HomeMy WebLinkAbout01/21/2003, C10 - SOUTH OCEANAIRE NEIGHBORHOOD CURB, GUTTER, SIDEWALK AND STREET REPAIR, SPECIFICATION NO. 90322, REQ t �
council ' ° January 21,2003
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CITY OF SAN LUIS OBISPO
FROM: Michael D.McCluskey,Director of Public Worka4643 Fde. Mbm
Prepared By: Daniel Van Beveren,Associate EngineeJy�
SUBJECT: SOUTH OCEANAIRE NEIGHBORHOOD CURB, GUTTER, SIDEWALK AND
STREET REPAIR, SPECIFICATION NO. 90322,
REQUEST FOR APPROVAL TO TRANSFER FUNDS
CAO RECOMMENDATION:
Approve a budget transfer of $200,000 from the Street Reconstruction and Resurfacing project
account into the South Oceanaire Curb,Gutter, Sidewalk and Street Repair project account.
DISCUSSION
At the August 20, 2002 Council meeting,the City Council authorized the CAO to award a contract
to construct the South Oceanaire Neighborhood Curb, Gutter, Sidewalk and Street Repair project
if the lowest acceptable bid was within the engineer's estimate of $800,000. The lowest
acceptable bid was received from Granite Construction in the amount of$572,500. On October
8, 2002, the CAO awarded a contract to Granite Construction for the bid amount.of $572,500
with a construction contingency of$80,000.
One goal of this project is to improve the existing drainage conditions in the South Oceanaire
neighborhood, which historically has had serious problems with stormwater ponding. It was
thought that the replacement of damaged sections of curbs and gutters would be sufficient to fix
the drainage problems. During construction, it was discovered that, in many areas, simply
replacing the small sections of damaged curb and gutter would not solve the overall drainage
problems. Much larger sections of curb and gutter were needed to be replaced to provide for
proper drainage. The contractor has been instructed to perform this needed additional work. As
a result, the quantity and associated costs of curb and gutter repair has increased.significantly.
This project also includes the repaving of several of the streets in this neighborhood. In some
areas, extremely soft underlying soils were encountered. In these locations, an increase in the
depth of asphalt pavement was needed for proper street repair. Although this component of the
work has not yet been completed, this will result in additional project costs.
As a result of this additional work, the contingency for this project will be depleted. Our
approved procedure of requesting additional funds requires that we make the request for
additional project funds when 75% of our contingency budget has been depleted. As of January
9, 2003, 67% of the contingencies had been spent, however it is projected that with the additional
work still needing to be completed, specifically the completion of the paving component of the
project, the striping, and the manhole adjusting, an additional $200,000 will be needed to
complete the project. This additional amount is available in the 2001-03 Street Reconstruction
and Resurfacing account, which is the approved source of funding for this project.
a,o--1
Council Agenda Report—South Oceanaire Neighborhood—Request for Additional Funds
Page 2
FISCAL IMPACT
Contract Amount $572,500
Contingencies $50,000
Total Construction Budget $652,500
Estimated Additional Amount Needed $200,000
Amount Currently Available in 2002-03 Paving Account $1,320,563
ALTERNATIVES
1) Halt construction and leave the neighborhood in its existing condition, and complete the
work with a future construction project.
This alternative is not recommended. Leaving the neighborhood with a construction project
uncompleted, even for a short time, would actually require additional work. In areas where the
street is ground down, temporary access would have to be provided at all driveway approaches,
and temporary asphalt ramps would need to be installed to conform to the adjacent street
surfaces. With drainage improvements still unfinished, stormwater would not drain properly
resulting in large areas of standing water throughout the rainy season. Most importantly,
residents in this neighborhood would be inconvenienced in having their neighborhood left with
an uncompleted construction project.
1:\Everyone\CouncilAgendaReports\90327 Budget Inctease.doc
council m Em oizan b um
Date January 16, 2003 RECEIVED
TO: City Council JAN 2 1 2003
VIA Ken Hampian, City Administrative Officer SLO CIT`( CLERK
FROM Michael D. McCluskey,Director of Public Works
Daniel Van Beveren, Associate-Engineer
SUBJECT: Modification to Agenda Item C10 of the January 21 City Council Meeting
The South Oceanaire Neighborhood Curb, Gutter, Sidewalk and Street Repair project (Spec No.
90322) is nearly complete. Agenda Item CIO requests the transfer of funds from the Street
Reconstruction & Resurfacing account into the project account. This transfer is requested to
cover additional costs associated with unanticipated field conditions encountered during
construction.
In order to meet the deadline to get this item on the January 21" Council Meeting, staff acted
quickly in the preparation of the Council Agenda Report, and in the estimation of additional
costs. At the time of the report preparation, much of the extra work had not been performed and
the extra costs could only be estimated. Most of that extra work has now been completed, and a
more precise estimation of costs has now been determined. Based on the most recent estimate of
extra costs, the amount that we are requesting authorization to transfer has increased by$80,000
to a total of$280,000.
Therefore, the CAO recommendation should be revised to reflect a request for $280,000 to be
transferred into the project account. This is an additional $80,000 over previously requested and
does represent the true cost of the rehabilitation of the neighborhood's curb and gutter system.
As before, the additional funding will be drawn from funds currently available in the 2002-03
Paving Account. There is currently$1,320,563 available in that account.
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