NOVEMBER 1, 2005 REQUEST FOR ADDITIONAL FUNDS FOR:ENGINEERING AND INSPECTION SERVICES FOR THE POINT VICENTE INTERPRETIVE CENTER EXPANSION NOVEMBER 1, 2005 REQUEST FOR ADDITIONAL FUNDS FOR:ENGINEERING AND INSPECTION SERVICES FOR THE POINT VICENTE INTERPRETIVE CENTER EXPANSION NOVEMBER 1, 2005 REQUEST FOR ADDITIONAL FUNDS FOR:ENGINEERING AND INSPECTION SERVICES FOR THE POINT VICENTE INTERPRETIVE CENTER EXPANSION



TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: NOVEMBER 1, 2005

SUBJECT: REQUEST FOR ADDITIONAL FUNDS FOR:ENGINEERING AND INSPECTION SERVICES FOR THE POINT VICENTE INTERPRETIVE CENTER EXPANSION

Staff Coordinators: Anne Zaworski P.E., Sr. Engineer

RECOMMENDATION:

Adopt Resolution No.s. 2005-XXX and 2005-XXX; approving a budget adjustment of $85,691 to the capital Improvement Project Budget for the Point Vicente Interpretive Center Expansion project to cover additional construction management, geotechnical inspection and design costs.

BACKGROUND

On July 6, 2004, the City Council awarded the construction contract for Point Vicente Interpretive Center Expansion to MTM Construction Inc.  Construction of the expansion has been underway since October 4th, 2004 and the current final completion date is October 28, 2005. 

DISCUSSION

The Point Vicente Interpretive Center Expansion represents an important and critical addition to the City's public services and will remain a vibrant and much needed facility and park for decades to come.

Construction is now complete with a modest $3,394 over-run of the allocated budget. (See Exhibit A). The 10% contingency funds that had been established by Council are also fully exhausted, in large part due to a number of big-ticket items, which were added to the project post bid-award. These items included:

Additionally, design and construction change orders in the amount of $87,543 were approved for numerous exhibit-related changes to the building itself required by Exhibit Designer Michael Jurdan Inc. These changes, which were entirely paid for using the already approved and allocated funds for the Sea Cave included:

The original Sea Cave budget was also utilized to pay Exhibit Designer Jurdan’s fees of $33,765.50 (reduced by Parks and Recreation from the original $43,500 due to the submittal of incomplete design elements) and storage fees of $9,000 for all the original center’s exhibits. Consequently, the remaining balance in the Sea Cave budget is $44,691 which when added to Parks and Recreation’s current exhibit monies of $150,000 results in a current exhibit balance of $194,691. (See Exhibit A).

The severe winter rains of 2005 resulted in:

  1. a contract time over-run of one (1) month which resulted in an additional $20,000 in construction management costs and
  2. an additional $35,000 in additional geotechnical costs due to the inordinate amount of additional soil testing required

The upgraded veneer ties/waterproofing change order requested by the City’s Building Official resulted in:

  1. a contract time over-run of another (1) month, which resulted in an additional $20,000 in construction management costs.

Structural and electrical design services associated with the IT requested revisions, the whale sculpture base, pre-bid phase and other minor modifications resulted in an additional $26,970 in additional design costs.

The original approved funding for PVIC included a line item for asbestos removal in the amount of $40,000. Of this $40,000, only $7,800 was actually required to complete the asbestos removal. The remaining $32,200 was expended on other building-related costs such as the installation of cable television by Cox between Palos Verdes Drive West and the center’s new IT/server room and videoing and cleaning of the existing sewage force main, which resulted in a $21,313 balance. (See Exhibit A).

Because at the time of writing this report, staff has not finalized all of the contract change order paperwork, we are requesting a $14,000 contingency, which we do not anticipate, will be expended but which will provide assurance that another Council agenda item will not be required.

