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TO:HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM:DIRECTOR OF PUBLIC WORKS
DATE:MARCH 4, 2003
SUBJECT:SAN RAMON DRAINAGE AND LANDSLIDE STABILIZATION PROJECT – REQUEST FOR ADDITIONAL FUNDING
Staff Coordinator: Nicole Jules, Sr. Engineer
The San Ramon Drainage and Landslide Stabilization project has been under construction since October 2001. During this time, a buttress fill of about 82,000 cubic yards have been placed to stabilize the landslide; an intricate drainage system has been constructed which includes 4" sub drains, 6" canyon drains, terrace drains and a 36" subsurface storm drain with an energy dissipating outlet structure which carries storm water away from the San Ramon neighborhood and into the canyon. Remaining activities include, placement of the irrigation system in the upper 50’ of the canyon for fire protection, re-vegetation of the canyon slope, construction of the asphalt concrete road, and restoration of private properties that were disturbed during the construction.
The project was delayed for a total of 134 working days. This delay was due to the outlet structure redesign. The outlet structure redesign was completed in 4 months, resulting in a construction delay of 6 months. During the delay period, construction management and inspection services continued on a time and material basis. Construction management services were needed to assist staff with contract negotiations, schedule revisions and review, submittal review and response to homeowner requests. Geotechnical inspection services were needed to monitor the slope and final placement of buttress fill as well as inspection of terrace drains.
The additional six months of construction management and inspection services were not accounted for in the revised project budget. Harris and Associates’ professional service contract of $349,300 was awarded on October 2, 2001 with the understanding that the project would be completed by December 15, 2002. As we approach the conclusion of the project, additional funds are needed to continue construction management services. The cost related to additional construction management services are $123,590.
In addition to construction management related activities, additional construction related expenditures have been incurred. Shortly after the construction of the outlet structure, the side slopes adjacent to the structure began to fail due to instability. To maintain worker safety, it was necessary to construct a pair of retaining walls backfilled with concrete slurry for slope stability. Additionally, homeowners have requested the City’s assistance, by way of the Contractor, to perform relatively minor improvements to their property, as well as, their preference on minor details of the project. Homeowner requests have added additional costs to the contract amount. Such requests include: modifications to the design of roadway by adding a concrete swale down the middle of the road and replacing the red wood header with a concrete mow curb. Additionally, they’ve requested removal of a hedge, removal of a wood deck, installation of a wood fence, property-line markers, relocation of a palm tree, reconstruction of three driveways, placement of additional spit-rail fencing, additional landscape improvements and washing of their homes to remove the dust created by the project. The estimated cost for these improvements is $147,644.
Lastly, during the preparation of this staff report, staff determined a potential shortfall in the San Ramon Drainage and Landslide stabilization project budget. On October 2, 2001, staff requested adoption of Resolution No. 2001-xxx, approving a budget adjustment to increase the San Ramon Project budget by $1,150,000, from $2,000,000 to $3,150,000. This increase was to award and amend several contracts as well as pre-purchase HDPE pipe for a total authorization of $3, 406,331. Unfortunately, due to a clerical error, the resolution approving the budget adjustment was less than what was needed, resulting in a budget shortfall of $219,833. When contracts were awarded and construction commenced, the project budget started with a negative balance. A copy of the October 2001 staff report and resolution is attached.
The following table is a summary of the project budget over-run:
San Ramon Additional Funding
Starting this project with a budget shortfall of $219,833, having to extend the construction management services for an additional six months, coupled with construction safety concerns and accommodating homeowner requests, resulted in a total project budget increase of $491,067. Adopting this staff recommendation will provide the necessary additional funding for construction improvements and management services to complete the San Ramon Drainage and Landslide stabilization Project. Additionally, this recommendation will grant a change order to Colich & Sons for the satisfactory restoration of private properties adjacent to the project site.
If the Council decides to proceed with staff recommendations, the FY02-03 Capital Improvement Fund appropriation for this project would need to be increased by $491,067 for a total budget amount of $4,646,686. A resolution has been prepared for the budget adjustment. The source of the funds is the General Fund.
The FY2002-2003 estimated General fund revenues in excess of adopted expenditures are only $827. Therefore, the additional appropriation for this project cannot be funded within this year’s anticipated revenues and will have to be drawn from the General fund reserve. The calculation of the projected General fund reserve available for appropriation, which is below the reserve policy level, is summarized below.
Dean E. Allison
Director of Public Works
October 2, 2001 Staff Report
Resolution No. 2001-81
Resolution No. 2003-xxx
RESOLUTION NO. 2003-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, AMENDING RESOLUTION 2002-45, THE BUDGET APPROPRIATION FOR FISCAL YEAR 2002-03, FOR A BUDGET ADJUSTMENT TO THE CITY’S GENERAL FUND
WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council; and
WHEREAS, on June 12, 2002, the City Council of the City of Rancho Palos Verdes adopted Resolution 2002-45, approving a spending plan and authorizing a budget appropriation for the 2002-03 fiscal year; and
WHEREAS, it is necessary for the City to allocate additional funds for construction of the San Ramon Drainage and Landslide stabilization project,
WHEREAS, a budget increase in the Capital Improvement Projects Fund is necessary to authorize the expenditure of additional funds for the project.
BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:
The following adjustments be made to the Capital Improvement Projects Fund budget:
CIP #330-930-35Professional/Technical Srvcs$123,590
CIP #330-930-82Improvements other than Bldgs $367,477
CIP #330-391.10Transfer in from General Fund$491,067
General Fund#001-391.20Transfer out to CIP Fund$491,067
PASSED, APPROVED, AND ADOPTED THE 4th DAY OF MARCH, 2003.
Resolution No. 2002-
Page 1 of 2
State of California)
County of Los Angeles)ss
City of Rancho Palos Verdes)
I, JO PURCELL, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2003- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on March 4, 2003
CITY OF RANCHO PALOS VERDES