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PUBLIC WORKS
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Requested Action(s)
recommendation
a) AGREEMENT - Request approval and authorization for the Interim Public Works Director to sign Amendment No. 1 for Utility Agreement No. UA 21.003 PG, with Pacific Gas & Electric (PG&E) Company (Misc. Agreement 2021-274) for the Evergreen Road Bridge Replacement Project, increasing the compensation amount by $35,749.97, totaling $70,078.09, for relocation of utilities within the project area
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Financial Impact:
The project is funded through the Federal Highway Bridge Program (HBP), additional funding is being requested to cover the costs. This does not impact the General Fund.
Background Information:
The Board approved the original Utility Agreement UA 21.003 PG (Misc. Agreement 2021-274) with PG&E for costs to remove and relocate a total of eight (8) utility poles, for the Evergreen Road at South Fork Cottonwood Creek Bridge Replacement Project, at the October 26, 2021 board meeting, in which the County was responsible for the Pro-Rata share of costs for relocating one (1) utility pole.
The original agreement costs were based on the PG&E cost liability letter dated September 9, 2021, in which the County Pro-Rata share was estimated to be in the amount of $34,328.12. This amount was based on a preliminary estimate by PG&E to perform the work.
Utility Agreement UA 21.003 PG (Misc. Agreement 2021-274) states in Section IV “Payment for Work”, the Local Agency shall pay its share of the Actual and Necessary cost of the herein described work within 90 days after receipt of Owner’s itemized bill….compiled on the basis of the actual and necessary cost and expense incurred and charged or allocated to said work in accordance with the uniform system of accounts prescribed for Owner by the California Public Utilities Commission (PUC), Federal Energy Regulatory Commission (FERC) or Federal Communications Commission (FCC), whichever is applicable. This section also states that “in the event the final bill exceeds 125% of the estimated cost of this agreement, an amended Agreement shall be execute by the parties to this agreement prior to the payment of the Owners final bill.”
The actual costs incurred by PG&E for the relocation work are outlined in the itemized invoice dated October 22, 2024, in which the County is responsible for the Pro-Rata share of one (1) of the eight (8) poles. Utility Agreement UA 21.003 PG stated that the estimated cost of the County’s share of the facility relocation would be $34,328.12. As noted in the itemized invoice, the actual cost of the County’s share is $70,078.09.
The Major contributing factors to the overrun of costs are:
● Contract Cost estimated at $5,078.00 vs Actual Cost is $43,110.77
● Labor Cost estimated at $96,086.00 vs Actual Cost is $166,461.09
● Labor Overhead Cost estimated at $171,274.00 vs Actual Cost is $368,083.30
● Materials Cost estimated at $81,217.00 vs Actual Cost is $58,298.99
This Amendment to Utility Agreement UA 21.003 PG is based on the actual costs to perform the work, as outlined in PG&E’s cost over-run letter dated October 23, 2024, for the total amount of $70,078.09.