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Home My WebLink About14 - Marina Park Project - Marina Docks (Bid Package 4) - Award of Contract No. 3897-D (CAP09-0070)TO: FROM: PREPARED BY: PHONE: TITLE: ABSTRACT: CITY OF NEWPORT BEACH City Council Staff Report February 10, 2015 Agenda Item No. 14 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director- (949) 644 -3330, dawebb@newportbeachca.gov Iris Lee, Senior Civil Engineer (949) 644 -3323 Marina Park Project — Marina Docks (Bid Package 4) — Award of Contract No. 3897 -D (CAP09 -0070) Staff has received bids for the "Marina Docks" Bid Package, which is the last of four bid packages for the Marina Park Project, and is requesting City Council approval to award the contract to Bellingham Marine Industries, Inc. of Dixon, California. RECOMMENDATION: a) Approve the project drawings and specifications; b) Award Contract No. 3897 -D (Marina Park Project — "Marina Docks ") to Bellingham Marine Industries, Inc. of Dixon, California, for the total bid price of $2,937,661.00, and authorize the Mayor and the City Clerk to execute the contract; c) Establish a contingency of $293,739.00 (approximately ten percent) to cover the cost of unforeseen work; and d) Approve Budget Amendment No. 15BA -029 appropriating $1,676,400.00 from the unappropriated Tidelands Harbor Capital Fund to Account No. 7241- C4002002 for Marina Park. FUNDING REQUIREMENTS: The current Capital Improvement Program budget includes partial funding from the Tidelands Capital Fund for this work. Upon approval of the budget amendment, sufficient funding for the award of this contract is available in the following account: Account Description Account Number Amount Marina Park (Tidelands Capital) 7241- C4002002 $ 3,231,400.00 Total: $ 3,231,400.00 14 -1 Proposed uses are as follows: Vendor Bellingham Marine Industries Bellingham Marine Industries DISCUSSION: Purpose Construction Contract Construction Contingency Total: Amount $ 2,937,661.00 $ 293.739.00 $ 3,231,400.00 The 10 -acre Marina Park Project is located on the bay side of the Balboa Peninsula between 15th Street and 19th Street. This long- planned park project includes construction of a new 23 slip visitor marina and sailing program basin, 10,500 square -foot community center, 11,000 square -foot sailing center, nautical - themed children's playground and picnic area, two half -court basketball surfaces, a fitness circuit, a restaurant to be operated privately under lease, reconstruction of the 19th Street public restroom facility, frontage beach improvements, and 177 on -site parking spaces. Due to the complex and prominently different types of construction operations needed to build this new facility, the Marina Park Project was divided into four general construction plan sets and bid packages. The first two construction bid packages 1) demolished and removed the prior mobile home park; and 2) dredged and constructed the new marina basin, as well as completed the deep foundation work for the new buildings, are now complete. The third construction bid package is constructing multiple new buildings, surface parking lots, park amenities, and landscaping and is currently under construction. The fourth and final construction package, which staff is requesting City Council to award tonight, is for the construction of the new marina's docks. As mentioned and discussed further below, staff is now requesting City Council's review and approval to award Contract No. 3897 -D — Marina Docks for the Marina Park Project, which generally includes the construction of the concrete marina dock system, piles, dock utilities, marina equipment and accessories. Given the recent holidays, staff advertised the construction documents for bids on December 10, 2014 for an extended bid period. At 2:30 PM on January 20, 2015, the City Clerk opened and read out the bids for the "Marina Park Project — Marina Docks' contract work. BIDDER BID AMOUNT Low Bellingham Marine Industries, Inc. $ 2,937,661.00 2 John S. Meek Company, Inc. $ 2,969,060.00 3 Dutra Construction Company, Inc. $ 3,346,000.00 4 R.E. Straite Engineering, Inc. $ 3,491,400.00 The low bid amount submitted by Bellingham Marine Industries, Inc. (Bellingham) is approximately 30 percent higher ($557,661.00) than the Engineer's Estimate of $2,380,000. The disparity between the estimate and actual bid prices reflects the relatively small concrete marina dock market, with an even more limited pool of dock system manufacturers. A comparison of the bids received with the Engineer's Estimate showed relatively consistent pricing on the construction line items, with apparent variations in General Conditions and Mobilization. Typical "soft" and "start-up" costs amount to approximately 10 percent of a total contract amount; however, these bids ranged from 20 to 30 percent. This could represent an on -going upswing of construction costs in the marina docks sector that has not been captured from recent similar project bid data, or an under estimate of a market constraint on special equipment availability and associated mobilization by the consulting engineer. Further bid analysis showed the total bid amount from each bidder is relatively consistent, with the low and second bid within one percent of each other, and that the bids received (although higher than expected) are reflective of regional market rates for the dock system being proposed. City and Consultant Construction Management staffs final conclusion was that the Design Engineer's estimate was unfortunately below current market condition; however, the concrete dock system and utilities specified in 14 -2 the bid package are the systems that the City desires Additionally, changing the dock system type or trying to redesign significant pieces of the dock by utilizing additional value engineering would not provide for the desired end result or yield much cost savings. As a result, staff recommends that the City Council award the contract to Bellingham Marine Industries, Inc. Similar to the other bid