HomeMy WebLinkAbout14 - Alley Reconstruction (Assessment District 111, Underground Utility District 22 Phase 2 and Assessment District 124 Phase 0 Areas) - Award of Contract No. 8820-2 (23R07)Q SEW Pp�T
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z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
November 28, 2023
Agenda Item No. 14
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 Sinacori, Assistant City Engineer
msinacori@newportbeachca.gov, 949-644-3342
TITLE: Alley Reconstruction (Assessment District 111, Underground Utility
District 22 Phase 2 and Assessment District 124 Phase 0 Areas) —
Award of Contract No. 8820-2 (23R07)
ABSTRACT:
Staff has received construction bids for the alley reconstruction work related to
Assessment District 111 (AD-111), Utility Undergrounding District 22 - Phase 2 (UUD22-
2), and Assessment District 124 Phase 0 areas on Balboa Peninsula and Balboa Island.
Staff requests the City Council's approval to award the construction contract to Grigolla
& Sons Const. Co. Inc. and a budget amendment from prior project savings to complete
the funding needed for the project. The project consists of removing and reconstructing
with concrete, the existing asphalt or concrete streets/alleys, alley approaches, sidewalks,
curb and gutter, driveways, and adjusting utility boxes to grade that were installed as part
of all the recent utility work.
RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15301 (repair and maintenance of existing highways and streets,
sidewalks, and gutters involving no expansion of use) of the CEQA Guidelines,
because this project has no potential to have a significant effect on the environment;
b) Approve the project plans and specifications;
c) Approve Budget Amendment No. 24-034 transferring project savings from General
Fund CIP and Neighborhood Enhancement unappropriated fund balance and
appropriating $52,972.29 in increased expenditures in Account No. 01201927-
980000-23R07 and $200,496.14 in increased expenditures in Account No. 53601-
980000-23R07;
d) Award Contract No. 8820-2 to Grigolla & Sons Const. Co. Inc. for the total bid price of
$3,481,384, and authorize the Mayor and City Clerk to execute the contract; and
e) Establish and encumber a contingency of $175,000 (approximately 5% of the bid) to
cover the cost of unforeseen work not included in the original contract.
14-1
Alley Reconstruction (Assessment District 111, Underground Utility District 22 Phase 2
and Assessment District 124 Phase 0 Areas — Award of Contract No. 8820-2 (23R07)
November 28, 2023
Page 2
DISCUSSION:
The reconstruction of concrete alleys within AD-111 is the final step in the utility
undergrounding process after power pole removal and associated water main
replacement efforts in this area. In addition, a small portion of the alley in West Newport,
between Prospect and Cedar Streets and adjacent to West Coast Highway, will be
completed as part of the AD-111 efforts. The North Bayfront AD 124 Phase 0 area
undergrounding is also being included in this effort since even though full alley
reconstruction of AD 124 on Balboa Island is several years away, the underground
construction will be completed shortly in that North Bayfront alley. Staff is not including
the additive bid items of UUD-22 Phase 2 alley restoration in this award and will address
those in a separate contract.
At 10 a.m. on October 3, 2023, the City Clerk opened and read the following bids for this
project:
BIDDER TOTAL BID AMOUNT
Low Grigolla & Sons Const. Co. Inc. $ 3,481,384
2nd Gentry General Engineering, Inc. $ 4,159,308
The apparent low bidder for this project, Grigolla & Sons Const. Co. Inc., submitted a bid
approximately 34 percent more than the Engineer's Estimate of $2,600,000 (which
included UUD 22 Phase 2). The Engineer's Estimate may have been on the low side
based on previous low bid alley projects the last few years. However, several bid items
had significant cost increases this past year, such as cost of concrete, mobilization, traffic
control, construction surveying and storm water protection associated with recent and
on -going inflation pressure compounded with high contractor demand. Grigolla submitted
all the necessary forms and possesses a Classification "A" License as required by the
project specifications. A check of the contractor's references indicates satisfactory
completion of similar projects for other public agencies.
Staff received a protest from Gentry General Engineering noting that Grigolla did not
attend the mandatory pre -bid meeting required for this project. Contractors could be
deemed non -responsive for not attending, as noted in the protest. However, a Grigolla
representative contacted City staff after the meeting and explained that due to a medical
emergency, they were not able to attend. They made a special request to be allowed to
bid and Grigolla was given the same information that was provided to the other
contractors at the mandatory pre -bid meeting. Staff approved the contractor's request to
bid the project as Grigolla is well experienced and has done many other projects
successfully for the city.
Work necessary to complete this contract consists of removing existing asphalt and
concrete pavements and constructing new concrete alleys, adjusting utility boxes to
grade, conducting traffic control, installing new traffic striping, and other incidentals items.
Grigolla will have 125 consecutive working days to complete the project once given the
notice to proceed. Initial work is expected to begin in March 2024 due to work that Grigolla
is already contracted to provide for the City.
14-2
Alley Reconstruction (Assessment District 111, Underground Utility District 22 Phase 2
and Assessment District 124 Phase 0 Areas — Award of Contract No. 8820-2 (23R07)
November 28, 2023
Page 3
Project plans and specifications will be available for review at the November 28, 2023
City Council meeting or upon request.
