On Tuesday, Aug. 24 the Signal Hill City Council approved changes to the contract between the city and the company working on the Spring Street Bicycle Lane Gap Closure Project.
The project consists of installing two miles of bicycle lanes along Spring Street, stretching from 500 feet east of California Avenue to the Signal Hill city limit at Junipero Avenue. The project also includes plans for sidewalk repairs and the installation of Americans with Disabilities Act-compliant ramps.
The contract changes approved by the council consisted of three parts:
- A time extension in response to schedule impacts outside of the contractor’s control
- Asphalt material supply cost escalation
- Adjustment of utility manholes and lids not covered in the original contract
These changes to the contract will cost an estimated $317,000. When the $1.69 million contract was first made there was a $167,000 contingency added in case of unforeseen costs. Since the contract changes will exceed the contingency funds of the original contract, the changes required council approval.
The time extension moved the expected completion date for the project from Aug. 11 to Nov. 4. Two factors led to the need for an extension: the revision of street light plans by Southern California Edison and a delay in receiving a permit from Caltrans.
According to contract manager Patrick Kelly, the rise in crude oil prices increased the prices of asphalt, a petroleum product. Kelly said crude oil prices have risen by 28% and that a total of over 8,200 tons of asphalt will be needed to complete the Spring Street Bicycle Lane Gap Closure Project.
According to an article by the Economic Times, after the Saudi energy minister discussed the possibility of cutting the amount of oil produced by the Organization of the Petroleum Exporting Countries (OPEC) the price of crude oil rose by 34 cents a barrel.
According to Kelly, because of the rise in oil and asphalt prices, an additional $158,461.05 will be needed to pay for the asphalt.
Utility providers such as the LA County Sanitation District, were originally going to adjust manhole covers at their own expense as the project continued. Due to difficulty in coordination and a lack of availability, the City will adjust the manholes and lids as part of the contract and invoice utility providers for the costs.
According to Kelly, despite these changes to the contract the project is still expected to be completed under budget.
“I think it’s pretty amazing that with the delays and with the challenges of supply chain things, that the staff has still been able to sharpen their pencils and come in under budget on this,” Councilmember Lori Woods said.
