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CC 2015-06-23_08m Acceptance_Police Station Addition and ImprovementsMEMORANDUM TO: CITY COUNCIL FROM: BY: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR MIKE LINN, ASSISTANT CITY ENGINEER SUBJECT: CONSIDERATION OF ACCEPTANCE OF THE POLICE STATION ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-08 DATE: JUNE 23, 2015 RECOMMENDATION: It is recommended the City Council: 1. Accept the project improvements as constructed by GLR Construction, Inc. in accordance with the plans and specifications for the subject project; 2. Direct staff to file a Notice of Completion; and 3. Authorize release of the retention, after the Notice of Completion has been recorded, if no liens have been filed. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The City Council authorized $1,843,976 for performance of the construction contract. Staff will return at a future date with a complete itemization of all components associated with the project (design, construction, relocation, etc.) upon resolution of an outstanding construction claim with the contractor. BACKGROUND: On May 27, 2014, the Council awarded a construction contract to GLR Construction Inc. to construct the Police Station Addition I Tenant Improvements Project in the amount of $1,676,342 and authorized the City Manager to approve change orders in the amount of $167,634. On June 23, 2014, staff issued a Notice to Proceed to GLR Construction, Inc., establishing the contractual completion date at December 29, 2014. On March 9, 2015, due to legitimate delays to the project critical path for various construction issues, staff granted an additional 55 calendar days to the project, extending the contractual completion date to February 23, 2015. Item 8.m. - Page 1 CITY COUNCIL CONSIDERATION OF ACCEPTANCE OF THE POLICE STATION ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-08 JUNE 23, 2015 PAGE2 On April 3, 2015, the City granted Substantial Completion to GLR Construction, Inc. for the project and developed a punchlist of remaining items to be completed prior to Final Acceptance. This allowed the Police Department to mobilize equipment and manpower into the building and relocate personnel from the temporary facility at the Womens · Center. On April 20, 2015, the City issued a formal letter memorializing the April 3, 2015 Substantial Completion and informing GLR Construction, Inc. of the City's intent to assess liquidated damages, in accordance with the terms of the contract, in the amount of $36,000 (40 calendar days x $900 per calendar day). On May 11, 2015, GLR Construction, Inc. forwarded a letter to the City titled "Delay Impacts; Request for Equitable Adjustment" for extended field and administrative costs in the amount of $142,342. Staff responded to the letter on June 9, 2015, requesting clarification and further documentation to further analyze the request. ANALYSIS OF ISSUES: On Friday, June 5, 2015, GLR Construction, Inc. completed the punchlist tasks in accordance with the approved plans and specifications. There are no outstanding work issues. However, the construction claim remains under review. Staff requests that Council acknowledge the project as complete and direct staff to issue a Notice of Completion. In accordance with the requirements of the Public Contract Code, staff retains 5% of the project funds, throughout the project. Filing a Notice of Completion will allow staff to release the retained funds to the contractor. Staff will deduct the amount of the assessed liquidated damages from the final retention amount. Staff will continue to work on the resolution of the construction claim with the contractor and will return to Council at a future date with a complete itemization of project expenditures including all design, construction, relocation, furnishings, etc. ALTERNATIVES: The following alternatives are provided for the Council's consideration: Approve staff's recommendation to accept the construction as complete and issue a Notice of Completion; Do not accept the project; -Accept the project, but do not authorize release of retention; or Provide direction to staff. Item 8.m. - Page 2 CITY COUNCIL CONSIDERATION OF ACCEPTANCE OF THE POLICE STATION ADDITION I TENANT IMPROVEMENTS PROJECT, PW 2014-08 JUNE 23, 2015 PAGE 3 ADVANTAGES: Accepting the improvements allows staff to file a Notice of Completion to release the retaintion, less the amount of liquidated damages. This is a procedural task and staff will return at a future date with a complete itemization of project expenses upon resolution of the construction claim. DISADVANTAGES: Issuing a Notice of Completion accepts all work performed by the contractor. The contract documents include a one-year warranty period for the contractor to address any construction defects that may arise. ENVIRONMENTAL REVIEW: The project is categorically exempt from CEQA pursuant to Section 15301 (e). PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, June 18, 2015. The Agenda and report were posted on the City's website on Friday, June 19, 2015. No public comments were received. Attachment: 1. Notice of Completion Item 8.m. - 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 ofthe OWNER is: ....2..!Th_,_,e'---'C'='!.!..ity~o[,_,A'-'-'r'-!.r"'"o""'vo~G"-'ra""n""'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 ofthe undersigned is: --'-"in:...t=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 if the 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 June 5 20I5 8. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: GLR Construction Inc. 9. The street address of said property is: 200 North Halcyon Road. Arroyo Grande. CA 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: Police Station Addition I Tenant Improvements Project. PW 2014-17 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 June 24, 2015, Arroyo Grande, California --END OF DOCUMENT-- Item 8.m. - Page 4