Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
February 14, 2023
Agenda Item No. 8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Andy Tran, Senior Civil Engineer, [email protected] PHONE: 949-644-3315
TITLE: Concrete Replacement Program — Award of Contract No. 8921-1 (23R06)
ABSTRACT:
The City of Newport Beach (City) has received construction bids for the FY 2022-23 Concrete Replacement Program project and requests City Council approval to award the construction contract to Towo Enterprise, Inc. of Fullerton, California. This project will replace deteriorated concrete sidewalks, driveways, curbs and gutters, and access ramps in the Irvine Terrace, Corona del Mar, and Shorecliffs neighborhoods.
RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve a Reimbursement Agreement with Newport -Mesa Unified School District for concrete improvements adjacent to Corona del Mar High School and Ensign Intermediate School;
c) Approve Budget Amendment No. 23-049 appropriating $102,850 in new revenue and expenditures from Newport Mesa Unified School District to 13501-980000-23R06; d) Approve the project plans and specifications;
e) Award Contract No 8921-1 to Towo Enterprise, Inc. for the bid price of $1,096,200 for the FY 2022-23 Concrete Replacement Program, and authorize the Mayor and City Clerk to execute the contract; and
f) Establish a contingency of $110,000 (approximately 10 percent of total bid) to cover the cost of unforeseen work not included in the original contract. 8-1
Concrete Replacement Program — Award of Contract No. 8921-1 (23R06) February 14, 2023
DISCUSSION:
This construction contract was previously advertised in September 2022. Upon review of the bid results, the apparent low bid appeared to be unbalanced. On November 29, 2022, the City Council rejected all bids and directed staff to re -advertise the contract. The bid package was reviewed and released for new bids.
At 10 a.m. on January 10, 2023, the City Clerk opened and read the following bids for this project:
BIDDER
TOTAL BID AMOUNT
Low
Towo Enterprise, Inc.
$ 1,096,200.00
2nd
Stance Construction Company
$ 1,114,421.30
3rd
Gri olla & Sons Construction Company
$ 1,142,000.00
4th
NR Development, Inc.
$ 1,150,500.00
5th
S&H Civilworks
$ 1,187,500.00
6th
Vido Samarzich, Inc.
$ 1,193,725.00
7th
Addison -Miller, Inc.
$ 1,210,750.00
8th
Diamond Construction
$ 1,298,925.00
9th
CT&T Concrete Paving, Inc.
$ 1,361,055.00
10th
Armstrong Cal Builders, Inc.
$ 1,397,605.00
11 th
PUB Construction, Inc.
$ 1,421,295.00
12th
Onyx Paving Company, Inc.
$ 1,587,000.00
13th
Beador Construction Company, Inc.
$ 1,987,700.00
The City received 13 bids for this project. The low bidder, Towo Enterprise, Inc., possesses a California State Contractor's License Classification "A" General Engineering, as required by the project specifications. A review of references for Towo Enterprise, Inc. shows satisfactory completion of similar contracts for other municipalities.
The low bid was 12.3 percent below the Engineer's Estimate of $1,250,000 and $45,301 less than the rejected low bid last fall. The difference between the low bid and the Engineer's Estimate reflects a very competitive bidding climate for surface concrete work.
The high number of bids received also indicates a competitive bidding climate. The Engineer's Estimate was prepared based on recent (last six months) unit prices and reflects the recent inflation that the City has seen over the past year.
The City's annual Concrete Replacement Program involves replacing deteriorated concrete sidewalks, driveways, curbs and gutters, and access ramps. This program precedes the annual slurry seal program, which is scheduled to start in spring. This year's project focuses on concrete improvements in the Irvine Terrace, Corona del Mar, and Shorecliffs neighborhoods.
Staff also recommends the approval of a Reimbursement Agreement with Newport -Mesa Unified School District (District) to complete parkway improvements adjacent to Corona del Mar High School and Ensign Intermediate School. The District is responsible for maintaining the parkways in front of these two schools. Proposed improvements involve widening the sidewalks within the parkways. The Reimbursement Agreement identifies cost sharing for these parkway improvements.
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Concrete Replacement Program — Award of Contract No. 8921-1 (23R06) February 14, 2023
Pursuant to the contract specifications, the contractor will have 60 consecutive working days to complete the work. Work is scheduled to start in the middle of March. The project plans and specifications will be available for review at the February 14, 2023 City Council meeting or upon request.
