HomeMy WebLinkAboutAgenda Statement 1978/11/07 Item 13~ i i r ur l,l1ULH V 15 I H
COUNCIL AGENDA STATEMENT
Item No. 13
For meeting of 11-7-78
Accepting Public Improvements and Appropriating
ITEM TITLE Resolution 939 Additional Gas Tax Funds, "F" St. Improvements,
Fourth Ave. to Church Ave. F.A.U. Project
M-5174(1)
SUBMITTED BY City En ineer via Director of Public Works ~ ~~ \' ~/
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ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES X NO )
The Daley Corporation was awarded the contract for "F" Street Improvements
on April 18, 1978 by Resolution No. 9079. The Contract is dated May 22,
1978. This project is on the Federal Aid Urban Road System and is partially
funded by F.H.W.A. (F.A.U. Funds) in the amount of $206,316.00
California Department of Transportation, along with Engineering Staff,
made a final inspection on October 5, 1978 and approved the work. On
October 13, 1978 a final inspection was made by the City-designated Project
Resident Engineer and all work was found to be completed except for some
minor cleanup. The project was 1000 completed on October 18, 1978, in
accordance with the contract documents and approved change orders, plans
and specifications. The City Engineer recommends acceptance of the public
improvements.
The final construction cost for the widening of "F" Street from Fourth
Avenue to Church Avenue is $383,298.43. The authorized expenditure for
the construction of the project is $370,711.65. There is an overrun in
construction costs amounting to $12,586.78.
The significant contract items of work responsible for the overrun is
excavation, aggregate base material and the asphalt concrete pavement.
The original estimates of quantities for these items as contained in the
bid proposal were short of the actual quantities of work performed neces-
sary to complete the project in accordance with the plans and specifications.
Following is a tabulation comparing quantities and listing increased cost.
DMH:vt AX-002 (continued on supplemental page)
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Agreement Resolution x Ordinance Plat Notification List
Other ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
Project cost is being financed by Gas Tax Funds. The City is being reim-
bursed $206,316.00 by F.A.U. Funds. City will assume maintenance of the
improvements upon acceptance. Construction cost to the City for the "F"
St. widening project is $185,621.39. See supplemental page.
STAFF RECOMMENDATION
1. City Council accept improvements.
2. City appropriate $12,555.90 from the unappropriated balance of 2106
Gas Tax Funds and transfer to project GT-75, "F" Street widening.
3. City Council authorize an additional expenditure of $17,750.90 from
Project GT-75, Account No. 250-2501-GT75.
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION
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AGENDA ITEM N0: 13
Supplemental Page 2
November 7, 1978
Original Actual Cost Percent
Item Estimate Quantity Differential Overrun
Asphalt Concrete 2,066 Tons 2,273.22 Tons $ 3,522.74 +10 ~
Aggregate Base (C.O. #3) 11,224 Tons 13,207.83 Tons $13,886.81 +17. 70
Excavation (C.O. #5) 4,519 Cu Yds 5,745.15 Cu Yds $ 7,357.02 +27. 1%
Actual excavation performed was verified by field measurement by survey
after the subgrade was prepared and before placement of aggregate base
and pavement. All grades were within the acceptable tolerance in
accordance with the standard specifications. Excavated quantities were
calculated using the survey information.
Aggregate base material was measured by actual load slips certified
by a State licensed weighmaster. The original quantity estimate was
based on a dry density of 134 pounds per cubic foot. The actual cubic
foot weight delivered to the job site was 144 pounds, which included
moisture content. In addition, the average relative compaction of the
in-place material exceeded 102 percent. These two factors combined will
account for the majority of the overrun in aggregate base material.
The asphalt concrete pavement material was also measured by actual load
slips certified by a State licensed weighmaster. Again, the in-place
density of the compacted pavement material was higher than originally
estimated. This is due largely to the 1 percent additional asphalt con-
tent of the mix required by the State Inspector at the asphalt concrete
batch plant.
All of the work performed and material placed was within the original
scope of the project.
Also included in the project costs are the relocation of the water
facilities by Sweetwater Authority, and the payment to the State Depart-
ment of Transportation for material testing and commercial testing that
were beyond the capabilities of the City.
