CC SR 20180904 I - Area 7 Contractor UnderpaymentRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 09/04/2018
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to issue payments to both Sully-Miller Contracting
Company (Sully-Miller) and American Asphalt South, Inc. (American South) for work
completed on existing contracts.
RECOMMENDED COUNCIL ACTION:
1) Authorize Staff to issue a final payment of $75,999.60 to Sully-Miller for work that
was incorrectly invoiced; and,
2) Authorize Staff to issue a final payment of $72,910.00 to American Asphalt South
for work that was not invoiced.
FISCAL IMPACT: The recommended action will result in a total authorized
expenditure in construction contract costs of $3,467,827, which is within the allocated
funds for the project. The funding necessary to complete this work was available in the
Capital Improvement Program Fund Balance.
Amount Budgeted: $3,522,856
Additional Appropriation: $0
Account Number(s): 330-400-8817-8805 ($3,197,173)
332-400-8817-8805 ($243,183)
340-400-8817-8805 ($82,500)
ORIGINATED BY: Natalie Chan, PE, Senior Engineer
REVIEWED BY: Elias Sassoon, PE, Director of Public Works
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Letter from Sully-Miller Contracting Company (page A-1)
B. Letter from American Asphalt South, Inc. (page B-1)
BACKGROUND AND DISCUSSION:
Sully-Miller
Sully-Miller provided construction services for Phase I of the Residential Roads
Rehabilitation Project in Area 7. The final cost of this project was presented to the City
Council with the request to issue a Notice of Completion at the April 3, 2018, City
Council meeting. Subsequent to this action, Sully-Miller presented an invoice for work
performed in the amount of $75,999.60. This amount includes the 5% retention for work
1
done, which is not part of the retention previously paid to the contractor. This amount is
within the contract approved by the City Council on July 7, 2017. Sully-Miller came
across their billing error at the end of their fiscal year. A letter from Sully-Miller is
attached, addressing the mathematical error (Attachment A). Staff is requesting
authorization to make a payment of $75,999.60. The total amount paid, including this
additional invoice, is within the contract authority.
American South
American South provided construction services for Phase II of the Residential Roads
Rehabilitation Project in Area 7. The final cost of this project was presented to City
Council with the request to issue a Notice of Completion at the April 3, 2018, City
Council meeting. Subsequent to this action, American Asphalt South presented an
invoice for work performed in the amount of $72,910.00. This amount includes the 5%
retention for work done, which is not part of the retention previously paid to the
contractor. This amount is within the contract approved by the City Council on
September 19, 2017. American Asphalt South came across their billing error at the end
of their fiscal year. A letter from American Asphalt South is attached, addressing the
work that previously was not accounted for by American South (Attachment B). Staff is
requesting authorization to make a payment of $72,910.00. The total amount paid,
including this additional invoice, is within the contract authority.
ALTERNATIVES:
In addition to the Staff recommendations, the following alternative action is available for
the City Council’s consideration:
1. Reject the request to issue payments and discuss other payment options.
2
August 15, 2018
TO: Whom It May Concern
City of Rancho Palos Verdes File: City of Rancho Palos Verdes
30940 Hawthorne Blvd
Rancho Palos Verdes, CA 90275 S-M Job No.: 10194501
SM-20-01
RE: Error in Payment Calculation
To Whom It May Concern,
My name is David Johnson and I am a Project Engineer with Sully-Miller. I was asked to look over
the final paperwork for the Phase 1 Residential Street Rehabilitation Project after Samuel Kirk left for
a yearlong training program.
During the review of the final paperwork, it was noticed that Sully-Miller had an error in Progress
Payment #3 that we submitted. The summation of the spreadsheet did not get modified to include the
cost for Change Order #1 which totals $75,999.60. The attached spreadsheet shows the final contract
total and bills for the change order that was originally left out in our error.
