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Home My WebLink About04 - Underground Utility AD No. 111, Underground UD No. 22 Phase 2 & 3, & Utility Undergrounding for McFadden Alleys and Court Street - NOC for Contract No. 7833-1 (21A11)Q SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report March 26, 2024 Agenda Item No. 4 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 Engineer949-644-3342 msinacori@newportbeachca.gov TITLE: Underground Utility Assessment District No. 111, Underground Utilities District No. 22 Phase 2 & 3, & Utility Undergrounding for McFadden Alleys and Court Street — Notice of Completion for Contract No. 7833-1 (21 A11) ABSTRACT - On August 25, 2020, the City Council awarded Contract No. 7833-1 for the Underground Utility Assessment District No. 111, Underground Utilities District No. 22 Phase 2 & 3, & Utility Undergrounding for McFadden Alleys and Court Street project to Asplundh Construction Corp. The project replaced existing overhead utilities with a new underground system. The work is now complete and staff requests City Council acceptance and close out of the contract. In addition, this Council action reconciles revenue and expenditures for additional requested work by Verizon and Crown Castle. RECOMMENDATIONS: a) Accept the completed work 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; c) Release Faithful Performance Bond one year after acceptance by the City Council; d) Authorize staff to proceed with the final Verizon additional work and increase project contingency from $3,500,000 to $3,595,003 (approximately 51.6 percent of the contract award) to cover the additional cost of the requested additional work; and e) Approve Budget Amendment No. 24-058 recognizing $31,872.75 in contribution revenue from Crown Castle to Account No. 13501-561007-21A11 and $159,250.85 in increased expenditures in Account No. 13501-980000-21A11 (UUD22-1 CIP Expenditures for GL) from multiple utility companies. 4-1 Underground Utility Assessment District No. 111, Underground Utilities District No. 22 Phase 2 & 3, & Utility Undergrounding for McFadden Alleys and Court Street — Notice of Completion for Contract No. 7833-1 (21A11) March 26, 2024 Page 2 DISCUSSION: Overall Contract Cost/Time Summary Awarded Final Cost at Contingency Actual % Due to % Due to Contract Amount Completion Allowance Contract Directed Unforeseen Change Change Change $6,969,777.79 $10,564,781.14 10% or less +51.6% +49.4% +2.2% Allowed Contract Time + 220 Actual Time 0 Approved Extensions (days) = Under (-) or Over (+) The Underground Utility Assessment District No. 111 (AD 111), Underground Utilities District No. 22 Phase 2 & 3 (UUD22), & Utility Undergrounding for McFadden Alleys and Court Street project is the third City of Newport Beach managed and constructed utility undergrounding project that undergrounded overhead power, telephone and cable facilities on the Balboa Peninsula. AD 111 is the area between 31st Street and 23rd Street, on the east and west side of Balboa Boulevard. UUD22 Phase 2 & 3 is the Balboa Boulevard area between 36th Street and 20th Street including portions of the McFadden Alleys and Court Street (Attachment A). The contract specifically provided for traffic control, water pollution control, trenching, construction of vaults, vents, pull boxes, handholes, installing conduit, and associated items necessary such as backfilling, pavement restoration, resurfacing and replacement of concrete improvements for the conversion of existing overhead electrical power, telephone and cable television services to underground locations. The project included the partners of Southern California Edison (SCE), AT&T, Spectrum, Crown Castle, ExteNet Systems and MCI Business for the UUD22 Phase 2 and 3 work on Balboa Boulevard. During construction, ExteNet Systems requested additional work, which it funded. Change orders for the base contract work were minimal and this extra work was absorbed within the City Council authorized 10% contingency. On February 13, 2018, the City Council approved the "Enhanced Services and Priority Communications Zone Master License Agreement" with Verizon Wireless. In June 2021, ExteNet Systems and MCI Business (both Verizon Subsidiaries) requested additional work to continue their efforts on the Balboa Peninsula for the small cell system and backbone fiber optics network that these two companies were completing as part of their Master License Agreement. In an effort to reduce staff permitting and review efforts, and to better coordinate with other UUD22 project work in the area, additional ExteNet and MCI Business funded improvements were authorized (October 14, 2021) and installed (between 12th Street and Medina Way), increasing the total contract cost to $8,698,386.99 (or 24.8 percent above base). 