FISCAL IMPACT:
As approved, the proposed budget amendment and current adopted Capital Improvement Budget provide sufficient funding for the award of this contract. The Concrete Replacement Program has $1,262,560 available through the General Fund, the Contribution Fund, and the Neighborhood Enhancement Fund (536). The Neighborhood Enhancement Fund is used for projects that enhance neighborhood aesthetics and functionality and is funded via surplus general funds.
The following funds will be expended:
Account Description
General Fund
Neighborhood Enhancement
Contribution — Newport Mesa
School District
Proposed funds uses are as follows:
\/Pnrinr
Towo Enterprise, Inc.
Towo Enterprise, Inc.
Various
Account Number
Amount
01201927-980000-23R06
$
947,150
53601-980000-23R06
$
160,000
13501-980000-23R06
$
102,850
Total:
$
1,210,000
Purpose
Amount
Construction Contract
$
1,096,200
Construction Contingency
$
110,000
Printing & Incidentals
$
3,800
Total:
$
1,210,000
Staff recommends establishing $110,000 (approximately 10 percent) for contingency purposes to cover the cost of unforeseen conditions associated with construction.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 8-3
Concrete Replacement Program — Award of Contract No. 8921-1 (23R06) February 14, 2023
ATTACHMENTS:
Attachment A — Budget Amendment No. 23-049
Attachment B — Location Map
Attachment C — Reimbursement Agreement
RM
ATTACHMENT A
City of Newport Beach
BUDGET AMENDNIENT
'Pit, P' 2022-23 BA#: 23-049
Department: Public Works
ONETIME: FJYes ❑ No
Requestor: David Webb
Approvals
❑ CITY MANAGER'S APPROVAL ONLY _
Finance Director: Date -2A 1 I L�
COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To appropriate new revenues and expenditures from Newport Mesa Unified School District for project 231106. ❑ from existing budget appropriations ❑✓ from additional estimated revenues
❑ from unappropriated fund balance
REVENUES
Fund #
Org
Object
Project
Description
Increase or (Decrease) $
135
13501
431225
231306
CONTRIBUTIONS FUND CIP - NEWPORT MESA UNFD SCHOOL DIST 102,850.00 Subtotal $ 102,850.00
EXPENDITURES
Fund #
Org
Object
Project
Description
Increase or (Decrease) $
135
13501
980000
231106
CONTRIBUTIONS FUND CIP
- CIP EXPENDITURES FOR GL 102,850.00
---------------------
Subtotal $ -- - 102,850.00
FUND BALANCE
Fund #
Object
Description
Increase or (Decrease) $
135
300000
CONTRIBUTIONS FUND
- FUND BALANCE CONTROL
Subtotal $
No Change In Fund Balance
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ATTACHMENT B
JOHN WAYNE
AIRPORT
NOT TO SCALE
CONCRETE
REPLACEMENT PROGRAM
LOCATION MAP
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-8921-1 1 2/14/23
M.
ATTACHMENT C
REIMBURSEMENT AGREEMENT BETWEEN
NEWPORT-MESA UNIFIED SCHOOL DISTRICT AND THE CITY OF NEWPORT
BEACH FOR SIDEWALK IMPROVEMENTS
THIS REIMBURSEMENT AGREEMENT ("Agreement") is made and entered into as of this 14th day of February, 2023 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and NEWPORT-MESA UNIFIED SCHOOL DISTRICT, a political subdivision of the State of California ("District"), and is made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City.
B. As part of the City's Capital Improvement Program ("CIP"), the City is administering the annual Concrete Replacement Program for Fiscal Year 2022-23. City intends to construct improvements on sidewalks, driveways, curbs and gutters at various locations in the Irvine Terrace and Corona del Mar Village communities ("Project").
C. The District is responsible for maintaining the parkways in front of the Corona Del Mar High School and Ensign Intermediate School ("Schools"), both of which are within the District, and desires the City, as part of the Project, remove the parkways and widen the existing sidewalks in front of the Schools as depicted on Exhibit "A" attached hereto and incorporated by reference herein ("Improvements").
D. The parties have determined that it would be more expedient and cost effective for City to construct the Improvements as part of the Project than it would be for District to do so independently.
E. District is amenable to the City constructing the Improvements with the City agreeing to advance the costs.
F. District agrees to fully reimburse the City for the actual costs of the Improvements through a lump sum billed by the City and approved by District for the entire cost of the Improvements.
NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth, the parties hereto agree as follows:
1. SIDEWALK IMPROVEMENTS
In conjunction with the Project, City agrees to initiate and pursue to completion the design and construction of the Improvements.
No
2. PLANS
City agrees that the Improvements shall be completed pursuant to approved project plans and specifications (the "Plans and Specifications") which shall be approved by District and used in awarding the construction contract.
