That the City Council:
A. Approve Notice of Completion for Emergency Storm Drain Repairs at the Intersection of Harbor Boulevard and Arbolita Drive, City Project No.1-D-24, and authorize staff to file the Notice of Completion for recordation;

B. Approve the appropriation of additional funding in the amount $57,086.28 from available American Rescue Plan Act (ARPA) Funds to cover extra work requested by the Public Works Department for this project; and,

C. Authorize staff to credit $31,820.04 of General Fund capital funding back to reserves. 

On February 18, 2024, City staff were alerted to a sinkhole forming within the City right-of-way and at the front yard of private property located at 1131 Arbolita Drive. An initial assessment revealed that the existing City-owned 36-inch corrugated metal storm drain pipe (CMP), situated near an existing "North Hills" neighborhood monument sign, had failed. This failure caused a portion of the monument sign's brick wall to collapse and exposed a void in the ground of approximately 5 feet by 5 feet in size. Following a thorough inspection of the area and in the sinkhole using camera equipment, it was determined that the storm water flow from heavy rainstorms at that time had significantly damaged an old corroded storm drain pipe. Consequently, the sinkhole formed, posing a threat to both public safety and the adjacent private property.

On April 1, 2024, the City Council awarded a construction contract to E&R Construction Inc., of Baldwin Park, California, in the amount of $132,774 for the Emergency Storm Drain Repairs at the Intersection of Harbor Boulevard and Arbolita Drive, City Project No. 1-D-24 ("Project"). Prior to awarding the Project to E&R Construction Inc., staff authorized Mike Bubalo Construction Co. to perform emergency work to remove all debris that was blocking the storm drain pipe to allow storm water to flow, which helped mitigate additional damage. The cost for this emergency work was $6,520.11.

The Project included permanent repairs to the existing storm drain system, including the replacement of approximately 110 feet of 36-inch CMP pipe with high-density polyethylene (HDPE) pipe, back filling the trench with a 1-sack concrete slurry, and restoring a damaged private planter, landscaping and turf. While the project was under construction, staff authorized modifications to the storm drain pipe to avoid the need to cut the asphalt pavement on Harbor Boulevard. Additionally, staff requested the contractor to perform extra work to replace the private "North Hills" neighborhood monument sign located at the northwest corner of Harbor Boulevard and Arbolita Drive that was damaged due to the sinkhole.
 
The cost for the emergency work, modifications and extra work totaled $57,086.28. The total cost of the project, including the additional work, was $189,860.28, which is $57,086.28 more than the approved budget. The work performed by E&R Construction Inc., met with the City's specifications and standards.  Therefore, staff recommends that City Council approve an additional funding appropriation in the amount of $57,086.28 to fully fund the project, as well as authorize staff to issue final payment to the contractor for the work that was completed, and then file the Notice of Completion for recordation.

The project had an approved appropriation in the amount of $132,774 from available General Fund capital improvement reserves for emergency repairs. The total cost of the project, including emergency work and additional work is $189,860.28.  Therefore, staff is requesting that City Council appropriate additional funding in the amount of $57,086.28 from available unencumbered ARPA grant funds that are eligible for this type of project. If approved, the requested appropriation of ARPA funding will allow staff to credit $31,820.04 of General Fund capital funding back to reserves.