CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Jacki Scott, Public Works Director/City Engineer
DATE: August 1, 2023
SUBJECT:
Acceptance of Reimbursement Funds from CR&R Inc., and Associated Budget Amendments
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27 in the amount of $42,820;
2. Authorize the Public Works Director/City Engineer to process change orders in an amount not to exceed 20% of the total of this Amendment No. 1 for $8,564 for a total not-to-exceed amount of $51,384 if needed;
3. Authorize the City Manager to execute Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27, subject to the City Attorney making non- substantive changes;
4. Amend project budget for Residential Annual Resurfacing Program Zones I|I & IV - Phase 2 in the amount proportionate to the total costs of Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27; and
5. Approve the following Fiscal Year 2023-2024 budget adjustments:
Revenues
a. Recognize revenue in the General Fund from CR&R Inc. for Resurfacing Portions of Via Pasatiempo and Via Del Oro in the amount proportionate to the total costs of Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27. (Subject to reimbursement from invoice to the contract waste hauler mentioned below.)
Expenditures
b. Amend Fiscal Year 2023-2024 Operating, and Capital Improvement Budget for all funds proportionate to the total costs of Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27.
BACKGROUND
On May 16, 2023, the City awarded an agreement with Pavement Coating Co. for the Residential Annual Resurfacing Program Zones III and IV as part of the City's Pavement Management Program. Pavement Coating Co. has been working to complete the scope of work for Zones III and IV since June, with completion of the project tentatively scheduled for mid-August.
In an unrelated incident, on or around June 6, 2023, a garbage truck operated by the City's contract waste hauler, CR&R Inc., leaked hydraulic fluid, causing damage across a half-mile stretch of residential roadway along Via Pasatiempo and Via Del Oro (Attachment A). This segment of roadway falls within Zone I of the Pavement Management Program and was last resealed in Fiscal Year 2021-2022. Via Pasatiempo and Via Del Oro are not scheduled to be slurry sealed again until Fiscal Year 2028-2029.
Given that the roadway damage on Via Pasatiempo and Via Del Oro was caused by CR&R Inc. and that the City's contract with CR&R requires that damages be repaired at the cost of CR&R Inc., staff is recommending that Pavement Coating Co. complete the repair work. This can be accomplished in a timely manner via an amendment to the existing Agreement with Pavement Coating Co.
Investing in the City's street system results in a decrease in costs for street maintenance because it costs less to maintain streets in good condition than to repair those that have failed, satisfies Maintenance of Efforts reporting requirements, and meets the community's needs. This is aligned with Goal #4, Infrastructure and Technology, in the City's adopted Strategic Plan.
ANALYSIS
The City has been working collaboratively with CR&R Inc. to address the hydraulic fluid spill along Via Pasatiempo and Via Del Oro. CR&R Inc. has agreed to reimburse the City for the costs associated with slurry sealing the impacted/damaged segments of roadway along Via Pasatiempo and Via Del Oro.
With Pavement Coating Co. currently providing slurry seal services as part of the City's Pavement Management Program, staff recommends approving an Amendment to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27 in the amount of $42,820 (Attachment B). As the original Agreement already included a 20% contingency, staff recommends that a 20% contingency on Amendment No. 1 also be included for a total not-to-exceed amount on the Amendment of $51,384. Successful staff negotiations with CR&R Inc. has resulted in an agreement to fully reimburse the City for all costs associated with this Amendment.
Staff believes that as the City's current Residential Annual Resurfacing Program contractor, Pavement Coating Co. will provide the most cost-effective and timely solution under the circumstances. As Pavement Coating Co. is actively mobilized in the City, the company can provide the same high-quality product and services at a lower rate due to existing economies of scale. These recommended actions will also provide the fastest repair to the impacted roadway segment. Additionally, the Public Works Department will provide inspection of the repair area as well as coordinate outreach efforts with residents along Via Pasatiempo and Via Del Oro to ensure proper communication.
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines - California Code of Regulations, Chapter 3 (Guidelines for Implementation of CEQA), Article 19 (Categorical Exemptions), Section 15031 (Existing Facilities), Subsection (c).
ALTERNATIVES CONSIDERED
1. The City Council may decide not to approve Amendment No. 1 to the Cash Contract with Pavement Coatings Co. As a result of this action, the City may lose oversight and quality control of the project.
2. The City Council may direct staff to defer this project to a future date. Staff does not recommend this option as Pavement Coating Co. is actively mobilized in the City, and a delay in implementation will result in an additional $18,000 in mobilization costs with associated delays.
