That the City Council:
A. Approve the Notice of Completion for the Community Center Parking Lot Demolition of Structures located at 115 and 121 North Euclid Street, City Project No. 1-D-20; and authorize staff to submit for recordation;

B. Approve Construction Change Orders No. 1 and No. 2 with Granville Contracting & Management Inc., of Brea, California, for the Community Center Parking Lot Demolition of Structures located at 115 and 121 North Euclid Street, City Project No. 1-D-20; and

C. Allocate an additional $78,972 of Community Development Block Grant (CDBG) Funds to cover the cost of this construction contract and return $69,009 of General Capital Project Funds to Phase 2 of this project for the design and construction of the parking lot.

On May 3, 2021, the City Council awarded a construction contract to Granville Contracting & Management, Inc., of Brea, California, in the amount of $119,009, which included a 10 percent contingency for the Community Center Parking Lot Demolition of Structures at 115 and 121 North Euclid Street, Project No. 1-D-20. The project included lead and asbestos abatement, removal of the buildings located at 115 and 121 North Euclid Street, and some site improvements including utilities, concrete and asphalt paving.  The site is slightly depressed and surrounded by a straw waddle to contain run-off within the dirt area.
 
During the course of removal of the known asbestos material at the site, the contractor discovered additional asbestos and other hazardous materials within the building at 115 North Euclid Street. As a result, the contractor has requested a change order in the amount of $2,948 to remove and dispose of additional hazardous waste materials. In addition, during the demolition of the building at 121 North Euclid Street, the contractor discovered an undisclosed basement structure below the building that was not known at the time of the bid for the project. The former stairs to the basement were covered over with plywood and flooring making it difficult to determine its presence. The contractor requested a change order in the amount of $17,834 to remove and dispose of concrete basement walls, punch holes in basement floor for drainage, and backfill the basement with crushed rock and soil.

Staff finds the change orders to be acceptable and all bid items associated with the project have been completed.  Staff conducted a final inspection and found the work to comply with the plans, specifications, and standards of the City of La Habra.  Upon acceptance by the City Council, staff will file a Notice of Completion for recordation at the County Clerk-Recorder Office. A copy of the Notice of Completion is included as Attachment 1 and copies of Construction Change Orders No. 1 and No. 2 are included as Attachments 2 and 3, respectively.  "Before" and "After" pictures are included as Attachment 4.

The final cost of construction for the Project is $128,972, which is 8.3 percent above the approved purchase order amount of $119,009.  There are insufficient funds to cover the cost of the Project, so staff requests that additional CDBG Funds be allocated to fund the cost of the project. The City Council had previously approved $50,000 in CDBG funding for this project and staff is recommending an additional amount of $78,972 of CDBG funding be appropriated to fully fund this portion of the project.  If approved by the City Council, staff will then reallocate the adopted General Capital Projects Fund budget for this project, of $69,009, for the next project phase, which includes design and construction of the parking lot.