HomeMy WebLinkAbout08 - C-3645 & 04BA-057 - Storm Drain & Sewer ReplacementCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 8
May 11, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Sean Crumby, P.E.
949 -644 -3311
scrumby@city.newport-beach.ca.us
SUBJECT: STORM DRAIN AND SEWER REPLACEMENT - AWARD OF CONTRACT
NO. 3645
RECOMMENDATIONS:
1. Approve the plans and specifications.
2. Award Contract No. 3645 to GCI Construction, Inc. for the total bid price of
$730,255.00, and authorize the Mayor and the City Clerk to execute the contract.
3. Establish an amount of $72,000 to cover the cost of unforeseen work.
4. Approve a reimbursement agreement with the Orange County Sanitation District.
5. Approve a budget amendment increasing revenue estimates by $93,430 in
account 250 -5901, Affordable Housing Contributions, and $93,430 in account
250 -4839, Orange County Sanitation District Contributions, transferring $63,313
from City -Wide Slurry Account 7181- C5100462 to Storm Drain Improvement
Program 7181- C5100008, and increasing expenditure appropriations by
$186,860 in 7251- C5100755.
DISCUSSION:
At 10:00 A.M. on April 27, 2004 the City Clerk opened and read the following bids for
this project:
BIDDER
Low GCI Construction, Inc.
2 Southern Ca. Underground Contracting
3 Majich Brothers
4 Clarke Contracting
5 W.A. Rasic
6 SRD Engineering
$730,255.00
$782,905.00
$826,100.00
$1,056,026.00
$1,074,446.71
$1,075,735.00
* Corrected Bid Amount
Subject: Storm Drain Replacement — Award of Contract No. 3440
May 11, 2004
Page: 2
The low total bid amount is eight percent above the engineer's estimate of $675,000. The
low bidder, GCI Construction Inc., possesses a California General "A" Contractors
License as required by the project specifications. A check of the Contractor's references
indicates they have satisfactorily completed similar projects for other municipalities and
the City of Newport Beach in the past.
The project consists of removing and replacing selected portions of failed sewer main and
Storm drains at various locations throughout the City. Various methods are being utilitized
to rehabilitate these facilities as some of the facilities have challenging locations and
conditions. In addition, the City is relocating the Orange County Sanitation District's
(OCSD) Coast Trunk Sewer through the proposed Bayview Landing Senior Housing site.
OCSD has an existing 24 -inch trunk sewer main in an easement through the wetlands
restoration area proposed as part of the senior housing. Because their easement will
become inaccessible once the wetlands are restored, the trunk sewer must be relocated
into the adjacent City streets.
Attached for Council consideration is the reimbursement agreement with OCSD. City staff
has prepared the plans and specifications for the relocation project and OCSD has agreed
to pay fifty percent of the construction cost, which amounts to $93,430. Because the
Coast Trunk was constructed in the 1950's, and is nearing the end of its useful design life,
OCSD agreed to contribute their replacement funds for a portion of the work. The sewer
main showed signs of wear and the manholes near and through the Bayview site were
deteriorated. The relocation of the trunk sewer will take place in concert with the rough
grading of the Bayview Landing site planned for late May and June.
Per the Contract Specifications the Contractor will have 100 consecutive working days
to complete the work.
Environmental Review:
The City's portion of the project was determined to be exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302 of the CEQA
Implementing Guidelines at the time the project was authorized by the City Council.
This exemption covers the maintenance and alteration of existing public facilities with
negligible expansion of the facilities in areas that are not environmentally sensitive.
The OCSD trunk sewer relocation was included in the mitigated negative declaration for
the Bayview Landings Senior Housing and Park project dated February 25, 2003.
Funding Availability:
In addition to existing funds in the Sewer Main Master Plan account, the following
funding sources will contribute to the project:
$177,502 is currently available in the Storm Drain Improvement Program. The
proposed budget amendment will transfer $63,313 to use the surplus from the
Citywide Slurry Account Gas Tax CIP (7181- C5100462).
Subject: Storm Drain Replacement — Award of Contract No. 3440
May 11, 2004
Page: 3
• The proposed reimbursement agreement with the Orange County Sanitation
District will provide for $93,430 in funding. This reimbursement will occur at the
conclusion of the project, and funds will be received in fiscal year 2004 -05.
