CC SR 20160517 I - Sunnyside Ridge Trail Project Budget Increase with KOARANCHO PALOS VERDES CITY COUNCIL
AGENDA REPORT
AGENDA DESCRIPTION:
MEETING DATE: 05/17/2016
AGENDA HEADING: Consent Calendar
Consideration and possible action to authorize a project budget increase to the
Sunnyside Ridge Trail Segment Project that is cost neutral to the City budget.
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Director of Public Works to execute a change order to the design
contract with KOA in the amount of $20,000; and,
(2) Authorize an increase to the project budget in the amount of $35,000 to
accommodate additional costs associated with the revised design.
FISCAL IMPACT:
Amount Budgeted: $465,000
Encumbered to Date: $439,914
Additional Project Authorization $ 35,000
Additional Appropriation: $ 0
Account Number(s): 330-3033-461-73-00
ORIGINATED BY: Andy Winje, PE, Senior Engineer v,
REVIEWED BY: Michael Throne, PE, Director of Public Works
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Alternate Design Concept (page A-1)
B. Change Order to KOA contract (page B-1)
BACKGROUND AND DISCUSSION:
A project budget for the Sunnyside Ridge Trail Segment Project was authorized and
funds appropriated for design and construction by City Council in the amount of
$465,000. On November 18, 2014, City Council awarded a professional services
contract for engineering design and construction management to KOA in the amount of
$140,450. On November 4, 2015, the City Council awarded a construction contract in
the amount of $290,864 to Concept Consultant, Inc. and authorized a construction
contingency of $30,000.
On December 15, 2015, the City Council directed Staff to re -design elements of the
project to ensure that no part of the enduring project was outside the 10 -foot trail
easement. In the exploration of design alternatives, the Director of Public Works also
authorized additional geotechnical engineering work using a previously awarded on-call
contract. Table 1 summarizes these authorizations.
1
Table 1
Project Budget
$465,000
Encumbrances to Date
Design and Construction Management KOA Nov. 2014
$140,450
Construction Concept Consultants Nov. 2015
$290,864
Additional Geotechnical Work (Hamilton — on call)
$ 6,800
Construction Contingency'
$ 30,000
Unencumbered Budget
$ 3,114
1 The construction contingency is not actually encumbered, but is shown this way to demonstrate it is
being held in reserve for unexpected construction needs, to avoid delays.
Staff directed Concept Consultant, Inc. to develop a construction change order for
negotiation to accommodate the change. KOA is the City's agent in these negotiations.
Concept Consultant, Inc.'s most economical change order proposal was $96,560, due
to significantly increased construction complexity of two retaining walls, which would
significantly increase the awarded cost. There were also constructability concerns
regarding the change proposed by the contractor.
Therefore, Staff and the design engineer are pursuing a more straightforward design
concept (Attachment A) including a concrete walkway that requires additional structural
engineering, but is easier and cheaper to build. This concept keeps the project within
the easement as Staff was previously directed to do by the Council. Staff expects this
design change will result in a cost neutral or perhaps negative change order (i.e.,
savings) from the contractor, but the amount is uncertain without a complete design and
the contractor's input.
Staff recommends an increase to the project budget of $35,000 to accommodate these
design changes (work by KOA, $20,000) and needed geotechnical engineering and
inspection during design (Hamilton, $6,800) and construction (Hamilton, estimated at
$8,200). Although the City Council previously authorized a contingency for the project
that could be used for this effort, construction contingency is typically reserved for
unexpected construction needs during construction, which must be addressed quickly to
avoid delay claims by the contractor.
There is available funding in the budget program for improvements to parks, trails and
open space (Account 330-3033-461-73-00) to pay for this increase, due to savings from
other budgeted projects. So, while the project budget may increase, the overall impact
to the City budget is nil. It is likely that the total expenditure for the project will
approximate the original budget if savings on the change order are as expected and the
construction contingency is not needed.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions may be taken
by the City Council:
2
1. Authorize the Director of Public Works to execute a $20,000 change order
to KOA without increasing the project budget, in which case funds for the
additional design work would be charged against the contingency.
2. Take other action as deemed appropriate by the City Council.
9
SUNNYSIDE RIDGE TRAIL SEGMENT - REVISED SCOPE
ELEVATED WALKWAY - CONCEPT
ORIGINAL BID: ENGINEER'S OPINION OF COST SAVINGS
$290,864
BID ITEMS TO BE REMOVED OR ADJUSTED:
WOOD EROSION CONTROL STRUCTURE $2,500.00 REMOVED
RETAINING WALL, (TYPE 1) $36,520.00 REMOVED
RETAINING WALL (TYPE 2) $43,200.00 REMOVED
TOTAL $82,220.00
ESTIMATED COST OF ELEVATED WALKWAY OPTION:
EXCAVATION FOR CAISSONS AND GRADE BEAMS $1,800.00
CAISSONS, DECK SOFFIT AND SIDES $14,400.00
REINFORCED CONCRETE DECK $8,000.00
ADDITIONAL WORK CONTINGENCY $5,750.00
TOTAL $29,950.00
ESTIMATED PROJECTED COST SAVINGS: $52,270.00
A-1
Project:
i_;I I Y of ii�I:ariCl l0 RAI p5 VERDE
30940 Hawthorne Blvd.
Sunnyside Ridge Trail Segment Design Project
Change Order #
Attention: Alan Braatvedt
KCIA Corporation
1411 W 190th Street
Rancho Palos Verdes, CA 90275 Gardena, CA 90248
Explanantion for Change Order
Increase in contract value to provide additional scope of work including construction management,
design and construction document preparation services for design changes to the Sunnyside Ridge Trail
Segment Project.
Itemized Description
Time and materials - Construction Management and Design Services Increase in Scope
Quantity Unit Price Amount
1 120,000.00 20,000.00
Total 20, 000.00
Original Contract Value 140,450.00
Total Value of all Previous Change Orders
Total Revised Contract Sum Prior to this Change Order
Value of this Change Order
New Contract Sum
Change in Contract Days
0.00
140,450.00
20,000.00
160,450.00
Revised Contract Completion Date 11/17/2016
Accepted: KOA Corporation
By
Vice President
Date:
Authorized: Rancho Palos Verdes
By
Director of Public Works
As