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Home My WebLink About13 - West Newport and Newport Island Playground EquipmentCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 13 April 22, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Patrick Arciniega 949 - 644 -3347 or parciniega @city.newport- beach.ca.us SUBJECT: WEST NEWPORT AND NEWPORT ISLAND PARK PLAYGROUND EQUIPMENT REPLACEMENT - AWARD OF CONTRACT NO. 4005 Recommendations: 1. Approve the project plans and specifications. 2. Award Contract No. 4005 to R.E. Schultz, the lowest responsible bidder, for the Total Bid Price of $77,974, and authorize the Mayor and the City Clerk to execute the contract. 3. Establish an amount of $7,800 to cover the cost of unforeseen work. 4. Approve a Budget Amendment to transfer the amount of $14,000 from Account No. 7015- C3170816 — Cliff Drive Park Handrail Replacement to Account No. 7015- C4120931 —West Newport Park Playground. Discussion: At 10:00 a.m. on April 2, 2008, the City Clerk opened and read the following bids for this project: BIDDER TOTAL BID AMOUNT Low R.E Schultz $77,974.00 2 Hondo Company, Inc. $83,750.00 3 Premium Construction $86,205.00 4 Fleming Environmental Inc. $93,023.00 5 Park Specialties $97,604.00 6 Belaire -West Landscape Inc. $99,000.00 7 Allied e Corp. $123,000.00 The low total bid amount is 8.3% percent below the Engineers Estimate of $85,000. The low bidder, R. E. Schultz, possesses a California State Contractors License Classification C -13 as required by the project specifications. A check of the Contractor's references indicates they have satisfactorily completed similar projects for other municipalities. A West Newport and Newport Island Park Playground Equipment Replacement —Award of Contract No. 4005 April 22, 2008 Page: 2 protest letter was received on April 4, 2008 from the 2nd lowest bidder, Hondo Company Inc., questioning the low bidder's ability to perform at least 50% of the work with its own forces and whether they had valid workers compensation insurance. R.E. Schultz was notified of the issues and responded in writing clarifying these concerns (see attached letters from Hondo and R.E. Shultz). The project calls for the replacement of the eight year old playground equipment at the West Newport Park and 11 year old equipment at Newport Island Park. The normal expected lifespan for playground equipment is 15 years. Both playgrounds are located within the coastal zone with elements that shortens the lifespan of the equipment. The new playground equipment, manufactured by Progressive Design, is made of recycled plastic lumber, which is well suited to the coastal environment and contributes to extending the life expectancy of coastal playgrounds. Pursuant to the contract specifications, the Contractor will have 30 consecutive working days to complete the work. The playground equipment itself was purchased in advance by the City in an effort to avoid anticipated annual cost increases from the manufacturer and to allow completion of the project prior to summer. Council authorized purchase of this equipment at its December 11, 2007 meeting. During community outreach discussions a shade canopy was recommended for the West Newport Park facility. Per Council Policy F -14, the City Manager authorized an amendment to pre - purchase the shade canopy by the same supplier. As part of the scope of this project, the General Services Department will be contracting with Park West Landscape Maintenance to replace and repair the existing irrigation and landscaping impacted by the work at the West Newport Park. Environmental Review: This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines. This exemption covers the repair of existing facilities involving negligible or no expansion of existing use. Public Notice The Notice Inviting Bids was advertised in the City's official publication and in construction industry publications. Prior to