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Home My WebLink About11 - Approval of Budget Amendment Pertaining to MacArthur Bouelvard Widening Project - Segment 2 Contract No. 2825December 14, 1998 CITY COUNCIL AGENDA ITEM NO. 11 TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: PUBLIC WORKS DEPARTMENT SUBJECT: APPROVAL OF BUDGET AMENDMENT PERTAINING TO MACARTHUR BOULEVARD WIDENING PROJECT — SEGMENT 2 CONTRACT NO. 2825 RECOMMENDATIONS 1. Approve Amendment No. 1 to the Professional Services Agreement with AGRA Earth and Environmental authorizing $33,000 for additional materials testing services; and authorize the Mayor and City Clerk to execute the Amendment. 2. Approve Amendment No. 1 to the Professional Services Agreement with Deist - Binsfield, Inc. authorizing $47,700 for additional construction management services; and authorize the Mayor and City Clerk to execute the Amendment. 3. Approve a budget amendment appropriating $535,700 from the Circulation and Transportation Fund to Account No. 7261- C5100066 and $125,000 from the CIOSA Fund to Account No. 7432- C5100066. DISCUSSION Background The MacArthur Boulevard Widening project extends from Pacific Coast Highway to Ford Road /Bonita Canyon Road and is being constructed in two segments. Segment 1 covers Pacific Coast Highway to San Joaquin Hills Road. Segment 2 covers San Joaquin Hills Road to Ford Road /Bonita Canyon Road. Segment 1 construction was completed in September 1997. Segment 2 construction began in October 1997 and completion is anticipated in March 1999. When the City Council awarded the Segment 2 construction contract to Griffith Company on June 9, 1997, five professional services agreements were also approved to support the construction work. One agreement is with AGRA Earth and Environmental, Inc. for geotechnical field services and materials testing in an amount of $50,661. Another agreement is with Deist - Binsfield, Inc. for construction management services in an amount of $348,235. The respective agreements established budget amounts for services to be provided based on certain conditions, some of which have changed due to circumstances outside their control. Their budget authorizations need to be increased in order for them to continue providing services necessary to complete the project. An analysis of the, project's overall budget indicates that additional funds need to be appropriated in order to complete the roadway improvements as well as pay for other related project obligations outside the construction contract. Approval of the recommended budget amendment will provide the necessary additional funding. Amendments to Professional Services Agreements The agreement with Deist- Binsfield, Inc. (DBI) for construction management services was based on 250 working days, which is equivalent to twelve months. Because of anticipated non- working days due to rain, DBI's budget for construction covered a period of approximately SUBJECT: APPROVAL OF BUDGET AMENDMENT PERTAINING TO MACARTHUR BOULEVARD WIDENING PROJECT- SEGMENT 2 CONTRACT NO. 2825 December 14, 1998 Page 2 fourteen months starting in August 1997 and ending in October 1998. Obtaining rights -of -entry delayed the unrestricted start of construction until October 1997, and the heavy winter rains resulted in approximately two months of non - working days which is at least double the normally anticipated amount. As a consequence, DBI will be providing construction management services until March 1999 spanning a period of approximately 18 months as compared to the 14 months anticipated in their budget. In a proposal letter dated October 2, 1998, DBI proposes to provide their services for the extended construction period for an additional compensation amount of $47,676.18. Staff recommends approval of Amendment No. 1 to DBI's Consultant Agreement authorizing an additional $47,700 of compensation to cover their extended period of services and increasing their total contract amount from $348,235 to $395,935. The agreement with AGRA Earth and Environmental, Inc. (AGRA) covered field observation and testing in conjunction with grading as well as materials testing both on -site and off -site. AGRA's budget was based on assumptions similar to those used by DBI. Delay in starting the project resulted in much of the grading work being done during last year's heavy rainfall season which meant that the observation and testing by the geotechnical technician could not be performed as efficiently as anticipated. Expressed another way, it took more trips and more hours to test the same volume of earthwork. In addition, it has been necessary to provide more "source" inspection