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Home My WebLink About07 - 2013 -2014 Streetlight Improvement Project - NOC and Acceptance of Contract No. 5495 (CAP14-0016)CITY OF NEWPORT BEACH City Council Staff Report January 27, 2015 Agenda Item No. 7 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director- (949) 644 -3330, dawebb @newportbeachca.gov PREPARED BY: Peter Tauscher, Civil Engineer PHONE: (949) 644 -3316 TITLE: 2013 -2014 Streetlight Improvement Project - Notice of Completion and Acceptance of Contract No. 5495 (CAP14 -0016) ABSTRACT: On March 25, 2014, City Council awarded Contract No. 5495, 2013 -2014 Streetlight Improvement Project to California Professional Engineering, Inc. (CPE), for a total contract cost of $468,700.00 with a $47,300.00 (10 percent) allowance for contingencies. The required work is now complete and staff requests City Council acceptance and close out of the contract. RECOMMENDATION: a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after acceptance by the City Council. FUNDING REQUIREMENTS: Funds for the construction contract were expended from the following account: Account Description Account Number Amount General Fund 7013- C2201000 $521,452.16 Total: $521,452.16 7 -1 DISCUSSION: Overall Contract Cost /Time Summary Awarded Contract Amount Final Cost at Contingency Completion Allowance or Allowed Contract Time (days) 1 105 Actual % Due to :,ontract Directed Change Change 11.3% -4.4% Actual Time Under f-1 or Over N % Due to Unforeseen Change 30 The contract replaced 129 existing streetlight fixtures with new energy efficient LED streetlight fixtures and upgraded the existing streetlight circuit per the City's Streetlight Replacement Master Plan. The project area included Irvine Avenue from north of Santiago Road to Tustin Avenue, and a portion of the Westcliff neighborhood. The contract was completed to the satisfaction of the Public Works Department. A summary of the contract cost is as follows: Original bid amount: $ 468,700.00 Actual cost of bid items constructed:$ 542,198.50 Total change orders: $ - 8,246.34 Liquidated damages: $ - 12,500.00 Final contract cost: $ 521,452.34 The final construction contract cost was approximately 11.3 percent over the original contract amount, which is slightly more than the allotted 10- percent contingency. The bulk of the cost increase was caused by the unforeseen need to replace a large portion of existing deteriorated electrical conduit. Two change orders were executed; the first change order was a reimbursement to the City for making emergency repairs caused by CPE. The second change order was providing the contractor extra days needed for the installing the additional conduit. CPE exceeded the allotted contract working period by 30 days often times not appearing for work; supplying the project with unacceptable materials that were subsequently rejected; and providing insufficient staffing. CPE also repeatedly failed to meet construction milestones established for the project. On October 13, 2014, CPE was notified that they would be subject to the agreed liquidated damages in the amount of $500.00 per day following the contract completion date of October 17, 2014. Subsequently, CPE did increase its staffing and was able to complete the contract 30 days after the contract completion date. Given CPE's renewed demonstration to work with City staff, liquidated damages were limited to 25 days. CPE was given every opportunity to complete the work on time. Staff feels it is appropriate to assess 25 days of liquidated damages at $500.00 per calendar day for late completion as specified in the Contract Specifications. A summary of the project schedule is as follows: Estimated Completion Date per 2014 Baseline Schedule September 19, 2014 Project Awarded for Construction March 25, 2014 Contract Completion Date with Approved Extensions October 28, 2014 Actual Substantial Construction Completion Date December 12, 2014 ENVIRONMENTAL REVIEW: City Council found this project exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) 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. 7 -2 NOTICING: This 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). In addition, the City Clerk will be filing a Notice of Completion for the project as a result of this action. The Notice Inviting Bids was advertised in the City's official publication and in construction industry publications. ATTACHMENTS: Description Attachment A - Location Map Attachment B - Letter to California Professional Engineering dated October 13, 2014 7 -3 JP Q� P� �s "areiHC 5�P NF P LS, 5P NTS v V vvvvvvvvvv r.A, HEATHER SANE I FGFND CONSTFUCTION �� IMITS NEWPORT BACK BAY STREETLIGHT CIRCUIT SLD0079 BACK BAY STREETLIGHT CIRCUIT SLD0075 2013 -2014 STREETLIGHT CITY OF NEWPORT BEACH IMPROVEMENT PROJECT PUBLIC WORKS DEPARTMENT LOCATION MAP C -5495 1/27/15 7 -4 ATTACHMENT B CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT David A. Webb, Public Works Director October 13, 2014 Van Nguyen California Professional Engineering, Inc. 929 Otterbein Avenue, Unit E Rowland Heights, CA 91748 Subject: 2013 -2014 Streetlight Improvement Project (C -5495) Liquidated Damages Assessment Dear Mr. Nguyen, This is to advise you that as specified in the contract documents for the 2013 -2014 Streetlight Improvement Project, Contract (C- 5495), California Professional Engineering, Inc. (CPE) had seventy - five (75) consecutive working days to complete all work under this contract. The 'Notice to Proceed' (NTP) was issued on May 23, 2014 for work to begin on June 2, 2014. Per the NTP and approved additional working days added for unplanned work, the contract completion date is Friday, October 17, 2014. In the field meeting, an updated schedule was requested by the City on Tuesday, October 6, 2014 and still has yet to be provided to the City for review. CPE shall be subject to liquidated damages per Section 6 -9 Liquidated Damages of the contract at $500.00 per calendar day for failure to complete the work within the allotted time. Upon multiple occasions Project Inspector, Frank Martin, and me observed CPE failing to show up for work or with limited crews adding to the delayed completion. Regular project meetings were conducted and during those meetings CPE was notified to work with SCE and subcontractor to complete the project. You are hereby notified that CPE has until October 17, 2014 to respond in writing to this letter with an action plan to complete this project in a suitable manner. In case of non - response, the City will consider CPE has agreed to the above liquidated damages amount and that such damages will be deducted from future progress and retention release payments due CPE. Sincerely, / Cif -w� v Peter Tauscher, P.E. Civil Engineer Cc Mark Vukojevic, City Engineer Frank. Martin, Senior PW Inspector Leonie Mulvihill, Asst. City Attorney 100 Civic Center Drive • Post Office Box 1768 a Newport Beach, California 92660 (P.O. Box 92658 -8915) Telephone: (949) 644 -3330 • Fax: (949) 644 -3308 • www.newportbeachca.gov I: 1Usem1PBW1Shamd \Cont,acts\FY14 -15 CURRENT PROJECTS@00- STREETS AND DRAINAGBC -5495 -FY 13-14 Ste tfight Improvement CAP14- MMotloe of Uquideted Damages- 101014.docx . 1 - 7 -5