TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 35551 with Harry H. Joh Construction, Inc., of Paramount, CA, to increase the contract amount by $233,061, for a revised total contract amount not to exceed $2,796,727, for unforeseen construction on the North Health Facility Tenant Improvements Project. (District 9)
DISCUSSION
City Council approval is requested to amend Contract No. 35551 with Harry H. Joh Construction, Inc. (HHJ Construction), to continue the construction on the North Health Facility Tenant Improvements Project (Project).
On May 12, 2020, the City Council awarded a contract to HHJ Construction as part of its adoption of Project Plans and Specifications No. R-7156 to provide construction services for the Project, for a total amount not to exceed $2,563,666, inclusive of a 10 percent contingency.
As Project construction nears completion, approximately 83 percent of the contract’s contingency has been exhausted to address unforeseen conditions. These unanticipated conditions/expenses include, but are not limited to, additional hazardous materials abatement, fire alarm costs exceeding the allowance, and additional underground utility work. Furthermore, additional conditions were recently discovered including, but not limited to, asbestos and ADA accessibility issues and sanitary waste and vent piping considerations that are anticipated to exceed the approved contract amount.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley on May 3, 2021, Business Services Bureau Manager Tara Mortensen on May 4, 2021, and by Budget Management Officer Rhutu Amin Gharib on May 12, 2021.
TIMING CONSIDERATIONS
City Council action to amend Contract No. 35551 is requested on June 1, 2021, to ensure there is no interruption to services.
FISCAL IMPACT
The requested amendment will increase the contract authority with HHJ Construction, Inc., by $233,061, for a revised total contract amount not exceed $2,796,727. The total Project cost is now estimated to be $4,103,685, which is inclusive of the requested increase. Sufficient appropriations to support the increased contract authority are budgeted in the Capital Projects Fund Group in the Public Works Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. Approval of this recommendation will provide continued support to the local economy by assisting in the preservation of employment for five full-time employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER