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HomeMy WebLinkAbout04 - Traffic Signal Modernization Project - Phase 8 NOC for Contract C-6079 (Project No. 15T11)TO: FROM: CITY OF NEWPORT BEACH City Council Staff Report October 11, 2016 Agenda Item No. 4 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Brad Sommers, Senior Civil Engineer, bsommers(o-)_newportbeachca.gov PHONE: 949-644-3326 TITLE: Traffic Signal Modernization Project - Phase 8 Notice of Completion for Contract C-6079 (Project No. 15T11) ABSTRACT: On September 8, 2015, City Council awarded Contract No. 6079 for construction of Phase 8 of the Traffic Signal Modernization Project to Pro Tech Engineering Corporation of Anaheim, California (Attachment A). The work is now complete and staff requests City Council acceptance and close out of the contract. RECOMMENDATION: a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. (September 8, 2015, City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301); b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after the acceptance by the City Council. 4-1 Traffic Signal Modernization, Phase 8 — Notice of Completion for Contract C-6079 October 11, 2016 Page 2 FUNDING REQUIREMENTS: Funds for the construction contract were expensed from the following accounts: Account Description Gas Tax — TSM Phase 8 General Fund — 15/16 TSR Gas Tax — 15/16 TSR IT Professional Services Water Enterprise Waste Water Enterprise DISCUSSION: Account Number Final Cost at Amount 12101-980000-15T11 $ 475,854.49 01201927-980000-15T01 $ 192,700.00 12101-980000-15T01 $ 50,300.00 7657653-811008 $ 24,127.50 70101-980000-15W03 $ 24,590.00 71101-980000-15W03 $ 8,210.00 Total: $ 775,781.99 Overall Contract Cost/Time Summary Awarded Final Cost at Contingency Actual % Due to % Due to Contract Amount Completion Allowance Contract Directed Unforeseen Change Change Change $670,225.00 $775,781.99 18% or less* +15.7% +1.5% +14.2% Allowed Contract Time + 100 Actual Time +49 Approved Extensions (days) = Under (-) or Over (+) *City Manager approved an increase in allowable contingency per Council Policy F-14 on January 26, 2016 The contracted work has now been completed to the satisfaction of the Public Works Department. A summary of the construction cost is as follows: Original bid amount: $670,225.00 Actual Cost of Bid Items Constructed: $672,649.75 Total Change Orders: $105,132.24 Liquidated Damages: ($2,000.00) Final contract cost: $775,781.99 The actual cost of the project was approximately $107,000 above the original bid amount, with approximately $105,000.00 related to changed conditions. The majority of this was unforeseen work (approximately $85,600.00) due to unknown conditions that were encountered during the installation of underground communication conduit, and to repair/replace existing damaged buried conduit. While installing conduit along San Miguel Drive, the contractor encountered previously unknown underground bedrock formation at two separate locations and several conflicting underground utilities at another location. These obstacles required the contractor to change the conduit installation procedure from a directional bore method to an open cut trench method which is more invasive and requires more equipment, traffic control, time, labor and materials. 4-2 Traffic Signal Modernization, Phase 8 — Notice of Completion for Contract C-6079 October 11, 2016 Page 3 Do to the expense related to the unforeseen conduit work required to install the planned Fiber Optic communication cable, staff requested an increase in allowable contingency from 10 percent to 18 percent. Per Council Policy F-14, the City Manager approved the increase in contingency to facilitate completion of the project. The Public Works Department also encountered and had to manage several contractor performance issues during the course of the project and during the project closeout. One sub -contractor filed a Stop -Notice with the City on the project (which was later resolved by the prime contractor Pro Tech.) Contract compliance documentation by Pro Tech including work schedules, extra work reports, claims, and material submittals were routinely late, incomplete, rejected or need to be resubmitted. Pro Tech also delayed ordering critical materials, such as the fiber optic communication cable which resulted in unnecessary delays to the project and disruption to the community. Additionally, the City's project inspector noted that Pro Tech often lacked adequate resources to complete the project. The contractor struggled to maintain adequate records and completion of this project required a substantial amount of extra work and staff resources on behalf of the Public Works Department. Ultimately, through the persistent efforts of project staff, the project is now complete. Completion was delayed 49 days from the original notice to proceed. This included delays associated with unforeseen conditions but also delays associated with Pro Tech's lack of performance to deploy the necessary resources and/or perform as described above. Ultimately, the City assessed liquidated damages in the amount of $2,000.00 (Attachments B and C). :3kiVA1:101kiI►IViI=1I,I