMENTATION:
In accordance with CEQA guidelines Class 1 - Section 15301, Class 2 - Section 15302, and Class 3 - Section 15303, the additional landslide repair is exempted from CEQA review.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Northwest Demolition Original Construction Agreement Attachment 3 – Construction Agreement-Amendment No. 1
Attachment 4 – Construction Change Order No. 1