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CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
November 19, 2024
Agenda Item No. 12
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Michael J. Sinacori, Assistant City Engineer - 949-644-3342, [email protected]
TITLE: Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) — Award of Contract No. 9451-2
ABSTRACT:
The City of Newport Beach received construction bids for the final stage of the Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) project. Staff requests City Council approval to award the construction contract to Asplundh Construction, LLC of Buena Park. Staff also recommends approval of an amendment to the City's agreement with NV5 for assessment district engineering services. If approved, the term of the agreement would be extended to June 30, 2026, and the not -to -exceed contract amount would be increased by $256,969.
RECOMMENDATIONS:
a) Acknowledge this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d), Class 2 (conversion of overhead electrical utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) 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. 9451-2 to Asplundh Construction, LLC for the total bid price of $5,687,675 for the Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) project, and authorize the Mayor and City Clerk to execute the contract;
d) Establish a contingency of $570,000 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract; and e) Approve Amendment No. Five to the Professional Services Agreement for Assessment District Engineering Services for Underground Utility Assessment District No. 124 with NV5, Inc. to increase the fee amount by $256,969 for a total not -to -exceed contract amount of $824,816, extend the contract expiration date to June 30, 2026, and authorize the Mayor and City Clerk to execute the agreement. 12-1
Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) — Award of Contract No. 9451-2
November 19, 2024
DISCUSSION:
On April 28, 2009, a public hearing was held to consider a larger Balboa Island Utility Undergrounding District No. 87, which was ultimately rejected by the residents. Balboa Island Utility Undergrounding District No. 124 (AD 124) was redistricted at the request of project proponents. It consists of 966 parcels in central Balboa Island and is bounded by North Bay Front, Diamond Avenue, Park Avenue, and Grand Canal. Underground Utility Assessment District No. 124 was approved and formed by the City Council on July 27, 2021. Construction work is being phased to minimize traffic disruptions, utility company resource demands, and potential supply chain issues. Construction for AD 124 — Phase 0, which included the North Bayfront from Collins Avenue to Grand Canal, was substantially completed in March 2024. Construction for AD 124 — Phase 1, which includes the southern and western areas of the district, is scheduled for completion in April 2025. AD 124 — Phase 2 is the final phase of civil construction, which includes the central area of the district between Grand Canal and Sapphire Avenues and North Bayfront and Park Avenue.
Historically, utility undergrounding projects have been bid and overseen by Southern California Edison (SCE). Due to high costs and prior failed negotiations with SCE's contractors, the City asked to undertake the bidding and construction of the underground infrastructure portion of these projects, which has resulted in reduced costs. AD 124 — Phase 2 will be the seventh undergrounding project directly constructed and managed by the City.
At 9:30 a.m. on October 16, 2024, the City Clerk opening and read the following bids for this project:
BIDDER
TOTAL BID AMOUNT
Low
Asplundh Construction, LLC
$ 5,687,675.00
2nd
International Line Builders, Inc.
$ 5,866,228.00
3rd
Hot Line Construction, Inc.
$ 6,449,293.65
The apparent low bidder for this project, Asplundh Construction, LLC (Asplundh), submitted a bid approximately 31.5% below the Engineer's Estimate of $8,300,000. Staff believes cost savings are mostly due to an improving bidding environment for this type of work. Asplundh submitted all necessary forms and possesses a Classification "A" California State Contractors License as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for SCE, the City, and other public agencies.
Work necessary to complete this contract consists of trenching; installing conduit, vaults, handholes, and pull boxes; removing existing overhead wiring, transformers, and poles; removing an abandoned 12-inch water line; repaving; and all other incidental items of work required to complete the work in place.
12-2
Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) — Award of Contract No. 9451-2
November 19, 2024
The contractor will have 300 working days to complete the work, once given the notice to proceed. Construction for this contract will be scheduled to minimize impacts to residents and businesses. Work is anticipated to start on January 13, 2025. The project plans and specifications will be available for review at the November 19, 2024, City Council meeting or upon request.
Upon approval of Amendment No. Five with NV5, Inc. (NV5), NV5 will continue to provide assessment district engineering services for AD 124. These services include construction support services such as, construction management, residential permit support services, inspection, and materials laboratory testing. NV5 has successfully provided, and continues to provide, construction support services for the previous two phases of construction for AD 124. Additionally, approval of Amendment No. 5 will extend the contract expiration date to June 30, 2026, to cover the duration of the construction period required to complete AD 124 — Phase 2.
FISCAL IMPACT:
Sufficient funding is available from the pre -payments from AD 124 property owners and the bond issuance for AD 124, which were obtained in the summer of 2023.
