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Home My WebLink About09 - Lido Gateway Park - Contract #3155'TO: FROM: BY: SUBJECT: Newport Beach City Council AGENDA ITEM 9 August 10, 1998 Council Meeting MAYOR AND CITY COUNCIL KEVIN J. MURPHY, CITY MANAGER DON WEBB, DIRECTOR OF PUBLIC WORKS DAVE KIFF,'ASSISTANT TO THE CITY MANAGER LIDO GATEWAY PARK — CONTRACT #3155 ISSUE: A request that the City Council formally reject the bids submitted to construct and landscape Lido Gateway Park and to direct staff to re -bid a different project that includes a modified scope of work and a larger project containing both the Lido Gateway and Balboa Peninsula Gateway park parcels. BACKGROUND: The City has proposed constructing and landscaping two parcels near the entrance to the Balboa Peninsula as passive parks. These "Gateway Parks" consist of the Lido Gateway Park (the east parcel) and the Balboa Peninsula Gateway Park (the west parcel). A chronology of events since the project's inception is included as Attachment A. The Public Works Department bid out the construction and landscaping for the first parcel (the east parcel) this Spring. When the initial bids came in significantly higher than projected in the Engineer's Estimate, the City Council directed staff to adjust and re -bid the project. On July 15, 1998, the City Clerk opened the SECOND bids for Lido Gateway (east) parcel. The following bids were read: BIDDER BASE BID AMOUNT W /ADDITIONAL ITEM LOW Katibeh Construction Company $118,195.00 $134,195.00 2 Metro Builders & Engineer's Group $167,167.00 $217,161.00 Public Works Staff again notes that the low base bid is 12.5% above the revised Engineer's Estimate of $105,000. The low base bidder, Katibeh, is a well - qualified General Engineering Contractor who has not performed previous contract work with the City; however, Staffs check with their references and the Contractor's State License Board indicates that Katibeh has successfully completed similar contracts for other Southern California agencies and has no pending actions detrimental to their contractors license, respectively. Newport Beach City Council Agenda Item 9 Paae 2 DISCUSSION and UPDATE: During the week of August 3, 1998, City staff met with park supporters Gail Rosenstein and Helen Japenga to discuss various alternatives in light of the small number (2) of bids received in the second bidding process. The group discussed: • Scaling down the parks' design, especially the lighting and the wall height and length; • Revisiting the type of landscaping proposed for the parks; • Seeking a wider distribution of bid respondents; • Determining whether park supporters would be willing to make additional donations; and • Bidding both parcels together as one project (an action that will delay any park construction until after CSDOC is done with the pump station construction). Park supporters expressed a preference that the designs for the parks should not be diminished. Staff noted that at least two factors may have contributed to the small number of responses to the bid request — (1) the current business activity levels in the region means that fewer bidders are seeking additional work; and (2) the small size of the proposed project Oust the east parcel) may have led some bidders to avoid the project. The group as a whole agreed to recommend that the Council reject the latest bids, re- advertise both projects together, and to seek a wider distribution of respondents. In the meantime, City staff and park supporters would attempt to generate additional donations for the project. Please see Attachment B for a summary of funding actions since the project's inception. RECOMMENDED ACTION: (1) Reject all bids for Contract No. 3155; (2) Revise the Scope of Work to combine the east and west park parcels along Newport Boulevard as one project and to consider any additional cost - saving design modifications; and (3) Continue meeting with donor groups to examine ways to raise additional revenue, if needed, Agenda item Attachment A Balboa Peninsula Gateway Park Chronology of Events 3 • March 1996 -- City proposes purchasing 3531 Newport Boulevard (the "west parcel ") for the Balboa Peninsula "Entryway" Park. Newport Beach resident Jim Thompson proposes raising money from other local residents to purchase the property and then to donate the property to the