TITLE
Recommendation to authorize City Manager to sign all documents necessary to amend Contract No. 29582 with Terno, Inc., for the Long Beach Boulevard Signal Synchronization Project, Plans and Specifications No. R-6677, authorizing the addition of a contingency of 15 percent of the total contract amount, if necessary. (Districts 7,8,9)
DISCUSSION
On April 4, 2006, the City Council authorized the City Manager to execute a contract with Terno, Inc., for the Long Beach Boulevard Traffic Signal Synchronization Project. That original City Council request inadvertently omitted authorization of the customary 15 percent contingency to cover design changes and unforeseen problems encountered in the construction phase of the project. In the course of the project construction, the contractor has encountered a number of unforeseen problems not indicated on the design plans, which necessitated field modifications and engineering redesigns. In addition, City traffic engineers have also identified additional traffic control and communication upgrades and improvements that could be implemented by the contractor at a reduced cost. In order to keep the project on schedule some of these additional work items have already moved forward. The contract must now be amended to provide for a 15 percent contingency to cover the cost of these additional items.
This matter was reviewed by Deputy City Attorney Lori A. Conway and by Budget and Performance Management Bureau Manager Dave Wodynski on March 29, 2007.
TIMING CONSIDERATIONS
City Council action on this matter is requested on April 10, 2007, to permit the contractor to continue working on the project and complete the work within project schedules.
FISCAL IMPACT
The original contract award was for an amount of $2,815,446 without contingency. Sufficient funds to cover the contingency of 15 percent (or $422,317) are budgeted in the Capital Projects Fund (CP) in the Department of Public Works (PW). The funding source for t...
Click here for full text