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HomeMy WebLinkAbout11 - Approval of Amendment No. 3 to M/RSA for On-Call Beach Maintenance ServicesQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report October 12, 2021 Agenda Item No. 11 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 Engineer msinacori@newportbeachca.gov PHONE: 949-644-3342 TITLE: Approval of Amendment No. 3 to Maintenance and Repair Services Agreement with GCI Construction Inc. for On -Call Beach Maintenance Services ABSTRACT: On June 13, 2017, following a competitive Request for Proposal (RFP) procurement process, the City Council approved two, on-call contracts for beach maintenance services for three-year terms. The City of Newport Beach (City) uses service agreements to perform maintenance and repairs throughout Newport Harbor and along City beaches to supplement City staff efforts. With the update to Council Policy F-14 (Authority to Contract) in 2018, these contracts were extended two years and are now set to expire at the end of May 2022. In August 2020, the not -to -exceed (NTE) contract amounts were extended for both contracts due to the efforts required for the July 3, 2020 large wave event and flooding on the Balboa Peninsula. With additional contractual effort needed to address the large wave events during the past few months, the contract NTE is close to being reached again for GCI Construction Inc. (GCI). Staff is seeking an additional NTE amount for GCI to provide contract sand management capacity to assist the County of Orange in the upcoming Santa Ana River Mouth sand management project, as well as have reserve contract capacity to address issues associated with possible winter storms and large wave events before the contact expires on May 31, 2022. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve Amendment No. 3 to the Maintenance and Repair Services Agreement with GCI Construction Inc. (C-8501-1) to add $500,000 to the current contract for a total not -to -exceed amount of $1,225,000; c) Authorize the Mayor and City Clerk to execute the amendment; and d) Approve Budget Amendment No. 22-016 appropriating $350,000 in increased expenditures in Account No. 10001-980000-22H04 (Beach and Bay Sand Management) from the unappropriated Tidelands Maintenance fund balance. Approval of Amendment No. 3 to Maintenance and Repair Services Agreement with GCI Construction Inc. for On -Call Beach Maintenance Services October 12, 2021 Page 2 DISCUSSION: The City uses private sector contractors and consultants to fulfill various operational and maintenance needs of Newport Harbor, the Upper Bay and Newport beaches. Contracted work includes mooring and marina management, dock and marina repairs/maintenance, beach cleanup and algae removal, engineering services, and other services as needs arise. Beach maintenance and sand management is handled by a combination of City staff and contractors. Public Works oversees the sand management projects and maintenance for the ocean beaches and bay beaches within Newport Harbor, and assists with capital needs and emergency work. Normal, day-to-day ocean beach maintenance services are performed by the Public Works staff. Contract services are used to supplement staff and address large projects, occasional peak or emergency needs, and special work efforts such as maintaining beaches on Balboa Island where sand is moved up from the low tide line and groomed to achieve a desirable slope appropriate for public access to the beach. On March 28, 2017, a Request for Proposals for on-call beach maintenance services was released to the public. Seventeen vendors were notified of the opportunity. Only two firms submitted proposals and on June 13, 2017, both firms, GCI and Tight Quarters, Inc., were given contracts as they each have specialized equipment and staff the City requires for different types of beach maintenance activities. Each contractor has performed well over the past four years. At times, both contractors have been utilized at the same time to expedite efforts prior to peak summer beach use. For instance, this past June, GCI focused on preparing the Balboa Pier area for the summer crowds while Tight Quarters addressed bay beaches around Balboa Island. In addition, the County of Orange (County) began an annual maintenance effort, clearing the mouth of the Santa Ana River, and moved most of the sand to the Newport jetties. While that operation was taking place, GCI and Tight Quarters worked in concert and moved additional sand to Balboa Pier and adjacent areas. This same operation is required by the County this fall as the Santa Ana River Mouth sand has built up again. The two-month effort will begin in mid-October 2021. Recently, GCI has been used to address high wave events in August and September which required maintaining the sand berm at Balboa Pier prior to the events. As a result, GCI has nearly reached its NTE contract amount. With the County operation starting shortly, and potential storm and rain events this coming winter, staff is requesting a third contract amendment with GCI. Tight Quarters' contract NTE amount has not been reached yet and there is enough capacity for the remaining contract term. Staff recommends approval of Amendment No. 3 with GCI to provide contract sand management capacity to assist the County in its upcoming Santa Ana River Mouth sand management project, as well as have reserve contract capacity to address any beach sand issues associated with possible winter storms and large wave events before the contact expires May 31, 2022. 