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Home My WebLink About06 - Newport Beach Junior Lifeguard Building Project - NOC for Contract No. 7524-2 (19F13)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report October 8, 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: Peter Tauscher, Senior Civil Engineer - 949-644-3316, ptauscher@newportbeachca.gov TITLE: Newport Beach Junior Lifeguard Building Project — Notice of Completion for Contract No. 7524-2 (19F13) ABSTRACT: On August 23, 2022, the City Council awarded Contract No. 7524-2 for the Newport Beach Junior Lifeguard Building project to TELACU Construction Management, Inc. (TELACU) of Orange. The work is now complete and staff requests the City Council accept the work and close out the contract. RECOMMENDATION: a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. DISCUSSION: Overall Contract Cost/Time Summary Awarded Contract Final Total Contract Total Contract Percent Contract Amount Amount Change Amount Cost Change $6,430,000.00 $6,762,462.79 $332,462.79 5.2% Allowed Contract Time + Approved 294 Actual Time Used (Days) 349 Extensions (Days) This project consisted of constructing the new Junior Lifeguard Building near the Balboa Pier. The building replaced the temporary facilities that the Junior Lifeguard program operated from for many years. The new building serves as a multi -functional space for use by the Junior Lifeguard program and public, with programs and rentals offered through the Recreation and Senior Services Department. 6-1 Newport Beach Junior Lifeguard Building Project — Notice of Completion for Contract No. 7524-2 (19F13) October 8, 2024 Page 2 The new facility is approximately 5,420 square -feet of usable interior space that includes: • A 1,050-square-foot meeting room • Secure interior and exterior storage rooms • Staff offices and meeting rooms • Men's and women's locker rooms • A 1,350-square-foot deck area • Public restroom facilities The project also included landscaping and paving in the A Street and Balboa parking lots. The contracted work has now been completed to the satisfaction of the Public Works Department. A summary of the construction costs are as follows: Original Bid Amount: $ 6,430,000.00 Actual Cost of Bid Items Constructed: $ 6,430,000.00 Total Change Orders: $ 469,962.79 Liquidated damages due to TELACU's tardy performance: $ (137,500.00) Final Total Contract Amount: $ 6,762,462.79 The final total contract amount is $6,762,462.79, approximately 5.2% higher than the original bid amount. The cost increase was primarily due to adding offsite work to the project scope, which included upgrading the water system. After the project was awarded, the Utilities Department requested a closed loop system, which accounted for about 3% of the contingency. Other change orders included changes to lighting, storm drain, fire water supply systems, improved construction material for roofing, ceiling and landscaping, and meeting added Southern California Edison requirements. Following the construction of several of the concrete walls, staff inspected the finished product and rejected walls that did not meet the requirements of the contract documents or TELACU's own submittals and mockup. Many of the walls needed to be demolished and replaced. Although the defects were caused solely by TELACU and its concrete subcontractor, the City, in the spirit of cooperation, granted TELACU's request for an additional 122 working days for the removal and replacement of the faulty walls. Despite this City concession, TELACU was not able to follow the schedule it created and was assessed 55 days of liquidated damages. A summary of the project schedule milestones is as follows: Estimated Start of Construction per Annual Baseline Schedule September 6, 2022 Actual Start of Construction Per Notice to Proceed September 6, 2022 Extended Contract Completion Date Inclusive of Extra Work February 28, 2024 Actual Substantial Construction Completion Date June 28, 2024 The original construction schedule showed completing the project in May 2023, but due to the defective concrete work, the project was not substantially complete until June 2024. 6-2 Newport Beach Junior Lifeguard Building Project — Notice of Completion for Contract No. 7524-2 (19F13) October 8, 2024 Page 3 TELACU demobilized, secured the site, and remobilized in September 2023, at which time the contract working day clock was re-established. TELACU did not complete the work within the approved contract time, even with the additional 122 days requested by the contractor after the remobilization. The contractor was assessed liquidated damages per the contract documents. As a result of TELACU's work quality and schedule deficiencies, additional resources were required to finish the project. This included providing additional oversight consisting of City staff and design consultants to ensure the project was completed in accordance with the requirements of the contract. It is important to note that TELACU disputes the City's position regarding the sufficiency of the original concrete walls and has filed a claim against the City in the amount of $1,259,028.96.1 Staff and the City Attorney's office are currently engaged in the statutory dispute resolution process and will brief the City Council at a future meeting. The pending claim does not impact the City's filing of the Notice of Completion. FISCAL IMPACT: Funds for the construction contract were expended from the following accounts: Account Description Account Number Amount American Rescue Plan Act (ARPA) 16601-980000-19F13 $ 4,464,630.00 ARPA 16601-980000-221`13 $ 450,000.00 NBJG Foundation Contributions 13501-980000-19F13 $ 1,772,849.75 Junior Lifeguard Capital (FFP) 53101-980000-19F13 $ 74,983.04 Total: $ 6,762,462.79 ENVIRONMENTAL REVIEW: On August 23, 2022, the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332 (In -Fill Development Projects) of the CEQA Guidelines. This exemption applies to in -fill development projects in urban areas that are consistent with the General Plan and applicable development standards. 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 TELACU has recently filed a second claim in the amount of $388,808.75 related to 18 separate alleged change order events. Staff is currently evaluating these allegations. 6-3 ATTACHMENT A / / > Au <1„ A �9 C/F/C ocF�N NEWPORT BEACH JUNIOR LIFEGUARD BUILDING NOT TO SCALE CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT mvzzz,, /mom 0 C-7261-02 9/24/2024 m.