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HomeMy WebLinkAbout10 - C-3242A - Jamboree Road RehabilitationFebruary 22, 2000 CITY COUNCIL AGENDA ITEM NO. to TO: Mayor and Members of the City Council FROM: Public Works Department SUBJECT: JAMBOREE ROAD REHABILITATION — EAST COAST HIGHWAY TO SAN JOAQUIN HILLS ROAD, CONTRACT NO. 3242(A) - COMPLETION AND ACCEPTANCE RECOMMENDATIONS: 1. Accept the work. 2. Authorize the City Clerk to file a Notice of Completion. 3. Authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code. 4. Release the Faithful Performance Bond 6 months after Council acceptance. 5. Authorize the Mayor and City Clerk to execute an agreement for a guarantee against defective workmanship and materials. DISCUSSION: On June 28, 1999, the City Council authorized the award of the Jamboree Road Rehabilitation contract from East Coast Highway to San Joaquin Hills Road to R.J. Noble Company, of Orange, California. The contract provided for repaving Jamboree Road with rubberized asphalt after existing deteriorated paving was removed by grinding. The contractor did not meet the specified 95 percent relative compaction for some portions of the roadway. Test results from pavement cores taken at four locations in the median lanes in both directions of travel showed compaction of between 90 and 94 percent. Insufficient compaction can result in rutting and /or raveling over a period of time. The County material testing laboratory indicated that the rutting or raveling, if it occurs, will usually occur in the first two years after the rubberized asphalt is placed. Nearly six months after placing the pavement, there is no evidence of any rutting or raveling in the wheel path for the median lanes where low compaction was measured. Two options available to resolve this situation: to enter into an agreement with the contractor which provides for a guarantee for a three -year period, or remove and replace the areas where compaction was found to be less than 95 percent. SUBJECT: JAMBOREE ROAD REHABILITATION — EAST COAST HIGHWAY TO SAN JOAQUIN HILLS ROAD, CONTRACT NO. 3242(A) - COMPLETION AND ACCEPTANCE February 22, 2000 Page 2 Based on the performance of the paving in the last six months and input from the County material testing laboratory it is recommended that the three year guarantee option be taken. This will eliminate the impact to the motoring public and adjacent residences that would occur if the low compaction areas had to be reground and repaved. The proposed guarantee agreement provides for a Letter of Credit in the amount of $200,000.00 be given to the City, which will guarantee against defective workmanship and materials for a period of three years. This amount would provide for pavement replacement as specified in the agreement in the event the City needs to retain a contractor other than RJ Noble. RJ Noble has established an outstanding, long -term relationship with the City and intends to make any necessary repairs required due to defective workmanship during the three year period. A summary of the contract cost is as follows: Original bid amount: $424,537.50 Actual amount of bid items constructed: 409,413.33 Total amount of change orders: 26,202.17 Final contract cost: $435,815.51 The decrease in the amount of actual bid items constructed over the original bid amount resulted from the placement of lower tonnage quantities of asphalt rubber hot mix than estimated the bid item quantities. The final overall construction cost including change orders was 2.7 percent over the original bid amount. A total of three monetary change orders were issued to complete the project. They were as follows: 1. A change order in the amount of $3,600.00 provided for the substitution of wooden posts in lieu of aluminum posts for two informational signs. 2. A change order in the amount of $24,080.06 provided for the installation of an asphalt concrete leveling course prior to cap paving. 3. A change order in the amount of $5,922.11 provided for addition grinding to remove exposed layers of petromat prior to cap paving. The OCTA Arterial Highway Rehabilitation Program (Federal) application the City submitted agreed to 30% AHRP Funds to be matched by 70% City funds. Funds for the project were expended in the following account: Description Account No. Amount AHRP Participation 7285- C5100480 $127,563.19 Gas Tax 7181- C5100480 $308,252.32 \ \mis— l\sys \users\pbw\ shared\ council \fy99- 00\febmary- 22yamboree rehab c- 3242 -a.doc SUBJECT: JAMBOREE ROAD REHABILITATION — EAST COAST HIGHWAY TO SAN JOAQUIN HILLS ROAD, CONTRACT NO. 3242(A) - COMPLETION AND ACCEPTANCE February 22, 2000 Page 3 All work with the exception of punch -list items was completed on November 5, 1999, the scheduled completion date. Respectfully submitted PUBLIC WORKS DEPARTMENT Don Webb, Director By: ai c/ Horst Hlawaty, P.E. Construction Engineer Attachment: Agreement (without exhibit) i:\users\pbvAshared \council \fy99.00 \febmary-22 \jamboree rehab c-3242 -a.doc AGREEMENT FOR GUARANTEE AGAINST DEFECTIVE WORKMANSHIP AND MATERIALS THIS AGREEMENT, made and entered into this _ day of 2000, by and between R. J: NOBLE COMPANY whose business address is 15505 E. Lincoln Avenue, Orange, California. 