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HomeMy WebLinkAbout91609 CMR Request for Additional FundingCity of San Luis Obispo, City Manager Report Final City Manager Approval Approver Name Date Approved City Administration Shelly 7/1/21 Reviewer Routing List Reviewer Name Date Reviewed City Attorney MJ 7/1/21 Finance & Information Technology NH 7/1/21 June 18, 2021 FROM: Matt Horn, Director of Public Works MH 6/29/2021 PREPARED BY: Matt Crisp, Transportation Planner/Engineer SUBJECT: Broad/Woodbridge Pedestrian Hybrid Beacon, Specification No. 91609 Request for Additional Funds RECOMMENDATION 1. Receive notice that over 75% of available contingency funds have been used for the Broad/Woodbridge Pedestrian Hybrid Beacon (PHB) project (Specification No. 916 09). 2. Approve a Budget Amendment Request (BAR) for the Broad/Woodbridge PHB project (Specification No. 91609) to add an additional $20,000 in contingency funds by transferring funds from the Transportation Safety and Operations project account (Project No. 1000073). DISCUSSION On March 17, 2020, Council authorized advertisement of the Broad/Woodbridge PHB (Specification No. 91609). The contract was subsequently advertised and awarded to Lee Wilson Electric on December 21, 2021. The original contract award was within the publicly disclosed amount authorized by the City Council. With award of the construction contract, $40,421 in project funds remained available for construction contingencies (11% of construction contract cost). Construction of the Broad/Woodbridge PHB began June 1, 2021. As work was underway, unforeseen but necessary modifications to the project designs were identified, resulting in the need to utilize most of the available construction contingency budget. The purpose of this staff report is to (a) notify the City Manager that over 75% of project contingency funds will be expended, and (b) to request approval to transfer $20,000 in additional funds to the project account to provide additional emergency contingency funds to cover any additional unforeseen costs that may arise through completion of the project. Additional Work Related to PG&E On Friday May 21st, PG&E informed the City of a necessary modification to the location PG&E would pull power to service the project. There was a miscommunication from PG&E during the design phase of this project about which utility pole would be used to pull electrical service, where Broad/Woodbridge PHB, Spec. No. 91609 Request for Additional Funds Page 2 PG&E provided a schematic design showing the correct pole location, but sent a photograph of the incorrect pole. To correct for this error, the City’s contractor will now need to extend an underground electrical conduit an additional 70 feet to the correct point of service. While there is no additional cost associated with PG&E for this change, this does result in the need for extra work by the City’s contractor. The additional cost to the City for this change order is $16,173. Additional Work Related to Signal Pole Foundation Unknown Conflict On June 11th, the contractor confirmed that a 4-foot diameter storm drain was too close to the location of one of the PHB signal pole foundations, and the pole would need to either be relocated slightly or a custom signal foundation design would need to be approved to work around the utility conflict. While staff was aware of the potential utility conflict and had this storm drain located on the signal designs, there appeared to be sufficient clearance between the new signal foundation and utility conflict based initial review and USA utility markings. Following further underground excavation and review by the contractor, it was clear that the signal pole could not be shifted to avoid the conflict completely and a custom foundation design would be required. Structural engineering services were necessary to modify the design, resultin g in additional unforeseen costs to the project. The cost of the new structural design for the modified foundation was $10,869. In addition to the engineering costs there were also additional construction costs associated with this modification. The additional construction costs were $11,533, bringing the total additional cost for this item to $22,402. In total, $38,575 in project contingency funds are required to fund these additional expenses, which leaves only $1,846 in remaining contingencies (4.7% of original contingency budget). FISCAL IMPACT With addition of the abovementioned expenditures , only $1,846 in contingency funds will remain in the project account. While staff does not anticipate any additional significant cost increases, it would be prudent to ensure that some additional contingency funds are available if needed. For this reason, staff is recommending that $20,000 in funds be transferred from the Transportation Safety and Operations Account (Project No. 1000073) to the Broad/Woodbridge PHB project account (Spec. No. 91609) to provide sufficient contingency budget through completion of project construction. The Transportation Safety and Operations account funds minor traffic safety and signal operations improvements. The Transportation Safety and Operations project account has a current balance of $100680. Staff believes that with the proposed $20,000 funds transfer, sufficient funds will remain in this project account to deliver the minor traffic safety and signal operations improvements already planned and in progress within the current transportation work program. Any funds unused from this additional $20,000 contingency will be returned to the Transportation Safety and Operations project account following completion of the Broad/Woodbridge PHB. Construction Funding Sources Amount Existing Funds in Broad/Woodbridge PHB Project Account General Fund (Local Revenue Measure) $35,000 Infrastructure Investment Fund $80,000 Broad/Woodbridge PHB, Spec. No. 91609 Request for Additional Funds Page 3 State Grant (Urban State Highway Account) $140,000 Transportation Impact Fees (Citywide) $ 152,135 Subtotal $407,135 Additional Funds Requested Transportation Safety and Operations Project Account (Local Revenue Measure) +$20,000 New Total $427,135 Project Costs Construction Costs $366,714 Construction Contingencies $38,575 Total Costs $405,289 Project Funding Original Project Funding $407,135 Additional Funding Request +$20,000 Remaining Funds $21,846 ALTERNATIVES Deny the additional contingency. The City Manager could choose to deny the request for additional contingency funding. Staff does not recommend this alternative as the project is under construction and additional delays could result in even more incurred costs to the City. ATTACHMENTS 1. Budget Amendment Request (BAR) 2. CMR – Project Award https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/citymanagersreports/Shared Documents/Public Works/2021/Transportation/Broad Woodbridge PHB/91609 CMR Request for Additional Funding.docx