PROJECT NO. CIP 98-621 PIER RENOVATION, PHASE II AND 
PROJECT NO. CIP 00-630 PIER RENOVATION, PHASE III -
TRANSFER OF FUNDS

 

Recommendation:

It is recommended that the City Council:

1.     Approve increasing the contract amount for Los Angeles Engineering Inc., the general contractor, by approximately $59,478, to cover anticipated change orders involving railing, water line, expansion joints and lighting;
2.     Approve increasing the contract amount for Concept Marine Associates Inc. (CMA), the construction manager, by $21,000 to cover the added construction management fees for the extended duration needed to complete Phase II; and
3.     Authorize the transfer of $53,000 from CIP 00-630 Pier Renovation, Phase III - General Fund to CIP 98-621 Phase II Pier Renovation, Phase II – General Fund in order to make the funds available.

 

Background:

On January 25, 2000 City Council awarded the contract for Project No. CIP 98-621 to Los Angeles Engineering based on their bid amount of $1,168,771.00. The contingency amount was $116,877, 10% of the original contract price.

Since then, Change Order Nos. 1, 2 and 3 have added $95,027 and were applied to the contingency. These change orders cover a wide assortment of items including changes to the railing and the addition of sewer and water lines to bring the restroom building south of the project back online. In addition, the recent Change Order No. 4 involving the revised lighting fixtures amounts to $39,478 and will exceed the available Lighting Fund by approximately $26,000. Change Order No. 4 remains uncharged pending the approval of Recommendations 1 and 3.

There will be change orders in the near future to: 1) modify the railing at the sags in the pier; 2) change the expansion joint material in joints over 2 ½" wide; 3) move the water line point of connection; and 4) to cover the extra lumber cost for Alaskan Yellow Cedar for the railing. The projected cost for these upcoming change orders is approximately $20,000.

Due to changes to the project since the beginning of construction, the duration of the project has increased accordingly. As of Change Order No. 4, 36 working days have been added to the contract with Los Angeles Engineering. Therefore, the need to extend CMA’s construction management services has increased by approximately 7 weeks. Extension of CMA’s construction management services amounts to approximately $21,000, which would raise their original contract amount from $75,000 to $96,000. The contingency amount for this contract was originally $7,500 which was exceeded by $1,230 in the Construction Management Change Order No. 1.

The total cost associated with the change orders, executed and anticipated, when applied against the contingency, previously re-appropriated funds and budget adjustments, indicates an additional $53,000 is needed to complete the project.

 

Analysis:

The project will exceed the current total budget, including contingencies, and create a need for approximately $53,000 in additional funds.

A transfer of funds from Project No. CIP 00-630 Pier Renovation, Phase III budget (001 General Fund account), will provide the funding necessary to complete Project No. CIP 98-621 Pier Project, Phase II. Originally, Phases I, II, and III were all part of one major Pier Project. This project was split into three phases to expedite the completion of the project. Transferring funds between phases would be budget readjustments to the Pier Project as a whole.

 

Fiscal Impact:

Transfer funds as follows:

    ACCOUNT AMOUNT

• From: CIP 00-630 Municipal Pier Renovation, $53,000 -- Phase III – General Fund
                                                                                                       (001-8630-4201)
• To: CIP 98-621 Municipal Pier Renovation, $53,000 -- Phase II – General Fund
                                                                                                       (001-8621-4201)

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