HomeMy WebLinkAbout11 - Marina Park Project- CITY OF
4 :1 NEWPORT BEACH
oV4.
o. City Council Staff Report
May 13, 2014
Agenda Item No. 11.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director- (949) 644 -3330, dawebb @newportbeachca.gov
PREPARED BY: Iris Lee, Senior Civil Engineer
PHONE: 949- 644 -3323
TITLE: Marina Park Project— Building and Site Development (Bid Package 3) —Award of Contract No.
3897 -C (CAP09 -0070)
ABSTRACT:
Staff has now received bids for the third of four bid packages for the Marina Park Project — the `Building and
Site Development' Bid Package, and is requesting City Council approval to award the contract to KPRS
Construction Services, Inc. of Brea, California.
RECOMMENDATION:
a) Approve the project drawings and specifications;
b) Award Contract No. 3897 -C (Marina Park Project — 'Building and Site Development') to KPRS
Construction Services, Inc. of Brea, California, for the total bid price of $18,748,000, and authorize the
Mayor and the City Clerk to execute the contract;
c) Establish a contingency of $1,874,800 (ten percent) to cover the cost of unforeseen work; and
d) Approve Budget Amendment No. 14BA -045 transferring $15,581,000 from the unappropriated Major
Facilities Financing Plan Fund to the Marina Park Fund, and appropriating that amount to the Marina Park
Project, account 7411- C4002002.
FUNDING REQUIREMENTS:
There is currently $8,791,800 available in the FY 14 budget in the 7411- C4002002 project, and upon
approval of the transfer and appropriation, there will be $24,372,800 available to fund the award of: Building
and Site Development construction contract (including 10% contingency allowance); acquisition of the
Southern California Edison parcel as approved at the November 26, 2013 Council meeting; future
construction of Bid Package 4 — Marina Docks; necessary future utility cabling and connections; and other
related anticipated soft costs during construction such as material testing and special inspections.
ccount Description
6ccount Number
Amount
Marina Park 17411 - C4002002
$
24 372 800.00
$
24,372,800.00
306
Proposed uses are as follows
Vendor
Puroose
Amount
KPRS Construction Services, Inc.
Construction Contract
$
18,748,000.00
KPRS Construction Services, Inc.
Construction Contingency
$
1,874,800.00
SCE Parcel Acquisition
Property Acquisition
$
600,000.00
Package 4 Construction
Allowance
$
3,000,000.00
Utility Connections and Soft Costs
Allowance
$
150.000.00
Total: $ 24,372,800.00
DISCUSSION:
The 10 -acre Marina Park Project is located on the bay side of the Balboa Peninsula between 15th Street
and 19th Street. This long awaited project includes the construction of a new 23 slip visitor serving marina,
10,500 SF Community Center, 11,000 SF Sailing Center, Children's Themed Playground and Picnic area,
two half -court basketball surfaces, a Fitness Circuit, a Cafe/Diner to be operated privately under lease,
reconstruction of the 19th Street Public Restroom Facility, frontage beach improvements, 177 on -site
parking spaces, and a new privately funded Girl Scout Leadership Center. After many years of planning,
design and permitting, the project started construction in December 2013. Due to the complexity and
prominently different types of construction operations needed to build this new park facility, the Marina Park
project was divided into four general construction plan sets and bid packages. The first bid package, now
complete, involved the demolition and removal of the prior mobile home park, site utilities and existing tree
relocation. The second bid package, now underway, involves construction of the new marina basin and
moving the resulting sand to specific beaches for sand replenishment. The third bid package, which staff is
requesting City Council to award tonight, is for the construction of the buildings and park site. The fourth
bid package will be awarded in the near future and is for the construction of the new dock facilities in the
new marina.
As mentioned and discussed further below, staff is now requesting City Council's review and approval to
award Contract No. 3897 -C - Building and Park Site Development for the Marina Park Project, which
generally includes the construction of multiple new buildings, a parking area, fitness and playground
amenities, park site and landscaping work, and public street and utility improvements.
In November 2013, staff solicited pre - qualification submittal packages from all general contractors
interested in possibly bidding on the construction of the Building and Site Development for Marina Park.
This pre - qualification evaluation process was used to determine which general contractors possess the
required qualifications to successfully complete the proposed work. Of the nineteen (19) pre - qualification
submittals received, fourteen (14) general contractors met the necessary qualifications and were invited to
submit a bid for the Marina Park — Building and Site Development work.
In addition to the City's planned building and park improvements, the Girl Scouts of Orange County (GSOC)
expressed a desire to construct a new Girl Scout facility within Marina Park to replace their existing facility
on West Balboa Boulevard. On January 14, 2014, City Council approved a Memorandum of Agreement
(MOA) with GSOC allowing for their proposed new Girl Scout Leadership Center to possibly be constructed
within and as part of the City's Construction Contract for the building and site development work. In
accordance with Section 2 of the MOA — "Construction and Contractor Selection ", the City would include the
GSOC Leadership Center as an alternative bid item (Bid Alternative) within the Building and Site
Development bid package. In an effort to provide the best bid for both the City and the GSOC, the
agreement also required that the winning bidder be based upon the lowest combined bid (City's Base
Project Bid plus GSOC Bid Alternative) if the GSOC accepted their bid and then choose to be included
within the City's construction contract; or if for whatever reason the GSOC choose not to accept the Bid
Alternative of the lowest combined bidder, they would then construct their facility on their own after the City
project was completed. Per the MOA, staff advertised the project stipulating the selection of the lowest
responsive and responsible bidder to be based on the lowest bid price based on whether the GSOC Bid
Alternative was to be included or not.
Given the project's complexity, staff advertised the construction documents for bids on March 8, 2014 for an
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extended bid period. At 2:00 PM on April 15, 2014, the City Clerk opened and read out the bids for the
"Marina Park Project— Building and Site Development" work. Option 1 shown below is ranked according to
the lowest responsive and responsible bidder of the combined total should the GSOC decide to accept the
Bid Alternative being offered. Option 2 shown below is ranked according to the lowest responsive and
responsible bidder of just the project base bid should the GSOC decline the Bid Alternative being offered in
Option 1.
OPTION 1 - WITH GSOC BID ALTERNATE
COMBINED TOTAL
'Stronghold Engineering, Inc. withdrew their bids due to a bid proposal error
OPTION 2 - WITHOUT GSOC BID ALTERNATE
BIDDER
Low KPRS Construction Services, Inc.
2 T.B. Penick & Sons, Inc.
3 Perera Construction & Design, Inc.
4 Morillo Construction, Inc.
5 ProWest Constructors
6 Kemp Bros Construction, Inc.
Stronghold Engineering, Inc.
TOTAL BID AMOUNT
$18,748,000.00
$19,404,916.00
$20,340,000.00
$20,344,000.00
$20,490,000.00
$22,450,000.00
N/A
'Stronghold Engineering, Inc. withdrew their bids due to a bid proposal error.
Upon staff review and verification of bids received, staff notified GSOC of the bid results on April 18, 2014,
where T. B. Penick & Sons, Inc. (Penick) was the lowest responsive and responsible bidder under Option 1
should they choose to except the Bid Alternative being offered; and KPRS Construction Services, Inc.
(KPRS) was the lowest responsive and responsible bidder under Option 2. Based on a series of bid
analyses and discussion, the GSOC notified the City on April 25, 2014 that they would exclude themselves
from the City's Package 3 construction contract for construction of the building and site improvement for
Marina Park and pursue the construction of their proposed facility in accordance with the terms of the
Ground Lease by and between the City and GSOC recorded on July 8, 2013. The terms of the Ground
Lease require that if the GSOC do not have their facility build as part of the City's construction contract,
then they can commence construction on their own after the City Contract is complete and a Notice of
Completion has been filed.
With the GSOC now having provided the City written notice that they are declining the Bid Alternative and
construction of their facility will not be included within the City's Construction Contract, selection of the
lowest responsive and responsible bidder is now determined under Option 2 above. Under this Option, the
low bid amount is now determined to be submitted by KPRS at $18,748,000.00. This bid is approximately
one percent (1 %) higher than the Engineer's Estimate of $18,500,000.
