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By Jessyka Heredia
October 16, 2023 (Lemon Grove)—
Earlier this month the Lemon Grove City Council voted to approve adding additional revenue to an already existing contract with Rick Engineering Company for a sewer rehabilitation project that was previously approved with a winning bid from Rick Engineering not to exceed $508,694 even after a buffer of $25,306 in contingency funds was included.
Public Works Director Izzy Murguia explained in his presentation to council That the amendment before them would add an additional $139,000 to the existing funds to redesign several parts of the project including doing a study to see if they can relocate and upsizing an existing section of sewer pipes from an alley way out to Broadway. Murguia stated that the city had “received an application for a manufacturing building on West Street.” He explained that “If that project goes in before constructing Capital Improvement Program (CIP)18, we would have difficulties addressing CIP 18.” Murguia said one crucial part of CIP 18 is the study to see if it is even possible to relocate the new sewer pipes to Broadway.
Murguia said, “Staff decided to fast track this project to avoid any construction challenges that would be presented after this manufacturing building would be constructed.”He broke down the nearly $140,000 increase that the amendment would add to the project, stating, “This amendment has a base of $94,490 for the design and an additive amount of $45,000, this is to include surveying, traffic control doing the legal plots if we need to relocate the sewer main on Broadway.”
After Murguia’s presentation, the Council was allowed to ask staff two questions each. Council member Alysson Snow asked Murguia, “If we don’t do this now and as we wait and they go ahead and build the warehouse, how much are we looking at in additional changes? How much would we have to pay to alter our plans after construction of the warehouse” vs savings if they get the pipes moved before the warehouse starts construction? Murguia broke down Snow’s question into two parts. He explained, “There’s the design phase which will come in under budget, so saving money there. Secondly the added costs would be on the construction side. That figure we don’t know. We just know that the methodologies that we used to do CIP 18 after this building is constructed would include deep trench shoring along the alley which could be costly as opposed to thinking of a three-foot trench along Broadway.”
Council member Jennifer Mendoza asked Murguia, “There is one pump station for all of Lemon Grove, and we need to build a new one. What is the priority on that? It sounds like that’s a pretty important project and I do understand the explanation that they’re trying to get the easement, but how important is it to get done because we’ve been talking about it for years?’ Murguia replied, “The fact that it’s included on the master plan means that it is important, and it is being undertaken currently. Murguia corrected Mendoza that “it is one pump station in Lemon Grove. It doesn’t serve Lemon Grove as a whole; it serves a couple of dwellings; all are dwelling units on Central Avenue that are not connected directly to the main on Central Avenue.”
Pro Tem Mayor George Gastil asked Murguia about the project cost summary. “I noticed that the subtotal $648,584 in amendment one will increase the agreement’s not to exceed amount. Why doesn’t amendment one includes the contingency, that is about $25,000? Murguia responded, “Staff did not feel comfortable not increasing the overall project costs and increasing the contingency amount. We felt that with some of the items that are included, we might have some savings in the base additive to absorb any cost increases. So, it was a purposeful decision not to increase the contingency to not increase the overall project costs.”
Gastil asked for clarification, “If the project ends up costing more than $648,000, what activates the contingency?” Murguia explained, “The resolution this evening is a 2-part process. One is approving the amendment and the not to exceed amount and increase in project total to $673,000. If in the agreement we do come up to added costs and we’re coming up at $648,000, at that time it would come before the council or with another amendment.”
The City Council voted 3-0 (with Mayor Raquel Vasquez and Council member Liana LeBaron both absent) to approve the amendment to add $138,900 to the professional services agreement (No. 2021-24) with Rick Engineering Company.
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