DATE: AUGUST 23, 2022
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E, L.S., PUBLIC WORKS DIRECTOR
BY: ELISE RAMIREZ, P.E., SENIOR CIVIL ENGINEER
PATRICK FUNG, ASSISTANT ENGINEER
TITLE: NEW TRAFFIC SIGNAL AT EAST ALISAL STREET AND MURPHY STREET, PROJECT NO. 9094 RECOMMENDED MOTION:
It is recommended that the City Council approve a Resolution:
Approving Contract Change Order No. 2 to Bear Electrical Solutions, Inc. for the New Traffic Signal at East Alisal Street and Murphy Street, Project No. 9094 in the amount of $12,238.99 and authorize the City Engineer to execute all necessary documents related to Change Order No. 2; and Approve a Resolution authorizing an additional 10% ($73,633.50) for construction contingencies of the New Traffic Signal at East Alisal Street and Murphy Street, Project No. 9094.
RECOMMENDATION:
It is recommended that City Council approve a Resolution authorizing the City Engineer to execute Contract Change Order No. 2 to Bear Electrical Solutions, Inc. for the New Traffic Signal at East Alisal Street and Murphy Street, Project No. 9094 in the amount of $12,238.99; and authorizing an additional 10% ($73,633.50) for construction contingencies of the New Traffic Signal at East Alisal Street and Murphy Street, CIP No. 9094.
BACKGROUND:
At its January 23, 2018 meeting, City Council approved Resolution No. 21329 adopting a Mitigated Negative Declaration (MND) and related Mitigation Monitoring and Reporting Program (MMRP) for a new Salinas Police Services Headquarters. The Traffic Impact Report for the Salinas Police Services Headquarters determined that the new police station would significantly impact the intersection of East Alisal Street and Murphy Street, in the cumulative condition. As such, the City committed to mitigating the impact to less than significant by installing a traffic signal at the intersection of East Alisal Street and Murphy Street.
On November 9, 2021, City Council approved Resolution No. 22239 awarding a construction contract to Bear Electrical Solutions, Inc. for the New Traffic Signal at East Alisal Street and Murphy Street, Project No. 9094 in the amount of $736,335.00.
The project was bid with the intention that the City would purchase and furnish the traffic signal poles to save costs and time. However, when staff began to solicit quotations from vendors and plan for delivery, it became apparent that the cost savings would be minimal and more importantly that the City lacked suitable and secure storage space for multiple large traffic signal poles and mast arms, with some being up to 45 feet in length.
Contract Change Order No. 1 directed the Contractor to furnish and install all traffic signal poles and mast arms per plan at a cost of $64,435.87. Change Order No. 1 was approved within the signing authority of the City Manager in accordance with Department Policy 75-1 (Resolution No. 21528).
Department Policy 75-1, Item 3, states City Council approval and authorization is required for Contract Change Orders of more than $100,000.00, or when the cumulative total of Contract Change Orders exceeds 10% of the original contract amount. For this project, 10% of the awarded contract amount is $73,633.50 which was discussed in the contract award, Resolution No. 22239.
Staff is seeking Council approval of Contract Change Order No. 2 (CCO 2) to address a design discrepancy between the originally specified six (6) streetlight pole foundations’ anchor bolt patterns installed along the Murphy Street sidewalk as part of the Salinas Police Services Headquarters Project. CCO 2 proposes directing the Contractor to order six (6) custom base plates to fit the streetlight poles from the manufacturer to mitigate this design discrepancy. The total cost for this custom order is $12,238.99.
Below is a summary of current and proposed Contract Change Orders.
CCO No.
Status
Amount
Cumulative Amount
Percentage of Current Contingency Used ($73,633.50)
CCO 1
Approved
$ 64,435.87
$ 64,435.87
87.5%
CCO 2
Pending Approval
$ 12,238.99
$ 76,674.86
104%*
*Exceeding the original 10% contingency requires City Council approval per Department Policy 75-1.
Staff is also seeking Council approval of an additional 10% construction contingency, or $73,633.50. If approved, this action will increase the total project contingency amount to $147,267.00.
Construction of the project has yet to commence which is the basis for the additional 10% construction contingency request. Due to current nationwide manufacturing and supply chain constraints, traffic signal cabinet and pole equipment have an estimated lead time of five to six months. It is estimated that the equipment may arrive by October 2022.
CEQA CONSIDERATION:
Categorically exempt: The City of Salinas has determined that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Section 15301(c), Class 1), because the project proposes to improve the existing roadway intersection, crosswalks, signage, and pavement striping.
Furthermore, the project does not qualify for any of the categorical exemptions found at CEQA Guidelines Sections 15300.2, because the section is not applicable to this project.
STRATEGIC PLAN INITIATIVE:
This item relates to the Council’s Goal of “Infrastructure and Environmental Sustainability” by improving safety for pedestrians and vehicle traffic through the intersection and providing additional lighting.
DEPARTMENTAL COORDINATION:
Public Works staff coordinated the project design in conjunction with the New Police Services Headquarters. The Finance Department assisted with the funding of this project.
FISCAL AND SUSTAINABILITY IMPACT:
The total project funding for CIP 9094 is as follows:
Funding Source
Budget
FY Expenditures
FY Encumbrances
Available Funds
2510 – MX-Transport Safety & Inv Plan
$620,445
44,787.77
48,304.12
$527,353.90
5202 - Special Const. Assist-Bonds
$829,030
$35,884.77
$793,146.22
$0.00
Balance (as of 8/8/2022)
$527,353.90
Based on the current project funding balance, there are sufficient funds to approve Change Order No. 2 and authorize an additional 10% ($73,633.50) for construction contingencies.
ATTACHMENTS:
Resolution
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