The low bidder, KPRS, possesses a California State Contractors License Classification "B" as required by
the project specifications. A check of KPRS's and its subcontractors' references indicates satisfactory
completion of projects of comparable size and scope, including their recent construction of the City's OASIS
Senior Center.
Perera Construction & Design, Inc. submitted a bid protest (Attachment E) to the City, dated April 17, 2014,
noting an incomplete bid package and Designation of Subcontractors by Penick and KPRS. The Public
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BIDDER
Base Bid
GSOC Alternative
BID AMOUNT
Low
T.B. Penick &Sons, Inc.
$19,404,916.00
$3,115,138.00
$22,520,054.00
2
Morillo Construction, Inc.
$20,344,000.00
$2,463,000.00
$22,807,000.00
3
Perera Construction & Design, Inc.
$20,340,000.00
$2,470,000.00
$22,810,000.00
4
KPRS Construction Services, Inc.
$18,748,000.00
$4,085,000.00
$22,833,000.00
5
ProWest Constructors
$20,490,000.00
$2,600,000.00
$23,090,000.00
6
Kemp Bros Construction, Inc.
$22,450,000.00
$2,200,000.00
$24,650,000.00
Stronghold Engineering, Inc.
N/A
N/A
N/A
'Stronghold Engineering, Inc. withdrew their bids due to a bid proposal error
OPTION 2 - WITHOUT GSOC BID ALTERNATE
BIDDER
Low KPRS Construction Services, Inc.
2 T.B. Penick & Sons, Inc.
3 Perera Construction & Design, Inc.
4 Morillo Construction, Inc.
5 ProWest Constructors
6 Kemp Bros Construction, Inc.
Stronghold Engineering, Inc.
TOTAL BID AMOUNT
$18,748,000.00
$19,404,916.00
$20,340,000.00
$20,344,000.00
$20,490,000.00
$22,450,000.00
N/A
'Stronghold Engineering, Inc. withdrew their bids due to a bid proposal error.
Upon staff review and verification of bids received, staff notified GSOC of the bid results on April 18, 2014,
where T. B. Penick & Sons, Inc. (Penick) was the lowest responsive and responsible bidder under Option 1
should they choose to except the Bid Alternative being offered; and KPRS Construction Services, Inc.
(KPRS) was the lowest responsive and responsible bidder under Option 2. Based on a series of bid
analyses and discussion, the GSOC notified the City on April 25, 2014 that they would exclude themselves
from the City's Package 3 construction contract for construction of the building and site improvement for
Marina Park and pursue the construction of their proposed facility in accordance with the terms of the
Ground Lease by and between the City and GSOC recorded on July 8, 2013. The terms of the Ground
Lease require that if the GSOC do not have their facility build as part of the City's construction contract,
then they can commence construction on their own after the City Contract is complete and a Notice of
Completion has been filed.
With the GSOC now having provided the City written notice that they are declining the Bid Alternative and
construction of their facility will not be included within the City's Construction Contract, selection of the
lowest responsive and responsible bidder is now determined under Option 2 above. Under this Option, the
low bid amount is now determined to be submitted by KPRS at $18,748,000.00. This bid is approximately
one percent (1 %) higher than the Engineer's Estimate of $18,500,000.
The low bidder, KPRS, possesses a California State Contractors License Classification "B" as required by
the project specifications. A check of KPRS's and its subcontractors' references indicates satisfactory
completion of projects of comparable size and scope, including their recent construction of the City's OASIS
Senior Center.
Perera Construction & Design, Inc. submitted a bid protest (Attachment E) to the City, dated April 17, 2014,
noting an incomplete bid package and Designation of Subcontractors by Penick and KPRS. The Public
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Works Department and City Attorneys' Office reviewed the bid protest and found the claim to be immaterial
as comprehensive bid packages and Designation of Subcontractors over one -half of one percent (0.5 %) of
the prime contractor's total bid, were received. Penick's and KPRS's submitted their response
substantiating their bids, and are included in this report as Attachments F and G, respectively. Staff
recommends accepting both Penick and KPRS's bid as responsive.
Techno Coatings, Inc., submitted a general bid protest (Attachment H) to the City, dated April 23, 2014,
noting that a Steel Structure Painting Council (SSPC) QP -1 and QP -3 certified industrial painting contractor
was not included in the Designation of Subcontractors. As this trade is expected to represent less than
one -half of one percent (0.5 %) of the prime contractor's total bid, Designation was not required, and the
claim is therefore without merit. Nevertheless, a SSPC QP -1 and QP -3 certified contractor will be required
per project specifications.
Staff would also like to advise Council that the GSOC have requested staff look into the possibility of
allowing them to hire their own general contractor and construct their Leadership Center concurrently and
within the City's construction project limits. This proposed arrangement is occasionally done within private
construction projects, but is not typically allowed within public construction projects given the added level of
complexity, cooperation and coordination needed to make it run smoothly under the Public Contracting
Laws. Should Council desire to try to accommodate the GSOC's request, staff is willing to work with our
contractor and the GSOC to hopefully come up with an agreeable arrangement that would not result in
foreseeable additional cost incurred or delay to the projects schedule.
Pursuant to the contract specifications, the contractor will have 340 consecutive working days to complete
the Bid Package 3 construction work.
Lastly, staff has included a running summary table of the total Marina Park Budget to date. The all -in
estimated total project budget was established at $39,500,000. This cost includes conceptual design and
permitting; land acquisition; all soft costs such as project design, geotechnical, testing and inspection, and
construction management; hard construction cost for all four bid packages, FF &E; as well as a City
Reserve. Upon the award of this Building and Site Development bid package at around the Engineer's
Estimate, the actual total cost of the project is projected be under budget at approximately $649,000 if all
contingencies and reserve are expended. The project is also on schedule for the estimated park opening of
Spring 2016.
ENVIRONMENTAL REVIEW:
All significant environmental effects for the Marina Park project have been adequately addressed in the
previously certified Environmental Impact Report No. (SCH No. 2008051096) ( "EIR "). Said EIR also
included mitigation, monitoring & reporting program, and statement of overriding considerations, and the
City of Newport Beach intends to use said document for this approval. Copies of the previously prepared
environmental document are available for public review and inspection at the City of Newport Beach
website at www. newportbeachca .gov /cegadocuments.
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:
Description
Attachment A - Location Mao
Attachment B - Memorandum of Agreement for Construction of the Girl Scout Leadership Center
Attachment C - Letter from GSOC excluding the Leadership Center from the Marina Park Package
Attachment D - Stronghold Engineering Bid Withdrawal Letter
Attachment E - Perera Construction &: Design. Inc. Bid Protest Letter (April 17. 2014)
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Attachment F - T.B. Penick &: Sons, Inc. Construction Services, Inc. Response to Perera Bid Protest (April 23, 2014)
Attachment G - KPRS Construction Services, Inc. Response to Perera Bid Protest (April 23. 2014)
Attachment H - Techno Coatings Bid Protest Letter (April 23. 2014)
Attachment I - Budget Summary
Attachment J - Budget Amendment
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MARINA PARK PACKAGE 3
BOUNDARIES
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C- 3897 -C 1 5/13/14
ATTACHMENT B
MEMORANDUM OF AGREEMENT FOR CONSTRUCTION
OF THE GIRL SCOUTS LEADERSHIP CENTER IN MARINA PARK AND
PAYMENT REIMBURSEMENT
This Agreement is made this 15th day of January, 2014, by and between THE
CITY OF NEWPORT BEACH ( "CITY "), a California municipal corporation and charter
city and THE GIRL SCOUTS OF ORANGE COUNTY ( "GSOC "), a California
corporation. The City and GSOC may be individually referred to as a "Party" and
collectively as the "Parties ".
RECITALS
A. City is the owner of approximately 10.45 acres of property located at 1600 West
Balboa Boulevard in the City of Newport Beach, commonly known as Marina
Park. The City is pursuing redevelopment of the Marina Park site (the "Marina
Park Project ") and GSOC is desirous of construction of a new program facility for
Girl Scouts on a portion of the City's Marina Park.
