Public Works Agency
www.santa-ana.org/pw
Item # 11
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 21, 2024
TOPIC: Approve Additional Funds for the Warner Avenue Street Improvements Project
AGENDA TITLE
Approve Additional Funds in the Amount of $1,700,000 for an Existing Construction Contract with Lonerock, Inc. for the Warner Avenue Street Improvements Project with an Estimated Project Delivery Cost of $14,755,867 (Project Nos. 14-6802, 18-6424, 20- 6618) (General Fund and Non-General Fund)
RECOMMENDED ACTION
1. Approve an amendment to the Project Cost Analysis in the amount of $1,700,000 in additional contingency funds for a new estimated total construction delivery cost of $14,755,867, which includes $9,486,525 for the construction contract; $1,614,197 for contract administration, inspection, and testing; and a $3,655,145 project contingency for unanticipated or unforeseen work.
2. Approve an amendment to the Fiscal Year 2023-24 Capital Improvement Program to include $1,700,000 in construction funds for Warner Avenue Street Improvements Project (Project Nos. 14-6802, 18-6424, 20-6618).
3. Authorize budget reallocation of $500,000 in over-allocated, unspent Water Fund from the Saint Gertrude and Grand Water Main Project (No. 15-6446) to construction funds for the Warner Avenue Water Main Project (No. 18-6424).
4. Authorize budget reallocation of $1,200,000 in over-allocated, unspent General Fund from the Westminster Avenue Rehabilitation Project (No. 22-6989) to construction funds for the Warner Avenue Phase 1 from Main Street to Oak Street Improvements Project (No. 14-6802).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
On March 16, 2021, City Council authorized the award of a construction contract to Lonerock, Inc. for the improvement of a one-mile segment of Warner Avenue from Main Street to Wright Street (Exhibit 1). This is a long-term priority project that is being constructed in several phases. Warner Avenue Phase 1 is from Main Street to Oak Street (Exhibit 2). Improvements include widening the street from a four-lane roadway to a six- lane arterial to address safety issues and provide adequate vehicular capacity; and
Approve Additional Contingency Funds for Warner Avenue Street Improvements Project May 21, 2024
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installing parkways, raised median landscaping, storm drains, protected bike lanes, sound walls, street lights, and traffic signals.
Lonerock, Inc. has completed underground utilities installation and the southern portion of the Warner Avenue segment. However, due to a combination of cost escalation, labor and market pricing steadily rising, and executed and anticipated change orders, costs for Warner Avenue Improvements will surpass the $1,155,145 contingency identified for this portion of the work (Exhibit 3). Additional contingency will also be needed for future potential unforeseen work as the project progresses to completion.
The recommended action will increase the project contingency by an additional $1,700,000 thereby increasing the total estimated construction delivery cost to $14,755,867 as indicated in the Revised Cost Analysis (Exhibit 4) and as summarized in the table below:
EXPENDITUR
E
CATEGORY
ORIGINAL
AMOUNT
ADDED
CIP
23/24
ADDITIONAL
FUNDING NEW TOTAL
Construction
Contract Bid
Amount
$9,486,525 $9,486,525
Construction
Administration,
Inspection,
Testing
$1,614,197 $1,614,197
Contingencies $1,155,145 $800,000 $1,700,000 $3,655,145 Total
Estimated
Construction
Delivery Cost
$12,255,867 $800,000 $2,500,000 $14,755,867
Staff recommends the approval of the recommended action in order to continue the construction of the Warner Avenue Street Improvements Project .
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. On September 1, 2015, City Council approved the Warner Avenue Final Environmental Impact Statement (SCH No. 2012101004)
FISCAL IMPACT
As indicated in the Cost Analysis, the estimated total construction delivery cost of the project (14-6802) is $14,755,867, which includes construction, contract administration, Approve Additional Contingency Funds for Warner Avenue Street Improvements Project May 21, 2024
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inspection, testing, and an authorized contingency. Project Nos. 14-6802, 18-6424, 20- 6618 are assigned to the Project Plans and Specifications, and the Notice Inviting Bids.
The following table summarizes the funds budgeted and available in current FY 2023-24 for expenditure to deliver construction of this project. Any remaining balances not expended at the end of the fiscal year will be presented to the City Council for approval of carryovers to FY 2024-25 (Exhibit 5).
Fiscal
Year
Accounting
Unit- Account
No. (Project
No.)
Fund
Description
Accounting Unit -
Account No.
Description
Amount
Existing Project Budget
2023-24 99217950-66220
(14-6802)
Transportation
System
Improvement Area
B
Transportation
System,
Improvement Area B
Tustin,
Improvements Other
Than Buildings
$2,603,988
2023-24 06617647-66301
(18-6424)
Water
Acquisition
&Construction
Water Utility Capital
Projects, Water
Capital Project
$2,225,000
2023-24 03217663-66220
(14-6802)
Measure M
Street
Construction
Measure M2
Competitive Street,
Improvements Other
Than Buildings
$4,629,750
2023-24 03417660-66220
(20-6618)
New
Transportation
System
Improvement
Area E
New
Transportation
System
Improvement Area
E, Improvements
Other Than
Buildings
$109,798
2023-24 22417660-66220
(14-6802) Local Drainage
Area IV
Public Works-
Storm Drain
Construction,
Improvements
Other Than
Buildings
$141,320
2023-24 03217662-66220
(14-6802)
Measure M Street
Construction
Measure M2
Competitive Street,
Improvements
Other Than Building
$255,000
Approve Additional Contingency Funds for Warner Avenue Street Improvements Project May 21, 2024
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Fiscal
Year
Accounting
Unit- Account
No. (Project
No.)
Fund
Description
Accounting Unit -
Account No.
Description
Amount
2023-24 05917668-66220
(14-6802)
Select Street
Construction
Warner Ave-Tustin
CFD, Improvements
Other Than
Buildings
$1,488,879
2023-24
03417660-66220
(14-6802)
New
Transportation
System
Improvement
Area E
Transportation System
Improvement Area E,
Improvements Other
Than Buildings
$101,930
2023-24
05717640-66220
(20-6618)
Federal Clean
Water Protection
Enterprise
Federal Clean Water
Protection Enterprise,
Improvements Other
Than Buildings
$600,000
2023-24
03217662-66220
(20-6618)
Measure M
Street
Construction
Measure M2 Local
Fairshare,
Improvements Other
Than Buildings
$800,000
2023-24
22417660-66220
(20-6618)
Local Drainage
Area IV
Public Works-Storm
Drain Construction,
Improvements Other
Than Buildings
$100,202
Total $13,055,867
Additional Funding
Budget Reallocation
2023-24
01117660-66220
(From Proj. 22-
6989 to 14-6802) General Fund
Public Works-Road
Maintenance,
Improvements Other
Than Buildings
$1,200,000
2023-24
06617647-66301
(From Proj. 15-6446
to 18-6424)
Water
Acquisition &
Construction
Water Utility Capital
Projects, Water Capital
Project
$500,000
Grand Total $14,755,867
EXHIBIT(S)
1. March 16, 2021 Staff Report
2. Location Map
3. Pending Change Order
Approve Additional Contingency Funds for Warner Avenue Street Improvements Project May 21, 2024
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4. Revised Cost Analysis
5. Amended FY 2023-24 Capital Improvement Program Sheet Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Alvaro Nuñez, Acting City Manager