RPVCCA_CC_SR_2014_10_21_D_Increase_Funds_Ryan_Park_Parking_Lot_ProjectCity of RANCHO PALOS VERDES
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Project Manager:
HONORABLE MAYOR AND CITY COUNCIL MEMBERS
MICHAEL THRONE, P.E., DIRECTOR OF PUBLIC WORKS i/);
OCTOBER 21, 2014
INCREASE FUNDS FOR RYAN PARK SOUTHERN
ENTRANCE REALIGNMENT AND PARKING LOT
EXPANSION PROJECT (SUPPORTS 2014 CITY COUNCIL
GOAL: PUBLIC INFRASTRUCTURE).
CAROLYNN PETRU, ACTING CITY MANAGE~
Siamak Motahari, Senior Engineer :::;;tJJ
RECOMMENDATION
1. Adopt Resolution No. 2014-__ , a Resolution of the City Council of the City of
Rancho Palos Verdes, amending Resolution 2014-41, the budget appropriation for
Fiscal Year 2014-15, for a budget adjustment to the City's Parks, Trails and Open
Space Improvements Program in the Capital Improvement Projects Fund, in the
amount of $35,000 and authorizing expenditure of a maximum of $25,000 of this
amount to increase the construction contingency by the Director of Public Works for
potential unforeseen construction costs that may be encountered, and a maximum of
$10,000 to be utilized for the amendment of the Professional Services Agreement
mentioned in item 2 below.
2. Approve the first amendment to the agreement with KOA Corporation to increase the
original agreement fee by a maximum of $10,000 to cover additional costs necessary
for continuing with the oversight and inspection of the extended construction activities
of the subject project.
3. Authorize the Mayor and City Clerk to execute the first amendment to the agreement
with KOA Corporation.
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BACKGROUND
The scope of the subject project's work includes widening the southern driveway with a milder
vertical slope for safe entrance and exit of large maintenance trucks and vehicles driven by
persons with disabilities who need to use the ADA compliant spaces at the lower parking lot.
This safety enhancement could only be effective if the current overflow parking spaces on
Hawthorne Boulevard was replaced by on-site parking spaces to allow a clear sight distance
on this steep and curved portion of Hawthorne Boulevard. Therefore, expansion of the upper
parking lot from 37 to 69 spaces was added to the scope of the project. Design of this parking
lot expansion was made possible by creating a space contiguous to the exiting driveway
through installation of a soil nail wall along Hawthorne Boulevard.
On May 6, 2014 the City Council awarded a construction contract to Tobo Construction Inc.,
in the amount of $641,000, and authorized a 10% contingency in the amount of $64, 100 for
unforeseen conditions. The contractor had to prepare shop drawings of the designed soil nail
wall with approval from registered engineers. After those shop drawings were submitted,
construction began in mid-June 2014, and due to unforeseen conditions, the completion date
is extended to the end of November 2014.
DISCUSSION
Various unforeseen conditions have been encountered including conflicts with various
underground utility lines and specifically, in spite of Dig-Alert markings, a 10 feet deep high
voltage power vault that was the source of a temporary power outage in the surrounding
area. Staff contacted Southern California Edison for their 'As-Built' drawings of underground
power lines at Ryan Park and has required them to provide more details of high voltage lines
and vaults within the limits of any Dig-Alert markings.
These conflicts and other modifications necessitated because of actual field conditions were
addressed by making timely changes to the design and continuing with construction work
accordingly. The cost of these changes has been paid for by the allocated budget
contingency. While at this time most of the expected changes have been addressed, it is
prudent to have additional contingency funds available for potential unforeseen conditions
that might arise as the soil nail wall construction nears completion. Availability of this
contingency allows construction to move forward without delays and claims by the contractor.
If no other changes become necessary, this additional contingency will not be expended and
the balance will remain in the CIP Fund.
The above mentioned additional work has extended the duration of construction activities by
more than a month and exceeded the original fee allocated for construction oversight and
inspection. Therefore, an amendment of the existing contract with the KOA Corporation to
increase the fee by a maximum amount of $10,000 is requested.
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CONCLUSION
The improvements proposed in this project are considered a high priority project for the public's
benefit as reflected in the Council-adopted Capital Improvement Program (CIP). Council's
action tonight will create a safeguard against delays and its adverse consequences.
FISCAL IMPACT
The increase of construction contingency requested is $25,000. If no additional changes
become necessary, this amount will not be expended and the balance will remain in the CIP
Fund. The additional fee requested to cover for the extended construction oversight and
inspection is $10,000 maximum.
Staff recommends a total budget increase of $35,000 to be funded by the Capital
Improvement Projects (CIP) Reserve Fund which has a current estimated balance of
$7,941,970 for June 30, 2015.
