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CITY OF
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c�<,FORN'P City Council Staff Report
October 24, 2017
Agenda Item No. 15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Mark Vukojevic, Deputy Public Works Director/City Engineer,
mvukojevic@newportbeachca.gov
PHONE: 949-644-3319
TITLE: Ocean Piers Maintenance Project — Award of Contract No. 7126-1
(17H03)
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Staff has received construction bids for the Ocean Piers Maintenance Project and is
requesting City Council's approval to award the construction contract to John S. Meek
Company Inc.
RECOMMENDATION:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301 (minor alteration of existing public facilities with negligible
expansion) 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;
b) Approve the project drawings and specifications;
c) Award Contract No. 7126-1 to John S. Meek Company Inc. for the total bid price of
$1,182,395.00, and authorize the Mayor and City Clerk to execute the Contract;
d) Establish an amount of $236,000 (20%) to cover the cost of unforeseen work not
included in the original contract;
e) Authorize the City Manager to execute an Amendment on a form acceptable to the
City Attorney to the current Professional Services Agreement with COW I Marine North
America Inc. for up to $50,000 for additional design, inspection and construction
support services that may be necessary to execute the construction contract; and
f) Approve Budget Amendment No. 18BA-010 appropriating $ 937,000 from Tidelands
Capital Fund unappropriated fund balance to Account No. 10101-980000-17H03
(Ocean Piers Maintenance and Repairs Project).
15-1
Ocean Piers Maintenance Project — Award of Contract No. 7126-1 (171-103)
October 24, 2017
Page 2
FUNDING REQUIREMENTS:
Upon approval of the budget amendment, contract costs will be expensed to the Ocean
Piers Maintenance Project as follows:
Account Description
Ocean Piers Maintenance
(Tidelands Maintenance)
Ocean Piers Maintenance
(Tidelands Capital)
Proposed uses are as follows:
Vendor
John S. Meek Company
John S. Meek Company
COW I North America & other
consultants
DISCUSSION:
Account Number
10001-980000-17H03
10101-980000-17H03
Purpose
Construction Contract
Construction Contingency
Amount
$ 531,395.00
937.000.00
Total: $1,468,395.00
Consultant, testing, inspection
Amount
$ 1,182,395.00
$ 236,000.00
$ 50,000.00
Total: $ 1,468,395.00
The City's two ocean piers, Newport and Balboa, were originally built in 1940 and 1906
respectively. While the 15 -year old concrete decks are relatively maintenance free, the
timber support structures below the decks are continuously impacted by the ocean waves,
tides and swells and the corrosive marine environment. Therefore, the City's Capital
Improvement Program bi-annually funds the inspection and contract maintenance of
these two piers.
The atypically strong storms from last winter damaged some of the Piers' support
structures and destroyed the utility service access system under the Ruby's Restaurant.
In order for the Piers to remain open, two unscheduled and unbudgeted contracts totaling
$256,939.00 were completed within the last six months to repair the time sensitive
damages discovered by the underwater inspections.
Staff thereafter prepared the contract documents to address the other items identified by
the inspections. The underwater inspections also revealed that the storms from last
season also substantially moved the underwater sand (mudline) and further exposed pile
damage and pile wrapping issues needing repair work. These additional repairs were not
factored or programed into the current CIP budget at that time due to the timing of this
year's budget.
15-2
Ocean Piers Maintenance Project — Award of Contract No. 7126-1 (17H03)
October 24, 2017
Page 3
This contract, when completed, will have repaired and/or installed new wrapping on
eighty-eight (88) piles and replaced rusted and otherwise nonfunctional straps, bolts,
plates and hangers as well as treated timber blockings, bracings, and stringers.
At 10 a.m. on October 18, 2017, the City Clerk opened and read the following bid for this
project:
BIDDER TOTAL BASE BID AMOUNT
Low John S. Meek Company, Inc. $1,182,395.00
The low bidder, John S. Meek Company (Meek) possesses a California State Contractors
License Classification "A" as required by the project specifications. A check of Meek's
references indicates satisfactory completion of similar projects for other public agencies,
including several projects for the City of Newport Beach. Eleven (11) prime contractors
and nine (9) subcontractors pulled the plans and specifications and staff was expecting
to review a few bids. Historically, the City receives a low amount of bidders relating to
ocean pier work (one to three bidders per project). In this case, the City only received one
bid. The low total base bid amount received is approximately 30% above the $900,000.00
Engineer's Estimate. Upon review, the bid received from Meek appears to be cost
competitive and within marketplace conditions for this specialty work.
On October 17 and October 18, the Balboa Pier sustained damage to three or more
pilings requiring immediate action by the Public Works and Municipal Operations staff to
stabilize the pier and pilings. Staff recommends the City Council approve a 20% contract
contingency amount to address recent damages and any unknown damages or
unforeseen conditions that may be encountered during the work or the upcoming winter
season.
In addition to approving the construction contract with John S. Meek Company, a contract
amendment with the project's design consultant, COWI Marine North America Inc. is also
necessary. Staff anticipates additional scope and services will be necessary to assist the
City, especially with the recent pier damage. Many of these items, which are on a time
and material basis, have not been finalized at the time of the staff report preparation.
Since time is of the essence to begin construction, staff is requesting authorization for the
City Manager to sign the upcoming amendment on a form approved by the City Attorney.
The scope and costs are currently estimated up to $50,000 and will include additional
design, inspection and construction support services which are expected during
construction. The original $200,000 agreement with COWI, which included the
underwater inspection, design, and plan preparation services, was approved by City
Council on September 13, 2016.
