TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: April 4, 2006

SUBJECT: AUTHORIZATION FOR COUNCIL TO AWARD A CONSTRUCTION CONTRACT FOR THE RELOCATION OF THE STORM DRAIN AT 7460 ALIDA PLACE TO GCI Construction, INC. AND CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES TO DMc ENGINEERING

Staff Coordinator: Bindu Vaish, Assistant Engineer

RECOMMENDATION:

1. Award a contract for the relocation of the storm drain at 7460 Alida Place to GCI Construction, Inc. for an amount not to exceed $80,808 and authorize staff to spend an additional $8,080 for potential change orders which may result from unforeseen conditions for a total authorization of $88,888.
2. Authorize the Mayor and City Clerk to execute contract with GCI Construction, Inc.
3. Authorize the expenditure of up to $9,600 for inspection services with DMc Engineering under their on-call services contract.
4. Adopt Resolution 2006-___, a resolution of the City Council for the City of Rancho Palos Verdes, amending Resolution 2005-53, the budget Appropriation for fiscal year 2005-2006, for a budget adjustment to the City’s Storm Drain Maintenance Program Fund.

BACKGROUND

In late 2003, city staff was informed by the property owner of 7460 Alida Place that the city storm drain on his property is not in the recorded easement. City staff hired a consultant to investigate the location of the storm drain.The consultant confirmed that the storm drain is on private property and not on the recorded easement.

In August 2005 city staff went to the city council and received authorization to prepare engineering plans and specifications to abandon the existing storm drain and construct new storm drain outside private property (attachment A). Plans and specifications were completed in Jan. 2006.

DISCUSSION:

In Jan. 2006 the storm drain relocation project was advertised. Seven bids for proposed construction were received as follows:

BID SUMMARY RESULTS

Contractor	Bid Amount
GCI Construction, Inc.	$80,808
Garcia Juarez Construction Inc.	$85,000
R&L Sewers	$100,400
Excel Paving Company	$122,860
SRD engineering	$147,270
Colich & Sons, L.P.	$151,440
Y&M Construction	$173,992

Out of these seven bidders, GCI construction has the lowest bid. City staff has also checked references including the city of Palos Verdes Estates, and the City of Dana Point. These references have confirmed that GCI had completed work within budget, on time and with good workmanship. Based upon GCI’s bid and references, city staff recommends that the construction contract should be awarded to GCI in the amount not to exceed $88,888.

In addition the relocation of the storm drain construction will require construction management and inspection services for 45 days. The firm of DMc engineering has been retained by the City to provide on call professional services and has provided a proposal for construction management and inspection services at a cost not to exceed $9,600. Therefore, staff recommends that DMc engineering be authorized to provide the necessary inspections for this project.

The total cost of this project including, construction, construction management and contingency is $98,480. Since the project was not adopted in the 2004-2005 fiscal year approved budget, additional fund approval is required in the storm drain maintenance fund. City staff recommends that an amount of $98,480 should be transferred from the general fund reserve to the storm drain maintenance fund.

CONCLUSION

In conclusion the results of adopting staff recommendation includes:

•Abandon existing storm drain and construct new storm drain outside private property at the cost of $98,480.

•Transfer $98,480 from general fund reserve to storm drain maintenance fund.

FISCAL IMPACT

Funding for this project must come from General Fund Reserves see (resolution 2006_ as attachment "B"). An estimated General Fund reserve at June 2006 is presented in attachment "C".

Respectfully Submitted,

Ray Holland.

Director of Public Works

Reviewed,

Les Evans

City Manager

Attachments:

Attachment "A" Staff Report "Agreement with property owner at 7460 Alida Place"

Attachment "B" Resolution No. 2006-

Attachment "C" FY 05-06 Statement of Estimated General Fund Reserves

Attachment "A"

Attachment "B"

RESOLUTION NO. 2006-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY RANCHO PALOS VERDES AMENDING RESOLUTION NO. 2005-53, THE BUDGET APPROPRIATION FOR FISCAL YEAR 2005-2006, FOR A BUDGET ADJUSTMENT TO THE CITY’S GENERAL FUND AND CIP FUND.