FISCAL IMPACT

The additional construction management, geotechnical inspection and design fees referenced in the discussion above create an $85,961 shortfall in the total budget funds allocated by Council for the project on July 6, 2004. (See Exhibit A). Consequently, staff is requesting additional funds in the amount of $85,961 to cover this shortfall. Staff has identified potential funding sources to cover this shortfall;

Quimby Park Dev.
$40,000
EET Dev. Impact Mit.
$45,240
RZH (Prop. 40)
$ 721

Total
$85,961

Roberti-Z'Berg-Harris Block Grant Bond of 2002 (Proposition 40) amounted to $113,221 of which $27,291 was allocated towards the original approved budget for PVIC. There is currently an unbudgeted balance of $721 remaining in this bond fund account. Therefore, staff recommends utilizing this unallocated $721 for the PVIC project. The attached resolution will amend the budget to reflect this additional amount.

Staff will then send the State the necessary paperwork to increase the RZH grant amount currently budgeted for PVIC from $27,291 to $28,012.

Staff will then utilize the $85,961 to fund the necessary change orders for CBM Consulting Inc, Group Delta, Merit Engineering and Ron Yeo. Staff will also issue a $92,576 change order to MTM utilizing $75,184 of the Sea Cave monies and $17,392 of the Asbestos fund balance as discussed above.

CONCLUSION

Adopting the staff recommendation will authorize staff to obtain the needed additional funds, which will be utilized to cover the additional construction management, geotechnical inspection and design costs which were incurred during the thirteen-month construction of PVIC.

Respectfully Submitted,

Ray Holland P.E.

Interim Director of Public Works

Reviewed,

Les Evans P.E.

City Manager

Attachments:

Exhibit A: PVIC Building Construction Final Balance Sheet

Resolution No. 2005-xxx

Resolution No. 2005-xxx

RESOLUTION NO. 2005-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2005-53, THE BUDGET APPROPRIATION FOR FY05-06, TO INCREASE THE BUDGET IN THE CAPITAL IMPROVEMENT PROJECTS 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 May 31, 2005, the City Council of the City of Rancho Palos Verdes adopted Resolution 2005-53, approving a spending plan and authorizing a budget appropriation for FY05-06: and

WHEREAS, a small amount of unencumbered Robert-Z’Berg-Harris Block Grant Bond of 2002 (Proposition 40) grant monies remains available to the City for park purchases and improvements; and

WHEREAS, the City Council desires that the FY05-06 budget appropriation for CIP expenditures be increased to encumber remaining available Robert-Z’Berg-Harris Block Grant Bond of 2002 (Proposition 40) grant monies.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

The following adjustment be made to the FY05-06 budget:

Adjust the CIP fund budget as follows:

Park Improvements #330-3033-461-72-00 PVIC Improvements
$721
RZH Prop 40 #330-3033-334-10-00 Grant Revenue
$721
     
     

PASSED, APPROVED, AND ADOPTED THE 1st DAY OF NOVEMBER 2005.

___________________________

MAYOR

ATTEST:

______________________

CITY CLERK

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, CAROLYNN PETRU, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2005- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on November 1, 2005.

_____________________________

CITY CLERK

CITY OF RANCHO PALOS VERDES


RESOLUTION NO. 2005- XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, AMENDING RESOLUTION 2005-53, THE BUDGET APPROPRIATION FOR FY05-06, TO INCREASE THE BUDGETS IN THE CAPITAL IMPROVEMENT PROJECTS, QUIMBY, AND ENVIRONMENTAL EXCISE TAX FUNDS

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;

WHEREAS, on May 31, 2005, the City Council of the City of Rancho Palos Verdes adopted Resolution 2005-53, approving a spending plan and authorizing a budget appropriation for FY05-06;

WHEREAS, a budget increase in the General Fund is necessary to authorize expenditures for additional costs related to the Point Vicente Interpretive Center expansion project.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

Section One. The following increases be made to the Capital Improvement Projects, Quimby and Environmental Excise Tax fund FY05-06 budgets:

Park Improvements #330-3033-461-72-00 Improvements $85,240
Park Improvements #330-3033-391-10-00 Transfer In $85,240
Quimby Park Dev #334-3034-491-91-00 Transfer Out $40,000
EET Dev Impact Mit #338-3038-491-91-00 Transfer In $45,240

PASSED, APPROVED, AND ADOPTED THE 1st DAY OF NOVEMBER 2005.

MAYOR

ATTEST:

______________________

CITY CLERK

State of California )

County of Los Angeles )ss

City of Rancho Palos Verdes )

I, Carolynn Petru, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2005- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on November 1, 2005.

______________________________

CITY CLERK

CITY OF RANCHO PALOS VERDES