HomeMy WebLinkAbout05 - Balboa Village Entry Arch Sign ProjectQ SEW Pp�T
CITY OF
s NEWPORT BEACH
C'94IF09 City Council Staff Report
June 13, 2017
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Eric Loke, Civil Engineer, eloke@newportbeachca.gov
PHONE: 949-644-3336
TITLE: Balboa Village Entry Arch Sign Project —
Notice of Completion for Contract C-7011-1 (Project No. 15M13)
ABSTRACT -
On May 10, 2016, the City Council awarded Contract No. 7011-1 for construction of the
Balboa Village Entry Arch Sign Project to AToM Engineering Construction, Inc. of Hemet,
California. The work is now complete and staff requests City Council acceptance and
close out of the contract.
RECOMMENDATION:
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion
for the project. On May 10, 2016, City Council found this project exempt from the
California Environmental Quality Act (CEQA) pursuant to Section 15301;
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the
Notice of Completion has been recorded in accordance with applicable portions of the
Civil Code; and
c) Release the Faithful Performance Bond one year after acceptance by the City Council.
FUNDING REQUIREMENTS:
Funds for the construction contract were expensed from the following accounts:
Account Description
Balboa Village Parking Mgmt District
General Fund
Account Number
53501-980000-16M12
01201928-980000-15M13
Total:
Amount
$ 81,000.00
$ 169,115.69
$ 250,115.69
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Balboa Village Entry Arch Sign — Notice of Completion for Contract C-7011-1
June 13, 2017
Page 2
DISCUSSION:
Overall Contract Cost/Time Summary
Awarded
Final Cost at
Contingency
Actual
% Due to
% Due to
Contract Amount
Completion
Allowance
Contract
Directed
Unforeseen
Change
Change
Change
$234,398.00
$250,115.69
10% or less
+6.7%
+5.0%
+1.7%
Allowed Contract Time +
100
Actual Time
+22
Approved Extensions (days) =
Under (-) or Over (+)
The contracted work has now been completed to the satisfaction of the Public Works
Department. A summary of the construction cost is as follows:
Original Bid Amount:
$234,398.00
Actual Cost of Bid Items Constructed:
$238,440.50
Total Change Orders:
$15,675.19
Liquidated Damages:
($4,000.00)
Final Contract Cost:
$250,115.69
The actual cost of the project was approximately $15,717.69 above the original bid
amount and was due to both unforeseen and directed changes. Due to an unknown utility
encountered at the south foundation location, it was necessary to design and utilize an
alternate spread footing at the location. The north foundation location used the same
spread footing to alleviate the necessary dewatering efforts. The City requested that the
contractor provide additional protection for the sign structure against the harsh marine
environment. This resulted in a high caliber finished product that provides for the sign's
extended longevity.
The Public Works Department also encountered and had to manage several contractor
performance issues during the course of the project and during the project closeout. The
lack of material production by the contractor during the summer months was magnified
by the rainstorm events that occurred last December into January. These high humidity
conditions posed scheduling challenges during the coating process of the arch members
and other decorative sign features. The contractor was not successful in their efforts to
maintain responsive communication with vendors, subcontractors and the City, leading
to some scheduling delays.
Through the persistent efforts of project staff, the project is now complete. Completion
was delayed 22 days from the original notice to proceed. Working in good faith, the City
granted additional days due to unforeseen utility conditions and additional City requests
for improved coating for the sign. However, the contractor postponed project completion
by not deploying the necessary resources and/or performing as described above.
Ultimately, the City assessed liquidated damages in the amount of $4,000.00.
5-2
Balboa Village Entry Arch Sign — Notice of Completion for Contract C-7011-1
June 13, 2017
Page 3
ENVIRONMENTAL REVIEW:
At the May 10, 2016 City Council meeting, the project was found to be exempt from the
California Environmental Quality Act (CEQA) pursuant to Section 15301 (for repair,
maintenance and minor alteration of existing public facilities with negligible expansion) of
the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has
no potential to have a significant effect on the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Location Map
Attachment B — Letter of Notice of Liquidated Damages Assessment
5-3
ATTACHMENT A
CYPRESS ST ADAMS ST PALM ST
Balboa Village Entry Arch Sign
Project Location Map
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CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
C-7011-1 1 06/13/2017
5-4
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April 17, 2017
Via First Class U.S. Mail, Postage Pre -paid and
Via Email: estimatinggatomengconst.com and larrypa atamengconst.com
Larry Boyer, Secretary
ATOM Engineering Construction, Inc.
40410 Vista Road
Subject: Notice of Liquidated Damages Assessment
Balboa Village Entry Arch Sign (C-7011-1)
Dear Mr. Boyer,
f-ITY OF NF1WPORT'BEACH
100 Civic Center Drive
Newport Beach, California 92660
949 644-3311 1 449 544-3308 FAX
riewportbeachca.gov/publicworks
In correspondence dated November 16, 2016, a copy of which is enclosed for your reference (see Attachment
1), the City of Newport Beach ("City") notified ATOM Engineering Construction, Inc. ("AToM") that liquidated
damages could be assessed after the date of November 23, 2016 pursuant to Section 6-9 of the Special
Provisions of the Contract Documents ("Contract"). The City worked in good faith, providing AToM with two
contract extensions totaling an additional 25 working days to establish a new contract completion date of
November 23, 201$.