for asphalt concrete and rock materials than was anticipated in the initial budget. Local agencies previously relied on source inspection by Caltrans and the County of Orange; however, those services have been reduced and local agencies must now provide such source inspection and testing at their own expense. In a revised proposal letter dated September 15, 1998, AGRA estimates that an additional $33,000 is needed to cover their services to complete both the Segment 2 roadway and sound wall improvements. Staff recommends approval of Amendment No. 1 to AGRA's Professional Services Agreement authorizing an additional $33,000 of compensation to cover their extended services and increasing their total contract amount from $50,661 to $83,661. Budget Amendment The following list of items forms the basis for the recommended budget amendment totaling $660,700. Asterisks identify those items for which the costs shown are estimates. ITEM NO. ITEM DESCRIPTION 1. Cooperative Agreement with Big Canyon Country Club for Right - of -Entry and Storm Drainage Improvements (Balance of $275,000 agreed upon contribution). 2. Cooperative Agreement with Big Canyon Community Association, Big Canyon Country Club, and The Irvine Company to share 25% of the cost of sound walls at two locations along the Westerly side of MacArthur. 3. Amendment No. 1 to Consultant Agreement with Deist - Binsfield, Inc. 4. Amendment No. 1 to Professional Services Agreement with AGRA Earth and Environmental, Inc. 5. Grading for earthern berm along Freeway Reservation North property. COST $ 35,000 50,000 47,700 33,000 125,000 ' SUBJECT: APPROVAL OF BUDGET AMENDMENT PERTAINING TO MACARTHUR BOULEVARD WIDENING PROJECT — SEGMENT 2 CONTRACT NO, 2825 December 14, 1998 Page 3 6. Griffith Company for estimated quantity overruns paid at contract 195,000 unit prices. 7. Griffith Company for resolution of potential construction claims. 175,000 TOTAL $660,700 A brief explanation of each of the listed items is as follows: 1. The Cooperative Agreement with Big Canyon Country Club was approved by the City Council on November 10, 1997. Of the $275,000 agreed upon contribution, $240,000 was funded from the construction contract contingency and from elimination or reduction of contract items. The $35,000 unfunded balance represented possible costs incurred by the City in the event that the Country Club's storm drainage improvements were delayed. Since no costs were incurred, the full $275,000 contribution is to be paid. 2. The Cooperative Agreement for sharing in the cost of two sound walls along the westerly side of MacArthur was approved by the City Council on May 26, 1998. The Agreement provided for a contribution of 25% of the cost of the sound walls up to a maximum of $50,000. No funding allocation was included at the time the City Council approved the Agreement; therefore, funding arrangements are recommended at this time. 3. Additional authorization to the Agreement with Deist - Binsfield, Inc. as previously explained in this staff report. 4. Additional authorization to the Agreement with AGRA as previously explained in this staff report. 5. Grading on the Freeway Reservation North property along the easterly side of MacArthur Boulevard was previously expected to be accomplished with the 35 unit residential development included in the Circulation Improvement and Open Space Agreement (CIOSA) with The Irvine Company. As part of the Bonita Village Annexation Agreement, the proposed 35 units were eliminated and the property will be dedicated for park and open space uses. It now appears that lack of available funding will delay park improvements for an unknown period of time, which means that the adjacent residential area will not receive the screening and sound attenuation benefits that grading of this land area was expected to provide. In cooperation with The Irvine Company and EPT Landscape Architects, a plan has been developed that can be used to grade an earthern berm along the easterly side of MacArthur Boulevard extending from Bonita Canyon Road southerly approximately 1700 lineal feet. The proposed berm grading will be compatible with the overall park configuration and playing field areas will be excavated to generate the fill dirt needed to construct the berm. Staff recommends that the berm grading be done by the Griffith Company as part of the MacArthur Boulevard Widening project and requests City Council authorization to negotiate a change order in an estimated amount of up to $125,000. 