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Home My WebLink About12 - C-3270 Bonita Canyon Sports ParkCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 12 July 22, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Michael J. Sinacori, P.E. 949 - 644 -3311 msinacori @city. newport- beach. ca. us SUBJECT: BONITA CANYON SPORTS PARK— COMPLETION AND ACCEPTANCE OF CONTRACT NO. 3270 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 1 year after Council acceptance. PROJECT BACKGROUND AND HISTORY: On May 9, 2000, the City Council awarded the $6,276,000 Bonita Canyon Sports Park Improvements contract to Castello, Inc., of Escondido, California. The park has three distinct use areas - East Park, Mid Park, and West Park. The contract included the following basic park components: (a) Three 200 -foot youth baseball fields (b) One multi - purpose baseball /soccer field (c) Mid Park - three mid -youth soccer fields (d) West Park youth soccer fields (f) East Park restroom and equipment storage facilities (g) East Park on the site parking for 240 vehicles (h) West Park on site parking for 115 vehicles (i) East Tot Lot Q) Open spaces with earth berms, pedestrian walking trails, and security lighting (k) Picnic areas In addition to the above described park components, several alternative bid items were considered in the contract documents and added to the project by other Council actions. These items were: 1. West Park Open Space (area south of soccer fields) along MacArthur Boulevard to the Manning Park (approximately 2000 feet) 2. West Park Tot Lot 3. West Park tennis courts SUBJECT: BONITA CANYON SPORTS PARK— COMPLETION AND ACCEPTANCE OF CONTRACT NO. 3270 July 22, 2003 Page 2 4. West Park basketball courts 5. Mid Park restroom facility 6. Five decorative park signs (completed by General Services Department Staff) (Bold items were approved Alternative Bid Items at time of Award) In November 2001, work on the project stopped due to financial difficulties of the general contractor, Castello, Inc. (Castello). The park was approximately .88% complete and the construction was scheduled for completion in February 2002 with five months of plant establishment and maintenance to follow. The park opening was being planned for July 2002. A number of meetings were held in November 2001 as Castello attempted to obtain financial assistance from the bonding company for the project, The St. Paul Company (Surety). In December the Surety rejected their request. Because of this, the City terminated the Contractor's right to work on the project by letter on December 21, 2001, and also formally requested that the Surety complete the project. On January 22, 2002 the City Council approved the Takeover Agreement with the Surety. The Agreement had stipulated the work begin within 30 days of that approval and be completed within 90 days (which was the remaining contract time for Castello) and the 5 months of plant establishment would begin. The Surety hired Erreca's, Inc to be their completion contactor along with many of the original sub - contractors. As they began work it became painfully apparent that Castello was far from finished and the 90 days was not enough time to complete the project. It was also apparent the cost to finish the project would far exceed the original bid amount. In addition to the problems at the beginning of the take over, the landscape sub- contractor began to have financial difficulties and was removed from the project in November 2002. A new landscape sub - contractor was brought on board and recently completed the required work. St. Paul has financed the completion at their cost and has spent approximately $3,670,000 to date to complete the project (see attached letter). At the time when the Surety took over the contract, approximately 88% or $5,667,365 had already been paid to Castello. The total cost to date to complete the park is over $9.3 million dollars. Since the City's costs are capped at $6.8 million, the Surety is responsible for the overage which currently totals over $2.5 million. The Surety has estimated that their costs at final completion may rise to over $3 million. NOTICE OF COMPLETION AND CURRENT STATUS: The contract has now been completed to the satisfaction of the Public Works, General Services, and Recreation and Senior Services Departments with the exception of West Park's 90 day maintenance. A summary of the contract cost is as follows: Original Award amount (Including West Park Tot Lot and $6,276,000.00 Mid -Park Restroom): Total amount of change orders: $559,692.66 Final contract cost: $6,835,692.66 SUBJECT: BONITA CANYON SPORTS PARK — COMPLETION AND ACCEPTANCE OF CONTRACT NO. 3270 July 22. 