FISCAL REVIEW
Staff recommends the City Council recognize the revenue from CR&R, Inc., and the additional capital expenses for Resurfacing Portions of Via Pasatiempo and Via Del Oro in the amount proportionate to the total costs of Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27. Completion of the Amendment and Reimbursement will result in no fiscal impact to the City.
LEGAL REVIEW
The City Attorney's Office has reviewed Amendment No. 1 to the Agreement for Construction Service Residential Annual Resurfacing Program Zone III & IV - Phase 2, Cash Contract No. 22-27 and this report and approved both documents as to form.
CONCLUSION
Staff recommends that the City Council:
1. Approve Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27 in the amount of $42,820;
2. Authorize the Public Works Director/City Engineer to process change orders in an amount not to exceed 20% of the total of this Amendment No. 1 for $8,564 for a total not-to-exceed amount of $51,384 if needed;
3. Authorize the City Manager to execute Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27, subject to the City Attorney making non- substantive changes;
4. Amend project budget for Residential Annual Resurfacing Program Zones III & IV - Phase 2 in the amount proportionate to the total costs of Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27; and
5. Approve the following Fiscal Year 2023-2024 budget adjustments:
Revenues
a. Recognize revenue in the General Fund from CR&R Inc. for Resurfacing Portions of Via Pasatiempo and Via Del Oro in the amount proportionate to the total costs of Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones III & IV - Phase 2, Cash Contract No. 22-27. (Subject to reimbursement from invoice to the contract waste hauler mentioned below.)
Expenditures
b. Amend Fiscal Year 2023-2024 Operating, and Capital Improvement Budget for all funds proportionate to the total costs of Amendment No. 1 to the Agreement for Construction Services Residential Annual Resurfacing Program Zones I|I & IV - Phase 2, Cash Contract No. 22-27.
Samara Setonsedu
Jacki Scott Tamara S. Letourneau
Public Works Director/City Engineer City Manager
Let smith
grelius Scott C. Smith
Finance Director City Attorney
Melin Kein. X. OCumen
John Pham Kevin X. O'Connor
Assistant Engineer Management Assistant
Attachments:
A. Vicinity Map
B. Amendment No. 1 to Agreement for Construction Services, Cash Contract No. 22- 27 with Pavement Coatings Co.
ATTACHMENT A
Vicinity Map
La Montrosa
Mione Serenata
La Triana San Rafael Place
VICINITY MAP Santa Barbara Place
El Adolfo El Brazo
La Paz Road Avenida Riviera Via De Luna
Via Pasatiempo
El Apajo
Pequeno
Via Carlos
Via Del Oro
Kings Road Queens Court
LEGEND
• Work AreaR
Via Pasatiempo/ Via Del Oro
Location Map
N
ATTACHMENT B
Amendment No. 1 to the Agreement for Construction Services for Residential Annual Resurfacing Program Zones III & IV - Phase 2
AMENDMENT NO. 1 TO AGREEMENT FOR CONSTRUCTION SERVICES RESIDENTIAL ANNUAL RESURFACING PROGRAM ZONE III & IV - PHASE 2,
CASH CONTRACT NO. 22-27
FORMAL BID PROJECTS
THIS AMENDMENT NO. 1 TO THE AGREEMENT FOR CONSTRUCTION SERVICES ('This Amendment No. 1"), is entered into as of hereinafter the City, and Pavement City of Laguna Niguel, a municipal corporation,
Coatings Čo., a California corporation (hereinafter the "Contractor").
RECHIALS:
A. The City contracted with the Contractor to construct the project, Residential Annual Resurfacing Program Zones I|I & IV - Phase 2, Cash Contract No. 22- 27 ("Project'").
B. The City entered into a Construction Services Agreement for the City of Laguna Niguel with the Contractor dated June 7, 2023 (the "Agreement") to provide construction services as requested by the City. The Term of the Agreement commenced on June 19, 2023, and is set to expire on September 12, 2023.
C. The City has requested the following additional services from the Contractor:
Residential Resurfacing on Via Pasatiempo and Via Del Oro ("Additional Services and Cost Proposal"), as described in Exhibit "A-1," attached hereto and incorporated herein.
D. The Contractor submitted a cost proposal for the above requested Additional Services, which is included in Exhibit "A-1."
E. Contractor has the qualifications and experience to render the requested Additional Services.
F. City now desires to enter into this Amendment No. 1 to the Agreement with the Contractor for the requested Additional Services.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises and covenants herein contained, the parties hereto agree as follows:
Services to be Performed by Contractor. Contractor agrees to perform the following additional services on Via Pasatiempo and Via Del Oro ("Additional Services") for the City in a manner satisfactory to the City, as detailed in Exhibit "A-1," attached hereto and incorporated herein.