B. City and GSOC have previously entered into a Ground Lease by and between
the City of Newport Beach and Girl Scouts of Orange County recorded on July 8,
2013 in the Official Records of the Orange County Clerk- Recorder as Instrument
No. 2013000409086 ( "Lease "), which sets forth the obligations of the parties with
respect to the Lease by the GSOC of certain "Property' (as defined in the Lease)
and the GSOC's design, construction, maintenance and use for a new Girls
Scout facility (the "GSOC Project ").
C. The Parties are now desirous of planning and coordinating construction activities
proposed by both the City and GSOC on the Marina Park site so that the City's
Marina Park Project and the GSOC Project can be completed in an efficient and
timely manner. City and GSOC desire to provide for and define the duties of the
City in assuming construction responsibility of the GSOC Project and to provide
for reimbursement payment by the GSOC to the City for the cost of the GSOC
Project.
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereby mutually agree as follows:
1. DEFINITIONS
Unless otherwise defined in the Lease, terms used in this Agreement shall have
the meanings herein specified.
1.1 "Actual GSOC Project Cost" means the following costs with respect to
the GSOC Project: (a) the actual Construction Costs for the GSOC Project; (b)
Proportional share of the City's actual cost of contract services, including, (i) plan check,
permit and construction service fees in an amount equal to the sum of costs of any fees
for permits, licenses or other necessary governmental approvals and reviews for the
A13-0035011.2.14
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GSOC Project not already paid by GSOC; (ii) any inspection, certifications, construction
staking and materials testing, equipment, geotechnical review, and building
commissioning necessary for the GSOC Project; and, (iii) insurance and bonds.
1.1.1 GSOC shall be responsible for its own actual costs of professional
services related to the Project's design, preparation of Plans for the GSOC Project,
incorporation of plans into the City's plans and specifications for Marina Park, any
environmental evaluations, any modification or changes to the Plans and GSOC's own
actual construction management and administration costs required specifically for the
GSOC Project. Additionally, GSOC will be responsible for any and all Furniture,
Fixtures and Equipment ( "FF &E ") cost associated with the GSOC Project. The City will
not charge GSOC for normal and expected City Staff time associated with the GSOC
Project.
1.2 "Approval(s)" of submittals and other approval and review authorities
under the Agreement, means approved by the GSOC Chief Executive Officer ( "CEO ")
or designee whenever GSOC is used and when the City is used it shall mean the City
Manager or his designee.
1.3 "City" means the City of Newport Beach, a charter City organized and
existing under the laws of the State, and it successors.
1.4 "Completion" means that (a) construction is complete in conformity with
this Agreement, the Construction Contract(s) and Plans for the GSOC Project, with all
systems (including mechanical, electrical, structural, communication and other systems
as applicable) in operating condition and ready for use such that GSOC may utilize the
Improvements for their intended purpose; (b) all work required by this Agreement, the
Construction Contract(s) and Plans for the GSOC Project, including corrective work and
minor deficiencies or incomplete work is complete, as evidenced by a certification by the
City and Project architect for the GSOC Project that the GSOC Project has been
completed in a good and workmanlike manner and substantially in conformance with
approved GSOC Project Plans; (c) a Notice of Completion has been recorded by the
City for the GSOC Project; (d) any and all mechanic's and labor liens that have been
recorded or stop notices that have been delivered with respect to the GSOC Project or
the Contract(s) have been paid, settled, or otherwise extinguished, discharged,
released, or waived; (e) a Certificate of Occupancy (C of O) has been issued by the
City, and (f) all necessary basic HVAC commissioning needed prior to C of O has been
certified as completed by the GSOC Project architect.
1.5 "Director" means the City's Director of Public Works or his designee.
1.6 "FF &E" means furniture, Fixtures and equipment described or otherwise
included in the Plans.
1.7 "GSOC Project" means the "Girl Scouts Leadership Center" and the
Improvements (as defined in the Lease) which shall include: the building; including
mechanical, electrical, structural, communications and all other systems necessary for
A13- 0035011.2.14
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operation including any FF &E as identified in the GSOC Project Plans and
Specifications; on -site sidewalks, walls and fences within the Leased Property;
landscaping (except for landscaping and supporting irrigation adjacent to the front and
easterly and westerly building elevations of the GSOC Project which City agrees to
install and maintain in conjunction with the Marina Park Project); water, sewer, gas and
electrical utility line connections necessary to serve the Property as defined in the
Lease; building equipment and furnishings included in the building plans and
specifications and any ancillary and incidental fixtures, structures, and improvements
necessary to provide an operational Girl Scouts Leadership Center, as provided for in
the Plans hereinafter defined.
1.8 "Notice of Completion" means a notice of completion as described in
California Civil Code Section 9204.
1.9 "Plans" means the Design Development Plans or Final Construction
Plans (as defined in the Lease), and approved by the City in its proprietary capacity as
Lessor pursuant to Article 8 of The Lease.
1.10 " Representative(s)" means the Chief Executive Officer of the GSOC
and /or their designee or GSOC's Construction Manager.
2. CONSTRUCTION AND CONTRACTOR SELECTION
2.1 While the GSOC shall design and construct or cause to be constructed the
GSOC Project pursuant to the Lease, the Parties have determined that it would likely be
more efficient for the GSOC Project and the City's Marina Park project to be constructed
concurrently under the administration and contracting authority of the City, subject to the
GSOC's reimbursement to the City of the Actual GSOC Project Costs.
2.1.1 GSOC shall identify and provide the Representative(s) to the City
who shall be notified of construction meetings and have the authority to make Project
related decisions for the GSOC.
2.1.2 City at its sole cost and expense may elect to complete a Pre -
Qualification process including prequalification criteria and selection scoring for
segments of City's Marina Park project and the GSOC's Project to determine a pre -
qualified bidder's list.
2.1.3 GSOC, at its sole cost and expense, shall provide a complete set of
Plans and all necessary building permits by the date identified in Section 4.1.
2.1.4 Prior to bid advertisement, the City shall have approved the Plans
pursuant to the lease; and the GSOC shall have approved the plans, specification and
construction estimate for the GSOC Project. Furthermore, once the City has permitted
the GSOC Project Plans, the Parties shall not thereafter modify or add further conditions
to the Bid Documents for the GSOC Project without the written consent of the other
Party.
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2.1.5 If by the date identified in Section 4.1, the GSOC has submitted a
complete set of plans and the necessary building permits are ready to be issued, then
the City shall include in the GSOC Project in the Marina Park Construction Bid
Documents by identifying the GSOC Project as an independent bid alternative
(hereafter, "GSOC Bid Alternative ") to the Marina Park Project Construction Bid
Documents. The GSOC Bid Alternative format shall be consistent with the bid
documents prepared by the City for the Marina Park Project.
2.2 In the event the GSOC Project is included in the Marina Park Construction
Bid Documents, then, upon City's receipt of bids for the Marina Park Project, the City
shall inform the GSOC in writing of the City's bid analysis and recommendation as to
the lowest responsible bidder submitting a bid for the construction of the GSOC Project
alternative bid item ( "GSOC Bid Alternative ") prior to approval by the Newport Beach
City Council. GSOC shall have five (5) business days to notify the City in writing that
GSOC (i) approves the GSOC Bid Alternative for the Project; and, (ii) if GSOC elects to
have City include the GSOC Bid Alternative the City's award for the Marina Park
Project.
2.2.1 If GSOC timely notifies the City that it approves the GSOC Bid
Alternative and advises the City in writing that they want the GSOC Bid Alternative
included in the construction award for Marina Park Project, then the GSOC Bid
Alternative will be included in the award for the construction of the Marina Park Project,
unless the City rejects all bids. Upon the award of a construction contract for the GSOC
Bid Alternative, the City will construct the GSOC Project subject to the reimbursement
payment by GSOC of the Actual GSOC Project Cost for the GSOC Project with the
power and authority to enter into and administer all contracts, and procure any or all
necessary services, including without limitation general contractors, subcontractors,
inspectors, and testing firms in compliance with the Plans.
