Meeting_Body
CONSTRUCTION COMMITTEE
JANUARY 21, 2021
Subject
SUBJECT: SOUNDWALL PACKAGE 11 HIGHWAY PROJECT
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. AMENDING the Life of Project Budget (LOP) Budget for Soundwall Package 11 Highway Project by $13,303,000 from $89,183,000 to $102,486,000, using the fund sources from the soundwall program as summarized in Attachment D consistent with the provisions of the Board-adopted Measure R and Measure M Unified Cost Management Policy (Attachment E); and
B. AUTHORIZING the Chief Executive Officer to execute individual Contract Modifications within the Board approved Life of Project budget.
Issue
ISSUE
Contract No. C39033C1101-2 Soundwall Package 11 Highway Project (Project) was awarded to Powell Constructors, Inc. in the amount of $ 66,041,760 on October 30, 2017 and Notice to Proceed issued on December 20, 2017. The original schedule for completion of the construction phase of the Project was December 18, 2020 with a subsequent one-year plant establishment period. As of the date of this report, the Project is approximately 60% complete. Project staff have been working diligently to complete the Project within the approved budget; however, the LOP as established prior to Contract notice-to-proceed (NTP) must be increased given certain complexities of the Project as described in this report.
The requested increase to the LOP addresses all current and future direct and indirect cost impacts and will provide enough funding to complete the Project.
BACKGROUND
The Project is being performed under a Design/Bid/Build contract that is administered by Metro on behalf of Caltrans. The Project is located entirely within Caltrans right of way and consists of construction of soundwalls on Route 170 from Route 101/Route 170 interchange to the Sherman Way Overcrossing, and on Route 405 from north of Saticoy Street Undercrossing to Roscoe Boulevard Undercrossing. The construction of the soundwalls requires the modification and widening of eight existing bridges.
Discussion
DISCUSSION
During construction, there were several unanticipated changes that occurred for both technical and unforeseen design related reasons as listed on Attachment B. The changes are also summarized below:
Differing Site Conditions ($5.3M)
• Existing underground utilities not shown on the as-built record drawings required relocation.
o Riverside Drive storm drain encasement
o Magnolia Ave. storm drain encasement
o Oxnard Ave. storm drain encasement
o Chandler Blvd. storm drain encasement
o Burbank Ave. storm drain encasement
• Unforeseen site conditions during excavation
o Buried Man-Made Objects such as abandoned roadway materials, concrete, asphalt at various soundwall locations
• Replacing electrical pull boxes along soundwall alignment per Caltrans Standards
• Several changes related to different site conditions.
o Slope at Soundwall No. 817 required redesign meet Caltrans Standards.
Design Changes ($8.0)
Errors and Omissions ($5.65M)
• Construction delays and increased costs related to permeation grouting delays and design errors
• Inefficiencies and escalations as a direct result of the permeation grouting delay to the large diameter CIDH piles.
• The design drawings incorrectly numbered and identified demolition items within the Project limits.
Third Party Requirements ($2.35)
• Bureau of Street Lighting required that Metro upgrade and/or reconstruct all soffit lighting within the existing bridge structures. This requirement was not known at time of bid, nor was the requirement necessary to perform the scope of work within the contract.
The Design changes listed in this section are being treated as Errors and Omissions, and the Engineer of Record has been notified by County Counsel and Vender/Contract Management of Metro’s intent to pursue damages.
Included within the requested $13,303,000 LOP increase are corresponding increases to soft costs, including $1,000,000 for Third Party reviews and field services, $1,906,253 for Agency labor necessary for increased oversight, $1,000,000 related for professional support services (Ghirardelli Associates, Destination Enterprises, KTJV), and $1,000,000 for Project contingency to complete the work.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
There is no impact to public safety by approving this recommendation.
Financial_Impact
FINANCIAL IMPACT
The current 89,183,000 LOP budget for Project 460324, Soundwall Package 11 is funded with local Measure R Highway 20% and Prop C 25% Funds. If all actions are approved, the LOP budget will increase by $13,303,000 from $89,183,000 to $102,486,000. Funds required through Fiscal Year 2021 have been requested through the Fiscal Year 2021 Mid-Year budget adjustment, to be adopted at the January 2021 Board meeting. The additional LOP funding will be programmed in FY21 and FY22 in Cost Center 8510, Construction Contracts/Procurement, under Project 460324, Soundwall Package 11. Since this is a multi-year project, the Project Manager, Cost Center manager, and Chief, Program Management Officer will be responsible for budgeting the costs in future fiscal years.
IMPACT TO BUDGET
Soundwall Package 11 is currently funded with Measure R (20%) and Prop C 25% Highway Funds which are not eligible for bus and rail operations. The source of funds for this LOP increase is Measure R (20%) Highway Funds not eligible for bus and rail operations. Attachment E shows the Measure R and Measure M Unified Cost Management Policy (the Policy) analysis and funding strategy required for a cost increase to Measure R and Measure M Projects.
To comply with the Policy of the Metro Board of Directors, Metro staff has evaluated potential offsetting cost reductions including value engineering and scope reductions however since the project is so far along, nearing completion, these actions are no longer feasible.
Attachment E provides a detailed discussion of the Policy and recommends the use of $13,303,000 of Measure R 20% Highway funds that are currently programmed to the Priority 2, Soundwall Packages 12, 13, and 14 projects. These projects do not have an LOP budget and are still in the project development phase. This will reduce funding for Soundwall Packages 12, 13, and 14 and may result in a need to seek additional funding which will be identified at the time the scope and costs are determined for these Soundwall Packages.
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The Project is consistent with the following Metro Vision 2028 Goals and Objectives:
Goal 1: Providing high-quality mobility options and improve transit efficiency;
Goals 4 and 5: Transforming LA County through regional collaboration with Caltrans and the Corridor Cities by contributing funds and providing resources to assist Caltrans in management and delivery of these projects.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to approve this staff recommendation. This alternative is not recommended as Metro would be unable to provide funding to complete the Project according to the current schedule.
Next_Steps
NEXT STEPS
Upon Board approval, the LOP budget will be amended accordingly per the Recommendation.
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - Contract Modification
Attachment C - DEOD Summary
Attachment D - Funding/Expenditure Plan
Attachment E - Soundwall Package 11 Measure R & Measure M Unified Cost Management Policy
Prepared _By
Prepared by:
Sapana Shah, Senior Construction Manager, Program Management (213) 418-3162
Paul Sullivan, Deputy Executive Officer, Program Management (213) 922-4958
Brad Owen, Executive Officer, Program Management (213) 418-3143
Reviewed_By
Reviewed by:
Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
Richard Clarke, Chief Program Management Officer, Program Management (213) 922-7447
