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Home My Public Portal About7FDATE: TO: FROM: BY: MANAGEMENT SERVICES DEPARTMENT MEMORANDUM November 2, 2010 The Honorable City Council Jose E. Pulido, City Manager Lissette Calleros, Project Manager AGENDA ITEM 7. F. SUBJECT: RE -APPROPRIATION OF UNEXPENDED PROJECT FUNDS AND RELEASE OF HALF OF THE 10% RETENTION TO CHRISTOPHER R. MORALES, INC. FOR WORK PERFORMED ON THE TRAFFIC SIGNALS MODIFICATION PROJECT AND RE -APPROPRIATE $269,030 OF FISCAL YEAR 2009-10 UNEXPENDED BUDGET FUNDS TO FY 2010-11 RECOMMENDATION: The City Council is requested to: a. Re -appropriate $269,030 of Fiscal Year (FY) 2009-10 in unexpended budget funds for project P09-08 to FY 2010-11; and b. Approve the release of half of the 10% retention to Christopher Morales Inc. in the amount of $4,779.92. BACKGROUND: 1. On February 17, 2009, the City of Temple City was allocated $1,050,000 in American Recovery and Reinvestment Act (ARRA) funds for shelf -ready projects, which included the Traffic Signal Upgrades Project. 2. On September 11, 2009, Caltrans obligated the Federal funds and authorized the Traffic Signal Upgrades Project to proceed with construction activities. 3. On January 5, 2010, the City Council authorized staff to solicit bids for this Project. 4. On January 11, 2010, a Notice Inviting Bids was published in the Pasadena Star News and the bid plans and specifications were made available to prospective bidders. 5. On January 21, 2010, a mandatory pre -bid meeting was held with prospective City Council November 2, 2010 Page 2 contractors in order to review and explain the ARRA goals and other Federal provisions for subcontracting, and prevailing wages. 6. On February 2, 2010, the City Clerk opened and read aloud the six bids received. 7. On March 2, 2010, the City Council awarded a construction contract to Christopher R. Morales, Inc. in the amount of $112,885.00 and authorized the City Manager to approve change orders up to 10% of the contract amount (i.e., $11,288.50) should additional project -related expenditures be required. 8. On August 2, 2010, Christopher R. Morales, Inc. (i.e., contractor) submitted a request to the Construction Manager (i.e., Arjan Idnani) and the Construction Inspector (i.e., Chris Boren) from AAE Inc. for the first two progress payments in the amount of $75,529.27. It should be noted that AAE Inc. is working under contract with the City's contract engineer (i.e., Crown City Engineers). 9. On August 16, 2010, the contractor submitted a request for a change order to the construction manager for additional work to install two new poles, foundations and other related site work. 10. On August 19, 2010, the contractor submitted a second progress payment request in the amount $10,509.30. The Construction Manager reviewed both progress payments requested and approved them based on the work that has been completed to date and in accordance with the approved contract. 11. On August 23, 2010, a meeting was held between the City Manager, Avant -Garde representative Veronica Aguas, and the City's contract Traffic Engineer Pat Lang to discuss the change order requested by the contractor and the fiscal impact of this request. The City Manager agreed to move forward with the change order request on a Time and Materials basis. 12. On August 28, 2010, the Construction Manager suspended work on this project until the City received approval from Caltrans to ensure that the City would be reimbursed for the additional project costs. 13. On September 7, 2010, the City Council approved Progress Payment No. 1 in the amount of $75,529.27 and Progress Payment No. 2 in the amount of $10,509.20 for a total amount of $86,038.57 for the construction services performed on the Traffic Signals Modification Project on Longden Avenue and Broadway at Rosemead Boulevard. 14. On September 7, 2010, the City Manager was authorized to implement Change Order No. 1 on a Time and Materials basis not to exceed $42,618 to replace two existing type 17-2-70 signal poles with two type 19-4-100 signal poles. City Council November 2, 2010 Page 3 ANALYSIS The City of Temple City was allocated $1,050,000 in ARRA funds for shelf -ready projects, which included the Traffic Signal Upgrades Project. On September 11, 2009, Caltrans obligated the Federal funds and authorized the Traffic Signal Upgrades Project to proceed with construction activities. Contractor Christopher R. Morales, Inc., was awarded a construction contract in the amount of $112,885 on March 2, 2010, and shortly thereafter commenced work on the Traffic Signals Modification Project on Longden Avenue and Broadway at Rosemead Boulevard. The scope of work for this ARRA funded project consists of traffic signal modifications to include left -turn phasing