2.2.2 In the event that GSOC does not timely provide written notice
required by Section 2.2.1 that it approves the GSOC Bid Alternative or if GSOC fails to
elect to have the City include the GSOC Bid Alternative in the City's award for
construction of the Marina Park Project, the City will not be required to include the
GSOC Bid Alternative in the City's award for construction of the Marina Park Project
and may reject all bids received by the City for the GSOC Bid Alternative. Pursuant to
the terms of the Lease, GSOC will then have the opportunity to construct the GSOC
Project following the City's completion of the Marina Park Project. In this event, the City
will deliver possession of a graded pad as contemplated by the Lease subject to the
City's right to access the GSOC Property as reasonably necessary during the
construction of the Marina Park Project and this Agreement will automatically terminate.
2.3 Unless otherwise agreed to by the City, Contractor selection will be based
as follows:
2.3.1 Contractor will be selected by the City in its sole and absolute
discretion, and based on the lowest responsive and responsible bidder for the Marina
Park Project, plus any separate alternatives for which the City may have options for,
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plus the GSOC Bid Alternative, if applicable. The City expressly reserves the right to
reject any and all bids for any reason.
3. CONSTRUCTION OF GSOC PROJECT BY CITY
3.1 General. City shall cause the GSOC Project to be constructed on the
Property in accordance with the Plans and this Agreement. GSOC will be responsible
for ensuring that all necessary building permits have been obtained and ensuring that
the Plans comply with all applicable building codes and construction requirements.
3.1.1 The GSOC's responsibility shall also include, but is not necessarily
limited to, providing such necessary things as requisite building permits and the
entitlements necessary for the planning, design and engineering of the GSOC Project.
3.1.2 The City's responsibility shall include obtaining all appropriate
permits for the Marina Park Project, inspections, grading, installing utility connections,
and necessary off -site improvements. Each party shall assume its own costs of design
and construction management consultants.
3.1.3 GSOC hereby grants to City, its agents and assigns, a right to enter
the Property (as defined in the Lease) for construction, inspection and administration
purposes at any time in connection with the construction of the GSOC Project until
Completion of the GSOC Project.
3.1.4 During the construction of the GSOC Project, City shall have
complete access to the Property and will determine resolution of any and all questions
regarding construction of the GSOC Project. City will use reasonable efforts to
communicate with the GSOC Representative on issues relating to the GSOC Project.
3.2 Site Preparation. The Property shall be graded and utilities installed in
accordance with a Grading Plan prepared by a licensed Civil Engineer and the Plan
shall be reviewed and approved by GSOC and City. Approval of said Grading Plan by
GSOC and City shall not relieve City of the responsibility for complying with all
applicable requirements and permits.
3.2.1 City shall be responsible for delivering the Property in a rough
grade condition to GSOC. City shall construct and install all necessary utility lines
and /or conduits, including those for sewer, water, gas, telephone, and electricity,
underground television to a point on the GSOC building pad where such lines and /or
conduits will directly serve the GSOC Project, at which point, GSOC shall be
responsible for all costs and installation of the utility lines directly serving the building
including any connection fees, service fees, meter installation costs, cabling etc..
4. CONTRACT MANAGEMENT AND ADMINSTRATION
4.1 Schedule. City has provided the GSOC with the current project schedule
which identifies the construction of the Marina Park buildings and park improvement
work as "Bid Package 3 ", which may include the GSOC Project provided the GSOC has
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(1) obtained approval of the Plans from City in its capacity as Lessor and as required by
Article 8 of the Lease; and (2) the necessary building permits are ready to be issued by
January 17, 2014. GSOC shall diligently work with their design team to complete and
have the permits for the GSOC Project Plans ready to be issued and will coordinate with
the City so that the City can incorporate the GSOC Projects Plans into the overall
Marina Park Bid Package 3 by January 17, 2014. The City will use its good faith effort
to work cooperatively with GSOC and its design team to incorporate the GSOC Project
Plans into the Marina Park Bid Package 3. Should the GSOC Project plans and
specifications not be completed, ready for permit and coordinated into the City Marina
Park Bid Package 3 by said date for any reason (unless said due date is extended in
writing by the City), the GSOC Project will not be included and constructed as part of
the City's Marina Park Project and the GSOC may construct their Project after the
completion of the City's Marina Park Project per the terms of the Lease.
4.1.1 If the GSOC Project is included and constructed as part of the
City's Marina Park Bid Package 3, the GSOC shall be provided with the awarded
construction schedule and any update that occurs throughout the construction of the
Marina Park Project. The GSOC may suggest schedule changes or modification to the
GSOC Project; however the City shall have sole authority over the management,
modification and /or changes to the construction contract and schedule. The cost for
any schedule changes, extensions or delays requested by the GSOC shall be the sole
responsibility of GSOC. Should any circumstance arise on behalf of the City or its
Contractor that result in delays on other portions of the City Marina Park Project, the
GSOC Project shall not be responsible for the time delays and any associated cost
imposed by the contractor that can result in additional costs to the GSOC Project. The
GSOC have no rights to claim damages for any and all project delays associated with
either the Marina Park Project or the GSOC Project.
4.2 Submittals and Request for Information ( "RFI's) Processing. The GSOC
Representative will be responsible for a timely response, review and approval of any
contractor submittals and RFI's, including but not limited to product samples, mock ups,
shop drawings, that GSOC wishes to review and approve.
4.3 Changes Regarding Surrounding Area or Infrastructure. City agrees to
notify GSOC of any changes to the immediate surrounding area or supporting
infrastructure that will have an impact on the GSOC Project and will coordinate with the
GSOC on any implications to the GSOC Project.
4.4 Contractor Invoices. City shall process all invoices it receives relating to
the construction of the GSOC Project and upon timely approval by the Director shall
make all required payments to the Contractor based on the amount of construction
completed. City shall retain 5% of any invoiced costs for the GSOC Project as
contractor retention until Completion of the GSOC Project and retain any additional
amounts necessary to secure the release of all stop notices or liens.
4.5 Project Site Visits. During the course of construction, the GSOC's
identified construction manager and /or the identified GSOC Representative(s) for the
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GSOC Project shall have full access the GSOC Project site provided they check -in and
make arrangements with the Public Works Director or his designee and that proper
safety clothing and gear are worn while visiting the construction site. From time to time,
and upon prior approval from the Director or his designee, up to four other GSOC adult
management members may visit the site provided they wear the necessary safety
clothing and gears, and are escorted by the Director or his designee.
4.6 Cost of Completion and City Reimbursement.
4.6.1 GSOC Invoices. GSOC agrees during construction of the GSOC
Project to make reimbursement payments to the City within thirty (30) days of GSOC's
receipt of a City reimbursement payment request ( "GSOC Invoice ") commensurate with
the portion of the completed construction of the GSOC Project as certified in writing by
Director and as recommended by the Project Architect and /or City's Construction
Manager. Such reimbursement payments shall be for the GSOC Actual Costs as
defined herein. For any progress reimbursement payments by GSOC, City shall
provide conditional lien releases or hold back appropriate funds to cover any claims
associated with reimbursement payment. Upon Completion of the GSOC Project and
prior to occupancy by GSOC, City shall provide a final cost reconciliation for the GSOC
Project as approved by the Director, GSOC's Construction Manager and identified
GSOC Representatives, all final lien releases, and GSOC shall make a final payment to
City upon determination that the GSOC Project has been completed and within thirty
(30) calendar days of receipt of the final GSOC invoice.
4.7 Change Orders. City shall bring any changes discovered, necessary or
requested during construction as related to the GSOC Project to the attention of the
GSOC's Representative, pursuant to Paragraph 2(a), who will, in turn, provide the
necessary direction, action, approvals or rejections back to the City in a timely manner,
but in no case more than five (5) working days of receipt from City, so that the City can
prepare the necessary Directions and Change Orders to the City's Contractor. City
shall furnish GSOC's Representative with copies of any change within a reasonable and
timely manner for signature approval of any proposed changed condition to the GSOC
Plan, Final Construction Plans or GSOC Bid Alternative contract provisions which affect
the GSOC Project.
5. WARRANTY PERFORMANCE
City shall require that the GSOC be named as a covered dual obligee in the
warranty bond or other security covering the construction contract for the GSOC Bid
Alternative maintained during the one year period following Completion of the GSOC
Project by the City.
