Title:
Title
Construction Change Order and Transfer of Funds for The Ramona Avenue Extension Project (T15018400)
End
FileID
File ID: 2018-01475
Location
Location: Districts 3 and 6.
Recommendation:
Recommendation
Pass a Resolution: 1) authorizing the City Manager or the City Manager’s Designee to: a) execute Construction Change Order No. 4 to City Agreement No. 2018-0194 with McGuire & Hester in an amount not to exceed $318,243, for a new total not-to-exceed amount of $6,939,348; b) increase revenue and expense budgets in the Ramona Avenue Extension Project (T15018400) by $597,526 (Fund 2001) with a transfer from the R Street Streetscape Phase III Project (T15135900); c) increase expense budget for the Ramona Avenue Extension Project (T15018400) by $650,000 (Fund 2007) with a transfer from available fund balance; d) increase expense budget in the R Street Streetscape Phase III Project (T15135900) by $300,000 (Fund 2007) with a transfer from available fund balance; and 2) resetting the City Manager’s authority to issue Change Orders for City Agreement No. 2018-0194.
Contact: Philip Vulliet, Senior Civil Engineer, (916) 808-5092; Nader Kamal, Interim Engineering Services Manager, (916) 808-7035, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Construction Change Order #4 - McGuire & Hester (2018-0194)
Description/Analysis
Issue Detail: The Ramona Avenue Extension Project will improve pedestrian and vehicular connectivity to the north and south of U.S. Highway 50 with an extension of Ramona Avenue from Brighton Avenue to Folsom Boulevard. The project will construct a new two-lane roadway that includes bicycle lanes in both directions and a separated sidewalk with landscaping adjacent to northbound traffic. The extension will include a new at-grade crossing of Union Pacific Railroad tracks, a retaining wall underneath Highway 50, a signalized intersection on Folsom Boulevard, sidewalk gap closures on Folsom Boulevard, a roundabout at the intersection of Ramona Avenue and Brighton Avenue, a 12” water line, and fiber optic conduit to serve the future Sacramento Center for Innovation.
The project is funded through a combination of federal and local sources. The construction contract for the project was advertised on November 15, 2017 and awarded to McGuire and Hester on February 6, 2018.
On May 30, 2017, City Council passed a Resolution of Necessity authorizing the City Manager and City Attorney to initiate eminent domain proceedings to acquire real property interests within parcel 015-0033-009. Subsequent to that action City staff and attorneys have continued negotiations in parallel with eminent domain court proceedings with no resolution on compensation value. On September 27, 2018, a jury presiding over the case made a ruling that compensation for this property right shall be made in the amount of $540,402.50. City Council action is required to transfer additional funds to the project to facilitate this payment. Per court order this payment is due by November 10, 2018.
To date, three construction change orders have been processed addressing changes to bid documents, City initiated changes, and unforeseen site conditions. These previous change orders have exhausted the City Manager authority to issue change orders on the contract. Additional contract changes are required to accommodate additional paving, address utility conflicts in the field, and make required revisions to the Union Pacific Railroad (UPRR) crossing installation. Approval of construction change order No. 4 in the amount of $318,242 and transfer of additional funds is required to complete construction efforts and open Ramona Avenue to traffic in late 2018/early 2019.
Policy Considerations: The project is consistent with the City’s 2035 General Plan goal of improving system connectivity. It removes a significant automotive, pedestrian, and bicycling barrier from Ramona Avenue to Folsom Boulevard that is created by Highway 50.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA/NEPA): The City of Sacramento prepared an Environmental Impact Report (SCH#2011072031) for the Ramona Avenue Extension Project in accordance with the California Environmental Quality Act (CEQA), and an Environmental Assessment in accordance with the National Environmental Policy Act (NEPA). Design and construction of the at-grade crossing is consistent with the findings in the environmental document.
Sustainability: The Project will create a convenient and safe bicycle and pedestrian connection from future student housing south of Folsom Boulevard to the CSUS campus, the University/65th Street Light Rail Station, and commercial properties on Folsom Boulevard. This connection will encourage active transportation which will reduce greenhouse gas emissions and is consistent with the transit-oriented development identified for Folsom Boulevard in the 65th Street Station Area Study.
Commission/Committee Action: None
Rationale for Recommendation: Approval of fund transfers is required to make the required compensation payment to the property owners of parcel 015-0033-009. Per the terms of the court order, this payment must be made by November 10, 2018.
Approval of Construction Change Order No. 4 and transfer of additional funds to cover the costs of the change order and remaining construction costs is required to complete construction of the proposed improvements and keep the project on schedule to open in January 2019.
Financial Considerations: The estimated project costs of the Ramona Avenue Extension Project (T15018400), including payment for right of way acquisition and all estimated construction costs to complete the project, is estimated at $16.1 million.
The transfer of $597,526 (Fund 2001) from the R Street Streetscape Phase III Project (T15135900) and $650,000 (Fund 2007) from the Major Street Construction Tax available fund balance will bring the total budget to $16,154,794 and provide sufficient funds in the Ramona Avenue Extension Project (T15018400) to pay for property costs of $540,402.50, cover the cost associated with Construction Change Order No. 4, and provide for remaining project costs for the completion of construction.
The transfer of $597,526 in Measure A Construction (Fund 2001) from the R Street Streetscape Phase III Project (T15135900) will remove surplus funding not needed to complete the R Street project and will ensure that the City is able to expend its original Measure A Construction funds in a timely fashion. The transfer of $300,000 (Fund 2007) from the Major Street Construction Tax available fund balance to the R Street Streetscape Phase III Project (T15135900) will allow the R Street project to remain fully funded until the project receives its scheduled loan repayments from the Capital Area Development Agency (CADA).
There are no General Funds planned or allocated for this project.
Local Business Enterprise (LBE): The contract with McGuire and Hester is a federally funded contract and as a result Disadvantaged Business Enterprise (DBE) project participation requirements apply. LBE rules are held in abeyance. The contract award will comply with all federal DBE participation requirements. McGuire and Hester pledged 20.4% DBE project participation, exceeding the 7.00% DBE goal set for this contract.