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Consent
Item No. 5.
| MEETING DATE: 03/04/2024 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Elias Saykali, Public Works Director |
| SUBJECT: | APPROVE AN INCREASE TO THE MIKE BUBALO CONSTRUCTION CO. INC. EMERGENCY PURCHASE ORDER FOR EAST BISHOP DRIVE STORM DRAIN IMPROVEMENT PROJECT, PROJECT NO. 1-D-16
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RECOMMENDATION:
That the City Council:
A. Approve the use of available budgeted American Rescue Plan Act (“ARPA”) funds in the amount of $138,767.58 to fully fund the emergency work completed by Mike Bubalo Construction Co. Inc.; and,
B. Authorize staff to increase Mike Bubalo Construction Co. Inc.'s Emergency Work Purchase Order from $750,000.00 to $888,767.58.
DISCUSSION:
On November 20, 2023, the City Council approved the emergency work being performed by Mike Bubalo Construction Co. Inc. ("Bubalo"), to secure the site of East Bishop Drive Storm Drain Improvement Project, Project No. 1-D-16 ("Project"). Staff requested the emergency work because the previous contractor, Aid Builders, Inc. was in default of the contract due to performance failures that caused serious concerns for the health and safety of the public. At the time, the City Council authorized the use of $750,000.00 from the available budgeted funds from the Project to fund the emergency work. Bubalo was able to mobilize quickly and secure the job site and render it safe until a new contract was issued to finish the Project. Now that all emergency work is completed, Bubalo has submitted a final accounting of their time and material tickets and invoices totaling $888,767.58. Staff is recommending that the City Council approve an increase of $138,767.58 to the initial Emergency Work Purchase Order issued to Bubalo, from $750,000.00 to $888,767.58, to fully fund the emergency work that was performed.
FISCAL IMPACT/SOURCE OF FUNDING:
On December 4, 2023, the City Council approved the award of a contract to Bubalo to complete the Project and also approved appropriation of additional unencumbered ARPA funds in the amount of $1,836,222 to fully fund the construction of the Project. In this action, the City Council also approved a budget for emergency work totaling $965,400; therefore, there is sufficient funding in the approved budget to pay for the outstanding balance of emergency work performed by Bubalo in the amount of $138,767.58; however, staff is requesting Council increase the previously approved emergency purchase order from $750,000 to $888,767.58 to fund the additional work that was performed.
It should be noted that the City will be pursuing reimbursement from the original Contractor's (Aid Builder) surety provider for the emergency work and associated additional construction expenditures that were incurred related to the completion of the Project due to Aid Builders's default. Once those costs have been fully calculated, finalized and negotiated, staff will present a settlement agreement to City Council for consideration and approval at a future City Council meeting. Any reimbursed amounts and unused encumbrances will be credited back to the City's ARPA fund for re-appropriation at that time.
It should be noted that the City will be pursuing reimbursement from the original Contractor's (Aid Builder) surety provider for the emergency work and associated additional construction expenditures that were incurred related to the completion of the Project due to Aid Builders's default. Once those costs have been fully calculated, finalized and negotiated, staff will present a settlement agreement to City Council for consideration and approval at a future City Council meeting. Any reimbursed amounts and unused encumbrances will be credited back to the City's ARPA fund for re-appropriation at that time.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
General Plan Goals:
SD 1.3 Adequate Storm Drainage Infrastructure
SD 1.7 Drainage Channels
SD 1.8 Deficient Areas
City Council Goals and Objectives:
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective D - Maintain storm drain pipelines
SD 1.3 Adequate Storm Drainage Infrastructure
SD 1.7 Drainage Channels
SD 1.8 Deficient Areas
City Council Goals and Objectives:
Goal 3 - Maintenance and Improvement of City Infrastructure
Objective D - Maintain storm drain pipelines