3. BIDDING AND AWARD
The parties agree that the construction of the Improvements shall be included in City's contract awarded for the Project and that the Improvements shall be bid as a separate item or items that can be deleted. The total estimated construction cost of the Improvements is One Hundred Two Thousand Eight Hundred Fifty Dollars and 00/100 ($102,850.00), provided however, the amount to be reimbursed by District shall be based on the actual costs, not to exceed such amount without the prior written approval of the District which shall not be unreasonably withheld, conditioned, or delayed. Upon award of the construction contract, City shall provide District with one (1) original copy of the fully executed contract documents and one (1) copy of the bid package relating to the Improvements received from the successful bidder.
4. CHANGE ORDERS
District shall promptly review proposed change order(s) and provide City with a response within five (5) working days or sooner of receiving proposed change order(s) information from City. District agrees not to unreasonably cause delay(s) to the construction schedule of the Project in reviewing proposed change order(s) for the Improvements.
5. REIMBURSEMENT
District agrees to reimburse City for the following costs (collectively, the "Cost"):
(a) the actual costs of design, construction, permits, bonds, and legal fees (excluding the costs of preparation for this Agreement) reasonably incurred by City in connection with the design and construction of the Improvements with reasonable prior notice to District, plus (b) an administration fee which shall be equal to four percent (4%) of the actual cost of construction (costs paid directly to City's contractor for construction, only, excluding any cost for design, surveying, geotechnical or other work) of the Improvements and which shall be deemed to cover all costs of project administration, including, but not limited to, accounting, inspection, surveying, compaction testing, geotechnical services and engineering. City shall keep a separate accounting of all costs incurred by City in relation to the Improvements.
Within sixty (60) days of District's acceptance of the Improvements as provided in Section 8, a final accounting of the Costs shall be made by City and submitted to District along with an invoice for the costs and any supporting documentation necessary to show the amounts which represent costs of Improvements. If progress payments are made, amounts paid pursuant to progress payment invoices shall be subject to adjustment in NEWPORT-MESA UNIFIED SCHOOL DISTRICT Page 2
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the final accounting. Within thirty (30) days of said final accounting, District agrees to pay the City the total amount of the costs not reasonably subject to dispute.
6. LAWS, ORDINANCES, RULES AND REGULATIONS
City shall require in its contract for the construction of the Improvements that its contractor be fully informed of and comply with all laws, ordinances, rules and regulations, including, but not limited to, all applicable requirements of the California Labor Code, prevailing wage laws, and the Rules and Regulations of District, in connection with the construction of the Improvements.
7. INSPECTION
District shall be entitled, but not required, to inspect the construction of Improvements as it deems necessary to assure compliance with the Plans and Specifications, including shop drawing review and material inspection thereof. District shall have access to all phases of the Project work to be performed by City for the purpose of such inspection; provided, however, all questions regarding the work being performed will be directed to City's resident engineer or its qualified designee. District will promptly notify City of any portion of the work on the Improvements which appears not to conform to the Plans and Specifications. The determination of District as to conformity of the Improvements with the Plans and Specifications shall be made in District's sole and absolute discretion. District agrees not to unreasonably withhold its approval as to such conformity of the Improvements with the Plans and Specifications. City shall require its contractor to construct the Improvements so that the Improvements conform to the Plans and Specifications. City agrees to assume full responsibility for certifying or obtaining certification of the compaction of backfill material over the Improvements.
8. ACCEPTANCE
District agrees to accept Improvements when the Improvements have been completed by City in accordance with all requirements of the Plans and Specifications, including any change orders approved by District as provided in Section 4 hereof. At the time of completion and acceptance of the Improvements, City agrees to furnish District with one (1) copy of the contractor's redlined set of blueline "record" drawings (showing all revisions, manufacturer and type of valves, pipe and fittings as required by District) and one (1) copy of the compaction reports and certificate, survey notes and cut sheets.
9. OWNERSHIP
It is mutually agreed between the parties hereto that there shall be no change in ownership or maintenance duties after the Project is complete.
