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CITY COUNCIL AGENDA ITEM NO. 22

Meeting Date: January 13, 2003

Subject/Title: Authorize a Contract Change Order with Associated Right of Way Services, Inc. for $54,000, and approve change orders up to 10% of the contract amount for the Walnut Boulevard Widening, CIP Project No. 336-3056.

Submitted by: Engineering: B. Grewal/P. Eldredge

Approved by: John Stevenson, City Manager

RECOMMENDATION
Approve a Resolution authorizing the City Manager to execute a contract change order with Associated Right of Way Services, Inc. for $54,000, and approve change orders up to 10% of the contract amount for the Walnut Boulevard Widening, CIP Project No. 336-3056.

PREVIOUS ACTION
On May 26, 1998, the City Council approved an updated Master Agreement, Administering Agency-State Agreement for Federal Aid Projects, 04-5300.

On June 27, 2000, the City Council authorized the City Manager to sign a design contract with Harris & Associates for the design of Walnut Boulevard Widening, CIP Project No. 336-3056, from Balfour Road to Oak Street, in an amount of $299,566.89, and authorized the City Manager to approve change orders up to 10% of the contract amount.

On March 13, 2001, the City Council authorized the City Manager to execute a Program Supplement Agreement No. 002-M to Administering Agency-State Agreement No. 04-5300 for reimbursement of costs for preliminary engineering for the Walnut Boulevard Widening Project, CIP No. 336-3056.

BACKGROUND
The City of Brentwood was awarded federal funding for the Walnut Boulevard Widening Project, CIP Project No. 336-3056 commencing with the 1997/98 fiscal year. In 1999 the City was authorized to proceed with preliminary engineering, including environmental certification from Caltrans. Several buildings in the middle of the project area were determined to be fifty years of age or older and the project went through a lengthy historic property review by the State Historic Preservation Office. This historic property review delayed project design, and in March 2001 Caltrans agreed the City could shift funding from the Walnut Boulevard Widening Project to the Brentwood Boulevard Widening Project (CIP Project No. 336-3054). However, to date the City has received reimbursement in the amount of $123,942, for preliminary engineering work, and therefore the project remains a Federal Aid Project.

The City continued to work on the project design until late 2001, bringing the plans up to 65% complete, but had to stop work until the City obtained environmental clearances and approval from Caltrans to proceed with appraisals and right of way acquisition which was obtained from Caltrans on September 12, 2003. Since then, the City has actively pursued the necessary property acquisitions and has reviewed the project design and specifications to reaffirm the status of the overall project. Because the project was put on hold for nearly two years, budgets for both the design and right of way issues will need to be increased due to inflationary costs, increased labor rates due to cost of living adjustments, and inefficiencies related to the long delay. When staff brings the design contract amendment to Council for approval, an updated project budget will be included in that staff report for Council review. However, it is prudent to continue with the right of way acquisition process; therefore, staff is requesting a contract amendment for right of way services prior to amending the design contract.

The initial contract for Associated Right of Way Services, Inc. (ARWS) was for $30,000 processed in August 2000. In March 2001, the City stopped all work on right of way when the project was postponed. Although some preliminary title reports were prepared during the preliminary engineering phase, these title reports are now outdated and cannot be used in any current negotiations. Furthermore, it has been discovered that at least one property owner within the project work area may not want to negotiate a settlement for the necessary property, which would require the City to initiate condemnation proceedings as a last resort. The current balance of this purchase order is approximately $9,000 and it has been estimated that an additional $54,000 will be needed to complete the work for a total revised contract price of $84,000 plus 10% contingency on the contract amount. This increase includes attendance at necessary project meetings, coordination with Caltrans and Contra Costa County, preparation of appraisal reports and summary appraisals, assist the City with negotiations with property owners, preparation of purchase agreements and offer letters and other documents as deemed necessary, all in accordance with state and federal rules and regulations to remain consistent with the federal aid guidelines.

FISCAL IMPACT
The funds for this work are paid for through federal funding ($190,000) and facility fees, which are included in the existing budget as approved by our current Capital Improvement Program 2003/08 as shown below. Staff will bring an updated project budget to Council for approval when it brings the amended design contract before Council for consideration.

The current project budget will cover the additional right of way costs associated with this request.

Attachments:
Resolution
Site Map
CIP Budget Sheet

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT CHANGE ORDER WITH ASSOCIATED RIGHT OF WAY SERVICES, INC. FOR $54,000, AND APPROVE CHANGE ORDERS UP TO 10% OF THE CONTRACT AMOUNT FOR THE WALNUT BOULEVARD WIDENING, CIP PROJECT NO. 336-3056.

WHEREAS, on May 26, 1998, the City Council approved an updated Master Agreement, Administering Agency-State Agreement for Federal Aid Projects, 04-5300; and

WHEREAS, on June 27, 2000, the City Council authorized the City Manager to sign a design contract with Harris & Associates for the design of Walnut Boulevard Widening, CIP Project No. 336-3056, from Balfour Road to Oak Street, in an amount of $299,566.89, and authorized the City Manager to approve change orders up to 10% of the contract amount; and

WHEREAS, on March 13, 2001, the City Council authorized the City Manager to execute a Program Supplement Agreement No. 002-M to Administering Agency-State Agreement No. 04-5300 for reimbursement of costs for preliminary engineering for the Walnut Boulevard Widening Project, CIP No. 336-3056; and

WHEREAS, during the preliminary design and environmental review process, it was discovered that several buildings in the middle of the project area were fifty years old or older and the project had to go through a lengthy historic property review by the State Historic Preservation Office; and

WHEREAS, this historic property review delayed project design and property acquisition and in March 2001 Caltrans agreed that the City could shift funding from the Walnut Boulevard Widening Project to the Brentwood Boulevard Widening Project (CIP Project No. 336-3054) but agreed to reimburse the City for all eligible preliminary engineering costs; and

WHEREAS, the City stopped work on the project until all environmental clearances were completed; and

WHEREAS, on September 12, 2003, Caltrans authorized the City to proceed with appraisals and right of way acquisition; and

WHEREAS, the preliminary title reports obtained earlier are now outdated and cannot be used in any current negotiations and only $9,000 remains in the original $30,000 purchase order and an additional $54,000 will be needed to complete all property transactions.

NOW, THEREFORE BE IT RESOLVED that the City Manager be authorized to execute a contract change order with Associated Right of Way Services, Inc. for $54,000, for a total contract of $84,000 and approve change orders up to 10% of the total contract amount for the Walnut Boulevard Widening, CIP Project No. 336-3056.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 13th day of January 2004 by the following vote:
 

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