starting work two City prepared notices are distributed by the contractor to both residents and businesses. The first notice will be distributed ten days before work in the area and the second notice 48 hours prior to starting work in the area. In addition, two public outreach meetings were held on this project to gather input from the neighboring public that are adjacent to the playground sites. West Newport and Newport Island Park Playground Equipment Replacement —Award of Contract No. 4005 April 22, 2008 Page: 3 Geotechnical, Material Testing, and Survey Services: Geotechnical, material testing, and survey services are not required for this project. Funding Availability: Cost savings are available from the completed Cliff Drive Park Stairway and Handrail Replacement project. Staff recommends the approval of a budget amendment transferring $14,000 from the Cliff Drive Park Stairway and Handrail Replacement project to this playground equipment replacement project to cover anticipated expenses. There is a remaining balance on the Cliff Drive Park Handrail replacement project that was completed earlier in the year. Upon approval of the recommended Budget Amendment, sufficient funds will be available in the following accounts for the project: Account Description Newport Island. Park - General Fund West Newport Park - General Fund Budget Amendment West Newport Park - BET Proposed uses are as follows: Vendor R.E. Schultz R.E. Schultz Park West Landscape Prepared by: Account Number 7015- C4002001 7015- C4120931 7015- C4120931 7271- C4120931 Total Purpose Construction Contract $ Construction Contingency $ Landscape / Irrigation Repair $ Total: $ V.tA "- - P--) Patrick Arciniega, P.E. Senior Civil Engineer Submitted by: Amount $ 32,302.66 $ 32,037.34 $ 14,000.00 $ 17,434.00 $ 95,774.00 Amount 77,974.00 7,800.00 10,000.00 Fros It 95,774.00 Attachments: Project Location Exhibit Protest Letter from Hondo Construction, dated April 4, 2008 Response Letter from R.E. Shultz, dated April 7, 2008 LOCATION MAP WEST NEWPORT PARK AND NEWPORT ISLAND PARK PLAYGROUND EQUIPMENT REPLACEMENT C-4005 ,, - e.;� 1 f W co O F Q a � � O af 38TH ST. NEWPORT ISLAND PARK COAST HWY. W. : 1 O SEASHORE DR. WEST NEWPORT PARK COMPANY INC. April 2, 2008 LaVonne Harkless, City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Re: Contract 4005 West Newport & Newport Island Park Dear Ms. Harkless: Engineering Contractors 2121 South Lyon Street Santa Ana, CA 92705 RECEIVEDFAX 714/434 -02105 APR 0 4 2008 Public Works Department City of Newport Beach This letter will serve as our formal protest of the possible award of the West Newport and Newport Island Parks to the apparent low bidder, R. E. Schultz of Silverado, CA. Our research of this firm with the California State Contractors Licensing Board reflects that this firm holds no workman's compensation insurance as required by your specifications. Without this insurance, no employee could possibly work on -site and the on -site subcontractors would then add additional liability to the City of Newport Beach. The other issue at hand is that the contractor must perform at least 50% of the work with his own forces, under Section 2 -3.2 of the Standard Specifications for Public Works Construction. Without employees, this would hardly be possible for this firm to comply. As a company that is properly licensed to build parks, including licensing for safety matting and certified as a Playground Safety Inspector, we are requesting that you review these issues and consider award of this project to our firm as the lowest responsible qualified bidder. Thank you. Cc: Patrick Arciniega, Project Manager R.E. SCHULTZ CONSTRUCTION P.O. Box 6 Silverado, Ca. 92676 (714) 649 -2627 City of Newport Beach April 7, 2008 Public Works Department 3300 Newport Boulevard P.O. Box 1768 Newport Beach, Ca. 92658 -1768 Attention: Patrick Arcimega Re: Response to protest letter from Hondo