VE:7ATJIAVIYi At the September 8, 2015 City Council meeting, the project was found to be exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15301 (for repair, maintenance and minor alteration of existing public facilities with negligible expansion) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it 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). ATTACHMENTS: Attachment A — Location Map Attachment B — Notice to Contractor for Liquidated Damage Assessment Attachment C — Letter to Contractor for Assessment of Liquidated Damages 4-3 TRAFFIC SIGNAL MODERNIZATION EXHIBIT LEGEND PHASES 1- 7 (116 SIGNALS) PHASE 8 - MODERNIZATION (7 SIGNALS) PHASE 8 - FIBER OPTIC COMMUNICATION UPGRADE PHASES 1 - 7 CCTV CAMERAS (35 CAMERAS) PHASE 8 CCTV (4 CAMERAS) COMMUNICATION HUB CITY FACILITY (PHASE 8 FIBER OPTIC COMMUNICATION CONNECTION) CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-6079 ATTACHMENT A 09/08/2015 ATTACHMENT B -L-IF01�� Mike Niknafs Pro Tech Engineering Corporation 1051 N. Patt Street Anaheim, CA 92801 Subject: Notice of Liquidated Damages Assessment Traffic Signal Modernization — Phase 8 (C-6079) Dear Mr. Niknafs, CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3311 1 949 644-3308 FAX newportbeachca.gov/publicworks May 25, 2016 As specified in the Traffic Signal Modernization Project — Phase 8 (C-6079) uui ai aci uuc;umerlis, Pw T uuh Ei icyii iuering Cui puraiiun (FwTuuh) hkid ul ie - hundred (100) consecutive working days to complete all work under the contract. As you are aware, a `Notice to Proceed' (NTP) was issued on November 5, 2015, with a start of work date of November 6, 2015. Per the NTP and added working days as a result of approved change orders for unplanned work, the contract completion date was extended to Monday, May 2, 2016. As you know, on several occasions, we have requested an updated schedule with the established project completion date; yet, none has been provided to the City. Additionally, on April 13, 2016, email correspondence from the City to ProTech noted May 2, 2016 as the contract completion date and identified that liquidated damages could be assessed after this date pursuant to the terms of the contract. During recent discussions with you, it is apparent to the City that ProTech failed to order materials (Fiber Optic Cable) in a timely manner and in a sufficient amount and, therefore, ProTech has yet to complete the installation per the bid items. We understand that the lead time for delivery of Fiber Optic Cable has increased, which is causing a delay in receiving the cable. The City has carefully considered this matter and accommodate ProTech's request that the City allow a substitution of the specified cable in order to expedite installation. In light of the the above information, and the remaining items that have yet to be completed, the City has determined that pursuant to the NTP, Friday, June 10, 2016 is the contract completion date for the Traffic Signal Modernization Project — Phase 8 (C-6079). You are hereby notified that ProTech has until June 10, 2016 to complete the project. Failure to complete the contract by this date will result in the assessment of liquidated damages per Section 6-9 of the contract documents at an amount of $500.00 for each consecutive calendar day after June 10, 2016 to the date of completion of the work. Sincerely, e r_s� - Brad Sommers, P.E. Senior Civil Engineer Cc Mark Vukojevic, Deputy Public Works Director/City Engineer Tony Brine, City Traffic Engineer Tung Ltyauii, FubiiL,'V'V'UI.�:' iwi5p�'-Uiul Office of the City Attorney Project Bonding Company W. ATTACHMENT C ,;��W4c W�po° v © 1. �t, n U z CITY of NEWPORT BFACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3311 1 949 644-3308 FAX newportbeachca.gov/publicworks Via Email: mikeCQ7protechengineeringcorp.com and Certified Mail Mike Niknafs June 14, 2016 Pro Tech Engineering Corporation 1051 N. Patt Street Anaheim, CA 92801 Subject: Notice of Liquidated Damages Assessment Traffic Signal Modernization — Prase 8 (C-6079) Mr. Niknafs, In correspondence dated May 25, 2016, a copy of which is enclosed for your reference, the City of Newport Beach (City) notified Pro Tech Engineering Corporation (Pro Tech) that all contract bid items for Traffic Signal Modernization - Phase 8 (C-6079) project must be completed by June 10, 2016. Additionally, you were noticed that failure to complete this project by this date would result in the assessment of liquidated damages. Following your receipt of the May 251h correspondence, the City corresponded with you and noted outstanding items. Review of the project on Monday, June 13, 2016 by City Staff revealed several outstanding items that have yet to be completed. Per Section 6-9 of the contract documents, as a result of Pro Tech's failure to complete the contract by June 10, 2016, please be advised that liquidated damages in the amount of $500.00 per day will be assessed beginning today, June 14, 2016. Brad Sommers, P.E. Senior Civil Engineer Cc Mark Vukojevic, Deputy Public Works Director/City Engineer Tony Brine, City Traffic Engineer Torn Legault, Public Works Inspector Office of the City Attorney Project Bonding Company 4-7