The Sweetwater Authority water company has completed their relocation
work. The City has paid its share of the water relocation costs in the
amount of $5,164.12. Outstanding is a purchase order to the State of
California for testing in an estimated cost amount of $3,474.84. To
date, the City has not been invoiced by the State for the work performed
by them in testing the material and commercial products used in the
project. We anticipate billing in four to six weeks. W.D. Boyd, Con-
struction Liaison Office for CALTRANS, does not expect the costs to
exceed the purchase order amount.
The difference in total construction cost and the authorized expenditure
for the "F" Street project is a $17,750.90 cost overrun (see Financial
Statement).
In preparing this report we have anticipated two questions arising in
the minds of the Council. 1) Why was there such a large dollar amount
for an overrun in this project? 2) Why did the information come to
Council after the work was completed therefore creating a situation
where the City Council has no alternative?
Question Number One. Even though the dollar amount of the cost overrun
was substantial ( 17,750 over estimate, and $12,587 over the appropri-
ated amount) this amount is not large considering that the total cost
of the project was nearly $400,000. This overrun then was about three
percent of the total amount of the project.
The process used in contracting street projects is as follows:
A. Plans and specifications are prepared to show the contractor the
limits of the work and how the work is to be accomplished.
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AGENDA ITEM NO: 13
Supplemental Page 3
November 7, 1978
B. Based upon these plans, the engineer then prepares a cost esti-
mate for the project. This cost estimate is based upon quantities
that are calculated from the plans. The "F" Street Project had
34 different bid items of which 17 of those items were lump sum
or exact quantities, while 17 of the items were based upon unit
costs (i.e., cost per ton, per square foot, per lineal foot, etc.)
This is the customary way to bid street projects since field con-
ditions may vary to an extent that the estimate would not be exact.
Bidding on a unit cost basis allows the owner (in this case, the
City) to pay for the exact amount of work that was accomplished
and also allows the contractor to give the lowest unit cost to the
City since he will not have to put in a fudge factor for unknown
quantities should the item be based upon a lump sum amount.
The above paragraphs discuss in detail why the quantities differed from
the Engineer's estimate. For instance, the weight per cubic foot of
base material was actually higher than the estimator used and the
excavation quantities were higher than originally estimated, due to such
things as removing excess unsuitable material due to excess water experi-
enced in the sub-base during the construction.
Question Number Two. In a normal project all these unit quantities are
calculated on a monthly basis and partial payments are made to the con-
tractor as the work progresses. These pay quantities are normally
calculated at the end of each month by totalling all weight tickets
for base and pavement and by survey cross sections for excavation
quantities. Therefore, it may not be known for several days that an
estimated quantity has been exceeded in the field. This is obviously
what happened in the "F" Street Project.
The point to be remembered, however, is that the quantities in the con-
tract document are estimates and the actual amount paid is based upon
the actual work done in the field. The work must be done in accordance
with the signed plans, therefore, if the amount of material required to
complete the job is more than the estimated amount, the City has the
obligation to pay the contractor.
Even though this procedure occasionally results in cost overruns, it
can and does occasionally result in project underruns. I believe that
the benefits of this procedure result in overall lower costs for the
City.
The City Engineer recommends that City Council authorize the expenditure
of $5,195.00 from the unencumbered balance of Project GT75 and appro-
priate $12,555.90 from unappropriated 2106 Gas Tax funds and authorize
their expenditure to cover the cost overrun for the "F" Street Project,
GT75. $17,750.90 in additional funds are needed to make the final
retention payment to the contractor, Daley Corporation, Inc.
Financial Statement
The City Council by Resolution 9079, dated April 18, 1978, authorized
the expenditure of $359,186.49 for the construction of the "F" Street
Project. On August 1, 1978, the Council approved Change Order No. 5
and authorized an additional expenditure of $15,000 from redevelopment
funds RS19, Third Avenue Project, "E" Street to "F" Street.
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' AGENDA ITEM NO. 13
Supplemental Page 4
November 7, 1978
Authorized Expenditures:
Gas Tax 53 ("F" St. Widening)
Gas Tax 75 ("F" St. Widening)
Revenue Sharing (Third Ave, "E" to "F")
TOTAL AUTHORIZED
Final Construction Cost Including
Approved Change Orders
P. O. to Caltrans for Material
Testing
Sweetwater Authority for Water
Facility Relocation
TOTAL PROJECT COST
Authorized Expenditure
Cost Overrun Difference
Available GT75 Funds amended budget
June 30, 1978
Authorized Expenditure
Unencumbered Balance GT75
Requested appropriation from 2106 Funds
Total Requested to be Authorized for
Expenditure on "F" Street Widening
Project
$ 166,381.49
192,805.00
15,000.00
$ 374,186.49
$ 383,298.43
3,474.84
5,164.12
$ 391,937.39
374,186.49
$ 17,750.90
$ 198,000.00
192,805.00
$ 5,195.00
12,555.90
$ 17,750.90
FAU Funds in the amount of $206,316.00 will be invoiced to the State
of California for reimbursement to the City for Gas Tax Funds.