City for park purposes. • April 1996 — Thompson proposes raising $400,000 — with $300,000 to go towards the parcel's purchase and $100,000 for landscaping. Thompson asks that City cover any landscaping costs above $100,000. City expected to maintain park at about $1,200 per year. • June 1996 — City Council approves "in concept" the donation of the west parcel after purchase by Mr. Thomson. • September 1996 — Thompson adds east parcel (3600 Newport Boulevard) to fundraising effort. Caltrans' asking price is $14,000. Thompson notes that he has raised $50,000 by this date. Council item notes that Thompson and City discuss City paying for' /2 of purchase price of both parcels ($314,00012 = $157,000). Agenda item notes that "City would then budget funds in FY 1997 -98 to landscape (both) parcels as passive parks." Council approves expenditure of $157,000 from Park -in -Lieu fees to "be used as matching funds" to purchase the west (Balboa side) and east (Lido side) parcels. • November 1996 — Thompson notes that he has pledges for $160,000 to cover private donations towards purchase price. Council authorizes staff to work with west parcel owner (Chevron) to purchase property for $300,000. • January 1997 — Council authorizes staff to complete purchase of west parcel. • May 2, 1997 — City completes wire transfer of $302,298.55 to buy west parcel. Funds include $205,735.70 from Park Donation Fund and $96,562.85 from City CIP funds. • June 1997 — City Council approves $40,000 in budget to "augment the Orange Consolidated Sanitation District of Orange County ( CSDOC) contribution of $60,000 to landscape the Balboa Peninsula Gateway Park (west parcel)." • April 1998 — As Arches Interchange project continues, CSDOC begins construction on pump station on west parcel — completion of both Arches Interchange and CSDOC pump station estimated by Spring 1999. • June 1998 — By close of budget year, City spent $24,545 of $40,000 budgeted in FY 97 -98 for Parks. Majority ($22,800) to Lyn Capouya, Inc. for park design work. • June 1998 -- City Council approves $175,000 in FY 1998 -99 budget (including what is now $75,000 from CSDOC) to "provide for the construction of retaining walls and landscape improvements on the 1/10 acre park site located along Newport Boulevard at Short Street." • June 22, 1998 — City Council rejects FIRST bids for Lido Gateway (east) parcel — only two bids received. Lowest bid is 42% higher than Engineer's Estimate. At Council direction, City Public Works staff "reviews scope of work, finds areas to reduce the cost of the project, and rebids project" The re -bid reduces tree sizes, changes the materials for the City's seal, and asks respondents to bid on the park construction and landscaping in the "base bid" and the fiber optic lighting as an ..additional bid item:' • July 15, 1998 — City Clerk opens SECOND bids for Lido Gateway (east) parcel. Agenda Item 9 Page —4 Attachment B Funding Summary • PURCHASE COSTS. The City Council committed to $157,000 to assist in the purchase of the two parcels. To date, the City has paid $96,562.85 toward the purchase of the west parcel, now under title to the City. The east parcel, valued at about $14,000, remains under Caltrans' ownership. Private donations towards the purchase of both parcels have exceeded $214,000.00, with $9,771 in the park donation fund today. • LANDSCAPING COSTS. The City budgeted $40,000 in the FY 1997 -98 CIP and $175,000 in the FY 1998 -99 CIP for park construction and landscaping costs. The City spent $24,545.68 in FY 1997 -98, primarily for architectural services associated with both parks' design. • RECONCILIATION. Given the Council's earlier direction, the City is obligated fund another $60,500 towards park purchase costs in addition to the $175,000 detailed in the FY 1998 -99 CIP. The Engineer's Estimate for the east parcel (Lido side) was $105,000. Assuming that the west parcel's estimate may be 1.5 times the cost of the east parcel, the west parcel's construction and landscaping cost may be $157,500. For both parcels, then, the estimated construction and landscaping cost may be about $262,500. Adding the engraved donor blocks ($2,000.00) and a 10% contingency equates to a $290,750.00 project. Unless modified per the recommended actions, the Gateway Parks project may be about $45,541 short of the funds necessary for completion.