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CONTINGENCY INCREASE <br />BROADWAY REHABILITATION PROJECT <br />May 6, 2013 <br />Page 2 of 4 <br />When the contractor was performing the Broadway streetlights work at Birch Street and Russell <br />Avenue, it was unexpectedly discovered that the streetlights were interconnected, unlike what is <br />shown on the as- builts (see Exhibit 1). We found similar conditions at Wilshire Avenue and <br />Borchard Avenue (see Exhibit 2). Essentially, the existing streetlight system was found to be a <br />continuous loop, and separating the system was not anticipated. Therefore, the planned streetlight <br />upgrades need to be expanded as shown on Exhibit 2. <br />The extra work includes all of the streetlights on Ross Street and Birch Street between McFadden <br />Avenue and Edinger Avenue at a cost of $162,989. That cost is within the existing contract <br />contingency. <br />However, while performing the extra work and exposing the added conduits, they were found to be <br />severely deteriorated and damaged beyond repair by corrosion and tree roots, necessitating <br />conduit replacement at an added cost of $93,461. That brings the total cost of the streetlight <br />upgrades to $256,450, and that amount exceeds the contract contingency by approximately <br />$80,000 (see Exhibit 3). <br />The extra work is necessary in order to complete the work and turn the lights back on. Deferring <br />the conduit replacement would mean the streetlights will be off in the Wilshire Square <br />neighborhood, and the cost would be higher due to the added re- mobilization cost. Having the <br />streetlights off for an extended time also increases the City's liability exposure. Therefore, it is <br />recommended to increase the project contract contingency by $80,000. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />The financial impact is a 3.3% extra cost over the standard contingency for a $2.77 million <br />contract. Funds are available in the Proposition 1 B Fund (Accounting Unit 03017660). <br />Ra I 'odinez II <br />Executive Directo <br />Public Works Agency <br />RG:SA <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services Agency TWI- <br />