• The budget amendment from Affordable Housing Contributions, 250 -4901 for
$93,430.00 to Bayview Landing OCSD Trunk Sewer Relocation Account 7251 -
05100755 will make up the remainder of the funds required for the project.
Upon approval of the recommended budget amendments, sufficient funds will be
available in the following accounts for the project:
Account Description
Sewer Main Master Plan
Storm Drain Improvement Program (General Fund)
Storm Drain Improvement Program (Gas Tax)
Bayview Landing OCSD Trunk Sewer Relocation
Prepared by:
Sean Crumby
Associate Civil Engineer
Submitted by:
Steve B efum
PublicAorks Director
Account Number
7531- C5600292
7012- C5100008
7181- C5100008
7251- C5100755
Total:
Amount
$374,580.00
$177,502.00
$63,313.00
$186,860.00
$802,255.00
and /",
Stephen Kiy
Associate Civil Engineer
Project Location Map
Bid Summary
Reimbursement Agreement
Budget Amendment
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3
REIMBURSEMENT AGREEMENT
THIS REIMBURSEMENT AGREEMENT ( "Agreement "), is made and entered into on this
day of , 2004, by and between:
AND
ORANGE COUNTY SANITATION DISTRICT, a
County Sanitation District, hereinafter referred to as
"District ";
CITY OF NEWPORT BEACH, California, a
Municipal Corporation, hereinafter referred to as
"City ".
District and City are sometimes hereinafter individually referred to as "Party" and
hereinafter collectively referTed to as "Parties ".
RECITALS
WHEREAS, District is a duly organized County Sanitation District existing pursuant to the
County Sanitation District Act, California Health and Safety Code section 4700, et seq., providing
for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal
facilities within Orange County, California; and
WHEREAS, City is a duly organized Municipal Corporation existing pursuant to the laws of
the State of California; and
WHEREAS, City is planning to develop a low - income senior housing project in the City,
near the intersection of Jamboree Road and Backbay Drive ( "City Project "); and
WHEREAS, City Project will require realignment of District's Coast Highway Trunk Sewer
Line ( "Coast Highway Trunk "), including abandoning a portion of the Coast Highway Trunk
( "Trunk Realignment "), located near the intersection of Jamboree Road and Backbay Drive in the
City; and
WHEREAS, City has agreed to provide design services for the construction of the Trunk
Realignment at its sole cost and expense; and
WHEREAS, City is willing to let, administer, and manage a construction contract for the
construction of the Trunk Realignment; and
WHEREAS, City has agreed to construct the new portion of the Coast Highway Trunk and
abandon in place an unneeded portion of the Coast Highway Trunk to accommodate the City
Project; and
179805.3
Page 1 of 7
WHEREAS, City has agreed to obtain, at its own cost and expense, any easements necessary
for the Trunk Realignment, and District has agreed to quitclaim to The Irvine Company ( "TIC ") the
existing easement for that portion of the Coast Highway Trunk to be abandoned, and the easement
for an unconstructed alignment for Project 5 -46 Backbay Sewer; and
WHEREAS, District has agreed to reimburse City for one -half (1/2) of the actual
construction costs of the Trunk Realignment upon completion; and
WHEREAS, District has agreed to generate, at its own cost and expense, all legal
descriptions associated with the Trunk Realignment.
AGREEMENT
NOW THEREFORE, in consideration of the mutual promises set forth herein, the Parties
hereto agree as follows:
Section 1: Recitals. The Recitals above are deemed true and correct, are hereby
incorporated in this Section as though fully set forth herein, and each Party to this Agreement
acknowledges and agrees that such Party is bound by the same.
Section 2: Elements of Agreement. City and District shall work cooperatively together
so that Trunk Realignment can be constructed in a manner which minimizes costs and impacts to
the public. The specific terms and conditions governing the elements of this Agreement are set
forth hereinafter.
Section 3: City's Specific Obligations. City shall:
A. Provide design services necessary for the Trunk Realignment at its sole cost
and expense.
B. Prepare and issue a public works bid package and let, administer, and manage
a construction contract for the construction of the Trunk Realignment.
C. Obtain all necessary permits for construction of the Trunk Realignment.
D. Submit prepared plans and specifications for the design and construction of
the Trunk Realignment to the District for review and approval by District's Director of Engineering.
The plans and specifications shall meet District's standards and technical requirements for the
Trunk Realignment. Such approval shall not be unreasonably withheld.