Your assistance in correcting this issue is greatly appreciated. It is understood that this issue was
caused by Sully-Miller and may take some time to rectify the issue. If you need any information or
have any questions, please do not hesitate to contact me.
Respectfully,
David Johnson
Project Engineer
714-720-3388
cc: file, scan ;
A-1
Bid Item Section Description Quantity
Unit of
Measure Bid Unit Price Bid Total
Monthly
Quantities Monthly Billing Quantities To Date Billing To Date
1 Mobilization/ Demobilization 1.00 LS 12,799.20$ 12,799.20$ - 1.00 12,799.20$
2 Traffic Control 1.00 LS 18,300.00$ 18,300.00$ - 1.00 18,300.00$
3 Message Boards 4.00 EA 2,500.00$ 10,000.00$ - 8.00 20,000.00$
4 Stormwater 1.00 LS 5,350.00$ 5,350.00$ - 1.00 5,350.00$
5 Remove Exist & Construct PCC C&G 4,650.00 LF 60.50$ 281,325.00$ - 4,698.00 284,229.00$
6 Remove Exist & Construct 4" Sidewalk 7,800.00 SF 13.50$ 105,300.00$ - 7,731.00 104,368.50$
7 Remove Exist & Construct 6" Sidewalk 2,100.00 SF 16.00$ 33,600.00$ - 1,800.00 28,800.00$
8 Remove Exist & Construct 6" Driveway 5,800.00 SF 16.60$ 96,280.00$ - 5,938.50 98,579.10$
9 Remove Exist & Construct 6" Local Depression Gutter 480.00 SF 43.50$ 20,880.00$ - 236.00 10,266.00$
10 Grind Sidewalk 45.00 EA 28.00$ 1,260.00$ - 45.00 1,260.00$
11 Remove Exist & Construct PCC Curb Ramp w/ Dome 12.00 EA 5,465.00$ 65,580.00$ - 12.00 65,580.00$
12 Remove Exist & Construct PCC Curb Ramp w/spandrel 8.00 EA 16,220.00$ 129,760.00$ - 8.00 129,760.00$
13 Design/Construct 6" Swale 17,000.00 SF 7.80$ 132,600.00$ - 14,930.00 116,454.00$
14 Cold Mill 2" Pave 19,722.00 SF 1.80$ 35,499.60$ - 15,144.00 27,259.20$
15 Cold Mill 3" Pave 112,278.00 SF 2.40$ 269,467.20$ - 95,415.00 228,996.00$
16 Additional Cold Mill 3" 40,000.00 SF 2.45$ 98,000.00$ - 27,022.50 66,205.13$
17 Adjust Utility Manhole 30.00 EA 515.00$ 15,450.00$ - - -$
18 Petromat 200.00 TL 115.00$ 23,000.00$ - 15.00 1,725.00$
19 SW PCC Handwork 7.00 EA 600.00$ 4,200.00$ - 6.00 3,600.00$
20 Crack Seal 1.00 LS 38,600.00$ 38,600.00$ - 1.00 38,600.00$
21 Remove Bollard Sleeves 6.00 EA 500.00$ 3,000.00$ - 6.00 3,000.00$
22 Tree Remove and Stump Grind 4.00 EA 4,770.00$ 19,080.00$ - 2.00 9,540.00$
CCO #1 Cul-De Sac Paving 100,000.00 SF 2.48$ 248,000.00$ 30,645.00 75,999.60 30,645.00 75,999.60$