As discussed above, a substantial portion of this fiscal year's original funding was used
to repair the damages caused by the extraordinary winter storms earlier this year. In
addition, the budget process occurred before the scope of work was fully developed. Staff
is; therefore, requesting approval of a budget amendment to augment funding for the
Ocean Piers Maintenance project.
15-3
Ocean Piers Maintenance Project — Award of Contract No. 7126-1 (171-103)
October 24, 2017
Page 4
Pursuant to the Contract Specifications, John S. Meek Company is allotted one hundred
consecutive working days with all work to be completed prior to the 2018 summer season.
Liquidated damages in the daily sum of $2,500.00 will be assessed in case of tardy
completion.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301 (minor alteration of existing
public facilities with negligible expansion) 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 — Budget Amendment
15-4
NEWPORT
PIER
ATTACHMENT A
OCEAN PIERS -
6
PROJECT LOCATION�L (D PROJECT LOCATION
LOCATION MAP
CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
17H03
10/24/17
15-5
City of Newport Beach
BUDGET AMENDMENT
2017-18
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
ATTACHMENT B
NO. BA- 18BA-010
AMOUNT: 1 $937,000.00
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
To increase expenditure appropriations from the Tidelands Capital Fund unappropriated fund balance
for the Ocean Piers Maintenance and Emergency Repairs project.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Object
101 300000
REVENUE ESTIMATES
orq Object
EXPENDITURE APPROPRIATIONS
Description
Tidelands Capital Unapprop. Fund Bal
Description
Description
Org Number 10101 Tidelands Capital CIP
Object Number 980000 CIP Exp
Project Number 171-103 Ocean Piers Inspection/Maintenance
Project String E -17H03 -CONSTRUCT -101 -UNASSIGNED
Signed: `^ i
Financial Approval:
Signed
Signed
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$937,000.00
Automatic System
$937,000.00
/0 -lc
Date
Date
Date
15-6
ATTACHMENT C
AMENDMENT NO. ONE TO
PROFESSIONAL SERVICES AGREEMENT
WITH COWI NORTH AMERICA, INC. FOR
OCEAN PIERS MAINTENANCE — INSPECTION AND DESIGN SERVICES
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 24th day of October, 2017
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and COWI NORTH AMERICA, INC., a
Delaware corporation ("Consultant"), whose address is 3780 Kilroy Way, Suite 200, Long
Beach, California 90806, and is made with reference to the following:
RECITALS
A. On September 13, 2016, City and Consultant entered into a Professional Services
Agreement ("Agreement") to provide inspection and design services related to the
Ocean Piers Maintenance Project ("Project").
B. The parties desire to enter into this Amendment No. One to reflect additional
Services not included in the Agreement, and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows -
1 .
ollows:1. SERVICES TO BE PERFORMED
Exhibit A to the Agreement shall be supplemented to include the Scope of
Services, attached hereto as Exhibit A and incorporated herein by reference ("Services"
or "Work"). Exhibit A to the Agreement, and Exhibit A to this Amendment No. One shall
collectively be known as "Exhibit A." The City may elect to delete certain Services within
the Scope of Services at its sole discretion.
2. COMPENSATION TO CONSULTANT
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Schedule of Billing
Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's
compensation for all Work performed in accordance with this Agreement, including all
reimbursable items and subconsultant fees, shall not exceed Two Hundred Fifty
Thousand Dollars and 00/100 ($250,000.00), without prior written authorization from
City. No billing rate changes shall be made during the term of this Agreement without the
prior written approval of City."
The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed Fifty
Thousand Dollars and 00/100 ($50,000.00).
15-7
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
COWI North America, Inc. Page 2
15-8
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
Aaron C. Harp!
City Attorney
ATTEST:
Date:
An
Leilani I. Brown
City Clerk
Attachments
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Dave Kiff
City Manager
CONSULTANT: COWI North America,
Inc.,, a Delaware corporation
Date-
By -
Warren L. Stewart
Managing Director
[END OF SIGNATURES]
Exhibit A — Scope of Services
COWI North America, Inc. Page 3
15-9
EXHIBIT A
SCOPE OF SERVICES
COWI North America, Inc. Page A-1 15-10
Mr Fong Tse
Senior Engineer
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
RE: Additional Services for NB Ocean Piers Maintenance; Change Order
Request No. 1 to Contract No. C-8188-1 Professional Services Agreement
for NB Ocean Piers Maintenance - Inspection and Design Services.
Dear Fong
ADDRESS COWI Marine North America
3780 Kilroy Airport Way
Suite 200
Long Beach, CA 90806
TEL 510-839-8972
vmvv cowi-na.com
DATE 10/19117
PACE 111
REF A085595.000
COWI North America, Inc. (COWI) is pleased to present this proposal for the subject services. Per your
request, we agreed to provide additional services as detailed in the scope below.
SCOPE OF SERVICES
Provided additional supplemental inspections and testing services during construction, as needed and as
authorized by the City's Project Administrator, including but not limited to above and underwater
inspection, testing, and other services needed during construction.
FEE PROPOSAL
Fees for the above services will be billed in accordance with rates provided in the contract and the
following schedule. Services for this amendment will not exceed $50,000.
Thus, our current authorization of $200,000 will increase to $250,000.
If this proposal for additional engineering services meets with your approval, we look forward to receiving
an executed change order. Please feel free to contact me on my cell phone: 562-547-3918.Thank you.
Sincerely,
COWI NORTH AMERICA, INC.
Warren A. Stewart, PE, SE, D.PE
Project Manager
Cc: J. Gerwick
15-11