APPROVE AN INCREASE TO THE AUTHORIZED PROJECT CONTINGENCY RELATED TO THE CONSTRUCTION CONTRACT FOR THE HOLT BOULEVARD TRUNK SEWER PHASE B FROM LEMON AVENUE TO WEST OF SAN ANTONIO AVENUE / UTAH PACIFIC CONSTRUCTION COMPANY

SUBJECT:

APPROVE AN INCREASE TO THE AUTHORIZED PROJECT CONTINGENCY RELATED TO THE CONSTRUCTION CONTRACT WITH UTAH PACIFIC CONSTRUCTION COMPANY FOR THE HOLT BOULEVARD TRUNK SEWER PHASE B FROM LEMON AVENUE TO WEST OF SAN ANTONIO AVENUE

RECOMMENDATION: That the City Council approve an increase of $71,600 to the authorized project contingency related to Contract No. SE0601-B with Utah Pacific Construction Company, of Murrieta California, for the Holt Boulevard Trunk Sewer Phase B from Lemon Avenue to west of San Antonio Avenue, and revise the total contract authority to include a base contract award of $2,294,240 and a total revised contingency of $415,736 ($344,136 original plus $71,600) for a total of $2,709,976.

COUNCIL GOALS: Develop Strategies And Take Actions To Minimize The Negative Impacts Of The Global Financial Downturn On Ontario’s Economy And The City’s Fiscal Health

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains And Public Facilities)

FISCAL IMPACT: The Fiscal Year 2007-08 Capital Improvement Program allocated $4,136,060 of Sewer Capital funds for construction of the project. In June 2008, the City Council awarded to Utah Pacific Construction Company a contract in the amount of $2,294,240 and authorized a fifteen percent (15%) contingency of $344,136.

A portion of the contingency ($71,600) was used to address the Redevelopment Agency’s (RDA) request to divert flows from the alley south of Holt Boulevard, allowing the alley to be vacated and the property developed. Reimbursement from RDA to the sewer capital fund was included in the FY 2008-09 Mid-Year Budget Report. Because further unforeseen conditions may still exist, replenishment of $71,600 of the authorized contingency is recommended. The proposed increase of $71,600 would bring the total contingency amount to just over eighteen percent (18%), or $415,736.

BACKGROUND: This project provides for the construction of 4,060 lineal feet of sewer main in Holt Boulevard from Lemon Avenue to west of San Antonio Avenue (as shown on the attached location map). The sewer is needed to handle excess sewer flows that will be generated from the proposed land use changes and current and future developments in the Ontario Town Center area. Sewer flows will be diverted to the newly constructed IEUA Upland Interceptor. The sewer diversion will save the City an estimated $10 million of downstream sewer system upgrades.

The Holt Trunk Sewer Phase B project is approximately 90% complete with full completion anticipated in April, 2009. There have been numerous unforeseen conditions during the project due to utility conflicts and a lack of documentation that correctly reflected existing conditions. Examples of construction changes that utilized the existing authorized contingency include RDA’s request to construct a sewer in Lemon Avenue to divert existing sewer flows from the alley east of Euclid Avenue, changes to accommodate field conditions at several points of connection, extension of the tunnel conduit under Euclid Avenue and an increase in the diameter of several manholes.

STAFF MEMBER PRESENTING: Louis Abi-younes, P.E., City Engineer