Attachments:
1. First Amendment to Agreement with KOA Corporation
2. Resolution 2014-
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First Amendment to Agreement between the
City of Rancho Palos Verdes and KOA Corporation
This agreement is an amendment ("Amendment") to the construction management
services agreement between the City of Rancho Palos Verdes ("CITY") and KOA
Corporation ("CONSUL TANT"), dated May 6, 2014 ("Agreement"). This Amendment is
effective as of October 21, 2014, and is being made to add ten thousand dollars ($10,000)
to KOA Corporation's compensation for services through the end of November 2014.
Section 1. Section 2.1 of the Agreement is hereby amended to read as follows:
"CITY agrees to compensate CONSULTANT an amount not to exceed fifty
two thousand five hundred dollars ($52,500) for services as described in Article 1. This
entire Ag'reement is funded by the City's General Fund."
Section 2. Section 6.3 of the Agreement is hereby amended to read as follows:
"The CITY or its representative shall have the option of inspecting, auditing,
or inspecting and auditing all records and other written materials used by CONSUL TANT in
preparing its billings to the CITY as a condition precedent to any payment to
CONSUL TANT. CONSUL TANT will promptly furnish documents requested by the CITY.
Additionally, CONSUL TANT shall be subject to State Auditor examination and audit at the
request of the CITY or as part of any audit of the CITY, for a period of three (3) years after
final payment under this Agreement."
Section 3. Exhibit "B" of the Agreement is hereby replaced by the new Exhibit "B,"
which is attached hereto and incorporated herein by this reference.
Section 4. Except as expressly amended by this Amendment, all of the other
provisions of the Agreement shall remain in full force and effect as written in the
Agreement.
[Signatures on next page.]
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date and year first above written.
KOA Corporation ("CONSULTANT")
Its
Printed Name: ________ _
By:~-----------~
Its
Printed Name: ---------
City of Rancho Palos Verdes ("CITY")
By:~-----------~
Mayor
ATTEST:
By:~-----------~
City Clerk
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Exhibit "B": TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS
1. KOA Corporation ("Consultant") acknowledges that the project as defined in this
Agreement between Consultant and the City, to which this Agreement to Comply with California
Labor Law Requirements is attached and incorporated by reference, is a "public work" as defined in
Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code
("Chapter 1 "), and that this Agreement is subject to (a) Chapter 1, including without limitation Labor
Code Section 1771 and (b) the rules and regulations established by the Director of Industrial
Relations ("DIR") implementing such statutes. Consultant shall perform all work on th~ project as a
public work. Consultant shall comply with and be bound by all the terms, rules and regulations
described in 1(a) and 1(b) as though set forth in full herein.
2. California law requires the inclusion of specific Labor Code provisions in certain
contracts. The inclusion of such specific provisions below, whether or not required by California law,
does not alter the meaning or scope of Section 1 above.
3. Pursuant to Labor Code Section 1771.4, Consultant shall post job site notices, as
prescribed by regulation.
4. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem
wages for each craft, classification, or type of worker needed to perform the Agreement are on file at
City Hall and will be made available to any interested party on request. Consultant acknowledges
receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant
shall post such rates at each job site covered by this Agreement.
5. Consultant shall comply with and be bound by the provisions of Labor Code Sections
177 4 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for
failure to pay prevailing wages. The Consultant shall, as a penalty to the City, forfeit two hundred
dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing
rates as determined by the DIR for the work or craft in which the worker is employed for any public
work done pursuant to this Agreement by Consultant or by any subcontractor.
6. Consultant shall comply with and be bound by the provisions of Labor Code Section
1776, which requires Consultant and each subcontractor to (1) keep accurate payroll records and
verify such records in writing under penalty of perjury, as specified in Section 1776, (2) certify and
make such payroll records available for inspection as provided by Section 1776, and (3) inform the
City of the location of the records.
7. Consultant shall comply with and be bound by the provisions of Labor Code Sections
1777.5, 1777.6 and 1777.7 and California Administrative Code title 8, section 200 et seq.
concerning the employment of apprentices on public works projects. Consultant shall be
responsible for compliance with these aforementioned Sections for all apprenticeable occupations.
Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the
information submitted to any applicable apprenticeship program. Within sixty (60) days after
concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit
to the City a verified statement of the journeyman and apprentice hours performed under this
Agreement.