E. In accordance with District standards and technical requirements, construct
the realigned portion of the Coast Highway Trunk necessary to accommodate the City Project and
abandon in place that portion of the District Coast Highway Trunk which will not be needed
following completion of the Trunk Realignment.
179805.3
Page 2 of 7
F. Obtain the written approval of the Districts' Director of Engineering of the
Trunk Realignment prior to accepting the improvements. Such approval shall not be unreasonably
withheld.
G. Furnish and deliver to District "as built" drawings of the Trunk Realignment
and any additional project - related documents requested by District, all at no cost to District.
H. Require a one -year warranty on the project from its contractor which
warranty shall be assigned by City to District upon transfer of the Trunk Realignment to District,
and which shall read as follows:
"Contractor guarantees for a period of one (1) year from the date of final acceptance
of the work by City that the Contractor shall repair or remove and replace any work,
together with any other work which may be displaced in so doing, that is found to be
defective in workmanship and/or materials without any expense to City or its
assigns, ordinary wear and tear excepted. If Contractor fails to comply with this
warranty within one (1) week after being notified in writing, City or its assigns are
authorized to proceed to have the defects remedied at Contractor's expense who shall
pay the cost and charges thereof immediately on demand. If, in the opinion of City
or its assigns, defective work detected during the guarantee period creates a
dangerous condition or requires immediate correction or modification to prevent
further loss to City or its assigns or to prevent interruption of City or its assigns
operations, City or its assigns shall be authorized to repair the condition without
prior notice to the Contractor and Contractor shall pay the cost and charges thereof
immediately upon demand. Contractor's obligations under this section are in
addition to Contractor's other express or implied assurances under this Contract and
State law and in no way diminish any other rights that City or its assigns may have
against Contractor for faulty materials, equipment, or work. The Faithful
Performance Bond and Labor and Materials Bond shall continue in full force and
effect for the guarantee period."
I. Upon completion of the Trunk Realignment, transfer ownership of the Trunk
Realignment to District free of any cost to the District (except as otherwise set forth in Sections 4.A.
and 6), along with any easements necessary for the project.
J. This Agreement is contingent upon the City obtaining any easements
necessary for the Trunk Realignment from TIC and /or other persons /entities. City shall obtain, at its
own cost and expense, all easements necessary for the Trunk Realignment, in a form approved by
the District. District shall have no responsibility for obtaining or paying the cost of obtaining the
easements necessary for the project. If City fails to obtain all necessary easements for the project,
District may, in its sole discretion, terminate this Agreement at no cost to District.
179905.3
Page 3 of 7
Section 4: District's Specific Obligations. District shall:
A. Generate, at its own cost and expense, all legal descriptions associated with
the Trunk Sewer Realignment
B. Upon completion of the Trunk Realignment, and upon receipt of an invoice
and supporting documentation from City detailing the actual project construction costs, reimburse
City for one -half (1/2) of the actual cost of the construction of the Trunk Realignment. As used in
this Agreement, Construction Costs shall not include costs for preparation of legal descriptions,
costs of acquiring easements, project design costs and City administrative costs for the Project.
C. At all times during the progress of construction of any work, District shall
have access to the work thereof for the purpose of inspection of Project progress.
D. Retain final authority to accept or reject the contractor's work on the Trunk
Realignment. District shall act reasonably in the exercise of such authority.
E. Upon transfer of the Trunk Realignment to District, District shall quitclaim to
TIC the following two (2) easements: (1) the existing easement for that portion of the Coast
Highway Trunk to be abandoned, and (2) the easement for the unconstructed alignment for Project
5 -46 Backbay Sewer.
Section 5: Change Orders and Design Addenda. District shall be provided the
opportunity to review and approve all design addenda and construction change orders that pertain to
the Trunk Realignment. Such approval shall not be unreasonably withheld.
Section 6: Timing of Reimbursement. When the Trunk Realignment is completed, City
shall submit an invoice and supporting documentation to District showing the actual cost of the
construction of the Trunk Realignment. District shall pay City one -half (1/2) of the actual cost of
the construction of the Trunk Realignment within sixty (60) days of District's receipt of the invoice
and supporting documentation. Construction costs are currently estimated at $160,000.00.
Section 7: Environmental Documentation. City shall be responsible for compliance
with the California Environmental Quality Act ( "CEQA ") (Pub. Resources Code, Section 21000 et
seq.) for all activities associated with the Trunk Realignment.
