HomeMy WebLinkAbout05 - Concrete Street Pavement Reconstruction — NOC and Approval of a Contract Change OrderQ �EwPpRT
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TO:
FROM
CITY OF
NEWPORT BEACH
City Council Staff Report
PREPARED BY:
PHONE:
November 10, 2020
Agenda Item No. 5
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
Andy Tran, Senior Civil Engineer, atran@newportbeachca.gov
949-644-3315
TITLE: Concrete Street Pavement Reconstruction — Notice of Completion for
Contract No. 7184-2 (18R21) and Approval of a Contract Change
Order with S&H Civilworks (Contract No. 7753-2)
ABSTRACT:
On January 14, 2020, City Council awarded Contract No. 7184-2 for the Concrete Street
Pavement Reconstruction Project to Aramexx Group, Inc. dba Aramexx Construction
(Aramexx Construction). While Aramexx Construction completed a portion
(approximately 40%) of the work, they were unable to complete the entire scope of work
as a result of COVID-19 related labor constraints and layoffs. Given this condition and
work now needing to start again, staff and Aramexx Construction discussed relieving
them of their remaining contracted work. Aramexx Construction is receptive to this idea
given the current situation. Therefore, staff is now requesting City Council acceptance of
completed work to date and close out of Contract No. 7184-2.
Additionally, staff requests the assignment of the remaining concrete street replacement
work being relieved from Aramexx Construction to S&H Civilworks, as an addition to their
recently awarded Concrete Alley and Street Replacement project (Contract No. 7753-2).
Staff has negotiated to add this additional concrete work to the S&H Civilworks contract
for the same cost as it was proposed to be completed by Aramexx Construction, via
contract change order using the remaining funds from the close out of Contract No. 7184-
2.
RECOMMENDATION:
a) Accept the completed work to date by Aramexx Construction on Contract No. 7184-2
and authorize the City Clerk to file a Notice of Completion for the project-,
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
Civil Code, and then release Faithful Performance Bond one year after acceptance by
the City Council-, and
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Concrete Street Pavement Reconstruction — Notice of Completion for
Contract No. 7184-2 (18R21) and Approval of a Contract Change Order with
S&H Civilworks (Contract No. 7753-2)
November 10, 2020
Page 2
c) Approve a Contract Change Order up to $924,732 (including $84,000 in
contingency for unforeseen field conditions) with S&H Civilworks on Contract
No. 7753-2 to complete the remaining concrete street replacement scope of work
associated with the former Aramexx Construction Contract (No. 7184-2).
FUNDING REQUIREMENTS:
Funds for the construction contract with Aramexx Construction were expended from the
following accounts:
Account Description
Gas Tax
Measure M
Water Enterprise
Account Number
12101-980000-18R21
12201-980000-18R21
70101-980000-20R09
Amount
$ 533,277.90
$ 45,123.91
$ 3,500.00
Total $ 581,901.81
Sufficient funding is available from the remaining contract funds for the approval of a
contract change order with S&H Civilworks to complete the remaining scope of work.
S&H Civilworks has agreed to complete the balance of the Concrete Street Pavement
Reconstruction project for the price Aramexx Construction had contracted.
DISCUSSION:
Overall Contract Cost/Time Summary
This concrete street pavement reconstruction project (Contract No. 7184-2) involved
removing and reconstructing the deteriorated concrete pavement on Anade Avenue,
Montero Avenue and Alvarado Place from East Bay Avenue to Edgewater Avenue, and
6th Street from West Balboa Boulevard to West Bay Avenue. Additionally, the scope of
work included reconstructing deteriorated concrete driveway/alley approaches,
sidewalks, curbs, gutters, and curb ramps, constructing new storm drain systems on
Anade Avenue, Montero Avenue and Alvarado Place, constructing parkway
improvements on Anade Avenue and Montero Avenue, adjusting utility boxes to grade
and restriping the concrete pavement.
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Actual
% Due to
%Due to
Awarded
Final Cost at
Contingency
Contract
Directed
Unforeseen
Contract Amount
Completion
Allowance
Change
Change
Change
$1,369,708.00
$581,901.81
10% or less
-57.5%
-57.5%
0%
Allowed Contract Time +
108
Actual Time
-47
Approved Extensions (days)=
Under(-) or Over(+)
This concrete street pavement reconstruction project (Contract No. 7184-2) involved
removing and reconstructing the deteriorated concrete pavement on Anade Avenue,
Montero Avenue and Alvarado Place from East Bay Avenue to Edgewater Avenue, and
6th Street from West Balboa Boulevard to West Bay Avenue. Additionally, the scope of
work included reconstructing deteriorated concrete driveway/alley approaches,
sidewalks, curbs, gutters, and curb ramps, constructing new storm drain systems on
Anade Avenue, Montero Avenue and Alvarado Place, constructing parkway
improvements on Anade Avenue and Montero Avenue, adjusting utility boxes to grade
and restriping the concrete pavement.