92856, ( "CONTRACTOR ") and the CITY OF NEWPORT BEACH, a municipal corporation, organized and existing under and by virtue of its Charter and the Constitution and the laws of the State of California, ( "CITY "); RECITALS WHEREAS, CONTRACTOR has constructed the JAMBOREE ROAD REHABILITATION PROJECT from East Coast Highway to San Joaquin Hills Road, within the City of Newport Beach to be known as Contract No. 3242 -A, STPLMA 5151(010) ( "PROJECT "); and WHEREAS, portions of the PROJECT failed to meet the project specifications of ninety - five percent (95 %) relative compaction in the placement of a rubberized asphalt concrete cap in Lane No. 1 and Lane No. 2 in each direction. If the PROJECT were completed in full compliance with the specifications, the project would be covered by CONTRACTOR's one (1) year warranty. CONTRACTOR and CITY have been advised by pavement engineering experts that compaction of less than ninety -five (95 %) can perform satisfactorily and that if defects such as uneven compaction or unraveling were to occur such defects would appear within the first two (2) to three (3) years; and WHEREAS, in consideration of City Council approval of the PROJECT, CONTRACTOR desires to enter into this AGREEMENT, and has agreed to provide a three (3) year term Letter of Credit acceptable to CITY that will allow CITY to use deposited funds to repair any roadway damage related to the reduced compaction, as necessary and other public improvement work required by CITY in connection with the repairs; and WHEREAS, staff has recommended that the PROJECT be accepted as complete at the regular meeting of the City Council on February 22, 2000, subject to CONTRACTOR's execution of this AGREEMENT. NOW, THEREFORE, CITY and CONTRACTOR agree as follows: The PROJECT shall be considered accepted as complete as of the date this AGREEMENT is approved. 2. The term of this AGREEMENT shall be three (3) years from the date of deposit of the Letter of Credit as provided in Paragraph 3 below. 3. Within ten (10) days of City Council approval of this AGREEMENT, CONTRACTOR shall provide CITY with a two hundred thousand dollar ($200,000) Letter of Credit or other similar bank security payable to the CITY in a form acceptable to CITY, to authorize City to call upon the Letter of Credit at any time to make payment to any contractors, subcontractors, and persons furnishing labor, materials and equipment to CITY to repair the PROJECT as required by this AGREEMENT. Repairs to the PROJECT may include, but shall not be limited to; Remove and replace portions of the No. 1 and No. 2 travel lanes and /or left turn lanes, as shown in Exhibit "A ", attached hereto, with a one and one - half inch (1'/i') ARHM overlay on Jamboree Road from Coast Highway to San Joaquin Hills Road in each direction. b. Repair, adjust and /or replace all striping, markings, loops, valves and manholes, as necessary. The above description of items is understood to be only a general description of the repair work, and not a binding description. 4. If at any time during the term of this AGREEMENT, CITY in its own discretion determines the need to repair the PROJECT, CITY may make written demand upon the CONTRACTOR to immediately commence and complete the repair work. If the requested repairs are not commenced within seven (7) days after such demand is made and /or are not thereafter diligently prosecuted to completion and fully completed within thirty (30) days after the making of such demand (or such other time as may be contained in said demand), CITY may then complete or arrange for completion of all remaining work or conduct such remedial activity as in the sole judgment of CITY may be required, and may make demand upon and use funds secured by the Letter of Credit for such repairs. 5. If CONTRACTOR provides CITY with a written dispute of CITY's written demand for repairs within seven (7) days of receipt of CITY's written demand, CITY and CONTRACTOR agree to have a third party pavement engineering expert, agreeable to both and paid equally by both parties, determine the need for repairing the roadway. The determination of the third party expert shall be final as to necessity for and extent of repairs. CONTRACTOR may elect to commence repairs within seven (7) days of the third party expert's determination. If the requested repairs are not commenced within seven (7) days after the third party determination is made and/or repairs are not thereafter diligently prosecuted to completion and fully completed within thirty (30) days after the third parry determination, CITY may then commence or arrange for completion of all remaining work required under the third party determination, and may make demand upon and use funds secured by the Letter of Credit for such repairs. 6. Any repair work shall be completed in compliance with the specifications of CITY Contract No. 3242(A) as approved by the City Engineer. 7. City shall release the Letter of Credit required by this AGREEMENT as follows a. In the event that no roadway repair is required within the term of this AGREEMENT. b. There is security remaining, if any, after securing payment to the contractors, his or her subcontractors and to persons furnishing labor, materials or equipment for all required repair work, plus an amount reasonably determined by the City Engineer to be required to assure the performance of any other obligations secured by the settlement of Security. 8. Indemnity /Hold Harmless. During the three (3) year term of this AGREEMENT, CITY or any officer or employee thereof shall not be liable for any injury to persons or property arising from CONTRACTOR'S failure to meet the ninety -five percent (95 %) compaction specifications for the PROJECT or the acts or omissions of CONTRACTOR, its agents or employees in the performance of this AGREEMENT. CONTRACTOR further agrees to protect, defend, indemnify and hold harmless CITY, its officials and employees from any and all claims, demands, causes of action, liability, damages or loss of any sort, because of, or arising out of the reduced compaction, or uneven compaction of the roadway, or raveling of the pavement surface which may arise during the term of this AGREEMENT. 9. This AGREEMENT shall not affect or otherwise limit or supercede the one (1) year warranty of workmanship or materials required for all other work by CONTRACTOR on the PROJECT. IN WITNESS WHEREOF, CONTRATOR and CITY have executed this AGREEMENT as of the day and year first above written. CITY OF NEWPORT BEACH, R.J. NOBLE COMPANY a municipal corporation M Mayor ATTEST: LaVonne Harkless, City Clerk APPROVED AS TO FORM: Robin L. Clauson, Assistant City Attorney \Mis_1\sys \users \pbw\shared \contracts\fy 98-991ambwee rd. rehab o3242a\agreement guarantee - d noble.doc