6. INSURANCE REQUIREMENTS
6.1 The City shall or shall cause each contractor, subcontractor, vendor,
equipment operator and owner operator, in each such case to the extent such Person is
engaged to perform construction of the GSOC Bid Alternative to, at all times prior to
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Final Acceptance of the Project, maintain and deliver to the City and keep in full force
and effect the following minimum insurance policies:
6.1.1 General Liability. General liability insurance which includes, but is
not limited to coverage for personal injury, premises and operational liability, losses
related to independent contractors, products and completed operations, contractual
liability, explosion, collapse, and underground hazards having not less than a combined
single limit of $1,000,000.00
6.1.2 Automobile Liability. Automobile liability insurance which includes,
but is not limited to owned, non - owned, and hired automobiles, in the amount of not less
than a combined single limit of $1,000,000.00
6.1.3 Worker's Compensation. Worker's compensation insurance
required by the California Labor Code for all persons employed directly or indirectly by
City or any contractor or subcontractor in conjunction with construction of the Project in
an amount not less than $1,000,000.00
6.1.4 Builder's Risk. Builder's Risk Property Insurance covering
damages to the GSOC Project for "all risk" or special causes of loss with limits equal to
100% of the completed value of the contract with coverage to continue until final
acceptance of the GSOC Project by City
6.2 Each policy of insurance shall be issued by an insurer licensed to do
business in the State of California by the California Department of Insurance which
insurer shall have a Best Rating of Grade A and Class VII or better, provided that the
policies of worker's compensation insurance may be issued by insurers with a Best
Rating of not less than B- and Class VII or better or such insurance may be provided
through the State Compensation Fund.
6.3 Each policy shall bear an endorsement that provides that (a) the GSOC
and its appointed Board, officers, agents and employees are additional insured under
the policy as to the work being performed on the GSOC Project; (b) that the coverage
provided under the policy is primary and no other insurance carried by the GSOC will be
called upon to contribute to a loss under the policy; (c) that the coverage shall not be
cancelled without 30 days written notice to GSOC.
7. LIENS AND STOP NOTICES
City shall notify the GSOC of any stop notice served upon the City related to the
GSOC Project and /or Property.
8. COMPLETION OF GIRL SCOUTS LEADERSHP CENTER BY GSOC
8.1 Inspection, Punch List and Substantial Completion.
8.1.1 Inspection and Punch List. City shall complete all buildings,
improvements, and facilities for an operational GSOC Project pursuant to this
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Agreement and its subsections above. After construction is concluded, the GSOC
Project shall be inspected by all Parties for approval of construction by City, and GSOC.
The standards to be applied in approving the GSOC Project's construction shall be as
follows:
(a) City has constructed the facility substantially in accordance
with the Agreement and Plans with all systems (including mechanical, electrical,
structural and communications and other applicable systems) in operating condition and
ready for use for the intended use; and
(b) The work has been completed in a good and workmanlike
manner; and
(c) The facility complies with applicable government
requirements including building codes, regulations, restrictions, permits and approvals
from authorities of the appropriate jurisdictions; and
(d) To the extent that any contractor, subcontractor or material
suppliers have filed liens or claims relating to the GSOC Project, City shall have
furnished the GSOC copies of written lien releases and releases for any claims for stop
notices, mechanic's liens or rights to payment for labor and materials, pursuant to the
form set forth in California Civil Code Sections 8120 et seq. from all contractors,
subcontractor's and material suppliers covering the GSOC Project.
8.1.2 Substantial Completion. All Parties shall indicate in writing to City
any punch list items which shall be resolved prior to final approval of the GSOC Project
and issuance of a Notice of Substantial Completion. After issuance of a Notice of
Substantial Completion, the Director and /or Project Architect, as applicable, shall certify
to the following:
(a) all work required by this Agreement, the Construction
Contract(s) and Plans for the GSOC Project, including corrective work and minor
deficiencies identified in punch list items or incomplete work is complete;
(b) A Certificate of Occupancy has been issued by the City;
(c) City shall have furnished to GSOC two sets of equipment
instructions, guarantees, and warranties, as are provided by the respective
manufacturers, for items installed as part of the City's contract for the GSOC Project. In
addition, GSOC shall have certified that all required owner training has been provided
by the Contractor for items requiring training for the GSOC Project.
(d) All HVAC commissioning has been certified as completed.
8.1.3 Completion. After receiving notification from the GSOC that the
GSOC Project has been completed in accordance with Section 8.1, City shall forthwith
file with the Orange County Recorder a Notice of Completion, pursuant to provisions of
Section 8182 of the California Civil Code, if applicable, which includes the GSOC
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Project. The City shall furnish to the GSOC a duplicate copy of such Notice of
Completion showing thereon the date of filing with said County Recorder. Upon
passage of the statutory time period for filing of liens without additional liens or stop
notices being filed, any previous or new recorded or stop notices that have been
delivered with respect to the GSOC Project or the Contract(s) have been paid, settled,
or otherwise extinguished, discharged, released, or waived the Project shall be
considered to be a Final Completion and City shall be entitled to obtain any remaining
reimbursement payments due to it pursuant to the Agreement.
8.2 Latent Defects. Unless otherwise provided by law, the City hereby
conveys to GSOC a non - exclusive assignment of its rights and interests under all
agreements and /or contracts pursuant to which any work or services were performed by
the City's consultants, contractors or other agents or representatives on the GSOC
Project to the extent necessary for GSOC to file and maintain a lawsuit or otherwise
enforce its rights against any such person or entity under such agreements and /or
contracts for defective work or workmanship, it being understood and agreed that such
assignment shall apply only to documents and contracts to the extent applicable to the
GSOC Project, and to contracts that provide for such non - exclusive assignment by City.
In furtherance thereof, the City shall use its best efforts to include provisions in each of
such agreements and /or contracts allowing for the assignment of such rights to GSOC.
8.3 Record Drawings. GSOC's Design Consultants and Construction
Manager will be responsible for delivery of final "Record Drawings" of the Project. The
GSOC shall within sixty (60) days following completion and acceptance of the Project by
GSOC, furnish the City with a revised complete set of Mylar reproducible plans, and a
CAD electronic set of the Project, "Record Drawings" which are reproducible drawings
marked and updated by GSOC's architect during construction showing all changes from
the original contract documents.
9. MAINTENANCE OF THE SITE
Upon issuance of a notice of completion and satisfaction of all provisions of this
Agreement, including complete payment by GSOC to City of the GSOC Project Costs,
GSOC may occupy the GSOC Project and commence installation of FF &E not
otherwise included in the Plans.
10. INDEMNIFICATION
10.1 GOSC shall indemnify, defend, and hold harmless City, its officers,
directors, consultants, agents, and employees, from and against any and all claims,
demands, losses, or liabilities of any kind or nature which City, its officers, directors,
consultants, agents, and employees may sustain or incur or which may be imposed
upon them, or any of them, for injury to or death of persons, or damage to property as a
result of, or arising out of, the negligence or willful misconduct of GSOC, its officers,
agents and employees, in connection with this Agreement except to the extent caused
by the acts or omissions of City.
A 13- 0035011.2.14
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10.2 Likewise, City shall indemnify, defend, and save harmless GSOC its
officers, directors, consultants, agents, and employees, from and against any and all
claims, demands, losses, or liabilities of any kind or nature which GSOC, its officers,
directors, consultants, agents, and employees may sustain or incur, or which may be
imposed upon them, or any of them, for injury to or death of persons, or damage to
property as a result of, or arising out of, the gross negligence or willful misconduct of
City, its officers, agents and employees, in connection with this Agreement, except to
the extent caused by the acts or omissions of GSOC.
10.3 The Provisions of this Section shall survive termination of this Agreement.
11. UTILITIES
City shall be responsible for and pay, prior to delinquency date, all usage
charges for utilities supplied to the Property during construction until a Notice of
Completion is issued. Charges for utilities after Completion of the GSOC Project and
during the Lease term shall be paid by GSOC in accordance with the Lease.