The construction contract and professional services contract amendment with NV5 for construction support services will be expensed to the following account in the Public Works Department:
Account Description
AD 124 Construction
Account Number
67502-941032
Proposed expenditures are as follows:
Amount
$ 6,514,644.00
Total: $ 6,514,644.00
Vendor Purpose
Asplundh Construction, LLC Construction Contract $
Asplundh Construction, LLC Construction Contingency $
NV5, Inc. Construction Management $
Total: $
e 21Is ffi
5,687,675.00
570,000.00
256,969.00
6,514,644.00
Staff recommends establishing $570,000 (approximately 10% of the total bid) for contingency purposes to cover the cost of unforeseen conditions associated with construction.
ENVIRONMENTAL REVIEW:
On February 23, 2021, the City Council deemed the AD-124 project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d), Class 2 (conversion of overhead electrical utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding). 12-3
Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) — Award of Contract No. 9451-2
November 19, 2024
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).
ATTACHMENTS:
Attachment A — Project Phasing Map
Attachment B — Amendment No. Five to Professional Services Agreement with NV5, Inc. 12-4
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ATTACHMENT B
AMENDMENT NO. FIVE TO
PROFESSIONAL SERVICES AGREEMENT
WITH NV5, INC. FOR
ASSESSMENT DISTRICT ENGINEERING SERVICES FOR UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 124
THIS AMENDMENT NO. FIVE TO PROFESSIONAL SERVICES AGREEMENT ("Amendment No. Five") is made and entered into as of this 19th day of November, 2024 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and NV5, INC., a California corporation ("Consultant"), whose address is 200 South Park Road, Suite 350, Hollywood, FL 33021, and is made with reference to the following:
RECITALS
A. On February 23, 2021, City and Consultant entered into a Professional Services Agreement ("Agreement") for assessment engineering services for Underground Utility Assessment District No. 124 ("Project").
B. On July 27, 2021, City and Consultant entered into Amendment No. One to the Agreement ("Amendment No. One") to reflect additional services not included in the Agreement, extend the term of the Agreement to June 25, 2025 and to increase the total compensation.
C. On July 14, 2023, City and Consultant entered into Amendment No. Two to the Agreement ("Amendment No. Two") to reflect additional services not included in the Agreement and to increase the total compensation.
D. On November 20, 2023, City and Consultant entered into Amendment No. Three to the Agreement ("Amendment No. Three") to reflect additional services not included in the Agreement and to increase the total compensation.
E. On February 13, 2024, City and Consultant entered into Amendment No. Four to the Agreement ("Amendment No. Four") to increase the total compensation.
F. The parties desire to enter into this Amendment No. Five to extend the term of the Agreement to June 30, 2026, and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:
TERM
Section 1 of the Agreement is amended in its entirety and replaced with the following: "The term of this Agreement shall commence on the Effective Date, and shall terminate on June 30, 2026, unless terminated earlier as set forth herein." 12-6
2. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be supplemented to include the Scope of Services, attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). Exhibit A to the Agreement, Exhibit A to Amendment No. One, Exhibit A to Amendment Two, Exhibit A to Amendment No. Three, and Exhibit A to this Amendment No. Five shall collectively be known as "Exhibit A." The City may elect to delete certain Services within the Scope of Services at its sole discretion.
3. COMPENSATION TO CONSULTANT
Exhibit B to the Agreement shall be supplemented to include the Schedule of Billing Rates, attached hereto as Exhibit B and incorporated herein by reference. Exhibit B to the Agreement, Exhibit B to Amendment No. One, Exhibit B to Amendment No. Two, Exhibit B to Amendment No. Three, Exhibit B to Amendment No. Four, and Exhibit B to this Amendment No. Five shall collectively be known as "Exhibit B." Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Consultant for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Eight Hundred Twenty Four Thousand Eight Hundred Sixteen Dollars and 00/100 ($824,816.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Consultant's additional compensation for additional Services to be performed in accordance with this Amendment No. Five, including all reimbursable items and subconsultant fees, in an amount not to exceed Two Hundred Fifty Six Thousand Nine Hundred Sixty Nine Dollars and 00/100 ($256,969.00).
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE]
NV5, Inc. Page 2
12-7
IN WITNESS WHEREOF, the parties have caused this Amendment No. Five to be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: i L ^ Q
By:
Uyon C. Harp
Attorney ° ' ,
A,;
ATTEST:
Date:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Mayor
Will O'Neill
CONSULTANT: NV5, Inc., a California
corporation
Date:
By:
Jeffrey M. Cooper
Vice President
Date:
By.
MaryJo O'Brien
Secretary
[END OF SIGNATURES]
Attachments: Exhibit A -- Scope of Services
Exhibit B — Schedule of Billing Rates
NV5, Inc. Page 3
12-8
EXHIBIT
SCOPE OF SERVICES
NV5, Inc. Page A-1 12-9
D(HIBIT A
SCOPE OF SERVICES
Underground Utility Assessment District No. 124, Amendment No. 5 NV5 will continue to provide the following Services through June 30, 2026:
CONSTRUCTION MANAGEMENT & INSPECTION
40. Answer questions from property owners.
41. Coordinate and oversee all activities related to the construction of the Project including limited residential permit support services, and maintain close liaison with the City Project Administrator.