11-2 Approval of Amendment No. 3 to Maintenance and Repair Services Agreement with GCI Construction Inc. for On -Call Beach Maintenance Services October 12, 2021 Page 3 FISCAL IMPACT: The Budget Amendment appropriates $350,000 in increased expenditure appropriations from unappropriated Tidelands Maintenance fund balance to the Beach and Bay Sand Management CIP Account No. 10001-980000-22H04 to allow for the remaining known funding needs through the contract period. Additional funds may be required if significant storm or large wave events are experienced between now and the end of May 2022. Staff will return to the City Council and request additional funds, if required. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) 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 ATTACHMENTS: Attachment A — Amendment No. 3 to Maintenance and Repair Services Agreement Attachment B — Draft Public Notice of County 2021 Sand Management Efforts Attachment C — Budget Amendment 11-3 ATTACHMENT A AMENDMENT NO. THREE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT WITH GCI CONSTRUCTION, INC. FOR BEACH MAINTENANCE SERVICES THIS AMENDMENT NO. THREE TO ON-CALL MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Three") is made and entered into as of this 12th day of October, 2021 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and GCI CONSTRUCTION, INC., a California corporation ("Contractor"), whose address is 1031 Calle Recodo, Suite D, San Clemente, California 92673, and is made with reference to the following: RECITALS A. On June 13, 2017, City and Contractor entered into an On -Call Maintenance/Repair Services Agreement ("Agreement") for Contractor to perform on-call maintenance and/or repair service for City ("Project"). B. On October 15, 2019, City and Contractor entered into Amendment No. One to the Agreement ("Amendment No. One") to extend the term of the Agreement to May 31, 2022, to increase the total compensation, update the Schedule of Billing Rates, the terms of responsibility for damages or injury, prevailing wages, conflicts of interest, and Insurance requirements. C. On August 25, 2020, City and Contractor entered into Amendment No. Two to reflect additional Services not included in the Agreement, as amended, to increase the total compensation, and to update Insurance requirements. D. The parties desire to enter into this Amendment No. Three to increase the total compensation due to an increase in the volume of Work. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. COMPENSATION TO CONTRACTOR Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Contractor for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Letter Proposal and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed One Million Two Hundred Twenty Five Thousand Dollars and 00/100 ($1,225,000.00), without prior written amendment to the Agreement." 11-4 The total amended compensation reflects Contractor's additional compensation for additional Services to be performed in accordance with this Amendment No. Three, including all reimbursable items and subconsultant fees, in an amount not to exceed Five Hundred Thousand Dollars and 001100 ($500,000.00). 2. 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] GCI Construction, Inc. Page 2 11-5 IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITYATTORN Y'S OFFICE Date: % 2712/ B A on CATa-rid + City Attorney ATTEST: Date: go CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Brad Avery Mayor CONTRACTOR: GCI CONSTRUCTION, INC., a California corporation Date: By: Leilani I. Brown Terry D. Gillespie City Clerk Chief Executive Officer Date: By: Richard D. Kay Secretary [END OF SIGNATURES] GCI Construction, Inc. Page 3 11-6 U11NIINffillk, Santa Ana River Flood Control Channel Annual Maintenance: Excess Sand Removal from Channel Outlet At the Santa Ana River flood control channel outlet between the cities of Huntington Beach and Newport Beach, west of Pacific Coast Highway. * See other side for sand placement locations rMR"ri =' t � ' (10 s� toy L10 Newport Beach 1. Approximately 53,000 cubic yards of accumulated sand will be removed from the channel outlet, as allowed through regulatory permits for flood control maintenance. Removing the excess sand minimizes potential flood risks during rain events and also maintains the natural tidal flow with the adjacent Newport Shores marsh area. 2. Additionally, in coordination with the City of Newport Beach, crews will transport the removed sand to City beach areas that will benefit most from sand replenishment. Your safety is the top priority! Large equipment will be used. Please observe all caution signs / barriers and stay a safe distance from the work area. Anticipated Project Duration: As early as mid-October through mid-February 2022 Equipment Operation: Monday through Saturday, 7:00 a.m. — 5:30 p.m. Crew members may be on site starting at 6:00 a.m. Work schedule is tentative and subject to change. Santa Ana River Flood Control Channel Annual Maintenance: Excess Sand Removal Sand Placement Locations Potential sand replenishment areas: (1) between 52nd Street and 40th Street, and; (2) Immediately west of the Balboa Pier Santa Ana River outlet Newport Pier Balboa Pier 7 11-8 ATTACHMENT C City of Newport Beach BUDGET AMENDMENT 2021.22 BA#: 22-016 Department: Public Works ONETIME: F11 Yes ❑ No Requestor: Theresa Schweitzer Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: Date 0 COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To increase expenditure appropriations from unappropriated Tidelands Maintenance fund balance to fund the Beach ❑ from existing budget appropriations and Bay Sand Management CIP Account to allow for the remaining known funding needs through the contract period. ❑ from additional estimated revenues ❑� from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ Subtotal ',`$ — ---J EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 100 10001 980000 221-104 TIDE&SUBMERGED LAND CIP - CIP EXPENDITURES FOR GL 350,000.00 Subtotal $ 350,000.00 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 100 300000 TIDE & SUBMERGED LANDS FUND - FUND BALANCE CONTROL (350,000.00) Subtotal', $ (350,000.00)' Fund Balance Change Required