12. ASSIGNING, SUBLETTING, ARID ENCUMBERING PROHIBITED
The rights and obligations of City under this Agreement may not be transferred or
assigned by the City unless the written consent of the GSOC is first obtained, which
consent GSOC agrees not to unreasonably withhold. However, City shall still remain
bound by all the obligations of this Agreement, other than all obligations assumed by
City's assigns (which assigns have been previously approved by GSOC pursuant to this
Section) and obligations imposed upon issuance of building permits for improvements
on the Property. Nothing in this paragraph shall be deemed to prohibit or require GSOC
approval of the City entering into any construction management, or construction
agreement reasonably necessary for the performance of the City's obligations under
this Agreement and the provision of bonds or other security or insurance that
guarantees or secures performance of each contractor or subcontractor there under,
including without limitation performance bonds, labor and material bonds, or general
liability or errors and omissions policies of insurance.
If, after award of a construction contract for the GSOC Project, construction on
the GSOC Project halts for any continuous period of one hundred eighty (180) days or
more, GSOC may notify the City in writing that GSOC wishes to meet and confer with
City to discuss whether the delay is such that the GSOC would like to terminate this
Agreement. Upon receipt of such notice, the Parties shall agree to meet and confer for a
minimum of thirty (30) days, or such longer length of time as may be agreed to in writing
by the Parties. During the meet and confer period, the City will provide a mitigation plan
setting forth the City's analysis of the construction delay and proposed measures, if any,
necessary to recommence construction ( "Mitigation Plan "). GSOC shall reasonably
review the Mitigation Plan in good faith during the meet and confer period. If after the
meet and confer period, the GSOC reasonably believes that there is no reasonable
A13- 0035011.2.14
322
foreseeable ability to recommence construction of the GSOC Project in a timely
manner, the GSOC shall provide written notice to City of its election to terminate this
Agreement. Within thirty (30) days after receipt of the notice, the City and GSOC shall
execute written confirmation of the termination of this Agreement. In the event of a
termination under this Section 13, the City and GSOC will negotiate in good faith to
mutually agree to any refund of money GSOC has paid to the City for Actual GSOC
Project Costs and /or any additional obligations of GSOC to reimburse the City. The
provisions of this Section 13 do not apply to Force Majeure delays.
14. CITY AUTHORIZATION
The City Manager of the City of Newport Beach is hereby authorized, on behalf
of the City, to sign all documents necessary and appropriate to carry out and implement
this Agreement and to administer the City's obligations, responsibilities and duties to be
performed under this Agreement.
15. FORCE MAJEURE
15.1 Neither Party shall be deemed to be in Default where failure or delay in
performance of any of its obligations under this Agreement is caused, through no fault
of the Party whose performance is prevented or delayed, by floods, earthquakes, other
acts of God, fires, wars, riots or similar hostilities, acts of terrorism, strikes or other labor
difficulties, state or federal regulations, or court actions, acts or omissions of the other
Party, third party suits, initiatives and referendum. Except as specified above,
nonperformance shall not be excused because of the act or omission of a third person.
In addition, in no event shall the time for performance of a monetary obligation,
including without GSOC's obligation to make reimbursement payments to City be
extended pursuant to this Section.
15.2 If either Party (the "First Party") believes that an extension of time is due to
Force Majeure Delay, it shall notify the other Party in writing within thirty (30) calendar
days from the date upon which the First Party becomes aware of such Force Majeure
Delay describing the Force Majeure Delay, when and how the First Party obtained
knowledge thereof, the date the event commenced, the steps the First Party anticipates
taking to respond to such Force Majeure Delay and the estimated delay resulting from
such Force Majeure Delay and response. The extension for Force Majeure Delay shall
be granted or denied in the Second Party's reasonable discretion. If the First Party fails
to notify the Second Party in writing of its request for a given Force Majeure Delay
within the thirty (30) calendar days specified above, there shall be no extension for such
Force Majeure Delay. All time periods under this Agreement may be extended for
Force Majeure Delay.
16. GENERAL PROVISIONS
16.1 Time. Time is of the essence as to this Agreement.
16.2 Agreement Organization. The various headings and numbers herein, the
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grouping of provisions of this Agreement into separate sections and paragraphs, and
the organization hereof, are for the purpose of convenience only and shall not be
considered otherwise.
16.3 Amendment. Any modification of this Agreement must be written and
properly executed by both Parties. In the case of the City, amendments must be
approved by the City Council.
16.4 Circumstances Which Excuse Performance. If the City hereto shall be
delayed or prevented from the performance of any act required hereunder by reason of
acts of nature, restrictive governmental laws or regulations, or other cause without fault
and beyond the control of the party obligated (financial inability excepted), performance
of such act shall be excused for the period of the delay and the period for the
performance of any such act shall be extended for a period equivalent to the period of
such delay.
16.5 Partial Invalidity. If any term, covenant, condition or provision of this
Agreement is held by a court of competent jurisdiction to be invalid, void, or
unenforceable, the remainder of the provisions hereof shall remain in full force and
effect and shall in no way be affected, impaired, or invalidated thereby.
16.6 Waiver of Rights. The failure of City or GSOC to insist upon strict
performance of any of the terms, covenants, or conditions of this Agreement shall not
be deemed a waiver of any right or remedy that City or GSOC may have, and shall not
be deemed a waiver of the right to require strict performance of all the terms,
covenants, and conditions of this Agreement thereafter, nor a waiver of any remedy for
the subsequent breach or default of any term, covenant, or condition of this Agreement.
16.7 City as Independent Contractor. In performing under this Agreement it is
mutually understood that City is acting as an independent contractor and not an agent
of the GSOC. The GSOC shall not have any responsibility for payment to any
contractor, subcontractor or material supplier of labor or materials for the Project of City.
16.8 Remedies Limited. City and GSOC acknowledge they would not have
entered into this Agreement if either were to be liable for any damages under or with
respect to this Agreement. Neither the City nor the GSOC shall have any pecuniary
liability under this Agreement for any act or omission of the GSOC or the City. In
general, each of the Parties hereto may pursue any remedy at law or equity available
for the breach of any provision of this Agreement, provided, that neither Party shall be
liable in damages to the other Party.
16.9 Notices. All written notices pursuant to this Agreement ( "Notices ") shall be
addressed as set forth below or as either party may hereafter designate by Notice and
shall be sent registered mail, return receipt requested via the United States Postal
Service, or made by personal delivery to each at:
A13- 00350/1.2.14
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CITY:
City Manager
City of Newport Beach
100 Civic Center Drive
PO Box 1768
Newport Beach, CA, 92658 -8915
With a copy to:
Director of Public Works
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658 -8915
City Attorney
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658 -8915
GSOC:
Nancy Nygren
Chief Executive Officer
Girl Scouts of Orange County
9500 Toledo Way, Suite 100
Irvine, CA 92618
16.9.1 All notices provided for herein shall be deemed effective upon
receipt, if personally served or 48 hours after being sent registered mail, return receipt
requested postage prepaid via the United States Postal Service.
16.10 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be identical and may be introduced in evidence or
used for any other purpose without any other counterpart, but all of which shall together
constitute one and the same agreement.
[SIGNATURES ON NEXT PAGE]
A13- 00350/1.2.14
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IN WITNESS WHEREOF, the Parties have executed this Agreement the dates
written below.
APPROVED AS TO FORM:
CITY O AT � NEY'S OFFICE
Date: ��1�?
Aaron C. Harp
City Attorney
ATTEST-
Date..
