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