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Home My WebLink About08 - Assessment District No. 111 and Underground Utilities District No. 22 Phases 2 & 3, Contract No. 7833-1 (21A11) — Request for Additional ContingencyQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report December 13, 2022 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Michael J. Sinacori, Assistant City Engineer msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Assessment District No. 111 and Underground Utilities District No. 22 Phases 2 & 3, Contract No. 7833-1 (21A11) — Request for Additional Contingency and Approval of Budget Amendment ABSTRACT: On August 25, 2020, the City Council awarded a construction contract for the Underground Utilities Assessment District (AD) No. 111 and Underground Utilities District (UUD) No. 22 - Phase 2 & 3 project. The base project was substantially complete in November 2021. Additional construction efforts were requested and funded by two of the project's communication companies to extend their fiber optics systems further down the Peninsula and ahead of the City of Newport Beach's (City's) improvement projects on Balboa Boulevard. These same communication companies are now requesting further extensions of their systems to complete their fiber optics networks to Peninsula Point ahead of the recently awarded Balboa Boulevard Pavement Rehabilitation project between Medina Way and G Street. RECOMMENDATION: a) On November 10, 2015, the City Council deemed this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302 (d) (conversion of overhead electrical utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it will not have an adverse effect on the environment. The exemption was posted and recorded at the County of Orange on November 20, 2015; b) Authorize staff to proceed with the additional work and increase project contingency from $1,742,000 (approximately 25 percent of the contract award of $6,969,777.79) to $3,500,000 (approximately 50 percent of the contract award) to cover the additional cost of requested additional work; and c) Approve Budget Amendment No. 23-042 recognizing $2,504,229.75 in contribution revenue funding from multiple utility companies in Account No. 13501-561007-21A11 and appropriating $2,504,229.75 in increased expenditures in Account No. 13501- 980000-21 A11. RX Assessment District No. 111 and Underground Utilities District No. 22 Phases 2 & 3, Contract No. 7833-1 (21A11) - Request for Additional Contingency and Approval of Budget Amendment December 13, 2022 Page 2 DISCUSSION: On August 25, 2020, the City Council awarded Contract No. 7833-1 in the amount of $6,969,777.79 to Asplundh Construction Corp. (Asplundh) for the construction of AD No. 111 (AD 111) and UUD No. 22 Phase 2 & 3 (UUD22) and authorized approximately 10 percent ($700,000) in contingency funds to cover the cost of unforeseen work. The project includes the partners of Southern California Edison (SCE), AT&T, Spectrum, Crown Castle, ExteNet Systems and MCI Business for the UUD22 Phase 2 work on Balboa Boulevard. Each company was charged an additional 5 percent of their construction dollar amounts for City administration of the project. In June 2021, ExteNet Systems and MCI Business (both Verizon subsidiaries) requested additional work to continue their efforts along the Peninsula for the small cell system and backbone fiber optics networks that these two companies are completing as part of the Asplundh contract. The small cell system has required extensive staff time to review construction drawings and cell site locations as part of the previously approved agreement with Verizon in 2018. This joint review effort between the Community Development, Public Works and Utilities Departments has been ongoing for four years. In an effort to reduce staff permitting and review efforts, and to better coordinate with other UUD22 project work in the area, an additional $1,467,829.19 of ExteNet and MCI Business funded improvements have now been installed. This has brought the total Asplundh contract, together with an additional contingency of $275,652.27, to $8,713,259.25 (approximately 25 percent above base). The additional telecommunications work was paid for in advance by the utilities and included a higher City administration fee of 10 percent as the coordination of this effort was more complicated than the base bid administration and only included these two companies. The system has been extended and is now operational to Balboa Boulevard and Medina Way intersection. ExteNet Systems and MCI Business are pleased with the City's administration of their construction efforts. There is also the added City benefit of reducing community impacts by coordinating other City projects with their requested extension efforts. In addition, there is reduced permit and inspection efforts by jointly assisting both companies rather than if they proceeded independently. On November 29, 2022, the City Council awarded a construction contract to All American Asphalt for the rehabilitation of Balboa Boulevard from Medina Way to G Street and Newport Coast Drive from Coast Highway to Ridge Park Road. To avoid community impacts of two separate independent communication construction projects at a future date (after the road has been paved), ExteNet