CC 2014-09-23_08.f. Acceptance of Old Ranch Road ImprovementsMEMORANDUM
TO: CITY COUNCIL
FROM:
BY:
GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
MIKE LINN, CAPITAL PROJECTS ENGINEER
SUBJECT: CONSIDERATION OF ACCEPTANCE OF THE OLD RANCH ROAD
PROPERTY IMPROVEMENTS (TRACT 3018), PROJECT PW 2013-10
DATE: SEPTEMBER 23, 2014
RECOMMENDATION:
It is recommended the City Council:
1. Accept the project improvements as constructed by Souza Construction, Inc. in
accordance with the plans and specifications for the subject project;
2. Direct the City Clerk to file a Notice of Completion;
3. Appropriate an additional $3,500 from the General Fund to the project budget;
and
4. Authorize release of the retention, thirty-five (35) days after the Notice of
Completion has been recorded, if no liens have been filed.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
The amended Capital Improvement Program budget included $161,040 for the project.
The actual total construction project cost, including authorized construction changes, is
$127,381. The total cost of the project, including all design, construction, contract
administration, inspection and testing costs is approximately $164,500. Staff requests
an additional $3,500 from the General Fund to address additional administrative project
expenses. The proceeds received from the sale of the residential lots are sufficient to
support this request.
BACKGROUND:
On February 12, 2013, the City Council approved Final Tract Map 3018, subdividing 5
acres of vacant land at the northwest corner of West Branch Street and Old Ranch
Road into four (4) Single Family Residential Lots and one (1) Public Facility Lot.
The revenue derived from selling the lots is intended to finance improvements for a
future Police Station project. Staff developed a capital improvement project to provide
utility improvements to the three northern lots to make them more attractive for
Item 8.f. - Page 1
CITY COUNCIL
CONSIDERATION OF ACCEPTANCE OF THE OLD RANCH ROAD PROPERTY
IMPROVEMENTS (TRACT 3018), PROJECT PW 2013-10
SEPTEMBER 23, 2014
PAGE2
purchase by private entities. The southernmost lot is reserved for future access
purposes and/or additional parking for future development of the Public Facility Lot.
On June 10, 2014, Council awarded a construction contract to Souza Construction, Inc.
in the amount of $109,200 and authorized the City Manager to approve change orders
in the amount of $21,840 for the Old Ranch Road Property Improvements Project. The
project scope of work included the installation of City utility services (water, sewer and
stormwater) and the installation of a joint utility trench for gas, electric, cable, and
telephone services.
On July 8, 2014, the City Council appropriated an additional $30,000 to the project
budget to address PG&E design and construction expenses.
ANALYSIS OF ISSUES:
The contractor has 9ompleted the work in accordance with the approved plans and
specifications. There are no outstanding issues.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
-Approve staff's recommendations accepting the project improvements;
-Do not accept the project improvements;
-Accept the project improvements, but do not authorize release of retention; or
-Provide direction to staff.
ADVANTAGES:
The project is complete. Accepting the improvements will allow staff to close out the
project, return any remaining funds to the fund balance, and close escrow on sale of the
properties.
DISADVANTAGES:
The disadvantage of accepting the improvements would be if subsequent deficiencies in
the work are identified. However, the contract documents include a one-year warranty
period for the contractor to address any construction defects that may arise. The
additional expenditures will be deducted from the proceeds received from the sales of
the residential lots.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from CEQA pursuant to Section 15332.
Item 8.f. - Page 2
CITY COUNCIL
CONSIDERATION OF ACCEPTANCE OF THE OLD RANCH ROAD PROPERTY
IMPROVEMENTS (TRACT 3018), PROJECT PW 2013-10
SEPTEMBER 23, 2014
PAGE3
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, September 18, 2014. The
Agenda and report were posted on the City's website on Friday, September 19, 2014.
No public comments were received.
Attachment:
1. Notice of Completion
Item 8.f. - Page 3
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
CITY CLERK
CITY OF ARROYO GRANDE
300 EAST BRANCH STREET
ARROYO GRANDE, CA 93420
NOTICE IS HEREBY GIVEN THAT:
Attachment No. 1
NOTICE OF COMPLETION
I. The undersigned is owner or agent of owner of the interest or estate or the property hereinafter described as stated below.
2. The FULL NAME of the OWNER is: ~Th~e~C=1~·1y~o"""f~A~r~ro .... y=o~G~r=an~d=e~----------------
3. The FULL ADDRESS of the OWNER is: 300 East Branch Street. Arroyo Grande. California 93420
4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: _,=·n'"'""fi=ee,__ _________ _
5. THE FULL NAME and FULL ADDRESS of ALL PERSONS, if any, who hold such interest or estate with the undersigned as JOINT
TENANTS or as TENANTS IN COMMON are:
NAMES ADDRESSES
None
6. THE FULL NAMES and FULL ADDRESSES of the PREDECESSOR'S in interest of the undersigned ifthe property was transferred
subsequent to the commencement of the work of improvements herein referred to:
NAMES ADDRESSES
None
7. All work of improvement on the property hereinafter described was COMPLETED August 15. 2014
8. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is:
Souza Construction. Inc.
9. The street address of said property is: Three residential lots in the 300 Block of Old Ranch Road (east side)
I 0. The property on which said work of improvement was completed is in the City of Arroyo Grande, County of San Luis Obispo, State
of California, and is described as follows: Old Ranch Road Property Improvements (Tract 3018) Project. PW 2013-10
Verification of NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California
that I am the Director of Parks, Recreation and Facilities of the aforesaid interest or estate in the property described in the above notice; that
I have read the said notice, that I know and understand the contents thereof, and the facts stated therein are true and correct.
Geoff English, Public Works Director
September 24, 2014, Arroyo Grande, California
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Item 8.f. - Page 4