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Concrete Street Pavement Reconstruction — Notice of Completion for
Contract No. 7184-2 (18R21) and Approval of a Contract Change Order with
S&H Civilworks (Contract No. 7753-2)
November 10, 2020
Page 3
The planned work on Anade Avenue and 6t" Street were substantially completed to the
satisfaction of the Public Works Department prior to Memorial Day (May 25, 2020). The
remaining two streets, Montero Avenue and Alvarado Place, which were scheduled for
reconstruction following Labor Day (September 7, 2020), were not completed by Aramexx
Construction due to impacts from the COVID-19 Pandemic and the company's inability to
procure the necessary construction material and labor needed to complete the project.
After stopping the project construction for the summer season, staff issued a Notice to
Resume Work on October 12, 2020. Upon receiving this notice, Aramexx Construction
responded with a letter stating that a potential concrete shortage may cause delay.
During subsequent discussions with the president of Aramexx Construction, he
expressed concerns regarding completion of the remaining work within the contract time
due to Aramexx Construction's reduction in staff and the uncertainty of concrete
availability from their supplier as a result of the on-going COVID-19 Pandemic.
Throughout the construction of Anade Avenue and 6t" Street, staff felt that Aramexx
Construction did not allocate a sufficient number of laborers, nor did they have the proper
equipment to complete the work in a timely manner. As of the summer work stoppage,
Aramexx Construction had only completed approximately 40 percent of the original scope
of work while using 56 percent of the total contract allowed working time (108 total working
days). To avoid possible contractor default, potential liquidated damages and claims,
staff recommends, and the contractor agrees, eliminating the remaining work on Montero
Avenue and Alvarado Place and filing a Notice of Completion for the work completed to
date on Contract No. 7184-2.
A portion of the original scope of work was completed by Aramexx Construction to the
satisfaction of the Public Works Department. A summary of the construction cost is as
follows..
Original Bid Amount
$ 1,369,708.00
Construction Contingency (Approx. 10 Percent) $ 137,000.00
Subtotal $ 1,506,708.00
Actual Cost of Bid Items Constructed $ 555,570.07
Total Change Orders $ 26,331.74
Subtotal (Final Contract Cost) $ 581,901.81
Remaining Funds (to be returned to project budget) $ 924,806.19
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Concrete Street Pavement Reconstruction — Notice of Completion for
Contract No. 7184-2 (18R21) and Approval of a Contract Change Order with
S&H Civilworks (Contract No. 7753-2)
November 10, 2020
Page 4
Re -assignment of the remaining uncompleted Scope of Work from Aramexx
Construction on Contract No. 7184-2
On October 13, 2020, City Council awarded Construction Contract No. 7753-2 to S&H
Civilworks for the Concrete Alley and Street Replacement Project. This concrete
pavement scope of work is similar to the concrete street pavement reconstruction work
that was included in the Aramexx Construction Contract No. 7184-2 as discussed above.
The two projects are located within close proximity of each other.
S&H Civilworks is willing and able to complete the remaining scope of work on the
Concrete Street Pavement Reconstruction project. Staff has now negotiated to add this
additional concrete work to the current S&H Civilworks construction contract for the same
cost as proposed to be completed by Aramexx Construction, via contract change order
using the remaining available funds from the close out of Contract No. 7184-2. The desire
is to complete this street pavement replacement work now, avoiding the expense and
delay of repackaging and rebidding the work within a future project. Staff recommends
City Council approval of a Contract Change Order up to $924,732 with S&H Civilworks
under Contract No. 7753-2 to complete the remaining concrete street replacement work
on Montero Avenue and Alvarado Place as originally planned for under Construction
Contract No. 7184-2.
ENVIRONMENTAL REVIEW:
On January 14, 2020, the City Council found this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301(b)(c) Class 1,
(maintenance of existing public facilities involving negligible or no expansion of use), 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).
ATTACHMENT:
Attachment A — Location Map
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PACIFIC OCEAN
_ COMPLETED LIMITS OF WORK BALBOA PENINSULA
ELIMINATED LIMITS OF WORK
ATTACHMENT P
SCALE: NTS
NEWPORT CHANNEL
BALBOA PENINSULA CONCRETE CITY OF NEWPORT BEACH
PAVEMENT RECONSTRUCTION PUBLIC WORKS DEPARTMENT
LOCATION MAP C-7184-2 1 11/10/20
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