8. Consultant acknowledges that eight (8) hours labor constitutes a legal day's work.
Consultant shall comply with and be bound by Labor Code Section 1810. Consultant shall comply
with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers
who work excess hours. The Consultant shall, as a penalty to the City, forfeit twenty-five dollars
($25) for each worker employed in the performance of this Agreement by the Consultant or by any
subcontractor for each calendar day during which such worker is required or permitted to work more
than eight (8) hours in any one (1) calendar day and forty (40) hours in any one calendar week in
violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to
Labor Code section 1815, work performed by employees of Consultant in excess of 8 hours per day,
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and 40 hours during any one week shall be permitted upon public work upon compensation for all
hours worked in excess of 8 hours per day at not less than 11/2 times the basic rate of pay.
9. California Labor Code Sections 1860 and 3700 provide that every employer will be
required to secure the payment of compensation to its employees. In accordance with the
provisions of California Labor Code Section 1861, Consultant hereby certifies as follows:
"I am aware of the provisions of Section 3700 of the Labor Code which require every
employer to be insured against liability for workers' compensation or to undertake self-
insurance in accordance with the provisions of that code, and I will comply with such
provisions before commencing the performance of the work of this contract."
10. For every subcontractor who will perform work on the project, Consultant shall be
responsible for such subcontractor's compliance with Chapter 1 and Labor Code Sections 1860 and
3700, and Consultant shall include in the written contract between it and each subcontractor a copy
of those statutory provisions and a requirement that each subcontractor shall comply with those
statutory provisions. Consultant shall be required to take all actions necessary to enforce such
contractual provisions and ensure subcontractor's compliance, including without limitation,
conducting a periodic review of the certified payroll records of the subcontractor and upon becoming
aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of
wages. Consultant shall diligently take corrective action to halt or rectify any failure.
11. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless
and defend (at Consultant's expense with counsel reasonably acceptable to the City) the City, its
officials, officers, employees, agents and independent contractors serving in the role of City officials,
and volunteers from and against any demand or claim for damages, compensation, fines, penalties
or other amounts arising out of or incidental to any acts or omissions listed above by any person or
entity (including Consultant, its subcontractors, and each of their officials, officers, employees and
agents) in connection with any work undertaken or in connection with the Agreement, including
without limitation the payment of all consequential damages, attorneys' fees, and other related costs
and expenses. All duties of Consultant under this Section shall survive termination of the
Agreement.
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RESOLUTION NO. 2014-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, AMENDING RESOLUTION 2014-41, THE BUDGET
APPROPRIATION
FOR FISCAL YEAR 2014-15, FOR A BUDGET ADJUSTMENT TO THE CITY'S
PARKS, TRAILS AND OPEN SPACE IMPROVEMENTS PROGRAM IN THE
CAPITAL IMPROVEMENT PROJECTS FUND
WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides
that all expenditures in excess of budgeted allocations must be by supplemental
appropriation of the City Council; and
'WHEREAS, on June 17, 2014, the City Council of the City of Rancho
Palos Verdes adopted Resolution 2014-41 , approving a spending plan and
authorizing a budget appropriation for the 2014-15 fiscal year; and
WHEREAS, the Ryan Park Southern Entrance Realignment and Parking
Lot Expansion project is considered a high priority project for the public's benefit
as reflected in the Council-adopted Capital Improvement Program (CIP); and
WHEREAS, the total cost of the Ryan Park Southern Entrance Realignment and
Parking Lot Expansion project, including engineering, construction and
construction contingency is $799,935; and
WHEREAS, the City Council has appropriated a budget in the FY 14-15 CIP to
cover those costs; and,
WHEREAS, unforeseen conditions at the construction site have necessitated an
increase in construction contingency fund to avoid delays if additional
expenditure becomes necessary; and,
WHEREAS, the unforeseen conditions have also extended the duration of the
contract and necessitated additional construction oversight and inspection fee;
and,
WHEREAS, with an increase of $25,000 for the construction contingency and an
increase of $10,000 for construction oversight and inspection fee, a total increase
of $35,000 in the Parks, Trails & Open Space Improvements fund is therefore
necessary; and
WHEREAS, the estimated Capital Improvement Fund balance at June 30, 2015
is $7,931,970; and
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
Resolution No. 2014-
Page 1 of 2
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The following adjustment(s) be made to the following fund(s):
Parks, Trails & Open Space Improvements Program in the Capital Improvement
Projects Fund:
Parks, Trails & Open Space Improvements 330-3033-461-73-00 $35,000
Verified by Finance: \(f)
PASSED, APPROVED, AND ADOPTED THIS 21st DAY OF OCTOBER 2014.
MAYOR
ATTEST:
CITY CLERK
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, CARLA MORREALE, City Clerk of The City of Rancho Palos Verdes, hereby
certify that the above Resolution No. 2014-was duly and regularly passed
and adopted by the said City Council at a regular meeting thereof held on
October 21, 2014.
CITY CLERK
CITY OF RANCHO PALOS VERDES
Resolution No. 2014-
Page 2 of 2
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