HomeMy WebLinkAbout09 - 2014-2015 Playground Improvements - NOC and Contract Termination for Contract No. 5855 (CAP15-0030 and CAP15-0031)9-1
NEWPORT BEACH
City Council Staff Report
COUNCIL STAFF REPORT
CITY OF
April 12, 2016
Agenda Item No. 9
ABSTRACT:
On November 25, 2014, City Council awarded Contract No. 5855, 2014-2015
Playground Improvements project to Malibu Pacific Tennis Courts, Inc. (MPTC), for a
total contract cost of $119,800.00 with an $18,200.00 (15 percent) allowance for
contingencies. The work has been completed and staff now recommends closing out
the project.
RECOMMENDATION:
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 the Civil Code; and
c) Release the Faithful Performance Bond one year after acceptance by the City
Council.
FUNDING REQUIREMENTS:
Funds for the construction contract were expended from the following account:
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, Civil Engineer, ptauscher@newportbeachca.gov
PHONE:949-644-3316
TITLE:2014-2015 Playground Improvements - Notice of Completion and
Contract Termination for Contract No. 5855 (CAP15-0030 and
CAP15-0031)
2014-2015 Playground Improvements - Notice of Completion and Contract Termination
for Contract No. 5855 (CAP15-0030 and CAP15-0031)
April 12, 2016
Page 2
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Account Description Account Number Amount
Building Excise Tax 7271-C4002021 $23,298.75
Building Excise Tax 7271-C4002020 $45,547.75
Total:$68,846.50
DISCUSSION:
Overall Contract Cost/Time Summary
Awarded
Contract Amount
Final Cost at
Completion
Contingency
Allowance
Actual
Contract
Change
% Due to
Directed
Change
% Due to
Unforeseen
Change
$119,800.00 $68,846.50 15% or less -42.5% -42.5% 0.0%
Allowed Contract Time (days) 30
Actual Time
Under (-) or Over (+)42
The work under this contract consisted of removing and disposing older playground
improvements; installing and adjusting new playground equipment; removing and
installing a drinking fountain; and installing flexible play surface systems at six
playgrounds throughout the City. The six playgrounds included in this project were
Channel Place Park, Irvine Terrace Park, Bayside Park, Buffalo Hills Park, Harbor View
Park, and Spyglass Hill Reservoir Park. The contract has been completed. A summary
of the contract cost is as follows:
Original bid amount:$ 119,800.00
Actual cost of bid items constructed:$ 75,846.50
Total change orders:$ 0.00
Liquidated damages:$ (7,000.00)
Final contract cost:$ 68,846.50
The final construction contract cost is now approximately 42.5 percent below the original
contract amount. This reduction was a result of (1) liquidated damages being applied
due to failure to meet the contracted completion date; and (2) negotiated credit to offset
for the contractors installation of material not meeting the contract specifications.
2014-2015 Playground Improvements - Notice of Completion and Contract Termination
for Contract No. 5855 (CAP15-0030 and CAP15-0031)
April 12, 2016
Page 3
9-3
Contract specifications established a 25 consecutive working day construction period.
Despite many attempts by staff to work with MPTC on staffing allocation and
establishing a construction make-up schedule, staff recognized MPTC’s inability to
satisfactorily complete the work by the February 25, 2015 scheduled completion date. In
a letter dated March 11, 2015 (Attachment B), MPTC was notified of the deficiencies
and reminded of the $250.00 per calendar day liquidated damages. With much
reluctance, the contract was substantially completed on April 24, 2015, which exceeded
the construction period by 42 days.
In a letter dated July 7, 2015 (Attachment C), the City further withheld $40,453.53 due
to MPTC’s inability to provide a SpectraTurf manufacturer warranty, maintain their
certified installer status, and installation of unapproved flexible play surfacing material.
This deduction is proportional to the amount of unwarrantable work.
Upon final negotiations, staff recommends deducting a total of $50,953.50 from MPTC’s
final contract and terminates Contract No. 5855.
A summary of the project schedule is as follows:
ENVIRONMENTAL REVIEW:
On November 25, 2014 the City Council found this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c) (Construction resulting
in no expansion of facility capacity) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect
on the environment.
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 – Letter to MPTC for Liquidated Damages - Dated March 11, 2015
Attachment C – Letter to MPTC to Provide Warranty - Dated July 7, 2015
Estimated Completion Date per 2014 Baseline Schedule March 30, 2015
Project Awarded for Construction November 25, 2014
Contract Completion Date with Approved Extensions February 25, 2015
Actual Substantial Construction Completion Date April 24, 2015
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