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HomeMy WebLinkAbout05 APPROVE SUPPLEMENTAL APPROPRIATION FOR THE EL CAMINO WATER MAIN RELOCATION PROJECTDocusign Envelope ID: 7573C612-77F6-4535-B95E-2F8B74E33879 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 5 rn111=1 AGENDA REPORT Reviewed: City Manager Finance Director J OCTOBER 21, 2025 ALDO E. SCHINDLER, CITY MANAGER MICHAEL GRISSO, DIRECTOR OF PUBLIC WORKS APPROVE SUPPLEMENTAL APPROPRIATION FOR THE EL CAMINO REAL WATER MAIN RELOCATION PROJECT The City has partnered with the Orange County Transportation Authority and Caltrans to complete the El Camino Water Main Relocation Project which is necessary for improvements to the 1-5 and Red Hill Avenue exit ramp. Additional scope of work has been requested by the partner agencies and staff have negotiated a contract change order in the amount of $96,555.30 with G&A Nelos Construction, Inc., which requires additional budget appropriation and City Council approval. The full amount of all authorized change orders will be reimbursed to the City by Orange County Transportation Authority. RECOMMENDATION: It is recommended that the City Council: 1. Approve a negotiated contract change order in the amount of $96,555.30 with G&A Nelos Construction, Inc. and authorize the City Manager to execute the contract change order on behalf of the City; and 2. Appropriate $96,555.30 from Water Capital Fund. FISCAL IMPACT: On June 17, 2025, the City Council awarded a construction contract to G&A Nelos Construction, Inc. in the amount of $393,399.10 for the El Camino Water Main Relocation Project. This action will approve a negotiated change order and appropriate $96,555.30 from the Water Capital Fund to cover the cost of additional work requested by the partner agencies. The negotiated change order is eligible for reimbursement via Utility Agreement COT-56, between the City of Tustin and the Orange County Transportation Authority which authorizes the full reimbursement for final design and all construction costs, minus an accrued depreciation credit of $2,650. Docusign Envelope ID: 7573C612-77F6-4535-B95E-2F8B74E33879 City Council Agenda Report El Camino Real Water Main Relocation Project October 21, 2025 Page 2 CORRELATION TO THE STRATEGIC PLAN: The project contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety and Protection of Assets, specifically Strategy No. 5, to complete asset improvements to meet the needs of a growing population. Secondly, Goal D: Strong Community and Regional Relationships, specifically Strategy No. 2, by working collaboratively with outside agencies to address issues of mutual interest and concern. BACKGROUND AND DISCUSSION: On June 17, 2025, the City Council awarded a contract to G&A Nelos Construction, Inc. in the amount of $393,399.10 for construction of the El Camino Real Main Line Relocation Project. The contract documents provide for the existing 8-inch water main to be abandoned in place. The Orange County Transportation Authority (OCTA) and Caltrans have requested that the existing pipe be removed and disposed of in advance of the freeway widening project. Staff have negotiated a contract change order with G&A Nelos Construction, Inc. in the amount of $96,555.30 for this work. The full amount of all authorized change orders will be reimbursed to the City by OCTA. Staff recommends that the City Council approve the negotiated contract change order in the amount of $96,555.30, appropriate $96,555.30 from the Water Capital Fund, and authorize the City Manager to approve contract change order. Michael Grisso Director of Public Works Attachment: Location Map Docusign Envelope ID: 7573C612-77F6-4535-B95E-2F8B74E33879 ATTACHMENT 1: LOCATION MAP MAIN FTREETl F 7n 6 am 0 - *441 LOCATION EL CAMINO REAL WATER MAIN RELOCATION PROJECT (CIP NO. 60178)