The actual construction cost to the City for the "F" Street widening
project is therefore $185,621.39 in Gas Tax Funds.
As of October 19, 1978, 5909 manhours or $45,953 has been spent for
engineering on the "F" Street Widening Project. This represents
12 percent of the construction cost.
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Form No. F-229
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CERTIFICATE OF CITY/DIRECTOR OF FINANCE ~ ~ ~ ~'35`~
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Certification of Unappropriated Balance
I HEREBY CERTIFY that the money required for the
appropriation of funds for the purpose set forth in the attached
resolution is available in the Treasury, or is anticipated to
come into the Treasury, and is otherwise unappropriated.
Amount S 12,555,90 Fund Gas Tax 2106
Purpose F Street Improvements, Fourth to Church
Bidder N/A
250 2501 GT 75 Director of Finance
The City of Chula Vista
Date 11/3/78 By
Certification of Unencumbered Balance
I HEREBY CERTIFY that the indebtedness and obligation
to be incurred by the contract or agreement authorized by the
attached resolution can be incurred without the violation of any
of the provisions of the Charter of the City of Chula Vista, or
the Constitution or the laws of the State of California, that
sufficient monies have been appropriated for the purpose of said
contract, that sufficient monies to meet the obligations of the
contract are actually in the Treasury, or are anticipated to come
into the Treasury to the credit of the appropriation from which
the same are to be drawn, and that said monies now actually in
the Treasury, together with the monies anticipated to come into
the Treasury, to the credit of said appropriation are otherwise
unencumbered.
Amount Not to Exceed $ 17,750.90
250 2501 GT 75
Date 11/3/78
Fund Gas Tax 2106
By
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Director of Finance
The City of Chula Vista
Dept./Activity Gas Tax 2106
Purpose F Street Improvements, Fourth to Church
Bidder N/A
Certificate No. 26
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250-2501-GT53
Date Warrant # P.O. # Vendor Amount
10/22/76 2540 7722 San Diego Museum of Man 15.00
10/28/76 2657 8783 San Diego State Universi ty 15.00
5/12/77 6806 21302 Southern California 747.50
Testing
5/26/77 7011 16833 Gerald S. Kibbey 1,000.00
& Assoc.
7/1/77 J.E. Stores Withdrawal 3.43
9/8/77 9545 29735 Perry Electric 10,000.00
11/10/77 10980 27285 State of California 225.68
11/23/77 11287 29735 Perry Electric 3,862.70
11/23/77 11350 D.P. San Diego Air Pollution 42.00
12/1/77 11408 36783 Amfac Electric Supply Co . 68.60
12/8/77 11611 37461 Land Title Insurance Co. 75.00
12/8/77 11618 34786 Select Electric 900.00
12/22/77 11896 D.P. Southern Pacific 900.00
2/23/78 13177 29735 Perry Electric 1,540.30
3/23/78 13897 D.P. Perry Electric 184.30
6/15/78 15624 49571 Daley Corporation 3,825.00
7/13/78 16137 49571 Daley Corporation 87,142.86
8/10/78 16959 49571 Daley Corporation 42,928.20
9/14/78 17744 49571 Daley Corporation 32,485.43
TOTAL 185,961.00
(Revised Amount on Budget Master Status
June 30, 1977 - 185,961.00)
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250-2501-GT75
Date Warrant # P.O. # Vendor
Amount
7/20/78 16490 55646 VWR Scientific Inc.
9/14/78 17744 49571 Daley Corporation
9/28/78 18054 D.P. Perry Electric
10/5/78 18126 49571 Daley Corporation
TOTAL
PY Encumbrances
Unencumbered Ba lance
Amended Budget 6/30/78
(Amended budget 6/30/78 - 198,000.00)
64.24
79,868.66
34.00
64,590.30
144,557.20
36,847.55
181,404.75
16,595.25
198,000.00
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