1 Term. This Amendment No. 1 shall become effective as of the date stated above and extends the term of the Agreement until the Additional Services required by this Amendment No. 1 are completed, subject to termination as provided in the Agreement, except the indemnification provisions contained in the Agreement shall remain in full force and effect after Amendment No. 1 is terminated.
3. Payment for Additional Services. In consideration for Additional Services rendered hereunder, the City shall pay the Contractor a total not-to-exceed amount of Forty-Two Thousand Eight Hundred Twenty Dollars ($42,820.) for labor, materials, and any and all other costs incurred by Contractor to satisfactorily construct the Project. Unless otherwise provided in the bid documents or agreed upon by the parties, Contractor shall submit detailed, monthly invoices for work actually performed.
A twenty percent (20%) contingency (allowance) of the total contract value Eight Thousand Five Hundred Sixty-Four Dollars ($8,564) added to the Contractor's total bid proposal for unforeseen conditions or additional work related to this Project. The allowance shall be used solely by the City to address any unforeseen repairs or additional work related to the Project. The Contractor shall obtain written approval from the City for the use of the allowance.
4. Continuation of Terms and Conditions of Agreement. Except as otherwise expressly provided in Amendment No. 1, all the terms and conditions of the Agreement, shall remain in full force and effect and shall apply to the performance of services pursuant to this Amendment No. 1.
5. Authority to Sign. The person(s) executing this Amendment No. 1 on behalf of the Contractor warrants and represents that they have the authority to execute this Amendment No. 1 on behalf of the Contractor and have the authority to bind the Contractor to the performance of the obligations hereunder.
III
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 to the Agreement as of the date first above written.
"CITY"
CITY OF LAGUNA NIGUEL
By:_
Tamara S. Letourneau
City Manager
ATTEST:
Marissa J. Asistin
City Clerk
APPROVED AS TO FORM BY THE
CITY ATTORNEY FOR THE
CITY OF LAGUNA NIGUEL,
CALIFORNIA
Scott C. Smith
City Attorney
"CONTRACTOR"
PAVEMENT COATINGS CO.,
A California Corporation
By:
Print Name:
Title:
By:
Print Name:
Title:
3 EXHIBIT "A-1"
ADDITIONAL SERVICES & COST PROPOSAL
Proposal and Contract
The Road To Smart Solutions
Pavement Coatings Co.
DIR# 1000003382 CA License# 303609 Type A, C32
Pavement Riverside: 10240 San Sevaine Way, Jurupa Valley, CA 91752 Phone: (714) 826-3011 Fax: (714) 826-3129
Coatings Co. From: Melissa Ailshie Email: [email protected] To: Quote No: 1827760
Phone: (949) 362-4335
30111 Crown Valley Parkway Fax: 1) -
An Employee Owned Company Laguna Niguel, CA 92677 Bid Date: 7/26/2023 OTHERS TALK SAFETY, [email protected]
WE LIVE IT!
We propose to furnish you with labor and material per your representation of job requirements as follows:
LAGUNA NIGUEL, CITY OF - RESIDENTIAL ANNUAL RESURF VIA PASATIEMPO/VIA DEL ORO Rev. 2 Item No Description Quantity UOM Unit Price Total Price
ADDITIONAL STREETS
Traffic Control 1 LS 8,200.000 $8,200.00
3 Clearing And Grubbing 1 3,500.000 $3,500.00
4 Asphaltic Emulsion Crack Seal 1 10,450.000 $10,450.00 6 Type II Slurry Seal (Via Pasatiempo/ Via Del Oro From El 82,000 SF 0.210 $17,220.00 Brazo On The Northend To Via Pequeno On The Southend)
8 Striping, Stenciling & Pavement Markings - Streets LS 3,450.000 $3,450.00 Total: $42,820.00
Optional
1 Mobilization 1 LS 18,000.000 $18,000.00
Total: $18,000.00
General Conditions
Terms & Conditions per fully executed Agreement for Residential Annual Surfacing Program Zones I| & IV - Phase 2, Contract No. 22-21 2 Pricing above is based on being completed with the mobilization included in Base Bid Contract Work. Additional mobilization will be required if work is scheduled after PCC has de-mobilized from Base Bid Contract Work.
General Conditions
Date: Accepted By:
www.pavemelrecycling.com