2003 Page 3 Attached is a summary of the 38 change orders. As indicated above, the Surety has expended approximately $2.5 million, to date, in additional funds. For that reason, along with the complications related to this project, they have respectfully requested the relief of liquidated damages for the contract which are estimated to be $280,000 based upon 576 days beyond contract completion date at $500 per calendar day. In light of the amount of funding that the Surety has provided to complete the project, staff agrees that the liquidated damages should be waived. Funds for the project were expended from the following accounts: Description Bonita Canyon Sports Park (Bonds) Bonita Canyon Sports Sewer Improvements Freeway Reservation Park Sewer Main Improvement Program West Park Open Space Improvements (CIOSA) MacArthur Boulevard Landscaping Park and Field Renovation Bonita Canyon Sports Park - Tennis & Basketball Court Improvements Account No. Amount 7441- C4120434 $6,167,500.00 7532- C4120434 100,000.00 7021- C4120434 48,000.00 7531- C5600292 34,808.30 7432- C5100657 318,294.66 7015- C5100599 33,607.70 7021- C4120431 13,482.00 7021- C4120616 120,000.00 Total $6,835,692.66 After the project is closed there will be $81,701.34 of funds remaining. These funds represent the value of $54,892 credit for the West Park 90 day maintenance period and a portion of the $40,493.88 reimbursement for irrigation water used on the project. These funds will be used by the General Services Department to complete the 90 day maintenance in the West Park and other requested improvements necessary to open the park. The formal opening of East and Mid -Parks is planned for August 24, 2003 and a portion of these funds will be used by the Recreation and Senior Services Department for this purpose. West Park will be open at the completion of the maintenance period later in the Fall. Environmental Review: On March 14, 2000 City Council approved a Mitigated Negative Declaration for this project, which is on file with the City Clerk's Office. , - Prepared by: I Submitted J. SiKacori, P.E. I Civil Engineer Approv I Recommended by: Mari Knight, Z ecreat n and Senior Services Director Attachments: Letter from St. Paul Surety Dated July 15, 2003 Change Order Summary Badum s Director Approval Recommended by: David E. Niederhaus General Services Director StPaul Surety July 15, 2003 United States Fidelity and Guaranty Company 31919 First Avenue South, Suite 100 Federal Way, WA 98003 Talephone:(253) 945 -1540 Fax:(253) 945 -1559 Mailing Address P.O. Box 4669 Federal Way,WA 96063 -4669 'RYA FACSIIYIILE (949) 644 -3318 AND FmST CLASS MAIL Mr. Steve Badum City of Newport Beach 3300 — Newport Blvd. Newport Beach, CA 92658 -8915 Re: United States Fidelity and Guaranty Company (USF &G) Principal: Castello, Inc. (Castello) Claim No.: 040OKFI654 46H001 (1) (57) Bond No.: KF1654 Completion Contractor: Erreca's, Inc. (Erreca's) Obligee: City of Newport Beach (City) Project: Bonita Canyon Sports Park, Contract No. C -3270 Subject: Summary of Takeover Agreement and Final Settlement Dear Mr. Badum: This letter is written to follow discussions with the City and Erreca's. Below, is an itemized breakdown of the accounting on this project: Final Contract Balance $6,835,692.66 Amount Paid to Date 67505,772.39 Subtotal 329,920.27 Retention Being Held 325,544.93 Progress Payment #28 4,375.34 The total amount due on the contract to USF &G is $329,920.27. There are pending CCO's as follows: additional landscaping and sidewalk in West Park (CCO 36), deleting the 90 day maintenance period from West Park (CCO 37), and the credit for water bills (CCO 38). There is a tentative understanding that no liquidated damages will be assessed on this project against USF &G by the City. If the City counsel rejects the current settlement proposals and proceeds with liquidated damages, USF &G reserves the right to renegotiate and pursue additional affirmative claims under the contract. With acceptance of (CCO 36), the City will be accepting West Park prior to the maintenance period being completed. All remaining maintenance work will be completed at the cxpen.se of the City. All warranties will be from the date of acceptance by the engineer per specification. All in place Castello work that will require warranty will be covered in accordance with the terms of the contract. W. Steve $adum July 15, 2003 Page 2 By way of summary, USF &G has expended $3,671,636.14 for performance of the contract and payment of subcontractors and suppliers of Castello (USF &G Payment history attached). In addition, USF &G has expenses of some $17,376.53 for attorney's fees, consultants and miscellaneous expenses. Currently, USF&G has a pending pay estimate due