10. GUARANTEES
City will guarantee, and pursuant to the requirement(s) of the Plans and Specifications, cause its contractor(s) for the Improvements to guarantee the NEWPORT-MESA UNIFIED SCHOOL DISTRICT Page 3
Improvements against defects in workmanship and materials for a period of one (1) year from the date of acceptance by City, which acceptance shall be given only after acceptance by District as provided in Section 8. It is further agreed that City shall cause the Improvements to be brought or restored to full compliance with the requirements of the Plans and Specifications, including any test requirements, for any portions of the Improvements which during said one (1) year period are found not to be in conformance with the provisions of the Plans and Specifications. This guarantee is in addition to any and all other warranties, express or implied, from City's contractors or material manufacturers, with respect to the Improvements. The guarantee and obligations under this section shall in no way be relieved by District's inspection and/or acceptance of the Improvements. This section sets forth the entire guarantee and warranty of City with respect to the Improvements. The express or implied warranties of other persons with respect to Improvements shall in no way be limited by the guarantee and warranty of City contained in this section. If requested by District, City agrees to assign to District the contractor's guarantee and/or any other guarantees or warranties relating to the Improvements.
11. INDEMNIFICATION
To the furthest extent permitted by law, City shall indemnify, defend and hold District, its officers, agents, employees, and engineers harmless from any expense, liability or claim for death, injury, loss, damage or expense to persons or property which may arise or is claimed to have arisen during construction of the Improvements as a result of any work or action performed by City or on behalf of City, save and except to the extent such expense, liability or claim is proximately caused in whole or in part by any act, omission, or negligence of District, its officers, agents, employees or engineers or by any act or omission for which District, its officers, agents, employees or engineers are liable without fault.
To the furthest extent permitted by law, District shall indemnify, defend and hold City, its officers, agents, and employees, harmless from any expense, liability or claim for death, injury, loss, damage or expense to persons or property which may arise or is claimed to have arisen either (i) as a result of any acts performed by District, its officers, agents, or employees, with respect to the Improvements construction; or (ii) following District acceptance of the Improvements, with respect to maintenance and operation of the Improvements, save and except to the extent such expense, liability or claim is proximately caused in whole or in part by any negligence of City, its officers, agents, employees or engineers, or by any act or omission for which City, its officers, agents, employees or engineers are liable without fault.
12. INSURANCE AND BONDING
City shall cause its contractor(s) to provide performance and payment bonds for the construction of the Project including the Improvements and to obtain insurance coverage sufficiently broad to insure the matters set forth in this Agreement and to include District, its officers, agents, employees and engineers, as additional insureds on all insurance policies that City requires its contractor(s) to provide. As evidence of such NEWPORT-MESA UNIFIED SCHOOL DISTRICT Page 4
i
insurance coverage, City shall, prior to commencement of construction of the Improvements, provide District with certificates of insurance and insurance endorsements from City's contractor(s) in a form acceptable to District.
13. TERMINATION
13.1 District may terminate this Agreement at any time, subject to the provisions of this section, by providing five (5) business days' prior written notice to City. If, at the request or direction of a party other than City, the performance of the Work is not accomplished or completed, District shall remain obligated for the actual amount of the Costs incurred by City to the date of termination.
13.2 If the Project is canceled or modified so as to eliminate the necessity of the construction of the Improvements, City shall have the right to terminate this Agreement and thereby terminate its obligation to perform the Work, by providing five (5) business days' prior written notice to District. In such case, District will not be obligated for any design or any other Costs incurred by City. If District elects to perform the Work, District may, but shall not be obligated to, acquire the design or other work from City by separate agreement.
13.3 Except for the payment of money, neither party will be liable for any delays or other non-performance resulting from circumstances or causes beyond its reasonable control, including without limitation, fire or other casualty, Act of God, strike or labor dispute, war or other violence, acts of third parties, or any law, order, or requirement of any governmental agency or authority other than the parties.
14. NOTICE
Any notice or other written instrument required or permitted by this Agreement to be given to either party shall be deemed received when personally served or twenty-four (24) hours after being deposited in the U.S. Mail, postage prepaid, registered or certified and addressed as follows:
DISTRICT: Newport -Mesa Unified School District
2985 Bear Street, Bldg. A
Costa Mesa, California 92626
Attn: Jeffery S. Trader, Assistant Superintendent, CBO
CITY: City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Attn: Andy Tran, Senior Civil Engineer
15. SUCCESSORS AND ASSIGNS; INTEGRATION; AMENDMENT
This Agreement shall be binding upon and inure to the benefit of the successor and assigns of City and District. This Agreement constitutes the entire Agreement NEWPORT-MESA UNIFIED SCHOOL DISTRICT Page 5
8-11
between City and District and supersedes all prior understandings and agreements between the parties with respect to the subjects hereof. This Agreement may be modified only in writing signed by both parties hereto.
16. LEGAL FEES
In the event of any declaratory or other legal or equitable action instituted between City and District in connection with this Agreement, the prevailing party shall be entitled to recover from the losing party all of its costs and expenses, including court costs and reasonable attorneys' fees.
