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City Council Staff Report
August 27, 2024
Agenda Item No. 8
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Benjamin Davis, Senior Civil Engineer - 949-644-3317, [email protected]
TITLE: Alley Restoration (Assessment District 113 and Assessment District 124 Phase 0 Areas) — Award of Contract No. 7979-3 (25R07) ABSTRACT:
The City of Newport Beach has received construction bids for the alley restoration work related to Assessment District 113 (AD-113) and Assessment District 124 (AD-124) Phase 0 projects and requests City Council approval to award the construction contract to Grigolla & Sons Construction Company, Inc. of San Dimas. The assessment districts are located on Balboa Island. This project will remove and reconstruct concrete streets/alleys, alley approaches, sidewalks, and driveways. It also includes adjusting utility boxes.
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 the project plans and specifications;
c) Award Contract No. 7979-3 to Grigolla & Sons Construction Company, Inc. for the total bid price of $3,774,000 for the Alley Restoration (AD-113 and AD-124 Phase 0 areas) project, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $377,000 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract.
DISCUSSION:
The restoration of concrete alleys within AD-113 is the final step in the utility undergrounding process after the power pole removal and associated water main replacement efforts in this area. The North Bayfront AD-124 Phase 0 area is also being included since full alley reconstruction of AD-124 on Balboa Island is several years away. 8-1
Alley Restoration (Assessment District 113 and Assessment District 124 Phase 0 Areas) — Award of Contract No. 7979-3 (25R07)
August 27, 2024
At 10 a.m. on July 30, 2024, the City Clerk opened and read the following bids for this project:
BIDDER
TOTAL BID AMOUNT
Low
Grigolla & Sons Construction Company, Inc.
$ 3,774,000.00
2nd
CJ Concrete Construction, Inc.
$ 3,834,663.00
3rd
Gentry General Engineering, Inc.
$ 4,661,818.05
4th
Excel Paving
$ 4,778,334.00
5th
CT&T Concrete Paving, Inc.
$ 4,849,344.95
6th
All American Asphalt, Inc.
$ 5,238,832.50
The City received six bids for this project. The low bidder, Grigolla & Sons Construction Company, Inc., possesses a California State Contractor's License Classification "A", as required by the project specifications. A review of references for Grigolla & Sons Construction Company, Inc. shows satisfactory completion of similar contracts for the City and other municipalities.
The low bid was 7.9% below the Engineer's Estimate of $4,100,000. The difference between the low bid and the Engineer's Estimate was due to bid item prices coming in lower than recent project unit prices.
The proposed project includes removing existing asphalt and concrete pavement and constructing new concrete alleys, adjusting utility boxes to grade, conducting traffic control, installing new traffic striping, and other incidental items.
Pursuant to the contract specifications, the contractor will have 120 consecutive working days to complete the work. The project plans and specifications will be available for review at the August 27, 2024, City Council meeting or upon request. Work is scheduled to start in October.
FISCAL IMPACT:
A combination of Assessment District, Water Capital Master Plan, Wastewater Enterprise and General Funds are being used for reconstruction of the alley pavement.
Assessment District funding is through property owner contributions and bond financing secured by property assessments. Water and Wastewater funds are generated primarily through water and sewer rates collected by service users.
The adopted Capital Improvement Program (CIP) budget includes sufficient funding for the award of this contract. The following funds will be expended:
Account Description
General Fund
Water Capital Master Plan
Water Capital Master Plan
Wastewater Enterprise
Assessment District 124 Funding
Account Number
Amount
01201927-980000-25R07
$
2,447,000
70201931-980000-25R09
$
26,000
70201931-980000-25R07
$
400,000
71101-980000-21 R07
$
27,000
67502-941032
$
1,280,000
Total:
$
4,180,000
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Alley Restoration (Assessment District 113 and Assessment District 124 Phase 0 Areas) — Award of Contract No. 7979-3 (25R07)
August 27, 2024
Proposed fund uses are as follows:
Vendor
Grigolla & Sons Construction
Company, Inc.
Grigolla & Sons Construction
Company, Inc.
Harrington Geotechnical
Engineering, Inc.
Purpose Amount
Construction Contract $3,774,000
Construction Contingency $377,000
Materials and Field Testing $29,000
Total:
$4,180,000
Staff recommends establishing $377,000 (approximately 10% of the total bid) for contingency purposes and 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).
ATTACHMENT:
Attachment A — Location Map
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ALLEY RESTORATION (AD-113 AREA)
PROJECT NO. 25R07
LOCATION MAP
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CONSTRUCTION AREA
ASSESSMENT DISTRICT
AREA BOUNDARY
CITY OF
NEWPORT BEACH
PUBLIC WORKS
DEPARTMENT
C-7979-3
8/27/24
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BALBOAISLAND
ALLEY RECONSTRUCTION
AD 124 PHASE 0
LOCATION MAP
AD 124 PHASE 0 BOUNDARY
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-7979-3 8/27/24
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