WHEREAS, Section 3.32 of the City of 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 of Rancho Palos Verdes adopted Resolution 2005-53, approving a spending plan and authorizing a budget appropriation

for the 2005-2006 fiscal year; and

WHEREAS, it is necessary for the City to allocate additional funds to storm Drain Improvements; and

WHEREAS, a budget increase in the General Fund, and CIP 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:

That the following adjustment be made to the Infrastructure Improvement Administration Fund and General Fund:

INFRASTRUCTURE IMPROVEMENT ADMINISTRATION	330-3030-461-73-00	IMPROVEMENTS	$88,888
INFRASTRUCTURE IMPROVEMENT ADMINISTRATION	330-3030-461-32-00	PROFESSIONAL	$9,600
INFRASTRUCTURE IMPROVEMENT ADMINISTRATION	330-3030-391-10-00	TRANSFER IN	$98,480
GENERAL FUND	101-6000-491-91-00	TRANSFER OUT	$98,480

PASSED, APPROVED, AND ADOPTED THE 21^st day of February 2006.

ATTEST:

MAYOR CITY CLERKState 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. 2006-___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on February 21, 2006.

________________________

City Clerk

State of California )

County of Los Angeles ) ss

City of Rancho Palos Verdes )

Attachment "C"

FY 05-06 Statement of Estimated General Fund Reserves

	Action Date	Beginning Reserves	Revenues	Expenditures	Net Transfers	Ending Reserves
Budget Adoption (estimate)	5/31/2005	11,179,791	14,725,750	(13,087,680)	(2,441,401)	10,376,460
Changes:
NCCP Lobbyist (Jul-Sep 2005)	6/21/2005			(15,000)
Mira Vista Speed Humps	6/21/2005			(60,380)
Founders Park Dedication & Channel 33 Openhouse	8/16/2005			(13,500)
General Plan Amendment Third Party Review	9/20/2005			(3,500)
Disaster Grant Management Consultant	10/4/2005			(25,000)
Increased Traffic Enforcement	11/1/2005			(81,748)
Disaster Communications Facility	11/15/2005			(52,338)
PVIC Exhibits	11/15/2005		125,000	(644,279)
Additional Storm Drain Lining	11/15/2005				(459,700)
Ponteverde Storm Drain	12/6/2005				(120,000)
California Contract Cities Association Meeting	12/6/2005			(2,500)
Lobbyist for Proposed Coastal Protection Bond	12/6/2005			(18,000)
Additional GPS Monitoring	12/20/2005				(35,000)
Additional City & Contract Engineering	12/20/2005			(120,000)
Forrestal Trail Repairs	1/17/2006				(25,000)
FY04-05 Audit And Close Results	2/21/2006	3,029,644
Property Tax In-Lieu of VLF	2/21/2006		667,844
Revised Estimates		14,209,435	15,518,594	(14,123,925)	(3,081,101)	12,523,003
Reserve Policy Level						7,759,297
Reserves in Excess of Policy Level					161%	4,763,706
Column Heading Definitions
Action Date is the date City Council adopted the budget or an adjustment to the budget.
Beginning Reserves are the estimated 7/1/05 General fund reserves at the time of budget adoption.
Revenues include the originally adopted revenue budget and subsequent adjustments. When staff becomes aware that revenues are expected to significantly deviate from the adopted budget, an adjustment is presented to the City Council for approval.
Expenditures include the originally adopted expenditure budget and subsequent adjustments. When staff becomes aware that expenditures of a program are expected to significantly deviate from the adopted budget, an adjustment is presented to the City Council for approval.
Net Transfers include both operating transfers from and to the General fund. Originally budgeted Net Transfers are adjusted when staff becomes aware that an additional operating transfer is needed to satisfy an unanticipated shortfall within another fund; and that shortfall must be funded with General fund monies.
Ending Reserves are the estimated 6/30/06 General fund reserves at the time of budget adoption. Adjusted Ending Reserves is a calculation based on subsequent adjustments to Beginning Reserves, Revenues, Expenditures and Net Transfers.