6. The bid quantities for aggregate base and asphalt concrete included in the project specifications and the contract with the Griffith Company were underestimated and are substantially less than the actual quantities needed to complete the work shown on the plans. The bid quantity of asphalt concrete is approximately 60% of the estimated final pay quantity. Similarly, the bid quantity of aggregate base is approximately 80% of the SUBJECT: APPROVAL OF BUDGET AMENDMENT PERTAINING TO MACARTHUR BOULEVARD WIDENING PROJECT — SEGMENT 2 CONTRACT NO. 2825 December 14, 1998 Page 4 estimated final pay quantity. The final quantities are consistent with the plans and the City will pay the same amount as if the bid quantities had been more accurately estimated. The additional quantities for these two construction items at the contract unit prices results in more than $300,000 of costs which depletes and exceeds the contract reserves for extra work amount of $516,700. Appropriation of an additional $195,000 is recommended to cover these quantity overruns. Griffith Company has identified two potential claims under the contract. One is regarding disposal of rocks encountered during grading operations. The other is relative to a substantial reduction of the remedial earthwork quantity as compared to the estimated quantity bid and the contractor is questioning the applicability of the contract unit price that staff used for their reduction. Staff believes that resolution of these two potential claims will cost approximately $175,000. Staff recommends that the additional project costs described above be appropriated as follows: FROM TO AMOUNT Circulation and Transportation Fund 7261- C5100066 $535,700 CIOSA Fund 7432- C5100066 125,000 TOTAL $660,700 Bids for Segment 2 sound wall construction are currently being solicited and a contract award recommendation is anticipated at the January 11, 1999, City Council meeting. A budget amendment corresponding to the low bid will be processed as part of the contract award. The Engineer's estimate for Segment 2 sound walls is $165,000. Respectfully s�ubpmiitte , <43— W PUBLIC WORKS DEPARTMENT Don Webb, Director By: Gail Pickart Project Management Consultant Attachments: Amendment No. 1 with DBI Amendment No. 1 with AGRA Budget Amendment f:\ users \pbw\shared \counci l \ry98 -99\d ec 14 \macarthur.tloc AMENDMENT NO. 1 CONSULTANT AGREEMENT Construction Management Services MacArthur Boulevard Widening Project - Segment 2 THIS AMENDMENT NO. 1 TO CONSULTANT AGREEMENT, made and entered into this 14th day of December, 1998, by and between the CITY OF NEWPORT BEACH, a municipal corporation, (hereinafter referred to as "CITY ") and Deist - Binsfield, Inc., a California corporation, whose address is 30100 Town Center Drive, Suite 225, Laguna Niguel, CA 92677 (hereinafter referred to as "CONSULTANT") is made with reference to the following: RECITALS: A. On June 9, 1997, a Consultant Agreement was entered into by and between CITY and CONSULTANT, hereinafter referred to as "AGREEMENT'. B. CITY and CONSULTANT mutually desire to amend the AGREEMENT as provided herein. NOW, THEREFORE, the parties hereto agree as follows: 1. The scope of services to be provided by CONSULTANT is being performed over a more extended period of time than was contemplated in AGREEMENT as set forth in CONSULTANTS letter dated October 2, 1998, which is identified as Exhibit "A" and is attached hereto and incorporated herein by reference. 2. The term of this AGREEMENT, which commenced on June 10, 1997, is extended from December 31, 1998 to April 30, 1999. 3. Compensation to be paid to CONSULTANT for such scope of services over the extended period of time shall be in accordance with a not -to- exceed budget of $47,700 as set forth in CONSULTANT'S letter dated October 2, 1998, which is identified as Exhibit "A" and is attached hereto and incorporated herein by reference. M 4. CONSULTANT'S not -to- exceed compensation to be paid under AGREEMENT is hereby increased by $47,700 from $348,235 to $395,935. 5. Except as expressly modified herein, all other provisions, terms, and covenants set forth in AGREEMENT shall remain the same and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 1 on the date first above written. CITY OF NEWPORT BEACH, a municipal corporation 22 APPROVED AS TO FORM: City Attorney Dennis D. O'Neil, Mayor CONSULTANT: Deist - Beinsfield, Inc. AM Gregory L. Deist, President BY: Albert M. Binsfield, Vice President ATTEST: City Clerk f:\users\pbw\shared\agmt\99\deistl.doc EXHIBIT "A" DBI October 2, 1998 Mr. Gail Pickart Project Management Consultant 3345 Newport Blvd., Suite 215 Newport Beach, CA 92663 30100 Town Center Dr. #225 Laguna Niguel, CA 92677 (714) 495 -0178 FAX (714) 495 -0124 RE: CONSTRUCTION MANAGEMENT SERVICES MacARTHUR BOULEVARD WIDENING - SEGMENT 2 Dear Mr. Pickart: This is a request for a contract amendment authorizing additional funds to complete contract administration and inspection services for the referenced project. The original estimate for Construction Management services was based on a contract duration of 250 working days. Due to time extensions and weather conditions the project has been extended beyond the original 250 working days. The project start date was November 24, 1997, with an original completion date of October 13, 1998. The project has been extended by sixty -five working days (eleven working days granted through change orders and fifty -four working days due to inclement weather) giving a revised contract completion date of January 20, 1999. However, we are anticipating an actual completion date some time in February. DBI would have been within the original budget amount if the contract was completed within its original 250 working days. At this time we believe we will exhaust the budget amount in December, 1998. When estimating costs prior to the project beginning, the estimates are based on the contract duration given in the specifications. Although there is always a possibility that time extensions will occur, these are not taken into account when preparing proposals because it is impossible to determine how many days will be granted or the effect weather will have on the construction schedule. Contract administration and inspection efforts are necessary, however, throughout the total duration of the project to ensure the City's interests are protected and project documentation is complete and accurate. During the 1997/98 winter season, El Nino created considerably more rain delays than anticipated. Although the contractor is not working, during days of inclement weather DBI provides an inspector to monitor the site and ensure that the contractor has done everything within his power to provide safe access through the project site for the traveling public. In addition the inspector will monitor changing conditions which may require adjustments in the safety procedures put in place by the contractor for the protection of the traveling public. Implementation of erosion control measures was another aspect of the project that needed to be monitored during rainfall periods. DEIST- BINSFIELD, INC. - PUBLIC WORKS CONTRACT ADMINISTRATION AND INSPECTION SERVICES Mr. Gail Pickart October 2, 1998 Page Two For this project we are anticipating that administration and inspection services will be needed through March 12, 1999. Below is our estimated costs for the period 9/7/98 through 3/12/99. Original Authorization: $348,235.00 Amount Invoiced Through 9/6/98: 274186.18 Amount Remaining: $73,948.82 Estimated Costs to Complete Project (9/7/98 through 3/12/99, 129 working days): Resident Engineer: 675 hours @ $81.00 = $54,675.00 Inspection: 838 hours @ $65.00 = 54,470.00 Reimbursable Costs (Office Utilities) = 2.100.00 S ubtotal $111,245.00 Estimated Costs for Project Rap -up (e.g., Final Report, As- Builts, etc.) Resident Engineer: 80 hours @ $81.00 = $6,480.00 Inspector: 60 hours @ $65.00 = 3.900.00 Subtotal 10.380.00 Total Estimated Expenses to Complete Project $121,625.00 Minus Remaining Authorization 73.948.82 Estimated Additional Authorization: $47.676.18 Your consideration for additional funds to complete this project is appreciated. Please call me if you have any questions or if additional information is require. Very Truly Yours, DEIST - BINSFIELD, INC. G go eist, PE ide DEIST - BINSFIELD, INC. - PUBLIC WORKS CONTRACT ADMINISTRATION AND INSPECTION SERVICES r AMENDMENT NO. 1 PROFESSIONAL SERVICES AGREEMENT GEOTECHNICAL AND MATERIALS TESTING SERVICES MACARTHUR BOULEVARD WIDENING — SEGMENT 2 THIS AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT, made and entered into this 14th day of December, 1998, by and between the CITY OF NEWPORT BEACH, a municipal corporation, (hereinafter referred to as "CITY ") and AGRA Earth and Environmental, Inc., whose address is 1290 North Hancock Street, Anaheim, CA 92817 (hereinafter referred to as "CONSULTANT') is made with reference to the following: RECITALS: A. On June 9, 1997, a Consultant Agreement was entered into by and between CITY and CONSULTANT, hereinafter referred to as "AGREEMENT' to provide professional geotechnical engineering and materials testing and observation in support of construction activities for Segment 2 of the MacArthur Boulevard Widening project. B. CITY and CONSULTANT mutually desire to amend the AGREEMENT as provided herein. NOW, THEREFORE, the parties hereto agree as follows: 1. The scope of services to be provided by CONSULTANT is expanded to include increased earthwork observation and testing, and additional plant inspection and laboratory testing of asphalt concrete pavement as set forth in CONSULTANTS revised proposal letter dated September 15, 1998, which is identified as Exhibit "A" and is attached hereto and incorporated herein by reference. 