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Home My WebLink About13 - Wayfinding Sign Project�EWpaRr CITY OF NEWPORT BEACH cq�FORNP City Council Staff Report Agenda Item No. 13 March 8, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Stephen G. Badum, Public Works Director 949 - 644 -3311, sbadum(o)newportbeachca.gov PREPARED BY: Peter Tauscher, Junior Engineer c APPROVED: TITLE: WAYFINDING SIGN PROJECT — AWARD OF CONTRACT No. 4040 ABSTRACT: City staff was requested to explore and develop a Wayfinding sign package to assist guests visiting the City with locating major destination points. Community support groups have pledged to contribute approximately 62 percent of the cost. Staff received construction bids for fabrication and installation of the Wayfinding Sign project and is requesting City Council's direction whether or not to proceed with award of the project to Censource, Inc. RECOMMENDATIONS: Council to select one of the following two options: 1. Award the project and proceed with the work as follows: a) Approve the project drawings and specifications, b) Approve Budget Amendment No. 11- recognizing a contribution of $60,300 from Visit Newport Beach, Inc. and various business improvement districts and appropriating $60,300 to Account No. 7251- C3002011; and transferring $48,700 in project savings from Account No. 7013- C2002014 and $3,000 in project savings from Account No. 7017- C8002026 to Account No. 7014- C3002012 for a total appropriation of $112,000.00 to cover the cost of the project. All contributions are to be collected and deposited in the project account prior to proceeding with the contract award. c) Award Contract No. 4040 to Censource, Inc. for the Total Bid Price of $97,551.16 and authorize the Mayor and the City Clerk to execute the contract; and d) Establish a contingency of $14,448.84 (15 %) to cover the cost of unforeseen work. 2. Reject all bids and provide staff direction on how to proceed with the project WAYFINDING SIGN PROJECT — AWARD OF CONTRACT No. 4040 March 08, 2011 Page 2 DISCUSSION: At the August 10, 2010 study session, staff reviewed the history and status of the Citywide Directional and Wayfinding Sign Program and presented a cost estimate for fabricating and installing 65 directional signs. In response, Council directed staff to competitively bid the project to determine the actual cost to complete the program. At 10:00 a.m. on February 16, 2011, the City Clerk opened and read the following bids for this project: TOTAL BID AMOUNT $ 97,551.16* $119,426.00 $121,990.00 $146,153.00 $147,455.00 $154,138.74 ** $161,150.00 $170,168.00 $178,506.00 As -bid amount is $99,096.32 "* As -bid amount is $154,138.76 The low total bid amount was approximately 45 percent below the engineer's estimate. The engineer's estimate was developed based on the unit prices developed by the consultant on recently completed projects. The unique nature of the project and current competitive construction market most likely contributed to the disparity between the received low bid and staffs cost estimate. The low bidder, Censource, Inc., possesses a California State Contractor's License Classification "C-45" as required by the project specifications. Although Censource does not have significant experience on municipal projects, a check of its references shows Censource has satisfactorily completed similar projects for the Honda Center, Vons Supermarket, Safeway Supermarket, and United Ports of San Diego. Censource confirmed the validity of its corrected bid. The project consists of removing existing wayfinding directional signs; fabricating and installing new w ayfinding s igns; a nd incidental w ork i tems as required by the Contract documents. Pursuant to the Contract specifications, Censource will have 75 consecutive working days to complete the construction. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act ( "CEQX) pursuant to Section 15301 (minor alterations of existing public facilities with negligible expansion of the facilities) 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. BIDDER Low Censource, Inc. 2 Sign and Services Company 3 PVL Signs and Graphics 4 Architectural Graphics, Inc 5 Clear Sign & Design, Inc. 6 Outdoor Dimensions 7 A Good Sign 8 G.J. Neon Signs, Inc. 9 Bravo Sign & Design TOTAL BID AMOUNT $ 97,551.16* $119,426.00 $121,990.00 $146,153.00 $147,455.00 $154,138.74 ** $161,150.00 $170,168.00 $178,506.00 As -bid amount is $99,096.32 "* As -bid amount is $154,138.76 The low total bid amount was approximately 45 percent below the engineer's estimate. The engineer's estimate was developed based on the unit prices developed by the consultant on recently completed projects. The unique nature of the project and current competitive construction market most likely contributed to the disparity between the received low bid and staffs cost estimate. The low bidder, Censource, Inc., possesses a California State Contractor's License Classification "C-45" as required by the project specifications. Although Censource does not have significant experience on municipal projects, a check of its references shows Censource has satisfactorily completed similar projects for the Honda Center, Vons Supermarket, Safeway Supermarket, and United Ports of San Diego. Censource confirmed the validity of its corrected bid. The project consists of removing existing wayfinding directional signs; fabricating and installing new w ayfinding s igns; a nd incidental w ork i tems as required by the Contract documents. Pursuant to the Contract specifications, Censource will have 75 consecutive working days to complete the construction. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act ( "CEQX) pursuant to Section 15301 (minor alterations of existing public facilities with negligible expansion of the facilities) 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. WAYFINDING SIGN PROJECT — NOTICING: AWARD OF CONTRACT No. 4040 March 08, 2011 Page 3 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). The Notice Inviting Bids was advertised in the City's official publication and in construction industry publications. FUNDING AVAILABILITY Four support groups have agreed to contribute a total of $60,300.00 towards the project construction cost, which amounts to nearly 62 percent of the contract bid amount. Staff recommends delaying contract execution until all contributions are received. Contribution sources are as follows: CONTRIBUTION SOURCE Visit Newport Beach, Inc.* Marine Avenue Business Improvement District Balboa Village Business Improvement District Corona del Mar Business Improvement District Total AMOUNT $50,000.00 $ 3,300.00 $ 3,000.00 $ 4,000.00 $60,300.00 "Visit Newport Beach is wholly funded with an 18% TOT allocation from the City and TBID assessments from several hotels in Newport Beach. This $50,000 is being contributed from the City's TOT allocation funding source for the promotion of Newport Beach. Upon approval of the budget amendment, sufficient funds are available as follows: Account Description Account Number Amount Contributions 7251- C3002012 $ 60,300.00 General Fund 7014- C3002012 51,700.00 $ 112,000.00 Proposed uses are as follows: Vendor Purpose Amount Censource, Inc. Construction Contract $ 97,551.16 Censource, Inc. Construction Contingency 14,448.84 Submitted by: Total: $ Badum s Director A. Locati on Map B. Budget Amendment 112,000.00 Wayfinding Sign Project — Location Map C -4040 City of Newport Beach BUDGET AMENDMENT 2010 -11 EFFECT ON BUDGETARY FUND BALANCE: 7013 Street Increase Revenue Estimates X C2002014 Increase Expenditure Appropriations AND X Number Transfer Budget Appropriations SOURCE: Account Number C8002026 from existing budget appropriations X Number from additional estimated revenues Misc & Studies Account from unappropriated fund balance EXPLANATION: NO, BA- 11 BA -037 AMOUNT: 8112,000.00 Increase in Budgetary Fund Balance Decrease in Budgetary Fund Balance PX No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations to recognize a contribution from Visit Newport Beach, Inc. and various business improvement districts and appropriate the funds to the Wayfinding Sign Project. Also, to transfer project savings from the Westcliff Drive Median Renovation account and the Tsunami Warning System account to the Wayfinding Sign Project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Amount Debit Credit REVENUE ESTIMATES (3601) Fund /Division Account Description 5100 5937 Public Works: Engineering - Wayfinding Sign Contribution $60,300.00 EXPENDITURE APPROPRIATIONS (3603) Description Division Number 7013 Street Account Number C2002014 Westcliff Drive Median Renovation Division Number 7017 Automation /Communication Account Number C8002026 Tsunami Warning System Division Number 7014 Misc & Studies Account Number C2002014 Wayfinding Sign Project Signed: Fina ial Approval: AbilniStrative Services Director Signed: Approval: City Signed: City Council Approval: City Clerk $48,700.00 $3,000.00 " Automatic $112,000.00 Date Date