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HomeMy WebLinkAbout13 - Approval of Additional Construction Contingency and Amendment No. Six to the PSA for the San Diego Trash Interceptor Project (Contract No. 7127-3)Q �EwPpRT c 9C/FOR TO: FROM: CITY OF NEWPORT BEACH City Council Staff Report July 22, 2025 Agenda Item No. 13 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Bob Stein, Assistant City Engineer - 949-644-3322 rstein@newportbeachca.gov TITLE: Approval of Additional Construction Contingency with Jilk Heavy Construction, Inc., and Amendment No. Six to the Professional Services Agreement with Burns & McDonnell Inc. for the San Diego Trash Interceptor Project (Contract No. 7127-3) ABSTRACT: The San Diego Creek Trash Interceptor Project, a.k.a. the Newport Bay Trash Wheel, is completed but requires a number of fabrications, in -field changes and additions. Staff seeks City Council approval of additional construction contingency funding of $270,163 for the Jilk Heavy Construction, Inc. contract and of Amendment No. Six to the Burns & McDonnell Inc. Professional Service Agreement to increase the contract's not -to -exceed amount by $25,482 to pay for additional design and deputy welding inspection services. RECOMMENDATIONS: a) Find the requirement for environmental review under the California Environmental Quality Act (CEQA) is satisfied by the September 25, 2018 Council adoption of Resolution No. 2018-67, A Resolution of the City Council of the City of Newport Beach, California, Adopting Mitigated Negative Declaration No. ND2018-002 (SCH No. 2018081013) for the Newport Bay Water Wheel Project (PA2018-153), pursuant to the California Environmental Quality Act, State CEQA Guidelines and City Council Policy K-3; b) Approve Budget Amendment No. 26-009 appropriating $307,645 of increased expenditures in Account No. 16001-980000-17X12 (Newport Bay Trash Wheel) from the Environmental Liability Fund unappropriated fund balance; c) Increase the construction contingency by $270,163 for the Jilk Heavy Construction, Inc. Contract No. 7127-5 for a total contingency of $668,163 (approximately 17% of the contract award) for the San Diego Creek Trash Interceptor project; and d) Approve Amendment No. Six to the Professional Services Agreement with Burns & McDonnell Inc. (Attachment B) for construction services to increase the Agreement amount by $25,482 for a total not -to -exceed amount of $913,692 and authorize the Mayor and City Clerk to execute the Amendment. 13-1 Approval of Additional Construction Contingency with Jilk Heavy Construction, Inc., and Amendment No. Six to the Professional Services Agreement with Burns & McDonnell Inc. for the San Diego Trash Interceptor Project (Contract No. 7127-3) July 22, 2025 Page 2 DISCUSSION: The San Diego Creek Trash Interceptor project consists of a custom-made floating trash wheel, a rail system, and landside improvements that provide truck access to dumpsters located on a rail sled. The trash wheel is a moored vessel that uses booms to move trash toward rotating rakes that carry floating trash and debris onto a conveyor belt that then moves the trash up and into two dumpsters that sit within a sled mounted to a short rail system. Once the dumpsters are full, the dumpster sled is winched landward, and the dumpsters are emptied by a standard front -loading refuse truck. Solar panels on top of the trash wheel charge batteries that power submerged pumps that pump San Diego Creek water into the vanes of the water wheel causing the wheel to turn. The turning water wheel, through a gear box system, powers the trash rakes and conveyor belt. In February of this year, the trash wheel, rail system, and landside improvements weathered a large, 10-year storm event without damage. Though it was still under construction, the City of Newport Beach's contractor, Jilk Heavy Construction (Jilk), operated the trash wheel and captured approximately 50 to 60 cubic yards of trash and debris. It is expected that there will be a significantly larger trash and debris capture next year. Jilk, based on its expertise constructing marine facilities, designed and built the trash wheel with design assistance from Clearwater Mills, the inventor of the trash wheels in Baltimore Harbor. Throughout the design and fabrication process, many upgrades and modifications were necessary due to the Newport Bay Trash Wheel being much larger than the Baltimore trash wheels. The trash wheel components that needed modifications included the custom-built conveyor, power transmission, electrical system, pump system, skeletal structure and canopy, and solar panel system. In addition, City staff requested upgrades to lighting, cameras and the SCADA (Supervisory Control and Data Acquisition) system. The total increase in cost for these items is $270,163. Jilk has provided staff complete backup information on its design time and costs, material and equipment costs, and fabrication and installation costs. Jilk created a trash wheel that is structurally stronger than its Baltimore cousins and incorporated design enhancements to facilitate maintenance and operation. The project was substantially completed by May 2025. Additional services were also necessary and provided by Burns & McDonnell Engineering Company (Burns & McDonnell) and its subconsultants totaling $25,482 in additional costs, including: ■ $18,000 for additional welding inspection by a certified deputy inspector, ■ $ 4,957 for structural design modification of the catwalk to accommodate tidal movement of the canopy frame, and ■ $ 2,525 for administrative costs. 