/J '
�
By:
Leilani I. Brown
City Clerk
A 13- 0035011.2.14
CITY OF NEWPORT BEACH,
a California municipal corporation
Date: 1.. l(o . 1%4
By:
Rush N. Hill, II
Mayor
GSOC: Girl Scouts of America, a
California corporation
Date: t Ae
zz
[END OF SIGNATURES]
326
ATTACHMENT C
0
girl scouts
of orange county
April 25, 2014
Girl $Cedof Orange County Dave Kiff, City Manager
9500 Toledo Way, Suite 100 City f Newport Beach
Irvine, CA 92618 y p
949.461.8800 100 Civic Center Drive
GirlScoutsOC.org P.O. Box 1768
Newport Beach, California 92658 -891
Board of Directors
Re: Memorandum of Agreement for Construction of the Girl Scouts
Officers
Leadership Center in Marina Park and Payment Reimbursement Dated
Julie Miller- Phipps
Board Chair
as of January 15, 2014 by and between the City of Newport Beach
( "City") and the Girl Scouts of Orange County ( "GSOC ") (the
Becky Bailey- Findley
"Memorandum ")
First Vice Chair
Doris Farinacci
Ladies and Gentlemen:
Second Vice Chair
Christine Shingle[on
We are in receipt of the City's notice dated April 18, 2014 of the Marina Park
Secretary
Susan King
Package 3 -GSOC Bid Alternative Selection by the City of the lowest responsible
Treasurer
bidder. This letter shall serve as GSOC's notice to the City pursuant to Section 2.2
Nancy Nygren
CEO
of the Memorandum that GSOC has elected not to approve the GSOC Bid
Members at Large
Alternative for this project. Accordingly, the City is requested not to include the
Danielle Arnerich -Combs
Cyd Brandvein
GSOC Bid Alternative within the City's Construction Contract for the Marina Park
Nimesh Dave
Donna Giordano
project. Further, GSOC hereby advises the City that, unless an alternative
Veronica Gray
Said Hilal
arrangement can be reached with the City as discussed below, GSOC intends to
Molly Jolly
Shannon Kennedy
pursue the construction of the GSOC Leadership Center following completion of
Irene Kinoshita
llteo sag c etMe
the City's Marina Park project in accordance with the Ground Lease by and
Christine Scheuneman
Marjorie Terrier
between the City and Girl Scouts of Orange County recorded on July 8, 2013 in the
Nella Webster- O'Grady
Jennifer Williams- Peguero
Official. Records of the Orange County Clerk- Recorder as Instrument No.
Girl Advisory Members
2013000409086.
Fiona Hines
Afresh Javed
Liza Villanueva
It is our understanding that although the combined bid for the Project submitted by
T.B. Penick and Sons, Inc. was the lowest combined bid, that the bid for the City
portion of the Project by KPRS was the lowest responsible bid for the Project
excluding the GSOC portion. Accordingly, the City may elect to proceed with the
KPRS bid for the City work. In the event the City decides to select a bidder for the
Project other than Penick or KPRS for any reason, including the unwillingness or
inability of either Penick or KPRS to perform the work, GSOC would appreciate the
opportunity to again evaluate the selected bid for the construction of the GSOC
portion of the Project.
Girl Scouting builds girls of courage, confidence, and character, 327
who make the world a better place.
City Manager
City of Newport Beach
April 23, 2014
Page 2
Lastly, GSOC would like you to consider allowing GSOC to concurrently construct
the GSOC Project utilizing a contractor of GSOC's choosing. This would obviously
necessitate careful coordination with the City's contractor but we believe this is an
opportunity worth exploring. We would appreciate hearing from you at your earliest
convenience whether you are open to discussing this alternative.
If you should have any questions or need additional information, please feel free to
contact me at (949) 461 -8810.
Very truly yours,
2
Chief Executive Officer
cc: Dave Webb, Director of Public Works
Leonie Mulvihill, Assistant City Attorney
Girl Scouting builds girls of courage, confidence, and character, 328
who make the world abetter place.
ATTACHMENT D
Lee, Iris
From: Beverly Bailey <bb @teamsei.com>
Sent: Tuesday, April 15, 2014 5:57 PM
To: Lee, Iris
Subject: FW: Withdrawl of Bid - Marina Park Project
From: Beverly Bailey
Sent: Tuesday, April 15, 2014 5:54 PM
To: 'ille @newportbeachca.gov'; 'dawebb @newportbeachca.gov'
Cc: Scott Bailey; Kamel Khalil
Subject: Withdrawl of Bid - Marina Park Project
15 April 2014
Ref: Contract No. 3897 -C
Att: Iris Lee, P.E.
3300 Newport Blvd.
P.O. Box 1768
Newport Beach, Ca. 92658
Dear Ms. Lee
Thank you for your phone call.
Please accept this notice as a formal request to withdraw our bid on the above referenced project. It is apparent that in
the base bid we submitted, we failed to include a significant number. Our actual intended bid was $19,747,227 not
$1,794,227.
Thank you for your kind consideration towards including our company in the proposal process. We wish your agency
much success in this notable project.
Sincerely,
Beverly Bailey
CEO /Pres. Stronghold Engineering Inc.
329
ATTACHMENT E
Perera Construction & Design, Inc.
Lic. # B- 585965
April 17, 2014
Leilani Brown
City Clerk
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92260
RE: Newport Marina Bid # 3897 -C
Bid protest
City Clerk:
Perera Construction hereby protest the above referenced bid based on the following
conditions:
1. Perera did not receive the apparent low bidders (T. B. Penick and KPRS) complete
bid documents that include the following: construction schedule, tree and
landscape vendor qualifications and resumes of project staff, which were to be
turned in with bid.
2. T. P. Penick omitted asphalt /concrete paving and ceramic tile from the
subcontractor's information sheet. These trades were over % of 1 %.
3. KPRS omitted fire sprinklers, low voltage systems, asphalt paving, tree relocation,
site furnishings, demo, toilet partitions and accessories, precast pavers, reinforcing
steel and accessories. These trades were over % of 1 %.
Please forward your response and information to Scott Sampson
We look forward to your response.
Sincerely,
Scott Sampson
Director Business Development
2890 Inland Empire Blvd. Suite 102 Ontario, CA 91764 1 Ph: 909.484.6350 1 Fx: 909.484.3439 1 Acct. Fx: 909.484.0885 330
Headquarters:
15435 Innovation Dr., Ste. 100
San Diego, CA 92128
NONE, 858.558.1800
Free 858.558.1881
New York Office:
31-00 47th Ave., Box # 10
Long Island City, NY 11101
MONL 877- 874 -8669
raa 866AI4.2636
CA License 185381
NV License 0066467
AZ License ROCZ12989
www.thpenick.com
ATTACHMENT F
T.B.PENICK
NSONSEINC.
Califomia • New York
April 23, 2014
Leilani Brown
City Clerk
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92260
RE:
City Clerk:
Newport Marina Bid
Response to Bid protest
Per Perera Question:
2. "T. P. Penick omitted asphalt /concrete paving and ceramic tile from the
subcontractor's information sheet. These trades were over 3h of 1%."
T. B. Penick & Sons, Inc. reply:
Our Asphalt Concrete Paving cost is not over 2/2 of 1%.
Our listed Flooring subcontractor (Picket Fence) will also be performing Ceramic
Tile.
Sincerely,
Fernando Idiaqui
Senior Estimator
loo•, GENERAL CONSTRUCTION • DESIGN -BUILD + CONSTRUCTION MANAGEMENT
331
ATTACHMENT G
KPRS
2850 sa6un Wb T 714 672 0800 irfn@Irplsmc
Oma.callorrra97821 F714677087T www.kpfSlwr.
April 23, 2014
Leilani Brown
City Clerk
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92260
RE: Newport Marina Bid # 3897 -C
Bid Protest Response
Dear Ms. Brown,
In response to the protest letter submitted by Perera Construction, dated April 17, 2014, KPRS offers the following
response:
1. Perera did not receive the apparent low bidders (T. B. Penick and KPRS) complete bid documents that
include the following: construction schedule, tree and landscape vendor qualifications and resumes of
project staff, which were to be turned in with bid.
All requested documents in questioned was submitted at time of bid by KPRS.
3. KPRS omitted fire sprinklers, low voltage systems, asphalt paving, tree relocation, site furnishings, demo,
toilet partitions and accessories, precast pavers, reinforcing steel and accessories. These trades were
over % of I%.
The reason for not listing the trades in questioned are as follows:
• Fire Sprinkler— Below 1/2 of 1%
• Low Voltage — Carried with Electrical (Melsmith)
• Asphalt Paving - Below ''% of 1 %
• Tree Relocation — Carried with Landscaper (Valley Crest)
• Site Furnishings— KPRS will purchase direct
• Demo — Carried with Earthwork (Tetra Tech)
• Toilet Partition & Accessories — KPRS will purchase direct
• Pre -Cast Paver — Below '/2 of 1%
• Reinforcing Steel — Carried with Concrete (AG)
If you have any other questions or concerns, please feel free to contact me at (714) 364 -6616.