east and westbound accessing Rosemead Boulevard on Longden Avenue and on Broadway. In addition, improvements include re -striping and removal of a median curb on Longden Avenue in order to provide the left -turn pocket. The contractor submitted a request to the construction manager and the construction inspector for the first progress payment request in the amount of $75,529.27 and on August 19, 2010, submitted a second progress payment request in the amount $10,509.30. The construction manager reviewed the progress payments requested and approved them based on the work that has been completed to date in accordance with the approved contract. On August 16, 2010, Christopher R. Morales, Inc. submitted a request for a change order to the Construction Manager not to exceed $42,618.34 for additional work that was not part of the original scope of work. The additional work consists of replacing two existing type 17-2-70 signal poles with two type 19-4-100 signal poles. This work will require the installation of two new poles, foundations and other related site work. Avant -Garde (i.e., the City's construction administration consultant) is currently coordinating with Caltrans to program the Surface Transportation Program Local (STPL) funds necessary to pay for the extra work (i.e., two new light poles and foundations) requested by the contractor not to exceed $42,618.34. The City's contractor for this project (Le., Christopher R. Morales, Inc.) cannot proceed with the items included in the change order until Caltrans has processed the appropriate paperwork. Until approval has been received by the City from Caltrans, work on the project will be suspended in order to ensure that the City will be reimbursed by Caltrans for the additional project costs. Given that the City's contractor has completed a substantial amount of work included in the original contract, the contractor has submitted a request to the City's Construction Manager to release half (i.e., $4,779.92) of the 10% retention (i.e., $9,559.84). The City Council, as part of the Fiscal Year 2010-11 City Budget, approved an appropriation of $281,900 for this project. A re -appropriation of $269,030 in unexpended FY 2009-10 budget funds is being requested City Council November 2, 2010 Page 4 CONCLUSION The Construction Manager has reviewed the Contractor's request and recommends that the City Council process the release of half of the 10% retention for construction services performed on the Traffic Signals Modification Project on Longden Avenue and Broadway at Rosemead Boulevard Project. FISCAL IMPACT There are sufficient funds to cover the release of half of the 10% retention to Christopher Morales Inc. in the amount of $4,779.92. ATTACHMENT(S) 1. Christopher R. Morales, Inc. -- Invoice No. 21-1020R Lic ense No. 807358 C 1U 09-08-10 Bill To: AAF, Incorporated 1815 L3. file imAvenua, Suite 100 Orange, CA 92865 CHRISTOPHER R. MORALES, INC. P. O. Box 610, San Dimas, CA 91773 (909) 599-2201 - Fax (909) 599-2722 Ghrlstopher R. Morares, Inc. Job No_ 10-20 Attn. Sobjectt Invo ioe No. 214020r Re viled Mr. Azjan Idna ni/Vanessa T1S & Safety Lighting At Ro semead, Broadway, & I.ongtlen Fe d Project OWL-5365(005), LAES54S, Temple City, CA ID N . 62-244-13934 ITEM NO. DESCRIPTION CONTRACT PIBE1dlf1USPERiOD CURRE4TPEfI(lp TOTAL TO DATE QTY UM 1 UNIT PRICE ] AR OUT QTY. AMOUNT QTY. AMOUNT QT" '. A 41 Medication 0f Traffic Signal And Sataty Lighting At The lntereeclton Of Rosemead Boulevard And Broadway 1 LS $ 58,385.011 58,385.00 106% $ 58,385.90 0% $ - 100% $ 58,385.00 02 Modifioallion of Traffic Signal And Safely Lighting At The 1 LS . $ 49,200.00 $ 49,200.00 76% $ 24,440.90 0% $ - 70% $ 34,449.00 Intersection 0f Rosemead Boulevard find tongden Avenue 03 Rama Existing 12° Median And Patch Existing Pavement To ttah Surrounding Pavem ent At The Intersection Of Rosem ead 80 LF $ 80.00 $ 4,890.00 0 $ - 0 $ 0 $ Boure yrard And Longden Avenue 04 ARRA install Project Sign 1 EA $ 600.00 $ 500. 00 1 $ 500.00 0 $ - i $ 500.00 Change Order: 0001 Rosemead Blvd & Broadway Ave_, Delete 20' Signal Mast Aran 1 LS $ 2,273. 41 $ 2,273.41 100% $ 2,273.41 0% $ - 100% $ 2,273.41 & Add 35` Mast Aim, Delete 20' Signal Mast Arm &Add 40` Mast Arm .. .. � . Subtotal Original Contract Amount Change OrderfExtra Arnt Approved Prior Perla Change 0rderlExira Arnt Approved This Period Revised Contract Amo unt Inspector Project Manager )fl Ynnr prompt a ttention to this ltil.i ixig csould be greatly appreciated If y ou ltaT .r atav questions; plms o oto not he sitate to call us . $ 95,59841 Gr oss Amount Earned To Dale Less: Retention (5%) Subtotal L ess: Previously P ayment Lass: Previously Billed Amount Due this Billing $ 96,598.41 (4,779 . 92) 99,819 .49 ($6,038.;7) $ 4,779.92 N Lri ZZLZ66S606 r — m 0 m m 1