Errecas's in the approximate amount of $180,000.00. USF &G also anticipates additional costs and fees related to performance and fmal payments to Erreca's, final settlements and/or final retention payments to subcontractors and suppliers, additional legal fees and costs in pursuing Castello, individual indemnitors and Flintridge Landscaping, Inc. for potential recovery. It is anticipated that USF &G's net loss after completion of our bond obligations will exceed $3,000,000.00. We wish to thank you for your attention to this matter, and look forward to your prompt response to final settlement of this contract. Sincerely yours, United States Fidelity and Guaranty Company Peter At stall Sr. Bond Claims Specialist Phone: (253) 945 -1542 PAF /bd cc: Mr. Mike Sinacori, City of Newport Beach Ms. Jo Elsmore, Erreca's, Inc. G:\ SUREfYTjellstad \Castello,laclKrl654 \I -City of Newport Re=h\Radum- 071503.doc Bonita Canyon Sports Park Change Order Summary Change Order No. 1 — Mid Park Wet Soils Placing Geotextile Fabric 8XT per Field Meeting on 7/10/2000 $16,243.00 Fill Test Holes $1,850.00 Extra Excavation @ Canyon Drains @ East Park $30,085.00 Grading "Credit" at Mid Park ($14,079.00) Subtotal CC01 $34,099.00 Total $32,000.00 Change Order No. 2. - Request for Time Extension from Soils Issue (30 days) $0.00 Change Order No. 3 - Modifications to Sewer Mains for Pacific Bell Pothole at Pacific Bell $824.00 Add for Realignment of Sewer line on Ford Road $7,940.35 Additional Depth of Sewer $5,834.40 Delete Sewer Cleanout/PVC ($3,300.00) Total $11,298.75 Change Order No. 4 - Modification of Storm Drain Pipe Material Substitute SDR -35 for specified Schedule 40 PVC ($2,133.00) Substitute HDPE for RCP ($3,481.00) Labor Credit ($7,350.00) HDPE Special fittings $2,968.00 Total ($9,996.00) Change Order No. 5 - Modification to Sidewalk Base Material Credit for deleting Class II base from under all sidewalks ($32,572.00) Credit for not cutting subgrade 4" to receive base ($3,434.00) Credit for reducing walks to 4" thickness ($13,096.00) Installation of wire mesh to 10' walks $5,597.55 Total ($43,504.45) Change Order No. 6 - Structural Changes at Dissipater Structure $1,700.16 Change Order No. 7 - Interfering Utilities (ACP Water Main) Abandon in place 12 inch transite water main $5,000.00 Markup (10 %) $500.00 Total $5,500.00 Change Order No. 8 - Reduction to Street Patching Efforts ($3,856.00) Changer Order No. 9 — Additional Cost for Sewer Main (partial paid by Pacific Bell) Slurry backfill for sewer 8/4/2000 $3,086.60 Hard Rock Excavation 8/7 & 8/8 $4,767.40 Remove Excess Rock 8/9/2000 $2,816.00 Remove Excess Rock 8/10 & 8/11 $5,637.55 Slurry backfill for sewer 8/7/2000 $4,202.00 Sewer Pothole /Delay on Ford Road $3,000.00 Total $23,509.55 Page 1 Bonita Canyon Sports Park Change Order Summary Change Order No. 10 — City Requested change to berms along MacArthur Blvd. Change Order No. 11 —Value Engineering Changes to Irrigation System Change Order No. 12 —Changes for Electrical Connections Penetrate Edison Vaults Credit for DG Pads vs. Concrete Pads Total Change Order No. 13 - Electricairrelephone Services to Site Install telephone and Edison services to three restrooms Credit for dual trenching of edison and street light conduits Relocate 8" subdrain around 66" outlet structure Total Change Order No. 14 — Powder Coat Cable Fencing and Stabilize Outlet Structure Stabilize the outlet structure Powder coat cable fencing in medians Total Change Order No. 15 — Modification to Irrigation Control Valves Epoxy coat master irrigation valves Re- install T -lock plastic lining into IRWD manhole Total $6,108.00 ($101,870.00) $3,300.00 ($408.00) $2,892.00 $59,072.85 ($100.00) $1,486.10 $60,458.95 $5,716.30 $1,595.00 $7,311.30 $6,119.30 $1,050.00 $7,169.30 Change Order No. 16— Subsitution of Bleachers and storm drain junction structure installation Substitute Dant - Clayton Co. bleachers for Tomark Sports bleachers $10,208.00 Add JS #1 junction structure and manhole on 66" storm drain $4,162.40 Total $14,370.40 Change Order No. 17 - Add back into contract Tennis and Basketball Courts Add Bid Alternate 3 "Tennis Courts' Add Bid Alternate 4 "West Park Basketball Court" Total Change Order No. 18 — Provide and Install conduit for electrical and irrigation Provide and install irrigation sleeving Install electrical conduit to provide power for West Park restroom Provide and install roof framing valley hangers and modified beams for restrooms Total Change Order No. 19 — Modifications to utilities due to conflicts in plans Modify ballfield pole footing Install modified domed gratings on storm drain collector inlets Total $85,000.00 $28,000.00 $113,000.00 $2,750.00 $5,372.00 $2,595.24 $10,717.24 $1,194.16 $8,570.88 $9,765.04 Page 2 Bonita Canyon Sports Park Change Order Summary Change Order No. 20 — Modifications to irrigation hardware due to conflicts in plans Increase POC box size $9,912.00 Credit for 4' chain like fencing modifications ($3,450.00) Total $6,462.00 Change Order No. 21 — Modifications to restroom roof, drinking fountain and slope work Install modified copper restroom roof crickets $1,900.00 Repair slope washouts in West Park $3,291.00 Provide and install ceramic tile drinking fountain lid at restrooms $1,951.00 Total $7,142.00 Change Order No. 22 — Modification to planting palate due to tree unavailability Relocate and plant 36" Agonis $8,000.00 Credit for supplying 15 gallon box trees ($3,045.00) Loading and unloading of box Agonis trees $1,822.00 Restocking fee from Valley Crest Landscaping $2,900.00 Deliver and place 36" box trees $1,250.00 Credit for supplying 24" box trees ($7,000.00) Total $3,927.00 Change Order No. 23 — Addition of West Park Landscaping and Irrigation Add West Park Alternate 1 into the contract $332,668.70 Add additional office and field overhead $3,935.00 Total $336,603.70 Change Order No. 24— Parking lot weedkill prep, slope repairs and misc. painting Provide and place week kill at parking lots $2,150.00 Repair slope washouts in West Park open space $3,207.00 Paint baseball field poles glossy black $2,000.00 Total $7,357.00 Change Order No. 25 — Modifications to planting and irrigation materials Extra application of fertilizer $1,320.00 Install oversize tree staking $2,561.90 Asphalt material price increase 50% allocation agreement $3,575.00 Modifications to soil amendments per agreed upon pricing ($1,637.63) Total $5,819.27 Change Order No. 26 — Modifications to tree planting, slopes and seed materials Provide and install additional soil for added berms $11,250.00 Increase the seed rate of Ballfield 1A mix $3,477.86 Provide additional screening trees in south West Park $1,375.00 Provide additional screening trees in mid West Park $2,310.00 Provide and install jute netting $4,770.00 Total $23,182.86 Change Order No. 27 — Changes to Basketball and Tennis Courts $22,016.38 Change Order No. 28 — Changes to restrooms and backstops $6,961.14 Page 3 Bonita Canyon Sports Park Change Order Summary Change Order No. 29 — Provide bathroom mirrors, upgrade trees, and mortar in pavers $15,323.77 Change Order No. 30 — Provide in- process modifications to planned facilities Provide and install "skate stopper" bolting on handrails throughout the park $5,235.48 Prime and paint tree grates in the play areas $8,778.92 Provide and install infield irrigation modifications $6,195.94 Total $20,210.34 Change Order No. 31 — Provide multiple items Add Soil Amendments $4,195.14 Modify Restroom Partitions to match walls $1,680.00 Modify restroom doors $1,666.50 Relocate balifield sprinklers to 60' radius $2,503.08 Raise water access manhole to grade $5,661.05 Add catch bollards to bar swing gates $2,022.02 Raise 4' chain link fencing at midpark to match sidewalk $2,777.50 Modify irrigation heads at midpark $3,365.17 Modify hyroseed mix design ($1,862.40) Credit for rototilling deletion ($24,089.00) Provide and install anti - graffiti paint on pilasters $899.91 Add misc. plants at Eastpark $149.59 Stain drinking fountains to match pavers $2,649.74 Extra work to chip back block wall $194.43 Add mid rails to tennis court fencing $1,706.50 Add catch basin at West Park $944.35 Total $4,463.58 Change Order No. 32 — Provide additional SWPP work along MacArthur Boulevard Vold Change Order No. 33— Provide drainage inlets and mulch binder Add two curb drains $11,037.79 Add three drains adjacent to the West Park restroom $3,316.33 Add binder to mulch topdressing $8,545.61 Total $22,899.73 Change Order No. 34 — Provide additional catch basin and inlet piping at Mid Park restroom Install additional storm drain inlet and catch basin at Mid Park restroom 2451.71 Provide watering support services by hand for installed planting 2664.33 Total $5,116.04 Change Order No. 35 — Provide wire mesh grill backing in park restrooms $5,206.06 Change Order No. 36 — Provide misc. changes to the West Park landscape and drainage Landscaping misc. clean up items $6,883.00 Storm drain inlet adjustments and curb drain installations $3,925.00 Remove and replace sidewalk for curb drains in West Park $3,465.20 Provide 2 extra stock removable bollards $400.00 Markup $1,140.23 Total $15,813.43 Page 4 Bonita Canyon Sports Park Change Order Summary Change Order No. 37 — Credit for delayed 90 day West Park maintenance ($54,892.00) Change Order No. 38 — Credit for water billing during construction and maintenance ($40,493.88) Total Change Orders $559,692.66 Page 6