Published : Monday, June 19, 2017 | 5:43 AM
In anticipation of a favorable outcome of lawsuit that sought to invalidate the City’s approval of the Initial Study Mitigated Negative Declaration for the Arroyo Seco Canyon Project, the Pasadena City Council is expected to vote on Monday to extend a contract associated with the project that will result in an increase in the contract price by about $30,000.
Pasadena Water and Power is recommending the extension of the contract with Toby B. Hayward Inc. that includes labor and materials for the construction of temporary bridges in the canyon.
The contract was signed on November 21 last year for an amount not to exceed $440,000. Since the date of contract execution, Toby B. Hayward Inc. has completed the construction of the first temporary bridge, and has began procuring materials and fabrication for the construction of the second temporary bridge.
On July 2, 2015, two petitioners filed a lawsuit against the City seeking to invalidate the City’s approval of the California Environmental Quality Act (CEQA) IS/MND. On March 23, 2017, the court issued a ruling that was unfavorable to the City. Because of this, PWP instructed Toby B. Hayward Inc. to put the remaining construction of the second temporary bridge on hold, which otherwise would have been completed in approximately 45 days.
On May 2, 2017, the City issued a proposed writ of mandate. However, as of May 30, 2017 the court had not issued the terms of the judgment, which would state which components of the ASCP, including the temporary bridges, will be allowed for construction.
Since the contract with Toby B. Hayward Inc. expires on June 30, 2017, PWP is recommending that the City Council approve an initial one-year extension to June 30, 2018 with an option for three additional one-year terms, and increase the contract amount from $440,000 to $470,000.
The increased amount will cover remobilization costs resulting from the hold placed on the project and the extension of its duration. The additional costs include lease of equipment and materials, storage of materials that have been fabricated or partially fabricated, but not yet installed, and labor expenses representing the short period when the work was placed on hold.
PWP General Manager Gurcharan Bawa said the one-year extension of the contract will allow for a thorough evaluation of the City’s options, which include permanent repair and strengthening of the bridge, or proceeding with the temporary bridge as the preferred alternative.
“If the final ruling allows the work to move forward, and the evaluation of options leads to the conclusion that a continuation of the current contract remains in the best interest of the City, then the extension will also provide sufficient time to complete the second temporary bridge,” Bawa said in an Agenda Report. “Depending on the outcome of the final judgment, PWP may opt not proceed with the work, in which case staff will negotiate contract termination terms with the contractor. The optional one-year extensions may be needed depending on the timing of the final judgment and resulting additional delays to the work.”
In the report, Bawa is seeking the City Council’s action to authorize City Manager Steve Mermell to extend the contract up to June 30, 2018 and to increase the contract amount from $440,000 to $470,000.
The contract amount includes a 15 percent contingency of $57,400 to accommodate any necessary change orders resulting from unforeseen conditions, including environmental mitigation and logistical challenges due to the location of the work in the Arroyo Seco.
To date, $5,295 of this contingency has been committed. Not including contingency, the balance remaining on the contract for authorized work and retainage is $227,609.
Regarding the fiscal impact, PWP says the cost of the action will be $309,720, which includes the balance of the contract amount of $227,609, plus remaining contingency of $52,105, plus additional costs of $30,000. Funding for this action will be addressed by the utilization of existing appropriations in the Water System Capital Improvement Program Budget Number 1040 -Arroyo Spreading Basins and Intake Structures.
PWP anticipates that 100 percent of the cost will be spent during fiscal year 2018. In addition, PWP expects a $50,000 additional cost for contract administration, and inspection as a result of this action. The total fiscal impact will be $359,720, PWP said.