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HomeMy WebLinkAboutAgenda Report - May 3, 2017 C-14CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM CI4 TM AGENDA TITLE: Adopt Resolution Authorizing the Appropriation Adjustment for the Library Children's Area Expansion Project ($11,509) MEETING DATE: May 3, 2017 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution authorizing the appropriation adjustment for the Library Children's Area Expansion Project, in the amount of $11,509. BACKGROUND INFORMATION: The Library Children's Area Expansion Project was awarded and funds appropriated by Council at the April 20, 2016 Council meeting (Exhibit A). The contract was awarded in the amount of $263,000. The total amount appropriated for the project was $304,000 to cover contingencies, construction administration, testing, and staff costs. At the February 15, 2017 meeting, City Council accepted the improvements under the contract. The final cost of the project was $274,509. The difference between the original contract amount and final contract was due to one change order totaling $11,509. Current City policy requires that unspent and unencumbered appropriations are not continued into the following fiscal year. This is an important budgetary control to limit operating departments from continuing budgets over multiple years. Capital projects often extend over multiple years and generally require different budgetary controls. Staff is currently reviewing options, including amending contracting and/or budgetary policies and creating a City wide Capital Improvement Program which would address this issue and avoid this issue for future projects. In this instance, only the base contract amount was encumbered and no allowance was provided in the encumbrance for change orders. The change order on this contract occurred in the Fiscal Year following the initial encumbrance. Because of this, budget authority does not exist at a staff level to make the final payment to the contractor for work completed. The appropriation adjustment of $11,509 is needed to cover the change order and process the final payment. FISCAL IMPACT: Funds for this project were originally appropriated in Fiscal Year 2015/16 and the Library Capital account has sufficient fund balance to absorb this additional appropriation in the current Fiscal Year. There is no impact to the General Fund from this transaction. APPROVED:lit ■_ S eph c W b. •er, City Manager K:\WP\COUNCIL\2017\CC LCAE_approp adj.doc 4/21/17 Adopt Resolution Authorizing the Appropriation Adjustment for the Library Children's Area Expansion Project ($11,509) May 3, 2017 Page 2 FUNDING AVAILABLE: Library Capital (41099000.77020). Andrew Keys Deputy City Manager/Internal Services Director 042 U., -Q Charles E. Swimley, Jr. Public Works Director CES/RAY/tdb Attachments K:\WP\COUNCIL\2017\CC LCAE_approp adj.doc 4/21/17 RESOLUTION NO. 2016-49 A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE CONTRACT FOR THE LODI PUBLIC LIBRARY CHILDREN'S AREA EXPANSION PROJECT TO SWIERSTOK ENTERPRISE, INC., DBA PRO BUILDERS, OF ORANGEVALE; ACCEPTING A DONATION FROM THE LIBRARY FOUNDATION; AND FURTHER APPROPRIATING FUNDS WHEREAS, in answer to notice duly published in accordance with law and the order of this City Council, sealed bids were received and publicly opened on March 24, 2016, at 11:00 a.m., for the Lodi Public Library Children's Area Expansion Project, described in the plans and specifications therefore approved by the City Council on August 5, 2015; and WHEREAS, said bids have been checked and tabulated and a report thereof filed with the City Manager as follows: Bidder Bid Swierstok Enterprise, Inc., dba Pro Builders $263,000 American River Construction, Inc. $273,000 Diede Construction, Inc. $299,000 WHEREAS, staff recommends that the City Council award the contract for the Lodi Public Library Children's Area Expansion Project to Swierstok Enterprise, Inc., dba Pro Builders, of Orangevale, in the amount of $263,000; and WHEREAS, staff further recommends that the City Council accept the $131,500 donation from the Library Foundation for this project; and WHEREAS, staff recommends that the City Council appropriate funds in the amount of $304,000 for the total project, which includes allowances above the contract amount for contingencies, construction administration, testing, and staff costs, which are to be funded by the $131,500 donation from the Library Foundation and the Library's fund balance reserves. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby award the contract for the Lodi Public Library Children's Area Expansion Project to Swierstok Enterprise, Inc., dba Pro Builders, of Orangevale, California, in the amount of $263,000; and BE IT FURTHER RESOLVED that the Lodi City Council hereby accepts a donation of $131,500 from the Library Foundation for this project; and BE IT FURTHER RESOLVED that funds in the amount of $304,000 is hereby appropriated ($172,500 Library's fund balance reserves and $131,500 Library Foundation donation) for the total project, which includes allowances above the contract amount for contingencies, construction administration, testing, and staff costs. Dated: April 20, 2016 I hereby certify that Resolution No. 2016-49 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 20, 2016 by the following vote: AYES: COUNCIL MEMBERS — Johnson, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Kuehne ABSTAIN: COUNCIL MEMBERS — None INNIFER rty Clerk 2016-49 FERRAIOLO 1. AA# 2. JV# CITY OF LODI APPROPRIATION ADJUSTMENT REQUEST TO: Internal Services Dept. - Budget Division ACCOUNT # 3. FROM: Rebecca Areida-Yadav 5. DATE: 4/18/2017 4. DEPARTMENT/DIVISION: Public Works 6. REQUEST ADJUSTMENT OF APPROPRIATION AS LISTED BELOW FUND # BUS. UNIT # ACCOUNT # ACCOUNT TITLE AMOUNT A. SOURCE OF FINANCING 410 32205 Fund Balance $ 11,509.00 B. USE OF FINANCING 410 41099000 77020 Capital Projects $ 11.509 00 7. REQUEST IS MADE TO FUND THE FOLLOWING PROJECT NOT INCLUDED IN THE CURRENT BUDGET Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment. If you need more space, use an additional sheet and attach to this form. Change order for Library Children's Area Expansion Project. LBCAP-0002 If Council has authorized the appropriation adjustment, complete the following: Meeting Date: Department Head Signature: Res No: Attach copy of resolution to this form. B. APPROVAL SIGNATURES Deputy City Manager/Internal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy format. RESOLUTION NO. 2017-82 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING APPROPRIATION ADJUSTMENT FOR THE LIBRARY CHILDREN'S AREA EXPANSION PROJECT WHEREAS, the bid for the Library Children's Area Expansion Project was awarded and funds appropriated by the City Council at the April 20, 2016 Council meeting in the amount of $263,000; and WHEREAS, the total amount appropriated for the project was $304,000 to cover contingencies, construction administration, testing, and staff costs; and WHEREAS, at the February 15, 2017 meeting, the City Council accepted the improvements under the contract; and WHEREAS, the final cost of the project was $274,509, which includes a change order totaling $11,509; and WHEREAS, the current policy does not allow for contingencies that were included in the original appropriation to roll to the next fiscal year; and WHEREAS, staff recommends that the City Council authorize the appropriation adjustment of $11,509 for the Library Children's Area Expansion Project. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the appropriation adjustment of $11,509 for the Library Children's Area Expansion Project. Dated: May 3, 2017 I hereby certify that Resolution No. 2017-82 was passed and adopted by the City Council of the City of Lodi in a meeting held May 3, 2017 by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 2017-82 NNIFERt,,M. FERRAIOLO ity Clerk