13-2 Approval of Additional Construction Contingency with Jilk Heavy Construction, Inc., and Amendment No. Six to the Professional Services Agreement with Burns & McDonnell Inc. for the San Diego Trash Interceptor Project (Contract No. 7127-3) July 22, 2025 Page 3 The proposed amendment to the City's professional services agreement with Burns & McDonnell is included as Attachment B. Finally, $12,000 needs to be allocated to the City's IT Division to install and setup network equipment for remote monitoring and control of the trash interceptor. FISCAL IMPACT: Upon approval of the proposed budget amendment (Attachment A), sufficient funding is available from the Fiscal Year 2025-26 Capital Improvement Program budget for completion of these contracts. The funds will be expended from the following account: Account Description Environmental Liability Fees Account Number Fund 16001-980000-17X12 Uses for the requested funds are: Contractor/Consultant Jilk Heavy Construction, Inc. Burns & McDonnell Engineering Company IT Division 41 Purpose Construction Contingency $ Construction Services — $ Amendment No. Six Equipment $ Amount 307,645 Amount 270,163 25,482 12,000 Total: $ 307,645 The Environmental Liability Fund Fees (ELFF) are authorized for use by the City for any expense associated with a City -hired commercial hauler recycling, diverting or disposing of trash collected in the city to fulfill State, federal or local law requirements. In this case, State regulations, promulgated in 2015, require heightened trash capture and removal. Construction of the trash interceptor facility allows access for one of the City's commercial trash haulers to collect and dispose of the trash captured in San Diego Creek and is therefore eligible for funding from the ELFF program, which currently has approximately $10 million in reserves. ENVIRONMENTAL REVIEW: On September 25, 2018, City Council approved Resolution No. 2018-67, adopting the Mitigated Negative Declaration for the Newport Bay Water Wheel Project, a.k.a. San Diego Creek Trash Interceptor, pursuant to the California Environmental Quality Act, State CEQA Guidelines and City Council Policy K-3. 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). 13-3 Approval of Additional Construction Contingency with Jilk Heavy Construction, Inc., and Amendment No. Six to the Professional Services Agreement with Burns & McDonnell Inc. for the San Diego Trash Interceptor Project (Contract No. 7127-3) July 22, 2025 Page 4 ATTACHMENTS: Attachment A — Budget Amendment No. 26-009 Attachment B — Amendment No. Six to Burns & McDonnell Engineering Company Professional Services Agreement 13-4 ATTACHMENT A City of Newport Beach r BUDGET AMENDMENT c"`epoil f 2025-26 BA#: 26-009 Department: Public Works Requestor: Theresa Schweitzer ONETIME: ❑ Yes ❑ No Approvals ❑ CITY MANAGER'S APPROVAL ONLY nn�� /� Finance Director: C u ;�fff,7*n Date 7 10 2 5 0 COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To appropriate budget in Environmental Liability CIP for the Newport Bay Trash Wheel project 17X12. ❑ from existing budget appropriations ❑ from additional 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) $ 160 16001 980000 17X12 ENVIRONMENTAL LIABILITY CIP - CIP EXPENDITURES FOR GL 307,645.00 Subtotal $ 307,645.00 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 160 300000 ENVIRONMENTAL LIABILITY FUND - FUND BALANCE CONTROL (307,645.00) Subtotal $ (307,645.00) Fund Balance Change Required 13-5 ATTACHMENT B AMENDMENT NO. SIX TO PROFESSIONAL SERVICES AGREEMENT WITH BURNS & MCDONNELL ENGINEERING COMPANY, INC. FOR ENGINEERING AND CONSTRUCTION MANAGEMENT SERVICES FOR THE NEWPORT BAY TRASH WHEEL PROJECT THIS AMENDMENT NO. SIX TO PROFESSIONAL SERVICES AGREEMENT ("Amendment No. Six") is made and entered into as of this 22nd day of July, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and BURNS & MCDONNELL ENGINEERING COMPANY, INC., a Missouri Corporation ("Consultant"), whose address is 140 S. State College Boulevard, Suite 100, Brea, CA 92821, and is made with reference to the following: RECITALS A. On March 24, 2020, City and Consultant entered into a Professional Services Agreement (Contract No. C-7127-3) ("Agreement") for