and MCI Business have again requested to fund and jointly extend their fiber optics system through the use of the City's underground contractor (Asplundh). The project would include extension of the fiber optics systems on Balboa Boulevard from Medina Way through Peninsula Point on Ocean Boulevard to the Wedge. It would also include fiber optics to the recently installed Micro Cell tower at the Balboa Pier. The extension would be coordinated with City's paving rehabilitation efforts to minimize impacts to the community. FIN Assessment District No. 111 and Underground Utilities District No. 22 Phases 2 & 3, Contract No. 7833-1 (21A11) - Request for Additional Contingency and Approval of Budget Amendment December 13, 2022 Page 3 Also included in this extra work will be power upgrades to several micro cell towers already installed and operational. The existing power provided from the City's street light system is proving problematic and Verizon has requested the power upgrades to be included in this requested fiber optics extension work. Staff believes allowing Asplundh to complete this additional fiber optics work requested and funded by the utility companies will best accomplish the desired goal of installation of the small cell system approved by the 2018 agreement with Verizon while minimizing the impacts to the community. FISCAL IMPACT: Upon approval of the proposed budget amendment, sufficient funding will be available to complete the requested work for ExteNet, MCI Business and Verizon Small Cell. These communication companies were required on previous phases of the project to deposit funds ahead of construction and is the same case with this requested work. A summary of the overall final funding anticipated for the construction contract at completion is as follows (not including administration fees): Resident Self -Assessments via AD 111 $2,471,426.41 Contributions from Utility Companies $8,020,547.69 Public Works Department Operating Budget $17,965.20 Total $10,509,939.30 The resident self -assessment funds were previously appropriated when AD 111 was approved by the residents and City Council on January 12, 2016 and included in the adopted FY 2020-21 Capital Improvement Program (CIP) budget. Residents had until April 30, 2020 to pay any portion or all of their assessments. The balance of the assessments was funded by a bond sale approved by City Council on June 23, 2020, closed on June 26, 2020, and paid for solely by the residents. The additional contributions from utility companies are included in the proposed budget amendment and recognizes a total of $8,741,649.34 in contribution revenue, for the construction contract and $721,101.65 in City administration fees, from various utility companies and appropriates $2,504,229.75 in increased expenditures for the utility companies' share of the project. For this last remaining work, invoices have been sent to the three companies, which included a 10 percent City administration charge. Most funds have been received and any change order work required for this extension would be billed to the various companies at the time of work. Verizon Small Cell was billed an additional ten percent for potential change order work and will be issued a refund if not spent. FIN Assessment District No. 111 and Underground Utilities District No. 22 Phases 2 & 3, Contract No. 7833-1 (21A11) - Request for Additional Contingency and Approval of Budget Amendment December 13, 2022 Page 4 ENVIRONMENTAL REVIEW: On November 10, 2015, the City Council deemed this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section 15302 (d) (conversion of overhead electrical utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it will not have an adverse effect on the environment. The exemption was posted and recorded at the County of Orange on November 20, 2015. 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 —Completed and Proposed Fiber Optics Extension Map Attachment C — Budget Amendment No. 23-042 ATTACHMENT A 0 m 0 H ASSESSMENT DISTRICT 111, UNDERGROUND UTILITY DISTRICT 22 - PHASES 2 (BALBOA) & 3 LOCATION MAP STREET 2 -1 7- CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-7833-1 8/25/20 8-5 ATTACHMENT B PACIFIC OCEAN Attachment C Budget Amendment No. 23-042 RIM e �EwP�kT City of Newport Beach BUDGET AMENDMENT qC/FOF'\P 2022-23 BA#: 23-042 Department: Public Works ONE TIME: ❑ Yes ❑ No Requestor: Theresa Schweitzer Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: Date 11a3 2?i COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: Request approval of recognizing additional revenue and appropriating expenses as it relates to Assessment District No. ❑ from existing budget appropriations 111 and Underground Utilities District No. 22 Phases 2 &3, Contract No. 7833-1 (21A11) ❑ from additional estimated revenues ❑ from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ 135 13501 561007 21A11 CONTRIBUTIONS FUND CIP - 20A CONTRIBUTIONS 2,504,229.75 Subtotal $ 2,504,229.75I EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 135 13501 980000 21A11 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 2,504,229.75 Subtotal $ 2,504,229.75 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 13S 300000 CONTRIBUTIONS FUND - FUND BALANCE CONTROL Subtotal, $ No Change In Fund Balance : :