CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: January 15, 2025
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Approval for Remaining Grant Funds Allocation for Change Orders – Clean California Local Grant
Program Project (Ward 1)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2025-017:
1. Authorizing the Director of Finance and Management Services the use of the remaining $79,009.90 in unallocated grant funds for contract change orders and additional unforeseen field conditions related to Southern California Edison utility work; and
2. Authorizing the City Manager or designee to execute all necessary documents, including contract change orders, with SDC Engineering, Inc.; and
3. Authorizing the City Manager or designee to approve and execute contract change orders as necessary to complete the project within the approved budget; and
4. Authorizing the Director of Finance and Management Services to amend the Capital Improvement Program (CIP) adopted budget to reflect the approved changes.
Executive Summary:
The City of San Bernardino was awarded $722,772 through the Clean California Local Grant Program to fund a beautification project aimed at improving local public spaces. SDC Engineering Inc. was selected as the lowest responsible bidder, with a total project cost of $380,617.30, including contingencies. After completing initial project planning, $79,009.90 in grant funds remain unallocated. This staff report seeks City Council approval to use the remaining funds to cover unforeseen change orders related to utility work required by Southern California Edison and various miscellaneous items that were discovered during construction. Approval will ensure that the project can continue without interruption and meet the necessary requirements for funding adjustments.
Background
The Clean California Local Grant Program (“Program”) was created as part of the statewide effort to beautify and clean up local streets, tribal lands, parks, pathways, and public spaces. Assembly Bill 149 (SEC. 16), codified under Streets and Highway Code §91.41, established the Program in 2021. The initiative is a component of the larger $1.1 billion Clean California initiative, administered by the California Department of Transportation (Caltrans), which aims to address issues related to litter collection, recycling, and disposal. The Clean California Local Grant Program, administered by Caltrans, allocated approximately $296 million over two years to fund projects that enhance public spaces, with a requirement for all funds to be expended by June 30, 2023.
The City of San Bernardino was awarded $722,772 through the Program to fund a project aimed at beautifying and improving public spaces. The acceptance of this grant was approved by the Mayor and City Council on August 3, 2022. Following an initial bid process and rejection of a higher bid, the project was readvertised, and sealed bids were received and opened on April 18, 2024. SDC Engineering Inc. of Laguna Hills, California, was identified as the lowest responsible and responsive bidder.
In order to ensure the successful completion of the 4th Street Alley Beautification and Landscape Project, the City of San Bernardino applied for and received an extension through the Clean California Local Grant Program. The updated timeline extended the construction phase deadline to December 31, 2024. The closeout phase was also extended, beginning January 2, 2025, and concluding on June 30, 2025, to accommodate the preparation and submission of final documentation and project compliance requirements. This extension has provided the City with the flexibility needed to meet project goals while ensuring compliance with grant conditions and maintaining high-quality standards for the completed work.
The 4th Street Alley Beautification and Landscape Project focuses on major upgrades to improve accessibility, safety, and aesthetics. Key components include reconstructing the alley entrance with new concrete sidewalks, curbs, gutters, and decorative pavers for the alley and the courtyard at the end of the alley, as well as installing double ornate gates and lighted arch signage to create a welcoming gateway. Upgrades to lighting systems include solar light poles around the courtyard.
Additional substantial improvements include repairing and painting (murals) on exterior walls on the west side of the alley. The project also involves installing designated entertainment areas with portable platforms, adding new trash cans, and benches, planting trees and other shrubs, and addressing drainage issues by installing suitable catch basins. Together, these upgrades aim to transform the alleyway into a safer, more functional, and visually appealing community space. This report seeks approval to allocate the remaining funds to cover change orders and additional unforeseen field conditions required by Southern California Edison.
Discussion
As the 4th Street Beautification and Landscape Project progresses, unforeseen issues have arisen due to utility conflicts with Southern California Edison (SCE) and design adjustments needed to ensure the project's success. These challenges have necessitated several contract change orders to address conditions not anticipated in the original project scope. The $79,009.90 in remaining grant funds will be used to cover both unforeseen field conditions related to Southern California Edison (SCE) utility work and additional construction changes that arose during the project.
Specifically, key change orders include the replacement of the original 18” x 18” catch basin with a larger structure to accommodate the courtyard’s drainage needs, adjustments to two communication pull-boxes to match the finished grade, and additional concrete footings for light poles to provide stability within planter areas.
Furthermore, curbing was added around crawl spaces and SCE boxes to enhance stability for pavers while accommodating future utility work. Modifications during construction were necessary due to the age of the alley and the lack of available as- built plans. Field adjustments were required to align grades with existing conditions, which ultimately led to the need for upgraded drainage facilities to ensure proper functionality and durability.
