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HomeMy WebLinkAbout06 - Assessment District No. 124 - Phase 1 (Central Balboa Island) - Award of Contract No. 9451-1Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report January 9, 2024 Agenda Item No. 6 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 - 949-644-3342, msinacori@newportbeachca.gov TITLE: Assessment District No. 124 — Phase 1 (Central Balboa Island) — Award of Contract No. 9451-1 ABSTRACT: The City of Newport Beach received construction bids for the next stage of the Underground Utility Assessment District No. 124 — Phase 1 (Central Balboa Island) project. Staff requests City Council approval to award the construction contract to International Line Builders, Inc. RECOMMENDATIONS: a) Acknowledge the project is 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; b) Approve the project plans and specifications; c) Award Contract No. 9451-1 to International Line Builders, Inc. for the total bid price of $11,969,969.88 for the Underground Utility Assessment District No. 124 — Phase 1 project, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $1,200,000 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract. DISCUSSION: Underground Utility Assessment District No. 124 - Phase 1 is the Central Balboa Island area bounded by Agate Avenue, Diamond Avenue, North Bay Front and South Bay Front and Diamond Avenue, Grand Canal, Park Avenue and South Bay Front and was approved by the property owners on July 27, 2021. 6-1 Assessment District No. 124 — Phase 1 (Central Balboa Island) — Award of Contract No. 9451-1 January 9, 2024 Page 2 Originally part of the larger Balboa Island Utility Undergrounding District No. 87, which was considered by property owners at the April 28, 2009, public hearing and ultimately rejected, Balboa Island Utility Undergrounding District No. 124 (AD 124) was redistricted at the request of the project proponents and consists of 966 parcels in Central Balboa Island. Due to the district's large size, construction work is being phased to minimize traffic disruptions, utility company resource demands as well as potential supply chain issues. AD 124 — Phase 0, which is currently in the final stages of construction and scheduled for completion in February 2024, will underground the areas along the North Bay Front and a small portion of the South Bay Front near Agate Ave. Historically, utility undergrounding projects have been bid and overseen by Southern California Edison (SCE). Due to high costs and prior failed negotiations with SCE's contractors, the City of Newport Beach requested and undertook the bidding and construction of the underground infrastructure portion of these projects, which has resulted in reduced costs. AD 124 — Phase 1 will be the sixth undergrounding project directly constructed and managed by the City. At 10 a.m. on December 14, 2023, the City Clerk opened and read the following bids: BIDDER TOTAL BID AMOUNT Low International Line Builders, Inc. $ 11,969,969.88 2nd Hot Line Construction, Inc. $ 11,972,269.00 3rd Asplundh Construction LLC $ 12,498,000.00 4th Teichert Energy & Utilities Group, Inc. $ 20,707,070.00 The apparent low bidder for this project, International Line Builders, Inc. (ILB) submitted a bid approximately 37.8% below the Engineer's Estimate of $16,500,000. Staff believes the cost savings are mostly due to an improving bidding environment for this type of work and a signficant reduction in pricing due to the larger size of this district compared to AD-124 Phase 0 and AD-113 on the west end of Balboa Island. ILB submitted all the necessary forms and possesses a Classification "A" California State Contractors License as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for SCE, the City and other public agencies. Work necessary to complete this contract consists of trenching; installing conduit, vaults, handholes and pull boxes; removing existing overhead wiring, transformers and poles; repaving; and all other incidental items of work to complete the work in place. The contractor will have 350 working days to complete the work once given the notice to proceed. If the project is approved, construction for this contract will be scheduled to minimize impacts to residents and businesses. Work is planned to start on February 6, 2024. The project plans and specifications will be available for review at the January 9, 2024, City Council meeting or upon request. FISCAL IMPACT: Sufficient funding is available from the pre -payments from AD 124 property owners and the bond issuance for AD 124, which occurred in the summer of 2023. 