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Home My WebLink About10 - Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot (Project No. 15T09) — Reject All Bids for Contract No. 8020-6Q SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report June 28, 2022 Agenda Item No. 10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Andy Tran, Senior Civil Engineer, atran@newportbeachca.gov PHONE: 949-644-3315 TITLE: Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot (Project No. 15T09) — Reject All Bids for Contract No. 8020-6 ABSTRACT: The City of Newport Beach (City) recently advertised the Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot project and received six bids. All of the bids were significantly higher than the Engineer's Estimate and staff's expectations. Staff recommends that the City Council reject all bids and direct staff to review and propose options for value engineering the design plans in a manner that would not substantially change the approved conceptual form and aesthetics of the project. Staff also recommends re -advertising the project in fall 2022. RECOMMENDATION: a) Reject all bids received for Contract No. 8020-6 and direct staff to return all bidders bonds; and b) Direct staff to review and value engineer the design plans, and re -advertise the Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot project for construction. DISCUSSION: The project, located at the intersection of Superior Avenue and West Coast Highway, involves constructing a new pedestrian/bicycle bridge across Superior Avenue and a new, larger parking lot. The primary goals of this project are to improve pedestrian and bicyclist safety, improve access to Sunset Ridge Park, and to increase parking availability. The following major milestones have occurred to -date throughout the course of the project: • November 19, 2019 — The City Council approved and adopted the conceptual design and environmental documents, respectively. Final design and permitting efforts with both the California Department of Transportation (Caltrans) and the California Coastal Commission (CCC) began shortly after. • December 10, 2020 — The City Zoning Administrator held a public hearing and approved the Coastal Development Permit (CDP). 10-1 Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot (Project No. 15T09) — Reject All Bids for Contract No. 8020-6 June 28, 2022 Page 2 • April 5, 2021 — The CDP was appealed by a private party to the CCC. • August 13, 2021 — CCC held a public hearing, found no significant issues and dismissed the appeal. CCC also approved the CDP Amendment for the bridge abutment at Sunset Ridge Park. • November 10, 2021 — The City received Caltrans authorization to proceed with the construction phase. This authorization is required to satisfy the federal grant deadline for this project prior to formal bidding. • May 26, 2022 — The City received the official CDP Amendment from the CCC. The project fell behind the original projected schedule due to complexities and requirements associated with the permitting agencies, as well as an appeal of the City - issued Coastal Development Permit. However, at 10 a.m. on May 25, 2022, the City Clerk opened and read the following bids for this project: BIDDER TOTAL BID AMOUNT Low Reyes Construction, Inc. $ 11,008,429.00 2nd Beador Construction Company, Inc. $ 11,982,300.00 3rd Nationwide Contracting Services, Inc. $ 12,141,842.20 4th Ortiz Enterprises, Inc. $ 12,424,554.20 5th Griffith Company $ 12,577,521.00 6th Shimmick Construction Company, Inc. $ 13,081,910.84 The City received six bids for this project. The low bid was significantly higher than the engineer's estimate of $7,190,000. A review of the bids showed the bid prices for most of the individual bid items were consistently higher than the estimated bid prices. The engineer's estimate was based on the Caltrans Cost Data guidebook and actual bid results from similar projects, which is standard practice when preparing estimates. Although some of the bid items were underestimate, the majority of the bid items were consistent with the Caltrans Cost Data and bid results from similar projects. The Caltrans Cost Data and bid results from similar projects were from 2020 and 2021, adjusted with an annual inflation factor, to form the project engineer's estimate. Staff believes that the timing of this bid in conjunction with the current economic climate (all-time high in oil prices, on -going supply chain and labor shortages, and other world events) most likely contributed to the extremely high bid results. The recent significant increase in the costs of material and labor, especially in the last six months, was apparent in the consistently higher bids from all six bidders. The ongoing scarcity of some materials, such as concrete, that the construction industry is currently experiencing may also be a contributing factor. In addition, there is currently a supply chain issue with reinforcing steel and stainless -steel products. Lastly, the recent significant increase in the cost of fuel may have contributed to the high bid prices. 10-2 Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot (Project No. 15T09) — Reject All Bids for Contract No. 8020-6 June 28, 2022 Page 3 Staff has been talking to the contractors that bid the project as well as working with the design engineer in re -looking at the various components of the project for ways that could reduce the construction cost while maintaining consistency with the approved conceptual design and preserving the goals of this project. Based on the bids received, staff recommends rejecting all bids, re-evaluating and reviewing the design of this project, and re -advertising this contract in approximately four or five months. The remaining budget for the professional services agreement with the design consultant, Dokken Engineering, includes sufficient funding to cover the cost of the redesign and plan rework. Staff recommends using a portion of the remaining budget to complete the revisions to the construction documents as a result of the re-scoping efforts. A future amendment to the professional services agreement will likely be required to complete remaining tasks following the re-scoping. FISCAL IMPACT: The review and reworking of the design and construction plans is estimated to cost approximately $60,000 to $80,000. There is currently sufficient encumbered design funding within the consultant's contract to cover the necessary redesign and plan rework. It is anticipated that a budget adjustment and contract amendment will be required at the time of award of the construction contract to provide adequate funding for the remaining tasks contemplated in the professional services agreement ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 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 10-3 Attachment A Rlk, LID SAN \ NEWPORT SUNSET RIDGE PARK \ CREST ADDITIONAL .o PUBLIC PARKING VILLA BALBOA Fo / �F I C1T� SUNSET VI PAR PASSIVE RECREATIONAL AREA HOAG � FsrC�gs LOWER HOSPITAL CAMPUS 03 VILLAGE SHOPPING Y \ p CENTER > `� rG JACK" N 1 / O THE BOX % -... SUPERIOR AVENUE PEDESTRIAN/BICYCLE BRIDGE AND PARKING LOT ATTACHMENT A - LOCATION MAP CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-8020 3/22/2022 10-4