packages, upon award of the contract staff will work with the contractor to identify any construction efficiencies and potential means to reduce cost. Staff performed reference checks and confirmed that Bellingham possesses the required state contractor's license classification "A ", work experience and references. Furthermore, Bellingham is one of the leading concrete dock manufacturers in the industry. Pursuant to the contract specifications, the contractor will have 130 consecutive working days to complete the Bid Package 4 construction work. BUDGET SUMMARY: Staff has included a running summary table of the total Marina Park Budget to date for your review (see Attachment B). The all -in estimated total project budget was established at $39,500,000. This cost includes conceptual design and permitting; land acquisition; all soft costs such as project design, geotechnical testing and inspection, and construction management; hard construction cost for all four bid packages, Fixtures Furniture & Equipment; as well as a City Reserve. From the project budget summary table, and now with the completion cost of bid package 1 and 2 fixed, as well as the contract and contingency cost amounts for bid packages 3 and 4 know, the actual total cost of the project is currently projected to be under budget by approximately $515,470 even if all contingencies and reserves are expended (as of this date, the entire City Reserve of $2,081,000 is unspent, as well as about $2,000,000 in construction contingency). The project is also now running ahead of the scheduled Spring 2016 opening and on target for a Winter 2015/2016 opening. ENVIRONMENTAL REVIEW: All significant environmental effects for the Marina Park project have been addressed in the previously - certified Marina Park Environmental Impact Report No. (SCH No. 2008051096) ( "EIR "). The EIR also included mitigation, monitoring & reporting program, and statement of overriding considerations, and the City of Newport Beach intends to use said document for this approval. Copies of the previously prepared environmental document are available for public review and inspection at the City of Newport Beach website at www. newoortbeachca .aov /ceaadocuments. 11*11101110 10 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: Description Attachment A - Location Mao Attachment B - Budget Summary Attachment C - Budget Amendment 14 -3 BAY AVENI IF _ I NEWPORT CHANNEL F W W K PROJECT W.BALBOA BOULEVARD w�� W .00ATION H W W K F co -1 F --1 F- -7 F �mF FRONT WEST PACIFIC OCEAN MARINA PARK - PACKAGE 4 MARINA DOCKS LOCATION MAP a NT S LEGEND MARINA PARK PACKAGE 4 BOUNDARIES CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C- 3897 -D I 2/10/15 14 -4 MASTER BUDGET ATTACHMENT B Items noted in Red are unconfirmed costs Last Updated 1 -30 -15 14 -5 BUDGETED BUDGETED ACTUAL ACTUAL TASK DESCRIPTION DETAIL COST TOTAL DETAIL COST TOTAL COMMENTS 1 CONCEPTUAL DESIGNIPERMITTING $ 1,680,441 $ 1,680,441 Complete 2 LAND ACQUISITION $ 600,000 $ 605,116 $600k cash plus closing fees a SCE Parcel $ 600,000 $ 605,116 3 SOFT COSTS $ 5,035,156 $ 5,023,363 Total Includes $54,034 Design Contingency 4 HARD COSTS $ 29,543,281 $ 29,034,610 Total Includes $2,075,619 Construction Contingency a PACKAGE 1: Demolition and Tree Relocation $ 410,471 Final Total Contract Amount = $337,614 Original Contract $ 405,130 Unlimited Environmental Inc. Remainder of 10% Contingency (Began with $40,513) $ None Used in Contract Change Order No. 1 $ (67,516) Credit for Mobile Homes b PACKAGE 2: Marina Basin Construction $ 3,671,724 Final Total Contract Amount = $4,816,594 Original Contract $ 4,576,079 The Dutra Group Remainder of 10% Contingency (Began with $457,608) $ - Final - Used 6% Contingency Bid Item Adjustment Amount $ (8,127) Final addition /deduction in bid quanties Change Order No. 1 $ (26,543) Deletion of Deadman Support Change Order No. 2 $ 13,565 Install Additional Rock/Fabric for GS Facility Pad Change Order No. 3 $ 10,493 Changed Condition regarding American Legion wall Change Order No. 4 $ 243,000 Excavation of additional 4000 cy sutible beach sand Changed sub - surface condition on bulkhead install Removal of unknow & abandon utilities & structures. Change Order No. 5 $ 34,302 WiFi, Added Sand 18th ST, grout tie -back holes c PACKAGE 3: Community Center and Park $ 17,421,081 Original Contract $ 18,748,000 KPRS Construction Services Inc. Remainder of 10% Contingency (Begin with $1,874,800) $ 1,781,853 9.5% Contingency Remaining Change Order No. 1 $ 27,247 Additional asbestos, footing /concrete removals in Demo Change Order No. 2 $ 948 Delay Cost associated with Pad delievery Change Order No. 3 $ 17,026 Change Order No. 4 $ 47,726 d PACKAGE 4: Docks $ 2,217,741 Includes roughly 90k in dock FF &E Original Contract $ 2,937,661 Not Awarded Yet Remainder of 10% Contingency (Begin with $221,774) S 293,766 10% Contingency Remaining Change Order No.1 5 FIXTURES, FURNISHINGS, & EQUIPMENT (FF &E) $ 560,000 $ 560,000 6 CITY RESERVE $ 2,081,000 $ 2,081,000 PROJECT TOTAL $ 39,500,000 $ 38,984,530 Items noted in Red are unconfirmed costs Last Updated 1 -30 -15 14 -5 ATTACHMENT C City of Newport Beach NO. BA- 15BX029 BUDGET AMENDMENT 2014 -15 AMOUNT: $1,s7s,aoo.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations �X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations form the Tideland Harbor Capital Fund for Marina Park Project as the project is currently only partially funded. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 240 3605 REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIAT IONS (3603) Amount Description Debit Tidelands Harbor Capital Fund -Fund Balanc $1,676,400.00 Description Description Division Number 7241 Tidelands Harbor Capital Fund Account Number C4002002 Marina Park Project Division Number Account Number Automatic Signed: (A/ zw Fina'n'cW Approval:'Finance Director Signed: �— �.e--- �2��.�1�,�\,� Admims ve Approval: City Manage Signed: City Council Approval: City Clerk Credit $1,676,400.00 ,q-3- 1S Date Ly11s Date Date 14 -6