To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
title
ACCEPT AS COMPLETE THE TORRANCE BOULEVARD RESURFACING PROJECT, JOB NO. 41230 AND THE TORRANCE BOULEVARD & FRANCISCA AVENUE TRAFFIC SIGNAL MODIFICATION PROJECT, JOB NO. 41070; APPROVE AND AUTHORIZE THE CITY ENGINEER TO EXECUTE A FINAL BALANCING CHANGE ORDER, IN THE AMOUNT OF $305,050; AND AUTHORIZE THE CITY ENGINEER TO FILE A NOTICE OF COMPLETION FOR THE PROJECT WITH THE LOS ANGELES COUNTY REGISTRAR-RECORDER AND RELEASE THE RETENTION PAYMENT UPON EXPIRATION OF THE 35-DAY LIEN PERIOD AFTER SAID RECORDATION AND NO CLAIMS BEING FILED UPON THE PROJECT
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EXECUTIVE SUMMARY
On July 19, 2022, the City Council awarded Hardy & Harper, Inc. (“Contractor”), a public works contract for $3,950,000 for the construction of two projects, the Torrance Boulevard Resurfacing Project and the Torrance Boulevard & Francisca Avenue Traffic Signal Modification Project (together, Project). The Project experienced several delays that were outside of the contractor’s control including relocation of traffic signal equipment requested by the public, utility agency scheduling and availability, and unforeseen underground conflicts. The Project is now complete and ready to be formally accepted by the City Council.
Over the past few months, staff has been working with the contractor on Project closeout, including resolution of outstanding quantity adjustments and disputed work items. An agreement on the final change order has been reached, resulting in a final payment of $305,050.18. Per City policy (APP 14.1), projects of this size include staff authorization for construction charge orders in the amount of up to 10%, which is $395,000 for this contract. Prior to this requested construction change order (CCO), staff approved three CCOs as part of the Project, totaling $105,364.62. Additionally, an offsite CCO was authorized by the Council to repair a sinkhole on Hawthorne Blvd for an amount of $110,000, which does not count towards the 10% staff authorization limit. The sum of this final negotiated change order, when added to the previously approved Project change orders, exceeds the 10% APP limit by $15,414.80, and as a result requires City Council approval.
With the final CCO, the total value of the construction contract for the Project will be $4,470,414.80, including the $110,000 for the offsite sink hole work on Hawthorne Blvd. Funding for the Project was provided through local Measure M funds, local Prop C funds, State Gas Tax monies, and Wastewater funds. If approved by Council, staff will close out the Project, which includes payment of the final invoice, recordation of the Notice of Completion with the County, and release of the retention amount after the 35-day waiting period, assuming no claims exist.
BACKGROUND
The Torrance Boulevard Resurfacing Project from Torrance Circle to Prospect Avenue, Job No. 41230 and the Torrance Boulevard & Francisca Avenue Traffic Signal Modification Project, Job No. 41070 resurfaced and rehabilitated the pavement of Torrance Boulevard for its full length in the City. Median, curb, and concrete improvements along Torrance Blvd. were installed to accommodate and complete the entire bicycle route corridor from the east to west City Limits. The Project also upgraded the traffic signals at the intersections of Torrance Blvd. and Francisca Ave. and Torrance Blvd. and Catalina Ave. to bring them to current standards. Access ramps, curbs and gutters, and sidewalk along the route were also repaired.
The Project was delayed significantly due to many factors outside of the City’s control. Members of the public requested that the City relocate traffic signal equipment at Francisca Ave. to a more preferred location. Accommodating the request required the design engineer to reanalyze subsurface conditions and modify signal pole equipment prior to authorizing the equipment order, which held a 20-week long lead time for materials. Coordination with the utility agency also impacted construction progress as the new signal poles triggered relocation of the Gas Company’s facilities and interactions with Southern California Edison, which were time consuming due to each agencies’ limited availability. Lastly, the City’s recent approval of the new City logo allowed the contractor to proceed with the last outstanding bid item to submit, order, and install street name signs per the new City standard.
Construction is now finished and the Project is ready for City Council to accept the work as complete and authorize the City Engineer to file a Notice of Completion with the Los Angeles County Registrar-Recorder's office. Approval of the staff recommendation will conclude the administrative closeout of the Project construction contract, and authorize the release of retention in 35 days, assuming no claims are made against the Project.
Per City policy (APP 14.1), projects of this size include staff authorization for CCOs in the amount of 10% of the awarded value of the contract, which is $395,000 in this instance. After several months of data review and negotiations, staff recommends execution of a final proposed change order in the amount of $305,050.18, resulting in an overall CCO amount for the project of $410,414.80 or 10.39%, which is $15,414.80 over the administrative staff authorization for CCOs. As the amount exceeds staff change order authority, staff is recommending the City Council approve the final CCO to allow the project to be closed.
COORDINATION
This Project has been coordinated by the Public Works Engineering and Maintenance Divisions.
FISCAL IMPACT
Adoption of the staff recommendation will authorize an additional $15,414,80 to be added to the Project’s contract value. Funding for this additional amount is available in the Project budget.
|
Funding |
|
Expenditures |
|
|
CIP Job No. 41230 |
$ 4,212,646.62 |
Hardy & Harper Constr. |
$ 3,950,000 |
|
CIP Job No. 41070 |
$ 249,714 |
Project CCOs |
$ 410,414.80 |
|
CIP Job No. 50150 |
$ 200,800 |
Offsite CCO |
$ 110,000 |
|
CIP Job No. 60260 |
$167,057.18 |
CM & Insp. |
$ 259,803 |
|
|
|
Project Mgmt. |
$ 100,000 |
|
Total |
$4,830,217.80 |
Total |
$4,830,217.80 |
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Proposed Change Order