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z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
July 12, 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: Peter Tauscher, Senior Civil Engineer
ptauscher@newportbeachca.gov
PHONE: 949-644-3316
TITLE: Newport Beach Junior Lifeguard Building Project — Reject all Bids for
Contract No. 7524-2 (19F13)
ABSTRACT:
The City of Newport Beach (City) recently advertised the Newport Beach Junior Lifeguard
Building Project and received seven bids. All of the bids were significantly higher than the
Engineer's Estimate. Staff recommends rejecting all bids, undertaking a review of value
engineering considerations without changes to the approved conceptual form and
aesthetics of the project, and re -advertising the project.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Reject all bids received for Contract No. 7524-2 and direct staff to return all bidders
bonds; and
c) Direct staff to review and value engineer the design plans, and re -advertise the
Newport Beach Junior Lifeguard Building Project for construction.
DISCUSSION:
This project is located in the A Street Parking Lot east of Balboa Pier. The project involves
constructing a new junior lifeguard facility and reconfiguring the A Street and Main Street
parking lots.
The Newport Beach Junior Lifeguard program was established in 1984 and quickly grew
to become one of the City's most popular youth education programs. The program
employs about 60 instructors and averages over 1,350 participants each summer.
Several current lifeguards and permanent staff members started their lifeguarding
experience as junior lifeguards. The current, temporary facility consists of a 2,160-square-
foot modular trailer system that has no water or sewer connections.
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Newport Beach Junior Lifeguard Building Project —
Reject all Bids for Contract No. 7524-2 (19F13)
July 12, 2022
Page 2
On March 9, 2021, the City Council approved the conceptual floor plan for the new junior
lifeguard facility and the building's exterior architectural style, the environmental
document, the overall project cost estimate, and the proposed Memorandum of
Understanding between the City and the Newport Beach Junior Lifeguard Foundation
(NBJGF) regarding its funding commitment. Council also directed staff to proceed with
preparing the Coastal Development Permit application and the final construction
documents and obtaining construction bids.
At 2 p.m. on June 23, 2022, the City Clerk opened and read the following bids for this
project:
BIDDER
TOTAL BID AMOUNT
Low
AWI Builders, Inc.
$ 6,475,911.00
2nd
D.F. Perez Construction, Inc.
$ 6,814,024.00
3rd
CABD Construction Inc.
$ 6,955,000.00
4th
New Dynasty Construction Company Co.
$ 6,997,000.00
5th
PCN3, Inc.
$ 7,385,000.00
6th
Woodcliff Corporation
$ 7,586,000.00
7th
Nationwide Contracting Services, Inc
$ 8,805,000.00
The City received seven bids for this project. The low bid of $6,474,911 by AWI Builders
was 35% higher than the engineer's estimate of $4,800,000. A review of the bids showed
the bid pricing is consistent for the top four low bidders, but considerably higher than the
estimated project budget. The engineer's estimate was based on the actual bid results
from similar projects. However, this comparison is very difficult with building projects
because they are all unique designs.
Staff believes the timing of this bid within the current economic climate contributed to the
high bid results. The recent, significant increase in the cost of materials, labor and fuel,
especially in the last six months, was apparent with the consistently higher bids from all
seven 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. Staff believes these issues are semi -transitory in nature and bids should
moderate in the near future with lumber, steel and concrete prices now starting to decline.
Staff discussed the project with a few of the contractors that bid the project and with the
design consultant. The discussions centered on potential minor changes to various
components of the project that could reduce the construction cost, while maintaining
consistency with the approved conceptual design and project goals.
Based on the bids received, staff recommends rejecting all bids. The current professional
services agreement with the design consultant, Jeff Katz Architecture, includes enough
encumbered funding to cover the cost for optimizing the bidding documents and rebidding
the project.
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Newport Beach Junior Lifeguard Building Project —
Reject all Bids for Contract No. 7524-2 (19F13)
July 12, 2022
Page 3
FISCAL IMPACT:
There is some fiscal impact related to this item. The review and minor reworking of the
construction plans may incur some cost from the designer. There is currently sufficient
encumbered design funding within the consultant's contract to cover the estimated
necessary redesign work.
ENVIRONMENTAL REVIEW:
On March 9, 2021, Council found this project qualifies for a categorical exemption
pursuant to Section 15332, of the California Environmental Quality Act Guidelines (Class
32 for In -Fill Development Projects). The exemption applies to in -fill development projects
in urban areas that are consistent with the General Plan and applicable development
standards. In addition, the proposed development must occur on a site of no more than
five acres, have no value as habitat for endangered, rare or threatened species, be
adequately served by all utilities and public services, and must not result in any significant
effects relating to traffic, air quality, water quality, or any other significant effect on the
environment due to unusual circumstances.
In addition, on March 9, 2022, the California Coastal Commission has granted the City
Permit 5-21-0391 for this project.
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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ATTACHMENT A
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NEWPORT BEACH
JUNIOR LIFEGUARD BUILDING
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CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
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C-7261-01
7/26/2022
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