FROM:
Engineering
SUBJECT:
Title
Approve Second Contract Change Order for Reconstructing Two Curb Ramps located at the Northeast and Southeast Corners for the Construction of Traffic Signal at Duncan Canyon Road/Citrus Avenue, as part of the Reimbursement Agreement with HDO4, LLC
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RECOMMENDATION:
Recommendation
1. Approve second contract change order for reconstructing two curb ramps located at the northeast and southeast corners for the construction of traffic signal at Duncan Canyon Road/Citrus Avenue, as part of the Reimbursement Agreement with HDO4, LLC. End
2. Approve appropriation and allocate the amount of $3,901.14 from Fund 604 - Measure T.
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COUNCIL GOALS:
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.
DISCUSSION:
The developer, HDO4, LLC, proposed the construction of two traffic signals, one at the intersection of Duncan Canyon Road and John Previti Avenue and another at the intersection of Duncan Canyon Road and Citrus Avenue, to improve circulation and enhance public safety and subsequently requested a reimbursement agreement. On April 8, 2025, the City Council approved the reimbursement agreement with HDO4, LLC for the construction of the two traffic signals.
Since the execution of the agreement, the developer submitted the first contract change order for the Duncan Canyon Road and Citrus Avenue intersection in the amount of $55,463.94 on August 12, 2025. The first change order was requested due to the inability of the contractor to install conduit by directional boring due to rocky soil conditions for certain portions of the intersection and included costs associated with installing the conduit by trenching and the paving required as part of the trench repair. Per the approved reimbursement agreement, the first change order amount was within the ten percent (10%) contingency approved as part of the project cost for the Duncan Canyon Road and Citrus Avenue intersection, and the City Manager possessed the authority to approve the change order.
On August 26, 2025, the developer submitted a second contract change order request for the reconstruction of two existing curb ramps located at the northeast and southeast corners of Duncan Canyon Road and Citrus Avenue. The developer asserted that reconstruction of the curb ramps was not within the original scope of the traffic signal construction. The requested amount is $33,269.20, which exceeds the remaining contingency balance of $29,366.06, resulting in an excess of $3,901.14 over the approved reimbursement cap. Pursuant to the reimbursement agreement, the City Manager does not have the authority to approve amounts exceeding the ten percent (10%) contingency, and City Council approval is required for such expenditures.
FISCAL IMPACT:
The cost associated with the approval of this item is $3,901.14 and will be funded with Measure T (Fund 604) funds. Funds are included in the FY2025-26 Operating Budget and available in account 60437000. Any necessary budget adjustments will be included in the next Quarterly Budget Report.
MOTION:
Approve staff recommendation.