Work on the Conway Road Improvement Project (ST-98/03-99) began in June, 2002 by Top Grade Construction, low bidder for the road, sanitary sewer, and storm drain improvements to Conway Road. The project schedule called for PG&E to accomplish underground conversion of the Conway Road overhead utilities in August and September, 2002. With the utility conduits installed by October 1, 2002, final paving of the road would occur in October, before the onset of rain.

PG&E did not provide the final design and cost proposal to the City for the Conway utility undergrounding until August 28, 2002. This cost proposal still exceeded available assessment district funding, in spite of the scope reduction resulting from City Council’s creation of the adjacent Hollenbeck Avenue Rule 20-A Underground District in January, 2002.

City staff has pursued this situation on several fronts in an attempt to find a means to complete the Conway Road project scope of work before the rain season begins. With the project delayed by PG&E’s delayed engineering, and threatened financially by PG&E’s cost proposal, staff now is recommending that a portion of the work that would have been performed by PG&E be performed instead by the City’s road and utility contractor, Top Grade Construction. This action will resolve both the financial and schedule issues, since Top Grade is prepared to start work on October 14, 2002, and their price is within budget.

If Council approves of the proposed action, a contract change order will be issued to Top Grade Construction for installation of underground electric, phone and cable conduits, and splice boxes in Conway Road. This scope of work has been negotiated with Top Grade Construction. Their price for this work is within the Conway Road Assessment District budget.

City Council established the Conway Road Improvement District in July, 2000. That action created funding for and authorization to proceed with construction of roadway and utility improvements to Conway Road. This infrastructure improvement work is a critical element in the upgrade of this underdeveloped neighborhood annexed from the County several years ago. Included in the Conway Road Improvement Project scope of work was conversion of overhead utilities on Conway Road to underground.

The City has been working with utility companies since August, 2000 to design utility improvements that are consistent in cost with the Assessment District Budget. Initial PG&E cost proposals generated in July, 2001 exceeded available Assessment District funds.

To address the July, 2001 budget imbalance, and to remove an isolated section of overhead utility facilities remaining on Hollenbeck Avenue, the City Council established the Hollenbeck Avenue Underground Utility District (UUD) on the east-side of Hollenbeck Avenue in the vicinity of Conway Road at its January 29, 2002 meeting. As a result of creation of this Rule 20-A funded underground district, the scope of utility work in the Conway Road Improvement Project was reduced. By reducing the scope of work for the Conway Improvement Project, it was hoped that PG&E’s cost proposals for Conway Road utility undergrounding would be brought into conformance with the Conway Road Improvement District budget.

Unfortunately, the cost proposal for Conway Road utility conversion that PG&E provided to the City on August 28, 2002 was still significantly greater than available District funds. Since receiving that cost proposal, City staff has pursued several issues and alternate approaches to completing the utility work, again in an attempt to reduce the cost of the Conway Road utility work to a level of funding available from the approved Conway Assessment District.

The situation was presented to Conway Road property owners in a letter, and was discussed at a neighborhood meeting on September 24, 2002. The owners present restated their desire to see the overhead utilities converted to underground, and that they were not supportive of increasing assessments.

One alternate solution developed by staff is to have the Conway Road Improvement Project Contractor, Top Grade Construction, install the conduit and splice boxes needed by PG&E, Pac Bell and AT&T. The City has negotiated a price for this work with Top Grade Construction that is within the Conway Road Project that is substantially lower than the PG&E cost proposal. Further, Top Grade and their underground contractor, Preston Pipelines, have scheduled the work to start October 14, 2002. PG&E has indicated they could not mobilize to do the Conway Road work for two to three months.

By installing this utility "substructure" now, the road can be paved before substantial rain, assuring residents of all-weather access, and avoiding removal of pavement for future installation of the utility substructure.

Whatever decision is made regarding the utility substructure, roadway paving will need to be made on Conway Road within the next 30 to 45 days in order to maintain access to existing homes during the rain months.

Conway Road Improvement Project Budget 

Recommended contract increases for the Top Grade Construction contract would be funded by reallocation of above-budgeted funds from PG&E and other contractors to Top Grade Construction. No net increase in Assessment District Budget is required.

Public contact was made with each Conway Road Assessment District property owner by letter sent first class mail. A property owners’ meeting was held on September 24, 2002 to discuss these issues.

Staff recommends that City Council approve Alternative 1, the transfer of Assessment District funds from PG&E to Top Grade Construction, per attached Contract Change Order in the amount of $137,862.

Prepared by:

Don Wimberly

Project Manager

Reviewed by:

Marvin A. Rose

Director of Public Works

Mary Bradley

Director of Finance

Approved by:
Robert S. LaSala
City Manager