17. INTENTIONALLY DELETED
18. SEVERABILITY
If any term, provision, covenant or condition of this Agreement is held to be invalid, void or other unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term provision, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
19. APPLICABLE LAW
This Agreement shall be construed and enforced in accordance with the laws of the State of California.
20. WAIVER
The waiver of any provision of this Agreement by either party shall not be deemed to be a waiver of any other provision or of any preceding or subsequent breach hereunder. [SIGNATURES ON NEXT PAGE]
NEWPORT-MESA UNIFIED SCHOOL DISTRICT Page 6
8-12
IN WITNESS WHEREOF, the parties are signing this Agreement as of the Effective Date.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: I A AS
By:
4 a on C. Harp
►�I�s1�3t��
C Attorney
ATTEST:
Date:
la
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Noah Blom
Mayor
NEWPORT-MESA UNIFIED SCHOOL
DISTRICT, a political subdivision of the
State of California
Date: J4v\j 202-5
By.CVAE 724
Trader
Assistant Superintendent, CBO
NEWPORT-MESA UNIFIED SCHOOL DISTRICT Page 7
8-13
Exhibit A
NMUSD Sidewalk Improvement
NEWPORT-MESA UNIFIED SCHOOL DISTRICT Page A-1
8-14
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LEGEND
CORONA DEL MAR HIGH SCHOOL
CONC12ETE REPLACEME
nnona� nc..M1n .�
C-8921.1 19
8-15
pw.
ALA 4L
,J, LEGEND
ENSIGN INTERMEDITATE SCHOOL/
CONCRETE REPO
C-8921-1 li
8-16
CONDITION 1 - FINI$11 SURFACE OF IX
N'LV SID WA K F ISH WW TN %ISI j
EENCF FOj211NG/CUNI� 1
EXIST. IX /
PAVE
T I Ilr f/
1 EXIST. CONIC. j
SIDEWALK :X
SLOPE TO MATCH �I
EXIST. SIDEWALK j
(2R MA%) /
f_T——
------ Ih
PROP. CONC.
SIDEWALK t
EXIST CURB
h CUI TER
EXIST. FENCE @
FENCE FOOTING/CURB.
NATURAL GROUND.
P
PROP VARIABLE EXIST. FENCE k
H£ICIIT RETAINING CONCRE FIECURD SEE NOTE FOUNDATION,
STRIP OR POST.
x NATURAL GROUND.
I {
PROP. CONC.� /
SIOE1'lALK F
C4NQlllQN 1 - Fldl$11 SURFACE DE
NEW S!Q£}yAI IS,BF1 oyr jxIST.
fLNCF FOOTING/IMB,
NOIF FOR CONCH TION 3
IF TIIE E%ISNNG ELEVATION OF THE FINISH SURFACE OF THE NEW SIDEWALK IS LOWER HAN THE EXISTING FENCE FOOTING/CURD, THE CONTRACTOR SHAH CONSTRUCT a 4-INCH WIDE VARIABLE HEIGHT RETAINING CURB AT THE BACK OF WALK PROP. VARIABLE \
HEIGHT RETAINING
CURD. SEE NOTE.
PROP CONIC.
SIDEWALK
THICKENED
EDGE
EXIST. FENCE &
CONCRETE
FOUNDATION,
STRIP OR POST.
NATURAL GROUND.
CONDITION 2 - F II,�JSII SURFACE OF
dEj'LSJQ�p{!� K ARO %HST F N .
FOOTING/CURB
NOTE FOR CONDITION 2
IF THE EXISTING ELEVATION OF THE FINISH SURFACE OF THE NEW SIDEWALK IS ABOVE THE EXISTING FENCE FOOTING/CURB, THE CONTRACTOR SHALL CONSTRUCT A 6-INCH
MINIMUM THICKENED EDGE
CONQLLON 4 - FINI H SIRFAOF OF —\
N W qD WALK @ OW TjISTING.
CURB AT PARKING 101
PROP CONC
SIDEWALK
DETAIL 1
CONDITIONS FOR SIDEWALK FINISH SURFACE ELEVATIONS
_—. N. T. S.`..�.._
XIST. CURB AT
'ARKING LOT
AC PARKING LOT
F,(O_TE FOR CONDITION 4*
IF THE E%ISTING ELEVATION OF THE FINISH SURFACE OF THE NEW SIDEWALK IS LOWER THAN THE E%ISTING CURB AT THE PARKING LOT, THE CONTRACTOR SHALL CONSTRUCT A 4-INCH WIDE VARIABLE HEIGHT RETAINING CURB AT THE BACK OF WALK C-8921-1
8-17