Section 8: Hold Harmless.
A. City shall defend and hold District, its officers, employees, agents, and
consultants free and harmless from any and all claims, damages, or demands arising out of City's
performance of its obligations under this Agreement.
B. District shall defend and hold City, its elected and appointed officials,
employees, agents, and consultants free and harmless from any and all claims, damages, or demands
arising out of District's performance of its obligations under this Agreement.
Section 9: Insurance. City shall require the construction contractor to maintain the
insurance policies in the amounts stated herein during all times of the construction project. City
179805.3
Page 4 of 7
shall not allow contractor or subcontractor(s) to commence work on the project until insurance is
obtained in accordance with the requirements of this section.
City shall require that insurers be admitted carriers and authorized to transact business in the
State of California and that insurers have an "A - ", or better, Policyholder's Rating, and a Financial
Rating of at least Class VII, or better, in accordance with the most current A.M. Best Rating Guide.
City shall include a provision in its contract with contractor that District may require contractor to
substitute any insurer whose rating drops below the levels herein specified and that the substitution
shall occur within twenty (20) days of written notice to contractor by District or its agent.
City shall require contractor to furnish District with original certificates and amendatory
endorsements effecting coverage. Said policies and endorsements shall conform to the
requirements herein stated. All certificates and endorsements are to be received and approved by
District before work commences. District reserves the right to require complete, certified copies of
all required insurance policies, including endorsements, affecting the coverage required by these
specifications, at any time.
City shall require that such policies shall name District, its officers, employees, agents, and
consultants as additional insureds thereon by endorsement to such policies. City shall require that
each insurance policy required by this section shall be endorsed to state that coverage shall not be
cancelled by either party, except after thirty (30) days' written notice. City shall require coverage in
at least the following amounts:
A. General Liability. $1,000,000.00 per occurrence for bodily injury, personal
injury, and property damage and $2,000,000.00 aggregate for bodily injury,
personal injury, and property damage.
B. Automobile Liability. $1,000,000.00 combined single limit per accident for
bodily injury and property damage, including non -owned and hired vehicles.
C. Workers' Compensation. Workers' Compensation, in accordance with the
Workers' Compensation Act of the State of California for a minimum of
$1,000,000.00. Such Workers' Compensation Insurance shall be endorsed to
provide for a waiver of subrogation against District.
Section 10: Term. The term of this Agreement shall be in full force and effect until the
specified obligations of both Parties have been fulfilled or rescinded by both Parties.
Section 11: Agents. Any contractor, subcontractor, or consultant performing work in
connection with the Trunk Realignment shall be conclusively deemed to be an agent of City.
Section 12: Notices. All notices or other communications required or permitted
hereunder shall be in writing and shall be personally delivered or sent by registered or certified
mail, postage prepaid, return receipt requested, delivered or sent by electronic transmission, and
shall be deemed received upon the earlier of: (i) the date of delivery to the address of the person to
receive such notice if delivered personally or by messenger or overnight courier; (ii) three (3)
business days after the date of posting by the United States Post Office if by mail; or (iii) when sent
if given by electronic transmission. Any notice, request, demand, direction, or other
179805.3
Page 5 of 7
communication sent by electronic transmission must be confirmed within forty -eight (48) hours by
letter mailed or delivered. Notices or other communications shall be addressed as follows:
To District: Orange County Sanitation District
Post Office Box 8127
Fountain Valley, CA 92728 -8127
Attention: Penny Kyle, Board Secretary
Facsimile: (714) 962 -0356
To City: City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Attention: Public Works Director
Facsimile: (949) 644 -3020
Section 13: Jurisdiction. In the event of a dispute regarding performance or interpretation
of this Agreement, the venue for any action to enforce or interpret this Agreement shall lie in the
Superior Court of California for Orange County. In the event that suit is brought by either Party to
enforce the terms and provisions of this Agreement or to secure the performance hereof, the
prevailing Party shall be entitled to reasonable attorneys' fees, costs, and necessary disbursements
in addition to any other relief to which it may be entitled.
Section 14: Force Maieure. Except for the payment of money, neither Party shall be
liable for any delays or other non - performance resulting from circumstances or causes beyond its
reasonable control, including without limitation, fire or other casualty, Act of God, strike or labor
dispute, war or other violence, acts of third parties, or any law, order, or requirement of any
governmental agency or authority.