42. Serve as contact point for coordination with the Contractor designated by City to perform the construction of the Project ("Contractor"), other agencies and utility companies.
43. Provide Project status updates to City Project Administrator.
44. Review and monitor the Contractor's schedule through weekly construction progress meetings.
45. Prepare daily inspection records and bi-weekly status reports.
46. Maintain an awareness of safety and health requirements and enforce applicable contract provisions for the protection of the public and project personnel.
47. Maintain binders of job records, including photos
48. Evaluate cost reduction incentive proposals and provide recommendations to City Project Administrator
SPECIAL INSPECTION & LABORATORY TESTING
49. Provide qualified field technicians and inspectors on an as -needed basis to observe, sample and test construction materials including but not limited to soil, aggregate, base, Portland cement concrete, and asphalt concrete
50. Coordinate inspection visits at the request of the City's Construction Manager or authorized representative (Engineer).
51. Perform laboratory testing to evaluate material conformance to project requirements. Tests are anticipated to include Modified Proctor (Maximum Density and Optimum Moisture), Sand Equivalent, Grain Size Analysis, Asphalt maximum theoretical density, and unit weight.
52. Prepare and provide daily reports detailing observations, results of testing, and photographs.
53. Notify the Engineer and Contractor of any failures or non -conforming items.
54. Document and track retesting.
55. Provide written laboratory test reports of materials tested.
56. Field technicians and Inspectors will be equipped with appropriate PPE and industry standard sampling and testing equipment. Specialty equipment may be provided upon request at additional cost in accordance with attached Fee Schedule.
57. Registered engineer in the State of California will review all test data for conformance with project requirements.
NV5
12-10
EXHIBIT B
SCHEDULE OF BILLING RATES
NV5, Inc. Page B-1 12-11
N V 5
EXHIBIT B
SCHEDULE OF BILLING RATES
Underground Utility Assessment District No.124, Amendment No. 5 Fee for tasks 40 through 57 from March 1, 2025 through June 30, 2026: $316,969 Estimated remaining budget from Amendment No. 4 on March 1, 2025: $60,000 Total Requested Additional Fee for Amendment No. 5: $256,969 TASK
NO.
WORK DESCRIPTION
Project Manager
$275
Senior Inspector
S175
Admin
$105
Field Technician
$134
Senior Engineer
5185
TOTAL
FF8
HOURS $
HOURS $
HOURS $
HOURS $
HOURS S
CONSTRUCTION MANAGEMENT& INSPECTON
40.0 Answer questions from property owners
40 $11,000
$11.000
41.0 Oversight of all Construction Related Acliv ies
iricludin2 Residential Permit Support
20 $5,500
240
$42,000
S47,500
42.0 Point of Contact for Contractor, City, Utility
Ccm antes, etc.
20 $5,500
200
535,000
W.500
43.0 Project Status Updates
142
$24,850
$24,850
44.0 ISchedule Review
142
$24.850
$24,850
45.0 Project Inspection (documented through daily reports and tri-weelfly status reports)
30 $8 250
150
S26 250
$34 500
460
Enforce Contract Pro AsionslManage health and safety
requirements
10 $2 750
180
$31,500
$34.250
47,0
Detailed project records, including photos
10 $2.750
1 220
$38,500
i
$41,250
48.0 Evaluate cost reduction incentives
20 $5,500
1 106
$18,550
1$24,050
Construction Management & Inspection Subtotal (March 1, 2025 throng 150
$41,250
1 1380
S241,5GD 1
0 $0
0 $0
r 0
SO
5282,750
SPECIAL INSPECTION
49,0
Field Observation and Testing
154
$20,636
$20,636
W 0
Coordinate Inspection Visits
6 $630 1
5 $925
S1,555
51.0-% 0
Laboratory Testing
See Detail Below
57,0
Engineering Review
5 $925 $925
LABORATORY
TESTSNG Units Rate
Modified Proctor (Max DensitX & Optimum Moistum)
4 $210
$840
Sieve Analysis
4 $135
$540
Sand Equivalent
4 $100
$400
Maximum Theoretical Density (ASTM 02041)
2 $210
$420
Asphalt Core Unil Weight & Thickness
7 $50
$420
Special Inspection & t.aboralory Testing Subtotal (March 1, 2025 throug 0 $0 6 $630 1 7 $20,636 10
$1.&50 $25,736
Miscellaneous Expenses $8,483
Total Fee for Services from March 1, 2026 through June 30,2026 Estimated Budget Remaining frornAmendment No. 4 on March 1, 2025 $60,000 Requested Additional Fee for Amendment No. 5 S256,969
Services will be provided through June 30, 2026,
12-12