FISCAL IMPACT:
The construction bid, along with other costs listed below, put the overall cost
approximately $250,000 over the various CIP Budgets earmarked for this Alley
Reconstruction project. As previously discussed, there were many factors that led to a
higher than estimated bid. The funding from AD 111 was determined and set in 2016
when the project was approved by City Council. Since initial approval of the underground
district, the project has experienced unplanned delays associated with the Covid 19
Pandemic, as well as supply shortages and material and labor cost escalation.
Specifically, the cost for concrete has increased from $8 per square foot in 2016 to more
than $25 per square foot today. This increase is unprecedented and could not have been
foreseen. This has put added financial pressure during this final phase of alley
reconstruction and requiring approximately $250,000 in additional funding to complete
the project. Staff proposes to utilize unappropriated fund balance in the General Fund
CIP and Neighborhood Enhancement Funds that are the result of savings following the
completion and close out of various projects.
Therefore, a combination of Assessment District, Water enterprise and City General
Funds are being used for reconstruction of the alley pavement within and adjacent to the
completed underground utility work. With the approval of the attached budget amendment
of $253,468, sufficient funding for this project will be available from the Capital
Improvement Program (CIP) budgets in the accounts shown below.
Account Description
Water Enterprise Capital Fund
AD124 Funding
Contributions (Utility Companies)
Neighborhood Enhancement
AD111 Funding
Neighborhood Enhancement
General Fund — CIP
Account Number
Amount
70201931-980000-24R07
$
1,330,984
67502-941032
$
838,093
13501-980000-21A11
$
513,703
53601-980000-23R07
$
319,389
66002-941032
$
307,872
53601-980000-22R11
$
231,951
01201927-980000-23R07
$
133,392
Total: $ 3,675,384.
AD funding is through property owner contributions and bond financing secured by
property assessments. The Water Enterprise Fund generates revenue primarily through
water rates collected by service users. The utility company contributions are
administration fees assessed to various utility companies for work completed on behalf
of the utility company within the Underground Utilities District (UUD) No. 22 — Phases 2
and 3 project (21A11). The Neighborhood Enhancement Fund is used for projects that
enhance neighborhood aesthetics and functionality and is funded via surplus general
funds.
14-3
Alley Reconstruction (Assessment District 111, Underground Utility District 22 Phase 2
and Assessment District 124 Phase 0 Areas — Award of Contract No. 8820-2 (23R07)
November 28, 2023
Page 4
Proposed fund uses are as follows:
Vendor
Purpose
Amount
Grigolla & Sons Const. Co. Inc.
Construction Contract
$
3,481,384
Grigolla & Sons Const. Co. Inc.
Contingency
$
175,000
Geotechnical
Geotechnical
$
18,000
Various
Incidentals, Printing
$
1,000
Total: $
3,675,384
Staff recommends establishing $175,000 (approximately 5 percent of total bid) for
contingency purposes and unforeseen conditions associated with construction.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15301 (repair and maintenance
of existing highways and streets, sidewalks, and gutters involving no expansion of use)
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 No. 24-034
14-4
Attachment
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BALBOA ISLAND
UUD 22 PHASE 2 BOUNDARY `
AD-111 AREA BOUNDARY
AD 124 PHASE 0 BOUNDARY ��J<
ALLEY RECONSTRUCTION (AD-1 11 AREA, UUD 22 PHASE 2 AND AD 124 PHASE 0) CITY OF NEWPORT BEACH
PUBLIC WORKS DEPARTMENT
LOCATION MAP C-8820-2 7 10/24/23
14-5
ATTACHMENT B
City of Newport Beach
"Wr BUDGET AMENDMENT
2023-24 BA#: 24-034
Department: Public Works
ONE TIME: 0 Yes ❑ No
Requestor: Theresa Schweitzer
Approvals
❑ CITY MANAGER'S APPROVAL ONLY
Finance Director: Date 1119123
COUNCIL APPROVAL REQUIRED City Clerk: Date
EXPLANATION FOR REQUEST:
To appropriate funds from the General Fund and Neighborhood Enhancement Fund for the Alley Reconstruction J from existing budget appropriations
work related to Assessment District 111, Underground Utility District 22, and Assessment District 124. ❑ from additional estimated revenues
from unappropriated fund balance
REVENUES
Fund #
Org
Object
Project
Description
Increase or {Decrease} 5
Subtotal[
EXPENDITURES
Fund #
Org
Object
Project
Description
Increase or (Decrease) $
012
01201927
980000
231307
STREET- CIP EXPENDITURES FOR GL
52,972.29
536
53601
980000
231107
NEIGHBORHOOD ENHANCEMENT -CIP EXPENDITURES FOR GL 200,496,14
Subtotal) $ 253,468.43
FUND BALANCE
Fund tt
Object
Description
Increase or (Decrease) $
012
300000
GENERAL FUND CAPITAL PROJECTS - FUND BALANCE CONTROL
(52,972.29)
536
300000
NEIGHBORHOOD ENHANCEMENT- FUND BALANCE CONTROL
(200,496.14)
Subtotal $ (253,468.43)
Fund Balance Change Required
14-6