The contractor also faced delays due to the lack of timely scheduling of SCE’s utility work. This led to remobilization costs when the contractor had to suspend and later resume work after SCE's partial completion of their tasks. Additionally, adjustments were needed to a loading ramp serving a business within the project area to align it with the new grade. Extra drainage infrastructure, including 4” PVC SDR-35 storm drainpipes, was also installed after discovering a previously unaccounted-for drainage connection from an adjacent building.
The necessary changes can be fully covered by the remaining unallocated grant funds, ensuring that all outstanding work is paid in full. The project construction phase concluded on December 31, 2024, with all required construction tasks completed by this date. Following this, the closeout phase will begin on January 2, 2025, to address the submission of final project documentation and any remaining administrative requirements. The closeout process is anticipated to conclude by June 30, 2025.
Allocating the remaining grant funds will allow for the timely completion of the project while ensuring that all necessary closeout documents are prepared and submitted within the required timeframe. This approach ensures compliance with grant conditions and that the project is completed to the required specifications without exceeding the overall budget.
Staff recommend the Mayor and City Council approve the use of the remaining grant funds to address these change orders, authorize the City Manager or designee to execute all related documents and change orders with SDC Engineering, Inc., and direct the Director of Finance and Management Services to amend the Capital Improvement Program (CIP) adopted budget. The release of the remaining grant funds for contingency purposes will fully cover the required changes and ensure the project’s completion without the need for any additional future modifications. These actions will ensure the timely and successful completion of the project while maintaining financial accountability.
The 4th Street Beautification Project will utilize a total grant award of $722,772.00 provided through the Clean California Local Grant Program. To date, expenses and contracts have been issued for various project components, totaling $643,762.10.
These expenses include payments to multiple vendors such as IMEG Consultants Corp. for $99,940.00, Geo Advantec Inc. for $11,975.00, Signmakers South Grand LLC for $7,500.00, Daily Journal Corp. for $1,209.80, Arts Connection for $137,000.00, SDC Engineering for $340,617.30, and Z&K Consultants for $5,520.00.
Additionally, a contingency amount of $40,000.00 has been allocated to cover unknown conditions during the project.
As of December 17, 2024, the total cost incurred is $643,762.10, leaving $79,009.90 in remaining funds. These unallocated grant funds are proposed to be used for change orders and additional work related to Southern California Edison utility adjustments, ensuring the project is completed successfully without exceeding the budget. The remaining funds are critical to address adjustments that have arisen during construction and to ensure the final phases of the project meet design and utility requirements while maintaining compliance with grant conditions. This approach ensures the efficient use of public funds to achieve the project’s goals.
Please see the graph of vendors and expenses below:
2021-2025 Strategic Targets and Goals
Authorizing the execution of this amendment aligns with Key Target No. 3d: Improved Quality of Life by improving the City’s appearance, cleanliness, and attractiveness.
Name of Vendor Paid Amount of ContractIMEG Consultants Corp. $99,940.00Geo Advantec Inc. $11,975.00Signmakers South Grand LLC $7,500.00Daily Journal Corp. $1,209.80Arts Connection $137,000.00SDC Engineering $340,617.30Z&K Consultants $5,520.00Total Amount of Contingencies &CMCI $40,000.00Total Cost as of 12/17/2024 $643,762.10Total Amount of Grant Award $722,772.00Total Amount Contract/ Expensed $643,762.10Total Amount Remaining $79,009.90 Fiscal Impact
There will be no impact on the General Fund. The project has a remaining budget of $79,009.90 that will be used for these change orders.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2025-017:
1. Authorizing the Director of Finance and Management Services the use of the remaining $79,009.90 in unallocated grant funds for contract change orders and additional unforeseen field conditions related to Southern California Edison utility work; and
2. Authorizing the City Manager or designee to execute all necessary documents, including contract change orders, with SDC Engineering, Inc.; and
3. Authorizing the City Manager or designee to approve and execute contract change orders as necessary to complete the project within the approved budget; and
4. Authorizing the Director of Finance and Management Services to amend the Capital Improvement Program (CIP) adopted budget to reflect the approved changes.
Attachments
1. Attachment 1 Resolution 2025-017
2. Attachment 2 Clean California Local Grant Program Amendment No. 1
Ward:
Ward 1
Synopsis of Previous Council Actions:
January 17, 2024 Rejecting Construction Bids for the Clean California Local Grant Program (Ward 1)
May 15, 2024 Award of Agreement for Construction of Clean California Grant 4 th Street Beautification and Landscape Project SS 22-008 (Ward 1)