20C - AA - GRAND AVE IMPROVEMENTS

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Increase Contingency for Grand Avenue Roadway and Storm Drain Improvements August 4, 2015 Page 2 storm drain placement. These utility lines included water and sewer main lines; two, large communication duct banks; and two, high - pressure gas mains. Also approved by Council on June 17, 2014, was a $49,000 payment to Southern California Edison (SCE) to prepare engineering drawings and install the street light poles and lights. Subsequently, the City began the process to purchase all SCE -owned street lights within the City limits. Because it would be more expensive to purchase the newly installed street lights back from SCE, it was determined to be more cost effective for the City to use the engineering drawings prepared by SCE, purchase the poles and lights, and have the Excel Paving Company install them with the required conduit. As a result, SCE will be reimbursing the City $42,961.27 for the initial payment less the cost of the engineering work. Presently, the Grand Avenue project is approximately 68 percent complete. Total amount of the change orders to date for the utility adjustments and the street light installation is $259,115.41. It is anticipated that additional change orders will be needed before the project is completed. Job site conditions have been significantly different from the information provided in the plans, primarily related to interfering underground utilities associated with the storm drain improvements. Therefore, staff is recommending a contingency increase of $250,000 to ensure that if expenditures continue to exceed the Council authorized construction contract amount awarded in 2014, construction may proceed uninterrupted, until completed. With the increased contingency, the new total delivery cost will be $4,183,432.39, including the construction contract, construction administration, inspection, testing, and survey (Exhibit 1). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. STRATEGIC PLAN ALIGNMENT Approval of this Item supports the City's efforts to meet Goal #6 Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy B (equitably maintain existing streets and associated assets in a state of good repair so they are clean, safe and aesthetically pleasing for all users), Strategy C (invest resources and technology to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard), and Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans FISCAL IMPACT $250,000 will be added to the Grand Avenue Roadway and Storm Drain Improvements project contingency budget for expenditure in Fiscal Year 2015/2016 from the following sources: 20Ci-2