engineering and construction management services for the Newport Bay Trash Wheel Project ("Project"). B. On January 11, 2022, City and Consultant entered into Amendment No. One to the Agreement ("Amendment No. One") to reflect additional services not previously included in the Agreement, and to increase the total compensation. C. On February 28, 2023, City and Consultant entered into Amendment No. Two to the Agreement ("Amendment No. Two") to reflect additional services not included in the Agreement, as amended, to extend the term of the Agreement to December 31, 2024, and to increase the total compensation. D. On July 11, 2023, City and Consultant entered into Amendment No. Three to the Agreement ("Amendment No. Three") to reflect additional services not included in the Agreement, as amended, to extend the term of the Agreement to December 31, 2025, to increase the total compensation, and to update the Independent Contractor section. E. On December 5, 2023, City and Consultant entered into Amendment No. Four to the Agreement ("Amendment No. Four") to reflect additional Services not included in the Agreement, as amended, and to increase the total compensation. F. On July 23, 2024, City and Consultant entered into Amendment No. Five to reflect additional Services not included in the Agreement, as amended, and to increase the total compensation. G. The parties desire to enter into this Amendment No. Six to reflect additional Services not included in the Agreement, as amended, and to increase the total compensation. 13-6 NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. SERVICES TO BE PERFORMED Exhibit A to the Agreement shall be supplemented to include .the Scope of Services, attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). Exhibit A to the Agreement, , Exhibit A to Amendment No. One, Exhibit A to Amendment No. Two, Exhibit A to Amendment No. Three, Exhibit A to Amendment No. Four, Exhibit A to Amendment No. Five, and Exhibit A to this Amendment No. Six shall collectively be known as "Exhibit A." The City may elect to delete certain Services within the Scope of Services at its sole discretion. 2. COMPENSATION TO CONSULTANT Exhibit B to the Agreement shall be supplemented to include the Schedule of Billing Rates, attached hereto as Exhibit B and incorporated herein by reference. Exhibit B to the Agreement, Exhibit B to Amendment No. One, Exhibit B to Amendment No. Two, Exhibit B to Amendment No. Three, Exhibit B to Amendment No. Four, Exhibit B to Amendment No. Five, and Exhibit B to this Amendment No. Six shall collectively be known as "Exhibit B." Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Consultant for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed One Million Thirty Eight Thousand Seven Hundred Eighty Four Dollars and 001100 ($1,038,784.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City." The total amended compensation reflects Consultant's additional compensation for additional Services to be performed in accordance with this Amendment No. Six, including all reimbursable items and subconsultant fees, in an amount not to exceed Twenty Five Thousand Four Hundred Eighty Two Dollars and 001100 ($25,482.00). 3. 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] Burns & McDonnell Engineering Company, Inc. Page 2 13-7 IN WITNESS WHEREOF, the parties have caused this Amendment No. Six to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By: Aar n C. Harp z� City Attorney A ATTEST: Date: go Molly Perry Interim City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Joe Stapleton Mayor CONSULTANT: Burns & McDonnell Engineering Company, Inc., a Missouri Corporation Date: By: Mark Knaack Vice President Date: Bv: Christine M. Dority Assistant Secretary [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Burns & McDonnell Engineering Company, Inc. Page 3 13-8 EXHIBIT A SCOPE OF SERVICES Burns & McDonnell Engineering Company, Inc. Page A-1 13-9 Exhibit A Scope of Work • Additional Welding by Group Delta: A total of $18,000 for additional welding inspection by a certified deputy inspector • Additional Structural Design by Anchor QEA: A total of $ 4,957 for structural design modification of the catwalk to accommodate tidal movement of the canopy frame, and • Additional Administration Costs by BMcD -- A total of $2,525 administrative costs. 13-10 EXHIBIT B SCHEDULE OF BILLING RATES Burns & McDonnell Engineering Company, Inc. Page B-1 13-11 Exhibit B Schedule of Billing Rates • Additional Welding by Group Delta: A total of $18,000 for additional welding inspection by a certified deputy inspector • Additional Structural Design by Anchor QEA: A total of $ 4,957 for structural design modification of the catwalk to accommodate tidal movement of the canopy frame, and • Additional Administration Costs by BMcD —A total of $2,525 administrative costs. The total cost is $25,482. 13-12