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Home My WebLink About06 - 38th Street and Lake Avenue Landscape Improvement Project - Award of Contract No. 9008-1 (24L01)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report May 28, 2024 Agenda Item No. 6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Tom Sandefur, Assistant City Engineer - 949-644-3321, tandefur@newportbeachca.gov TITLE: 38th Street and Lake Avenue Landscape Improvement Project — Award of Contract No. 9008-1 (241_01) ABSTRACT: The City of Newport Beach received construction bids for the 38th Street and Lake Avenue Landscape Improvement Project and staff is seeking City Council approval to award the construction contract to S&H Civilworks of Colton. The project includes installing new stone cladding to the existing retaining wall, a new concrete wall, fencing, irrigation work, and concrete stairs. RECOMMENDATIONS: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c), Class 2 (replacement of existing public facilities involving negligible or no expansion of existing 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. 24-076 appropriating $152,041.70 in increased expenditures in Account No. 16701-980000-24L01 from the Oceanfront Encroachment Fund unappropriated fund balance; d) Award Contract No. 9008-1 to S&H Civilworks for the total bid price of $193,067 for the 38th Street and Lake Avenue Landscape Improvements project, and authorize the Mayor and City Clerk to execute the contract; and e) Establish a contingency of $29,000 (approximately 15% of total bid) to cover the cost of unforeseen work not included in the original contract. DISCUSSION: The project is located at 38th Street and Lake Avenue, immediately west of the entrance to Newport Island. The beach area is bounded by an existing damaged retaining wall and there is no pedestrian access to the beach. 6-1 3811 Street and Lake Avenue Landscape Improvement Project — Award of Contract No. 9008-1 (241_01) May 28, 2024 Page 2 Residents in the area have requested the City improve the appearance of the 38t" Street beach area and entrance to Newport Island, as well as provide better beach access. Staff produced a design that included adding a cladding system to the existing retaining wall to improve the appearance, new stairs for better beach access, a new, higher landscaped planter area with a fence, a new foot -wash station, new landscaping, and new irrigation lines. On January 29, 2024, the City solicited six informal bids for the project and received only two bids. The low bid received was approximately 46% higher than the engineer's estimate. At the March 26, 2024 City Council meeting, City Council directed staff to reject all bids and re -advertise to a larger bidding environment. At 10 a.m. on April 18, 2024, the City Clerk opened and read the following public bids for this project: BIDDER TOTAL BID AMOUNT Low Seed Landcare* $139,984.06* 2nd S&H Civilworks $193,067.00 3rd Wright Construction Engineering Corp. $288,356,41 4th Metrocell $319,246.00 5th We R Builders, Inc. $371,585.00 *Non -responsive bid The City received five bids for this project. The low bidder, Seed Landcare, did not have a Class A contractor license as required in the bid documents. The second low bidder met all the bid requirements and submitted a bid that is 29% higher than the engineer's estimate of $150,000. Staff believes that the size and complexity of the project and continuing stimulated construction market contributed to the higher than expected bid pricing. S&H Civilworks possess the appropriate California State Contractor's License for the work. Reference checks conducted by staff indicate that S&H Civilworks has satisfactorily completed similar projects for other agencies and the City of Newport Beach. Pursuant to the contract specifications, the contractor will have 60 consecutive working days to complete the work. Work is scheduled to start in summer 2024. The project plans and specifications will be available for review at the May 28, 2024 City Council meeting or upon request. FISCAL IMPACT: Upon approval of the budget amendment, the budget includes sufficient funding for this contract. It will be expensed to the following accounts in the Public Works Department budget, 01201927-980000-24L01 (Neighborhood Enhancement Funds) and 16701- 980000-241_01 (Oceanfront Encroachment Funds). 6-2 3811 Street and Lake Avenue Landscape Improvement Project — Award of Contract No. 9008-1 (241-01) May 28, 2024 Page 3 The following funds will be expended: Account Description Neighborhood Enhancement Oceanfront Encroachment Fund Proposed fund uses are as follows: \/Pnrinr S&H Civilworks S&H Civilworks Various Account Number 01201927-980000-241-01 16701-980000-24L01 Total: Purpose Construction Contract Construction Contingency Printing & Incidentals Total: Amount $ 71,025.30 $ 152,041.70 $ 223,067.00 Amount $ 193,067.00 $ 29,000.00 $ 1,000.00 $ 223,067.00 The Neighborhood Enhancement Fund is used for projects that enhance neighborhood aesthetics and functionality and is funded via surplus general funds. Oceanfront Encroachment revenue is received from annual permit fees paid by private property owners who live along the oceanfront for permitted improvements on the public right-of-way. The funds are restricted for the construction of improvements which directly benefit the beach going public such as parking spaces, restrooms, vertical or lateral walkways along the beach and similar projects as restricted by the Local Coastal Program. Staff recommends including $29,000 (approximately 15% 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 15302(c), Class 2 (replacement of existing public facilities involving negligible or no expansion of existing use) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project 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 6-3 ATTACHMENT A _ PROJECT LOCATION 38TH STREET AND LAKE AVENUE LANDSCAPE IMPROVEMENTS LOCATION MAP CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-9008-1 23 L 01 03/26/24 a�WP°RT ATTACHMENT B City of Newport Beach r BUDGET AMENDMENT 2023-24 BA#: 24-076 Department: Public Works ONETIME: ❑ ye, ❑ No Requestor: Theresa Schweitzer Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: 2MM 4MAWM41 Date 5116121f 21 COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To appropriate funds from the Oceanfront Encroachment unappropriated fund balance for the 381h Street and Lake ❑ from eai5ting budget appropriations Avenue Landscape Improvement Project (241-01). ❑ from additiunal estimated revenues ❑ from unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ Subtotal $ EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 167 16701 980000 24L01 OCEANFRONT ENCROACHMENT CIP - CIP EXPENDITURES FOR GL 152,041.70 Subtotal $ 152,041.70 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 167 300000 OCEANFRONT ENCROACHMENT FUND - FUND BALANCE CONTROL (152,041.70) Subtotal $ (152,041.70) Fund Balance Change Required 6-5