Section 15: Governing Law. This Agreement shall be governed by the laws of the State
of California.
Section 16: Entire Agreement. This Agreement constitutes the entire understanding and
agreement between the Parties and supersedes all previous negotiations between them pertaining to
the subject matter thereof.
Section 17: Waiver. A waiver of a breach of the covenants, conditions, or obligations
under this Agreement by either Party shall not be construed as a waiver of any succeeding breach of
the same or other covenants, conditions, or obligations of this Agreement.
Section 18: Modification. Alteration, change, or modification of this Agreement shall be
in the form of a written amendment, which shall be signed by each Party.
Section 19. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be invalid under the applicable law, such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or
the remaining provisions of this Agreement.
179805.3
Page 6of7
Section 20. Agreement Execution Authorization. Each of the undersigned represents and
warrants that he or she is duly authorized to execute and deliver this Agreement and that such
execution is binding upon the entity for which he or she is executing this document.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as
of the day and year first above written.
APPROVED AS TO FORM:
GENERAL COUNSEL
By
APPROVED AS TO FORM
am
City Attorney
ORANGE COUNTY SANITATION DISTRICT
im
Blake P. Anderson, General Manager
Secretary, Board of Directors
CITY OF NEWPORT BEACH
By
Mayor
ATTEST:
City Clerk
F:\USERS \PBW\Shared\AGREEMENTS - Outside \OCSD Reimbursement Agreement 4- 26- 04.DOC
179805.3
Page 7 of 7
City of Newport Beach NO. BA- 04BA -057
BUDGET AMENDMENT
2003 -04 AMOUNT: $zso,173.00
EFFECT ON BUDGETARY FUND BALANCE:
X Increase Revenue Estimates Increase in Budgetary Fund Balance
X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance
X Transfer Budget Appropriations NX No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
X from additional estimated revenues
from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase revenue estimates and expenditure appropriations and to transfer expenditure appropriations related to
Storm Drain and Sewer Replacement. C -3645.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
REVENUE ESTIMATES (3601)
Fund /Division Account Description
250 5901 Affordable Housing Contribution
FY 04 -05 250 4839 OC Sanitation District Contribution
EXPENDITURE APPROPRIATIONS (3603)
Division Number
Account Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed
Signed:
Signed:
Description
7181 Gas Tax
C5100462 Citywide Slurry Program
7181 Gas Tax
C5100008 Storm Drain Improvement Program
Amount
Debit Credit
$93,430.00
$93,430.00
$63,616.00
$63,616.00
7251 Contributions.
C5100755 Bayview Landing OCSD Trunk Sewer Relocation $186,860.00
ncial Approval: Administrative Services Director
istrative Approval: City Manager
City Council Approval: City Clerk
"fir
Date
-51411,9 °
Date
City of Newport Beach NO. BA- 04BA -057
BUDGET AMENDMENT
2003 -04 AMOUNT: $250,173.00
EFFECT ON BUDGETARY FUND BALANCE:
X Increase Revenue Estimates Increase in Budgetary Fund Balance
X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance
X Transfer Budget Appropriations X No effect on Budgetary Fund Balance
SOURCE:
from existing budget appropriations
X from additional estimated revenues
from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
To increase revenue estimates and expenditure appropriations and to transfer expenditure appropriations related to
Storm Drain and Sewer Replacement, C -3645.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Amount
Fund Account
Description
Debit
Credit
REVENUE ESTIMATES
(3601)
Fund /Division Account
Description
250 5901
Affordable Housing Contribution
$93,430.00
FY 04 -05
250 4839
OC Sanitation District Contribution
$93,430.00
EXPENDITURE APPROPRIATIONS (3603)
Description
Division
Number 7181
Gas Tax
Account
Number C5100462
Citywide Slurry Program
$63,616.00
Division
Number 7181
Gas Tax
Account
Number C5100008
Storm Drain Improvement Program
$63,616.00
Division
Number 7251
Contributions
Account
Number C5100755
Bayview Landing OCSD Trunk Sewer Relocation
$186,860.00
Division
Number
Account
Number
Signed:
Financial Approval: Administrative
Services Director
Date
Signed
nistrative Approval: City Manager
Signed: LI/V / ) ,.
City Council Approval: City Clerk
S
e (/
s111
Date