CCO #2.1 Crest Rd Paving 245,110.00 SF 1.70$ 416,687.00$ - 252,219.00 428,772.30$
CCO #2.2 Crest Rd. Survey Control Setup 1.00 LS 2,500.00$ 2,500.00$ - 1.00 2,500.00$
CCO #2.3 Crest Rd. Tie Off and Replace Monuments 40.00 EA 375.00$ 15,000.00$ - 16.00 6,000.00$
CCO #2.4 Loops 6.00 EA 950.00$ 5,700.00$ - 6.00 5,700.00$
CCO #3.1 Granvia Grind and Overlay 56,695.50 SF 1.81$ 102,618.86$ - 56,695.00 102,617.95$
CCO #3.2 Cross Walk Intersection 1.00 LS 75,036.29$ 75,036.29$ - 1.00 75,036.29$
CCO #3.3 Survey Setup Control 1.00 LS 2,750.00$ 2,750.00$ - 1.00 2,750.00$
CCO #3.4 Mobilization 1.00 LS 3,000.00$ 3,000.00$ - 1.00 3,000.00$
1,419,331.00$ 75,999.60$ 1,977,047.27$
Date:Total 75,999.60$
Approved By:Retention (0%):-$
Monthly Total:75,999.60$
Year-to-Date Total:1,977,047.27$
Year-to-Date Retention (5%):98,852.36$
Year-to-Date Total:1,878,194.90$
Totals
8/9/18
David Johnson
Signature:
SULLY-MILLER CONTRACTING COMPANY
City of Rancho Palos Verdes - Area 7 Rehab Final Adjustment Billing
Area 7 - Residential Improvements - PO #20180178
A-2
American Asphalt
South, Inc.
City of Rancho Palos Verdes
30940 Hawthorne Blvd
Rancho Palos Verdes, CA 90275
RE: Residential Street Rehabilitation Project Phase II, Area 7 Pavement Rehabilitation
Director of Public Works,
The invoice for the work completed in the month for February for the above referenced project was
never submitted to the City's Accounts Payable department. The project was closed out before the
invoice was submitted to Accounts Payable.
The total amount of the invoice in $72,910.00, less minus the 5% retention resulting in an amount due
of $69,264.50. Please see the attached invoice for reference.
The total retention due on this project including this invoice is $74,387.66.
If you have any questions regarding this, please let me know.
Tyler Skender
~er
www.americanasphaltsouth .com
lie. I 784969
MAILING ADDRESS : P.O. BOX 310036 •FONTANA, CA 92331 •PHYSICAL ADDRESS: 14436 SANTA ANA AVE .• FONTANA, CA 92337 • (909) 427·8276 •FAX (909) 427-8279
B-1
>
American Asphalt
South, Inc.
TO: CITY OF RANCHO PALOS VERDES
30940 HAWTHORNE BL VD
INVOICE NO.: 2018-13
DATE: 28-Feb-18
4
RANCHO PALOS VERDES, CA 90275 PROJECT: RESIDENTIAL STREET REHAB .
PHASE II
AREA 7 PAVEMENT REHAB.
