07-13-2004 CC RPT 19 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE AGENCY MEMORANDUM Riverside ill,America Clt~ 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: July 13, 2004 ITEM NO: SUBJECT: MARKET STREET IMPROVEMENTS PROJECT PHASE I - SUPPLEMENTAL APPROPRIATION BACKGROUND: On June 20, 2003, the City awarded a $2,458,606 contract to H & H General Contractors Inc. ("Contractor") for the construction of the Market Street Phase I Improvement Project between SR 60 and Fairmount. The project was funded by a combination of Economic Development Grant and City Redevelopment Funds. In addition, the Riverside County Flood Control District contributed $160,000 towards construction of the box culvert. Construction of this project began on July 21, 2003, and was completed on May 20, 2004. CURRENT ISSUE: At this time, all of the contract contingency funds have been exhausted. Appropriation of additional funds is necessary to pay the contractor for additional work required to complete the project, settle a claim for delay, and for the cost of additional fill material. The additional work included expanding the landscaping to eliminate barren areas, additional storm drain work as a result of changed site conditions and the addition of five Raincross-style street lights in the median. The delay claim is a result of encountering three previously unknown underground telephone cables, which resulted in the relocation of these cables. In addition, the contract documents understated the quantity of fill necessary to construct this project. The cumulative total of these changes brings the final contract cost to $2,760,423.28 resulting in a net increase of $301,817.28 or 12.3% over the original contract amount. The authorized change order authority on this project is 25%. This brings the total cost of the project to $3,195,145.57 including included design, construction and contract administration. This exceeds the $3,069,331.06 originally appropriated for this project by $125,814.51. Staff is requesting an additional appropriation of $180,000 to cover the funding shortfall and for the final paving of the roadway that will occur after construction of the proposed office building on the northside of the street. FISCAL IMPACT: Sufficient funds are available in the Downtown/Airport Fund Balance Account Number 0000478-298000 to appropriate $180,000 to the Market Street Improvements Account Number 9772600-440446. ALTERNATIVES: The Redevelopment Agency Board may elect to not authorize the additional fund appropriation. However, this alternative could result in the Agency and/or City incurring additional costs, including legal fees, should the contractor file a lawsuit to recover its costs. 19-1