6-2 Assessment District No. 124 — Phase 1 (Central Balboa Island) — Award of Contract No. 9451-1 January 9, 2024 Page 3 The construction contract will be funded from the following sources: Account Description Account Number AD 124 Construction 67502-941032 $ Total: $ Proposed expenditures are as follows: Vendor International Line Builders, Inc International Line Builders, Inc Purpose Construction Contract $ Construction Contingency $ Total: $ Amount 13,169,969.88 13,169,969.88 Firm IWW 11,969,969.88 1,200,000.00 13,169,969.88 Staff recommends establishing $1,200,000 (approximately 10% of the total bid) for contingency purposes to cover the cost of unforeseen conditions associated with construction. ENVIRONMENTAL REVIEW: On February 23, 2021, the City Council deemed the AD-124 project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) (conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding). 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 — Project Phasing Map 6-3 Attachment A ASSESSMENT DISTRICT BOUNDARY NORTH BAY FRONT NORTH BAY FRONT w m w m P o o m m a s \ > ®®®® a® o 0 o a am m® m o 333 ) 333 330 ® 333 332 p 331 ® a ® ® ® ® p ® 32 328 p 327 28 p p 327 326 p p 328 p ® ] 326 ® ® 331 326 p ® 325 a © ® ® ® ® p 325 4 ® ® 325 32d p p 325 L p ® 325 321 p p 5 324 ® ® 5 324 ® ® 325 324 327 322 32 p 23 322 ® ® 322 e 2s3 yZJ� _ _� 326 ® 321 320 ® p 321 I 20 p p 321 6 ® p 321 326 ® ® 321 326 ® ® 321 320 p p 321 3202 ® 321 e p 323 I e = 316 p p 31) 316 p ® ® 319 3193226 ® p ® ® 319 318 p p 319 318 p p 319 8 318 319 318 10 316 p p 31J p p 31) ® p 31] 316 315 ' 31681/2 �] O « y 312 p ® 315 312 ® ® 31d ® p 314 p p 315 314 ® 315 4 ® B 315 314 p ® 315 314 p p 315 4 e a 312 p ® 313 y 3 p p 312 ' ® 31 211 W 310 S 310 313 x ® ® 313 312 ® p p ® 3n ® ® 311 > 311 311 310 O O JIO, « O © ® 309 306 ® p 309 0 36 ® ® 3Po a 366 p p 6g OU 306 ® ® 308 O 308 p e 309 W O 308 ® ® _ ® N.T.S. �� �� = © �ZS Pam« ® ® os 08 ® p e ® ® 0] N 306 ® p 30] 66 ® ® 307 306 ® p 30] a 306 ® ® 309 06 p e 0] �368 e o� P 'B Q ® �S, OQ� p O ® ® 30� ® ® 305 I 304 p p 364 365 ® ® OS 300 ® O6 p ` =t'4 303 p p 30J 302 p ® 302 ® ® 3. p p 305 300 ® ® 30] 30d ® ® 5 364 p ® 30] ® ]4] p p 360 ® ®6 301 ® ® 36+ 300 p ® 3 + 300 ® ® 360+ 300 p ® 361 3� ® ® 363 2 61 BA 30 q AVENUE 366 SECTION 3 BALBOA AVENUE p p 360 AD 113 � _ ° ® _'' ''9 ® � 26 ®® e2]3.1 ®® 25 � p p 22) 226 „6 °= O ® © 222 ®® 25 ®® 22 ®p 26 224 ®p 223 222 p p p u3 az p p 23 p g 22 2 ®p ®zz3222 ® 221 12 6 p p 20 p ® 21 zo p p 21 6 J 218 p ® zi9 218 p ®i 218 ® ® 19 216 Q 26 LL n6 ® ® +s 219 p p 219 n6 ® ® z19 z16 p ® 2,9 z,3 ® p Z p 21s w 21d p p z15 ®® 2n 6 p p 6 ®® zn 6 ©® 21] 6 A 21 B p x,3 2u ®® z15 i z14 U 214 d 1212 ® 9 > z,z ® p zn < zm 0 ® z„ a zm ® z zm ® O 213 NZ Q yA Q�� P ,,B]9r ® '2 ]2Jd4 Oa « ` 2[b® p 0 ® ® 208 ® ® 209 W 08 ® ® 209 ® ® 209 208 p ® 209 a 208 p ® 208 a 208 p p 8 a 208 p ® 20 a 208 ® p 209 LL� 0 P ''@ O P O 1 p 204 ® ® 205 e ® ® 205 264 ® ® 205 2. / 6 Z 12062ll ® p 20] V 202 ® ® ® ® 203 4 ® ® 203 ® ® ® 202 203 202 M ® ® 26 2M oo Q 200 ®66 ®® 261 ®,066 zo, p ® 261 00 ®® m+ 6z ®® 201 0o p ® zo3 p SECTION 1 PARK AVENUE SECTION 4 PARK AVENUE zo1 O« O oQP>Oor 12224o6 ®®®p ®®®® 11z27 s 12 2d6 ®®pp ®pp +11z+29s 112221842o6 p0ppp 1na 26 2122 ,125 124 6 1211211 0 116p ®117 e fle ® p 19 p ® 6 ® p e p 6 ® ® ® p 117 8 p p 119 HB Q ® 119 6 114 p ® 15 I t14 ® p 115 K 1 ® ® 6 ® ® 115 W t14 + ® 116 ® ® ] 116 p ® ] 116 p 2 112 ® ® 113 112 ® ® 113 a 1 ® ® 1+3 1 p ® 13 1+2 ® ® 113 I 1 14 ® ® 115 ® p 5 Z 11d p p ++5 114 Z O 110 p p 1u 110 ®® 111 y 1ro ®9 „ o a A p w , 06 ® 09 0 06 p ® 1n a 110 p ® , Q fro ®® z 1+o ®p 1n ,ro p p p 16) 106 ® p 107 1N ®® 107 106 ®® ,09 06 ®p 105 106 p ® 1oa 1a,a ®®®]®1 SECTION 2 SECTION 5 SOUTH BAY FRONT ASSESSMENT DISTRICT BOUNDARY .i