Sincerely,
Chuck Lam
Purchasing Manager
Cc: Joel Stensby, KPRS Construction
Lev Rabinovich, KPRS Construction
Paul Kristedja, KPRS Construction
KPRS Conntrucllun Swvkn. Inc.
Expecia m Innovation Dalraffan
332
ATTACHMENT H
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Attention:
Subject:
Reference:
Ms. Lee,
April 23, 2014
Iris Lee, Project Manager - Public Works Department
Bid Protest Due to Insufficient Contractor Requirements
Contract 3897C: Marina Park Package 3 — Building & Site Development
On behalf of Techno Coatings, Inc. —a SSPC QP -1 & QP -3 certified industrial painting contractor we are submitting
a formal bid protest due to the lack of SSPC QP -1 or QP -3 certified contractor participation as according to the
published bid results for the above referenced project.
Certifications for qualified painting applicators ensures that the specified project requirements are delivered
correctly without the result of costly issues after construction has been completed. These requirements were
specified in the contract bidding documents specifically referenced in Section 05 1200 "STEEL FRAMING' (1.04,
1.05, 1.06), and 09 9600 "HIGH PERFORMANCE COATINGS" (1.04, 1.05, 1.06).
The SSPC QP requirements were endorsed by Tnemec Company Incorporated —the specified paint manufacturer
whom we have worked closely with on such notable jobs as the Anaheim Regional Transportation Intermodal
Center (ARTIC) and repainting of the Las Vegas Convention Center among many others.
Although it is tempting to forego the contractor requirements, Techno Coatings, Inc. cautions against this. A local
example is with the Oasis Senior Center. Techno Coatings worked with ggkworks to develop a corrosion mitigation
solution on this project after the non QP contractors involved failed to provide the specified paint system. This
error quickly resulted in visible and accelerated corrosion which was estimated to cost over $ 500,000.00 last year
to restore the steel and metal works to its original specified condition!
For these reasons we find it in the best interests of the City of Newport Beach and taxpayers to evaluate the bid
results and strictly enforce the QP Contractor Qualifications requirements.
Very Truly Yours,
Techno Coatings, Inc.
Charles Pham — Project Manager, Field Coating Division / Techno Coatings, Inc.
Chris Radovich — Plant Manager, Shop Coating Division / Techno West, Inc.
Attachments: Techno Coatings, Inc. SSPC QP -1 & QP -3 Qualifications, Techno West SSPC QP -1 & QP -3 Qualifications, SSPC
Certification Quality Program Summary.
1391 ALLEC STREET ANAHEIM. CALIFORNIA 92805(714)635 -1130 FAX(714)635 -6357
333
SSPC QP Certification identifies companies with industry- standard
capabilities and a commitment to exceptional quality.
To be QP 1 and QP 3 certified, contractors must
demonstrate competence in several key areas:
• Management procedures
• Quality control
• Safety and environmental compliance
• Technical capabilities.
QP 2 certification requires demonstrated
competence in four additional areas:
• Management of hazardous paint removal
projects
• Technical capabilities related to hazardous
paint removal
• Personnel qualifications and training
• Safety and environmental compliance programs.
The QP 6 program evaluates the qualifications
of contractors to apply thermal spray coatings
of aluminum, zinc, and their alloys for corrosion
protection of steel and /or zinc anodes on steel
reinforced concrete.
Companies seeking QP S certification must
demonstrate their ability to:
• Perform substrate evaluation, repair, and treatment
• Conduct surface preparation operations
• Install coatings and surfacings over concrete -based
substrates
• Implement their quality program in the field
• Meet the conditions and restrictions specified by
the owner.
Why do owners need a certified
contractor?
Today's marketplace and advanced
coating systems require owners to be more
selective when awarding projects. Including
SSPC certification in your selection process
can provide you with a valuable tool for
identifying contractors with industry -
standard capabilities and a commitment to
exceptional quality.
Hiring an SSPC certified company provides
numerous advantages:
• Competent contractors
• Clear and concise project specifications
• Confidence in specifying new technology
• Consistent inspection
• Safe and reliable project work
• Simplifies the work of developing a list of
qualified bidders
For more Morrrfation, contact:
334
SGP( The Society For
Protective Coatings
Of
Techno Coatings, Inc.
Anaheim, CA
has met or exceeded the requirements set forth in the
SSPC Painting Contractor Certification Program for
FIELD APPLICATION OF COATINGS
COMPLEX STRUCTURES
SSPC-QPI
President, SSP
March 31, 2014 — March 31, 2015
..................................... ...............................
Validation Period
Ott nm arc ad, i,ed to contact SS PC at 412 - 281 2.931 cm. 2235 ore v 2209 tot crify au thenticit) of certification. 335
go
The Society For
Protective Coatings
Of
Techno Coatings, Inc.
Anaheim, CA
has met or exceeded the requirements set forth in the
SSPC Painting Contractor Certification Program for
tQNTRAcr N
C
Cj 01
INI)USTRIIAIL HAZARDOUS QPZ
FAINT REMOVAII.
..A»
.. ............................... _... . ...... ....... ................ ...............................
Category Presideat, SS
March 31, 2014 — March 31, 2015
................................ ...............................
I �h.datioa Period
Oe ners are ad, ked to contact SS PC at 412- 281 -2331 eNt. 2235 or ext.2209 to verify authenticity of certification. 336
The Society For
Protective 'Coatings
�)f
Techno West, Inc
Anaheim, CA
has met or exceeded the regilircments set forth in the
SSPC Painting Contractor Certification Program fior
SHOP APPLICATION OF
PROTECTIVE COATINGS
SSPC,,,,,,QP 3
Enclosed Shop
.................... ...........
President, SSPC
March 31, 2014 — March 31, 2015
..................................... ...............................
I alidation Period
Owners are advised to contact SSPC at 412 -281 -2331 eat. 2233 or ext. 2209 to verify authenticity of certification.
337
516114
MARINA PARK
MASTER BUDGET
City of Newport Beach
ATTACHMENT
338
TASK DESCRIPTION
BUDGETED
DETAIL COST
BUDGETED
TOTAL
ACTUAL
DETAIL COST
ACTUAL TOTAL
COMMENTS
1
CONCEPTUAL DESIGNIPERMITTING
$ 1,680,441
$ 1,680,441
Complete
2
LAND ACQUISITION
$ 600,000
$ 600,000
In Process - A mement approved by Council
3
SOFT COSTS
$ 5,035,156
$ 5,035,156
Still Includes $271547 Design Contingency
4
HARD COSTS
$ 29,543,281
$ 28,894,658
Still Includes $2,598,508 Construction Contingency
a
b
c
d
e
f
PACKAGE 1: Demolition and Tree Relocation
Original Contract
Remainder of 10% Contingency (Began with $40,513)
Change Order No. 1
PACKAGE 2: Marina Basin Construction
Original Contract
Remainder of 10% Contingency (Began with $457,608)
Change Order No. 1
PACKAGE 3: Community Center and Park
Original Contract
Remainder of 10% Contingency (Begin with $1,874,800)
PACKAGE 4: Docks
Original Contract
Remainder of 10% Contingency (Begin with $266,100)
PREVAILING WAGE
CONTINGENCY - COURSE OF CONSTRUCTION
$ 410,471
$ 3,671,724
$ 17,421,081
$ 2,217,741
$ 3,883,764
$ 1,938,500
$ 405,130
$ -
$ (67,516)
$ 4,576,079
$ 457,608
$ (26,543)
$ 18,748,000
$ 1,874,800
$ 2,661,000
$ 266,100
Ind
Unlimited Environmental Inc.
None Used in Contract
Credit for Mobile Homes
The Dutra Group
Contingency Remaining
Deletion of Deadman Support
KPRS Construction Services Inc.
Contingency Remaining
Includes roughly 90k in dock FF &E
Contingency Remaining
Now Included in Actual Direct Costs
5
FIXTURES, FURNISHINGS, & EQUIPMENT FF &E
$ 560,000
$ 560,000
6
CITY RESERVE
$ 2,081,099
$ 2,081,000
PROJECT TOTAL
$ 39,500,000
$ 38,851,255
338