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City Council Staff Report
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TITLE:
ABSTRACT:
August 14, 2018
Agenda Item No. 14
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
Kathryne Cho, Civil Engineer, kcho@newportbeachca.gov
949-644-3014
Grand Canal Dredging Project — Phase 2 — Reject All Bids — Contract
No. 8171-2 (161-112)
Staff advertised the second phase of the Grand Canal Dredging Project for construction
bids, utilizing the City's Army Corp Regional General Permit (RGP 54) and City Eelgrass
Plan. However, only one bid was received at the time of the bid opening and the bid was
substantially higher than the Engineer's Estimate. After review and discussion, staff is
requesting City Council to reject the bid received, and have staff re -scope the project and
re -advertise for construction later.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Class 4 Section 15304(g) (Maintenance dredging where the spoil is
deposited in a spoil area authorized by all applicable state and federal regulatory
agencies) of the CEQA Guidelines because this action will not result in a physical
change to the environment, directly or indirectly;
b) Reject all bids received for Contract No. 8171-2; and
c) Direct staff to review, re -scope and re -advertise at a later time.
FUNDING REQUIREMENTS:
No fiscal impact.
BACKGROUND:
In February 2017, the City completed the first phase of maintenance dredging of the
Grand Canal, from the South Bayfront to the Park Avenue Bridge. Staff has now
completed the required project plans and specification, applied for and received permits
from the Coastal Commission, Army Corp of Engineers and the Regional Water Quality
Board for maintenance dredging of the next phase of the Grand Canal, from the Park
Avenue Bridge to the North Bayfront.
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Grand Canal Dredging Project — Phase 2 — Reject All Bids —
Contract No. 8171-2 (16H12)
August 14, 2018
Page 2
DISCUSSION:
At 10 a.m. on July 10, 2018, the City Clerk opened and read the following bid for this
project:
Bidder Base Bid Amount
Low Associated Pacific Constructors, Inc. $ 1,389,000.00
The bid generated good contractor interest. However, staff only received one responsive
bid, which was substantially higher than the Engineer's Estimate of $990,000.00. Staff's
follow-up phone call to the low bidder indicated that the restrictive access to the Grand
Canal, multiple handling of the material, and long hauling distances, from the Park
Avenue Bridge to North Bay Front, resulted in the higher than expected bid. Staff
discussed the possibility of separating the project into two phases, but concluded that this
would result in double the cost for relocation of boats and moorings; more importantly, it
would create twice as much disturbance to the community.
After reviewing and discussing the bid and proposed project, staff recommends that the
City Council reject all bids at this time. Staff will then look to re -scope the project and re -
advertise at a later date. In the meantime, staff will research alternative methodologies
to hopefully lower the anticipated construction cost, while complying with permit
requirements.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Class 4 Section 15304(g) (Maintenance
dredging where the spoil is deposited in a spoil area authorized by all applicable state
and federal regulatory agencies) of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
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 — Location Map
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GRAND CANAL DREDGING - PHASE 2 CITY OF NEWPORT BEACH
PROJECT PUBLIC WORKS DEPARTMENT 3
LOCATION MAP C-8171-2 08/14/18
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