That the City Council:
A. Approve Change Order No. 1 in the amount of $26,500 for Onyx Paving Company, Inc., for the Alley No. 6, 44, 48 and 79 Improvement Fiscal Year 2019-2020, City Project No. 4-R-19 to rehabilitate the City parking lot located at 325 East La Habra Boulevard; and

B. Approve an appropriation of $150,000 from the Community Development Block Grant (CDBG) Fund for change orders related to similar construction of the Alley No. 6, 44, 48 and 79 Improvement Fiscal Year 2019-2020, City Project No. 4-R-19; and

C. Authorize the City Manager to increase the City's Purchase order with Onyx Paving Company, Inc., by $26,500 from the amount of $310,200 to the amount of $336,700.

On June 7, 2021, the City Council awarded the Alley No. 6, 44, 48 and 79 Improvement Fiscal Year 2019-2020, City Project No. 4-R-19 to Onyx Paving Company, Inc., of Anaheim, California.  The alley improvement project is currently underway and because the nature of the work associated with that project is similar in scope to the repaving of the City-owned parking lot at 325 East La Habra Boulevard, the contractor was subsequently asked to submit a proposal for that project as well. 

The contractor submitted a price of $26,500 to repave the parking lot. Staff reviewed the proposal and found the price to be reasonable and consistent with prices associated with the Annual Alley Project. The scope of work includes repaving the parking lot with asphalt and replacement of the damaged concrete sidewalk near the alley along the north side of the parking lot.  If approved, Community Development Block Grant (CDBG) Funds will be used to fund the parking lot improvements.

An additional allocation of $150,000 of CDBG funds is now available for the Alley No. 6, 44, 48 and 79 Improvement Fiscal Year 2019-2020, City Project No. 4-R-19.  CDBG funds that are not used for the additional parking lot improvements will be used in place of other sources of funding approved from the original alley improvement bid, to include Gas Tax and Measure M2 funds. Those available funds will then be used for other projects, subject to future City Council review and approval.