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Home My WebLink About13 - Grand Canal Dredging Project Phase 2 — Award of Contract No. 8171-2 (16H12)Q SEW Pp�T CITY OF �m z NEWPORT BEACH c�<,FORN'P City Council Staff Report October 23, 2018 Agenda Item No. 13 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Kathryne Cho, Civil Engineer, kcho(a)newportbeachca.gov PHONE: 949-644-3014 TITLE: Grand Canal Dredging Project Phase 2 — Award of Contract No. 8171-2 (16H12) ABSTRACT: On August 14, 2018, Council rejected all bids for the Grand Canal Dredging Project Phase 2 after staff received a single bid that was substantially higher than the Engineer's Estimate. Staff then further reviewed work perimeters, scope and estimated cost and re -advertised the project for new bids. Staff has now received new bids and requests City Council approval to award the construction contract to Associated Pacific Contractors, Inc. (APC) of Morro Bay, California, or provide alternative direction. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Class 4 Section 15304(g) (Maintenance dredging where the spoil is deposited in a spoil area authorized by all applicable state and federal regulatory agencies) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve the project drawings and specifications; award Contract No. 8171-2 to Associated Pacific Contractors, Inc. for base bid and additive items (Harbor Island Bridge dredging) price of $1,383,070.00, and authorize the Mayor and City Clerk to execute the contract; establish a contingency of $139,000.00 (approximately 10% of total bid) to cover the costs of unforeseen work not included in the original contract; and approve Budget Amendment No. 19BA-014 appropriating $596,300.00 from the unappropriated Tidelands Capital Fund balance to Account No. 10101-980000-16H12 for Grand Canal Dredging. •5 c) Reject all bids and direct staff to explore other options or timing for the project. 13-1 Grand Canal Dredging Project Phase 2 — Award of Contract No. 8171-2 (16H12) October 23, 2018 Page 2 FUNDING REQUIREMENTS: Resources are available for the proposed Budget Amendment in the Tidelands Capital fund and the project is included in the Harbor and Beaches Master Plan. The cost of the Grand Canal dredging project can be absorbed by the Harbor & Beaches Master plan without a material impact on the timing and budget of other projects funded by the plan. Upon approval of the Budget Amendment, sufficient appropriations are available for this project. If approved, the project will be expensed as follows: Account Description Account Number Tidelands Capital 10101-980000-16H12 Proposed uses for the funds are as follows: Vendor APC APC Various BACKGROUND: Purpose Construction Contract Contingency Incidentals, Printing Amount $ 1,459,000.00 $ 1,459,000.00 Amount $ 1,383,070.00 $ 70,930.00 $ 5,000.00 Total: $ 1,459,000.00 In February 2017, the City completed Phase 1 of the Grand Canal Dredging Project, from South Bayfront to the Park Avenue Bridge, dredging and disposing 2,113 cubic yards of material for a total construction cost of $379,545.00. In August 2018, Phase 2 of the Project was advertised to dredge the channel from the Park Avenue Bridge to North Bayfront — a distance of 2.5 times the Phase 1 project. Staff received one responsive bid for $1,389,000.00 at bid opening, but it was substantially higher than the Engineer's Estimate of $990,000.00. Per staff recommendation, Council rejected the bid and directed staff to review the project, explore possible cost saving measures and re -advertise at a later date. After the bid in August, staff contacted prospective bidders, as well as the responding bidder, to review the project conditions and discuss ways to reduce the cost. Several contractors noted the following project conditions as posing too great a risk to complete the project without delays and incurring liquidated damages: the confined area of the Grand Canal, the small size of the project, the varying tides, the specified work hours, and the project duration. They advised that additional calendar days and longer allowed working hours would provide a buffer in their schedules to accommodate varying changes in the tides. Therefore, in an effort to encourage more bidders and reduce overall cost, staff extended the daily work construction window from 7:30 a.m. to 4:30 p.m. to 6 a.m. to 9 p.m., and increased the working days. These modifications were included in the bid package and the project was put back out for new bids. 13-2 Grand Canal Dredging Project Phase 2 — Award of Contract No. 8171-2 (16H12) October 23, 2018 Page 