2. The term of this AGREEMENT, which commenced on June 10, 1997, is hereby extended from the 3151 day of December 1998 to the 31St day of March 1999. 3. Compensation to be paid to CONSULTANT for such additional scope of services shall be in accordance with a not -to- exceed budget of $33,000 as set forth in CONSULTANT'S revised proposal letter dated September 15, 1998, which is identified as Exhibit "A" and is attached hereto and incorporated herein by reference. 4. CONSULTANT's not -to- exceed compensation to be paid under AGREEMENT is hereby increased by $33,000 from $50,661 to $83,661. 5. Except as expressly modified herein, all other provisions, terms, and covenants set forth in AGREEMENT shall remain the same and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 1 on the date first above written. CITY OF NEWPORT BEACH, a municipal corporation 0 APPROVED AS TO FORM: City Attorney Dennis D. O'Neil, Mayor CONSULTANT: AGRA Earth & Environmental, Inc. M ATTEST: City Clerk 1:\ users \pbw\shared \agmt\99\agra.dm Sajjad R. Hussain Construction Services Manager E%HIBIT "A" l AGRA Earth & Environmental LNGINYLNING GIONAL SOLIIIION% September 11, 1998 (Revised Septmeber 15, 1998) Job No. 7- 212 - 201600 City of Newport Beach clo Deist- Binsfield, Inc. 30100 Town Center Drive, Suite 225 Laguna Niguel, California 92677 Attention: Mr. Gail Pickart Re: Field Services Increase MacArthur Boulevard Widening Segment 2 Newport Beach, California AGRA Earth & Environmental, Inc. 1290 North Hancock Street P.O. Box 19079 Anaheim, CA 92817 Tel (714) 779 -2591 Fax (714) 779 -8377 The project work is being increased because of the general work load and field observations required during the grading operations. Anticipated tasks and approximate hours and fees are as follows: Tasks Fees Earthwork San Joaquin Hills Road and MacArthur Interchange Subgrade Base rock Curb and Gutter Sidewalk Street Lights Stamped Concrete Laboratory Testing Subtotal $8,500.00 Pavement (A.C.) Plant Inspection Compaction Testing Laboratory Testing (10 samples) Subtotal $21,000.00 Soundwalls $1,000.00 Reporting $2,500.00 TOTAL $33,000.00 (D FecytiW Paper City of Newport Beach Job No. 7- 212 - 201600 Attention: Mr. Gail Pickart September 11, 1998 (Revised September 15, 1998) Field Services Increase, MacArthur Boulevard, Widening Segment 2, Newport Beach, California Page 2 Based on the above and what is left remaining on the contract, an increase of $33,000.00 above the original contract of $50, 681.00 should cover the anticipated work to complete the project. If you have any questions, please call the undersigned. Respectfully submitted, AGRA Earth & Environmental, Inc. Sajjad R. Hussain Construction Services Manager SRH /II Encl.: None c: Mr. Gail Pickart, Addressee (2) OW-201611AM10-15-98 ® Recycled Paper AGRA Earth & Environmental I IIf�INEEPING 4lOPiL 5(II V I IIIN1 City of Newport Beach NO. BA- 028 BUDGET AMENDMENT 1998 -99 AMOUNT: $660,700.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Budget Appropriations AND �X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance from existing budget appropriations from additional estimated revenues qX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To appropriate $535,700 from the Circulation and Transportation Fund and $125,000 from the CIOSA Fund to proceed with pertinent agreements associated with the completion of the MacArthur Blvd. Widening Project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Eund Account Circulation and Transportation 3605 CIOSA 3605 REVENUE APPROPRIATIONS (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Description Fund Balance Control Fund Balance Control Description Signed: ,�A,�'�z� Financial proval: Finance Dire Signed: O (/1 Adr'Hstrative Approval: City Manager Signed: City Council Approval: City Clerk Amount Debit Credit $535,700.00 * $125,000.00 * Automatic $535,700.00 $125,000.00 Date Date Description Division Number 7261 Transportation & Circulation Account Number C5100066 MacArthur Widening Improvement Division Number 7432 Account Number C5100066 Division Number Account Number Division Number Account Number Division Number Account Number Signed: ,�A,�'�z� Financial proval: Finance Dire Signed: O (/1 Adr'Hstrative Approval: City Manager Signed: City Council Approval: City Clerk Amount Debit Credit $535,700.00 * $125,000.00 * Automatic $535,700.00 $125,000.00 Date Date