CONTRACT#
WORK COMPLETE TO: 28-Feb-1 B
OUR JOB # 617-071
IV I*'\. IV l#\C. ..... ..:~NI UUC
UNI QUANTITY TO AMOUNT TO PREVIOUS THIS
ITEM# DESCRIPTION T UNIT PRICE DATE DATE AMOUNT ESTIMATE
1 MOBILlzATION LS 25,000.0000 1.000 $25,000.00 $2.5,000.00 $0.00
2 TRAFFIC CONTROL LS 75,000.0000 1.000 . $75,000.00 $75,000.00 $0.00
3 STORMWATER BMP'S LS 3,000.0000 1.000 53,000.00 $3,000.00 SO.DO
4 ARAM SF 0.4400 580,000.000 $255,200,00 $255,200.00 $0.00
5 TYPE I W/2.5% LATEX SF 0.1200 2,000,456.000 $240,054.72 $240,054.72 $0.00
6 TYPE II W/2.5% LA TEX/ARAM SF 0.2300 580,000.000 $133,400.00 $133,400.00 $0.00
7 TYPE U W/2.5% LA TEX SF 0.1700 1,420,456.000 S241.4n.s2 $241,477.52 $0.00
8 (H.WORK)TYPE I SLURRY SF 0.2800 77,000.000 $21,560.00 $21,560.00 . so.co
9 (H.WORK)TYPE II SLURRY SF 0.3100 77,000.000 $23,870.00 $23,870.00 $0.00
10 4' EDGE PLANE SF 0.3200 236,852.000 $75,792.64 $75,792.64 $0.00
11 ADJUST MANHOLES EA 320.0000 120.000 $38,400 ,00 $36,160.00 $2,240.00
12 REMOVE STRIPING.MARKIN! LS 18,100.0000 1.000 $18,100.00 $18,100.00 SO.DO .
13 STRIPING,MARKINGS,RPMS LS 14,600.0000 1.000 • $14,600.00 $11,680.00 $2,920.00
14 TRAFFIC SIGN POST EA 110.0000 110.000 $12,100.00 $0.00 $12,100.00
15 TRAFFIC SIGN POST EA 165.0000 165.000 $27,225.00 SO.DO $27,225.00
16 PAINT HOUSE NUMBERS EA 15.0000 496.000 $7,440.00 $7,440.00 $0.00
17 POST SLURRY BLOW & SWE LS 10,000.0000 1.000 $10,000.00 $10,000.00 $0.00
18 TYPE 1 W/2.5% LATEX SF 0.1500 546,667.000 $82,000 .05 $82,000.05 $0.00
cco AC MOBILIZATION LS 8,250.0000 1.000 $8,250.00 $8,250.00 SO.OD
cco AC DIGOUTS 3" SF 5.5000 7,500.00Q I $41,250.00 $41,250.00 $0.00
cco TIE OFF MONUMENTS LS 8,600.0000 1.000 $8,600 .00 $8,600.00 $0.00
cco CRACK SEAL LS 8,000.0000 1.000 $8,000.00 $8,000.00 $0.00
CCC SLURRY SEAL MOBJUZATIO I LS 7,500.0000 1.000 $7,500 .0D $7,500.00 $0.00 cco SLURRY SEAL TIC LS 18,690.0000 1.000 $18,690.00 $18,690.00 so.co
cco TYPE 2 SLURRY SEAL SF 0.1700 270,000.000 $45,900 .00 $45,900.00 $0.00
cco REMOVE STRIPING,MARKINI LS 4,700.0000 1.000 $4,700.00 $4,700.00 $0.00
cco INSTALL PAINT LS 24,700.0000 1.000 $24,700 .00 $6,175.00 $18,525.00
cco PCMS BOARDS(2 WEEKS) EA 1,300.0000 2.000 $2,600.00 $2,600.00 $0.00 cco R&R STRIPINGCADD.STREET LS 13,200.0000 1.000 $13.200 OD $3 ,300.00 $9,900.00
FOR PROPER CREDIT REMIT TO: TOTALS: 1,487,609.93 1,414,699.93 n,910.00
ADDRESS AT 80ITOM OF INVOICE 0% SALES TAX: 0.00 D.00 0.00
TERMS: 5% RETAINED: (74,380 50) (70,735 00) (3,645 50)
ALL ACCOUNTS CUE UPON RECEIPT OVERDUE TOTAL PAYMENT: 000 0.00 0.00
ACCOUNTS ARE SUBJECT TO 1 5% PER MONTH,
18% PER ANHUM. ATTORNEY'S FEE INCURRED INL . UK 1uo•·uc11. .. ._ t'l:KAI I ~r· ·INVOICE:
IN COUECTING PAST DUE ACCOUNTS WITH OR
WITHOUT LEGAL ACTION TOGETHER WITH AU. AMOUNT DUE: 69,284.!Hi
COURT COSTS INVOLVED www.amerlcanasphaltsouth.com
I.ft,; .• ,,,_...,.,
MAILING ADDRESS: P.O BOX 310036 •FONTANA, CA 92331 •PHYSICAL ADDRESS. 14436 SANTA ANA AVE •FONTANA, CA 92337 • (909) 427·8276 •FAX (909) 427-8279 B-2