Following your receipt of the November 16'h correspondence, the City was in continual correspondence with
AToM towards project completion, working expeditiously to provide timely direction to AToM. However, there
were reports of delays due to the lack of responsive communication between AToM and their structure fabricator,
sign manufacturer, and the City. Critical deadlines were missed and further demonstrated AToM's lack of
material production in "prosecuting the work in an orderly preplanned continuous sequence so as to minimize
inconvenience to residences, businesses" and the public per Section 6-9 of the Contract. After the Thanksgiving
and Christmas seasons, the sign was installed on 'Wednesday, January 18, 2017 (see Attachment 2).
Outstanding punch list items remained after this substantial completion, continuing until the project was approved
by the City in the first week of April 2017.
Under the liquidated damages provision in Section 6-9 of the Contract, the City finds it reasonable to assess
AToM twenty-two (22) days of liquidated damages in the amount of $500.00 per day (a total of $11,000) to be
withheld from the next progress payment.
After reviewing this notice, if you should have any questions or comments, please contact me by the end of
business on Tuesday. May 2, 2017.
Sincerely,
David A. Webb
Public Works Director
Cc Mark Vukojevic, [deputy Public Works Director/City Engineer Andrew Maiorano, Deputy City Attorney
Tony Brine, City Traffic Engineer Eric Loke. Civil Engineer
Project Bonding Company
Attachments: 1) Letter dated November 16, 2016
2) Summary Listing of Pertinent Contract Dates
5-5
Attachment 1
100 Civic Center Drive
Newport Beach, California 92660
949 644-3311 1 949 644-3308 FAX
newportbeachca.gov/publicworks
Via Email: estimating(D-atomengconst.com and larrWD-atomengconst.com
Larry Boyer, Secretary
AToM Engineering Construction, Inc.
40410 Vista Road
Hemet, CA 92544
Subject: Notice of Liquidated Damages Assessment
Balboa Village Entry Arch Sign (C-7011-1)
Dear Mr. Boyer,
November 16, 2016
As specified in the Balboa Village Entry Arch Sign (C-7011-1) contract documents,
AToM Engineering Construction, Inc. (AToM) had one hundred (100) consecutive
working days to complete all work under the contract. As you are aware, a `Notice
to Proceed' (NTP) was issued on May 27, 2016, with a start of work date of May
31, 2016.
Per the NTP and added working days as a result of proposed change orders for
unplanned work, the contract completion date was extended to Wednesday,
November 23, 2016. With numerous past email correspondence and telephone
discussions since the start of the project, there have been a number of untimely
delays. In particular, the inactivity during the major summer months represented a
loss of many contract working days. In addition, the City has had to communicate
these setbacks in our public outreach efforts and pertinent constituent community
groups. It is acknowledged that the City has worked with AToM to further clarify
the expected protection of the various sign materials against the harsh marine
environment.
The City has carefully considered this matter and accommodated AToM's project
setbacks. Therefore, AToM is hereby notified that liquidated damages could be
assessed after the date of November 23, 2016 pursuant to the terms of the
contract.
5-6
ATOM shall proceed towards the completion of this contract work immediately
without allowance of further delay, without reasonable notification and expressed
direction from the City.
Sincerely,
Eric Luke, P. E.
Civil Engineer
Cc Tony Brine, City Traffic Engineer
Marcus Puglisi, Construction Inspection Supervisor
Mike St. Clair, Senior Public Works Inspector
5-7
Attachment 2
Summary Listing of Pertinent Contract Dates for
Balboa Village Entry Arch Siqn (C-7011-1)
MAY 2016
5/10 Award of Contract at City Council Meeting
5/31 Notice to Proceed (NTP)
OCTOBER 2016
10/19 ORIGINAL CONTRACT COMPLETION DATE
(100 consecutive working days)
NOVEMBER 2016
11/11 Veteran's Day (City Holiday)
11/23 NEW CONTRACT COMPLETION DATE
[Time Extension of 25 additional days = CCO No. 1 (additional
10 days) and CCO No. 2 (additional 15 days)]
11/24 Thanksgiving Day (City Holiday)
11/25 Friday after Thanksgiving (City Holiday)
As of 11/30/2016: Cumulative Total= Three (3) Working Days after NEW
CONTRACT COMPLETION DATE
DECEMBER 2016
12/16, 12/21, 12/22, 12/23 Unworkable Days (Rain)
12/26 to 12/31 City of Newport Beach Holiday Closure
As of 12/31/2016: Cumulative Total = Sixteen (16) Working Days after
NEW CONTRACT COMPLETION DATE
JANUARY 2017
1/1 to 1/2 City of Newport Beach Holiday Closure
1/5, 1/6, 1/9, 1/11, 1/12 Unworkable Days (Rain)
1/16 Martin Luther King, Jr's Birthday (City Holiday)
1/18 SIGN INSTALLATION
As of 1/18/2017: Cumulative Total = Twenty-two (22) Working Days After
NEW CONTRACT COMPLETION DATE
W