Company dated April 2, 2008 Dear Sir, This letter is the formal response to Hondo Company's protest. We do have a State Fund Workers Comp policy. Our policy number is 1818103 -08 (please see attached certificate of insurance issued from State Fund.) We have tried unsuccessMy to have the State of California Contractors Board update their website. We again this morning are placing calls and following it up with letters and certificate of insurance. Regarding section 2 -3.2 of the standard specifications, R.B. Schultz Construction I construct approximately 65% of this project with our own forces, which is well within the 501/6 compliance of the specifications. Please do not hesitate to contact us with any other questions or concerns you may have with this project. We are looking forward to the City's award and working with you for a successful completion to this project. Sincerely, Richard Schultz APR.06.2006 23101 70'16635507 STATE COMP INSTIRANCE #2614 P.002 /003 CBRTHOLDER COPY, SP STATE PA. COX 420807. SAN FRANMC'O,CA 94142 -0807 COMPUMFOATfON tea vPenaacs FUND Cer1 MATE QF WOWM.ST COWOMATM 1NSURANCS ISSUE DATE; 04- 09-2001 GROW, POLICY NUMaE1f lsisins -2001 %g"PIC:ATL U 2S CUM MATE EXPIRE& 01-01 -2008 Ot- Qt- '2008(01 -01 -2044 CITY OF NEWO%T itACFf SP ,)MWEST "Mmi2T 8 NaWMT TSLOM &nwx BUILDiM DEPARTNENT PL.AY6 WLM EWTWMENT 8900 NEWPORT SLVO NaBUPDRT aPaat to "a" -eats Two to to certify that we have iaewd a writ VVa1'kerV G081pehsation iniswance Policy h1 a form approVed by the Gslfarafa h M ri11Qe Commisaloner to The amploysr nettled bglow for the Policy period indloated. Tb% Policy is not ttabjeat to caeesulon by the FW4 except urten 80 days advance written na t v vo me atmiaydc We "M alga f%iv11 YOU U6 deye arJwe"M 11911011 $hould this Policy be eancslied prior to eW r mrel e,VWM This oertific4s of .iesvr *Dca is not Ht IPMK ue Palley and does not amend, ex or niter the caYarsAa afforded by the Po6gy fisted ;icareirl Notav W;mdinq any r— dransa4 . twm or M -5dotl of a v omirga or other documeim With rwPect to vwWch t1is cerlificAG of lftw arae "W be yaeued or to Which it rmy 0artain. d,a lnawance affotdW by tM policy dssoribed heroin Is,a&ject to all the terme, exclusiom and cattd'dlo ni such policy. REPI7ESENiA PRESIDW UNLEW INDIC"= OTMWISE 9Y 111MRSMM. CDYERANE HIDER THIS POLICY EXCLUDES THE FUU Tiy*@ . IN THE PU[.M DeCLUMFICKS AS AN INDIVIDUAL MLOTER OR A 111.15SAND AND WIPE — �+EIR'LGYER'S LXABILITY LIM" INCLUDING OVVEisf .Wal : St,000.Q00 PPR OOWRRENCE. OWORS13MU P1096 ENTITLED CERTIFICATE tIOLMRS` NOTICE EPPECTIYE 01-01 -2003 IS ATTAMM TO AND FMM A PART OF TNI4 POLICY, EWILOYER SCMILTZ, RICHARD AM =MLT2, MV",,MN N SP PC BOX 9 SILVWADO CA 92M (JRM.CN] etev.2o7t PRINTED 04 -07 -2008 City of Newport Beach BUDGET AMENDMENT 2007 -08 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase Expenditure Appropriations AND PX Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues from unappropriated fund balance EXPLANATION: NO. BA- OSBA -060 AMOUNT: $1a,000.00 PIncrease in Budgetary Fund Balance Decrease in Budgetary Fund Balance X No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To transfer expenditure appropriations from the Cliff Drive Park Handrail Replacement project to the West Newport Park Playground Equipment Replacement project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account REVENUE ESTIMATES (3601) Fund/Division Account EXPENDITURE APPROPRIATIONS (3603) Description Description Description Division Number 7015 General Fund - Parks Account Number C3170816 Cliff Drive Park Handrail Replacement Division Number 7015 General Fund - Parks Account Number C4120931 West Newport Park Playground Equip Replace Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Signed: Financial Approval: Administrative ervices Director Administrative Appr al: City Manager City Council Approval: City Clerk Amount Debit Credit $14,000.00 $14,000.00 6�p Date ate Date