3 DISCUSSION: At 11 a.m. on October 9, 2018, the City Clerk opened and read the following bids: Bidder Base Bid Amount Low Associated Pacific Constructors, Inc. $ 1,279,250.00 2nd Bosco Constructors, Inc. $ 1,325,000.00 The base bid amount submitted by the low bidder, APC was $1,279,250.00, and is 1.6% lower than the revised Engineer's Estimate of $1,300,000. The bid package also included two additive items for dredging the north and south sides of the Harbor Island Bridge. APC's total bid, including these additive items, is $1,383,070.00. Per contract documents, APC holds a valid and current California State Contractor's "A" License. With the contract document adjustments discussed above, the base bid prices for this second round was $109,750.00 lower than the prior bid received in August. At this time, staff does not believe there is any other method that could be permitted, within a reasonable amount of time, that would accomplish the full dredging at a lesser cost, as requested by the Grand Canal residents and as directed to pursue by City Council. Additionally, the current Regional General Permit and Eelgrass removal allocation allotment for this project will expire next year. Other options to awarding this contract as proposed include rejecting all bids and delaying the project for likely several years while exploring other dredging methodologies with the regulatory agencies, awarding work for Grand Canal only and not awarding the additive items, or waiting for a slower economic time for possibly a better bidding environment. It should be noted that ocean dredging is a limited construction market and waiting may not necessarily reduce the cost of the project. If further delay is not the desired direction, staff recommends City Council award the construction contract to Associated Pacific Contractors, Inc. and complete the dredging of the Grand Canal. The recommended approval authority for unforeseen conditions is the standard 10% of bid cost. With the proposed budget amendment, the funding level provides 5% contingency. If contingency above 5% to 10% is required, funding from a related budgeted project or program would be used. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Class 4 Section 15304(g) (Maintenance dredging where the spoil is deposited in a spoil area authorized by all applicable state and federal regulatory agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 13-3 Grand Canal Dredging Project Phase 2 — Award of Contract No. 8171-2 (16H12) October 23, 2018 Page 4 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 — Budget Amendment 13-4 Attachment A N 1" = 150' ® PROJECT AREA 0 ww > z Q O Q -J ¢ N w ¢ ABALONE PL A LL U �L Z AVENUE > w O Z Q Z uj Z z w w Q � Q E �o i m PARK AVENUE 3 z Q O F- _ m lo Q U al GRAND CANAL DREDGING - PHASE 2 CITY OF NEWPORT BEACH PROJECT PUBLIC WORKS DEPARTMENT LOCATION MAP C-8171-2 10/23/18 13-5 ATTACHMENT B City of Newport Beach BUDGET AMENDMENT 2018-19 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: NO. BA- 19BA-014 AMOUNT:j $596,300.00 This budget amendment is requested to provide for the following: To increase expenditure appropriations from the Tidelands Capital unappropriated fund balance to be used for the Grand Canal Dredging Project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object 101 300000 REVENUE ESTIMATES Org Object Project EXPENDITURE APPROPRIATIONS Org Object Project 10101 980000 16H12 Signed Signed Signed cidl AplTrctval: Finance Di Description Tidelands Capital - Fund Balance Description Description Tidelands CIP - Grand Canal Dredging 16H12 -Construct -101 -Unassigned AdrjdnXtrative Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $596,300.00 $596,300.00 Automatic System Entry. )0-16- ! T) Date ro ,16 _ra Date Date 13-6 Increase in Budgetary Fund Balance ANDX Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance ONE-TIME? B Yes No This budget amendment is requested to provide for the following: To increase expenditure appropriations from the Tidelands Capital unappropriated fund balance to be used for the Grand Canal Dredging Project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object 101 300000 REVENUE ESTIMATES Org Object Project EXPENDITURE APPROPRIATIONS Org Object Project 10101 980000 16H12 Signed Signed Signed cidl AplTrctval: Finance Di Description Tidelands Capital - Fund Balance Description Description Tidelands CIP - Grand Canal Dredging 16H12 -Construct -101 -Unassigned AdrjdnXtrative Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $596,300.00 $596,300.00 Automatic System Entry. )0-16- ! T) Date ro ,16 _ra Date Date 13-6