4-2 Underground Utility Assessment District No. 111, Underground Utilities District No. 22 Phase 2 & 3, & Utility Undergrounding for McFadden Alleys and Court Street — Notice of Completion for Contract No. 7833-1 (21A11) March 26, 2024 Page 3 In 2022, these two companies requested additional work extending their systems to complete their fiber optics networks on the peninsula to Peninsula Point. On December 13, 2022, the City Council authorized increasing the contingency to $3,500,000 (approximately 50 percent of the contract award) to cover the costs of the additional work that included power upgrades to several micro cell towers already installed and operational. Although there were minimal issues during construction, the project proved to be challenging due to the amount of work, and coordination needed between contractors, utility companies, City staff, and other City projects along Balboa Boulevard. Some of the issues involved water main breaks and service leaks, trench excavation, and additional paving efforts for Balboa Boulevard. The contracted work has now been completed to the satisfaction of the Public Works Department. A summary of the construction cost is as follows: Original bid amount: $6,969,777.79 Actual Cost of Bid Items Constructed: $6,747,132.31 Total Change Orders: $3,817,648.83 Final Contract Cost: $10,564,781.14 Seventeen change orders totaling $3,817,648.83 in increased contract costs and approximately $222,000 in base contract savings were approved as part of the project. The change orders addressed costs for the abovementioned work including costs for median restoration, concrete replacement, street light improvements at Balboa Pier, bike racks, benches, irrigation improvements, and deep -lift pavement repairs. With the completion of the project, staff is requesting a budget amendment appropriating $159,250.85 to cover final costs (change orders 15 through 17) related to the additional work on the peninsula that has been paid for in advance by Verizon. With this authorization, the final contract cost is $10,564,781.14, approximately 51.6 percent above the original bid amount. A summary of the project schedule is as follows: Estimated Start of Construction per Annual Baseline Schedule September 14, 2020 Actual Start of Construction Per Notice to Proceed September 11, 2020 Extended Contract Completion Date Inclusive of Extra Work December 1, 2023 Actual Substantial Construction Completion Date October 1, 2021 The project was substantially completed to the satisfaction of the Public Works Department by October 1, 2021, but additional work for Verizon's small cell system and fiber optic network (UUD22 Phase 4 & 5) extended the contract completion date to December 1, 2023. The remaining change order work requested by Verizon will not be completed unless authorized by City Council and the contingency increased as noted above. 4-3 Underground Utility Assessment District No. 111, Underground Utilities District No. 22 Phase 2 & 3, & Utility Undergrounding for McFadden Alleys and Court Street — Notice of Completion for Contract No. 7833-1 (21A11) March 26, 2024 Page 4 FISCAL IMPACT: Upon approval of the proposed budget amendment, sufficient funding will be available for the closeout of this contract. Funding for the additional $159,250.85 was provided by Verizon and does not add financial burden to the resident driven undergrounding project. A significant portion of the increased expenditures for the overall project, approximately $2.9 million, was provided by ExteNet Systems and MCI Business (both Verizon subsidiaries) and did not require any additional assessment district funding. The following funds were expensed: Account Description AD111 Utility Construction UUD22-1 CIP Expenditures for GL General Fund ENVIRONMENTAL REVIEW: Account Number 66002-941032 13501-980000-21 A11 0108012-851010 Total: Amount $2,347,855.09 $8,198,960.85 $17,965.20 $10,564,781.14 On August 25, 2020, the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to 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 Regulations, Title 1, Chapter 3, because it will not have an adverse effect on the environment. � Eel I [el I' Eel 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 — Budget Amendment 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 3/26/24 4-5 ATTACHMENT B ;cam. City of Newport Beach BUDGET AMENDMENT 2023-24 BA#: 24-058 Department: Public Works ONE TIME: ❑ Yes ❑ No Requestor: Theresa Schweitzer Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: a4m Date 311ZI2.`F 0 COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: Accept and recognize additional revenue and appropriate expenses as it relates to the Assessment District No. 111 and ❑ from existing budget appropriations Underground Utilities District No. 22 Phases 2 & 3, Conctract No. 7833-1 (Project# 21A11). 0 from additional estimated revenues 0 from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ 135 13501 561007 21A11 CONTRIBUTIONS FUND CIP - 20A CONTRIBUTIONS 31,872.75 Subtotal $ 31,872.75 EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 135 13501 980000 21A11 CONTRIBUTIONS FUND CIP - CIP EXPENDITURES FOR GL 159,250.85 Subtotal $ 159,250.85 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 135 300000 CONTRIBUTIONS FUND - FUND BALANCE CONTROL (127,378.10) Subtotal $ (127,37B.10) Fund Balance Change Required i o