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22-0816_CNC ENGINEERING, INC._Agenda Report_E11City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Thomas Toman, Public Works Director PREPARED BY: Joe Parco, P.E., City Engineer Paul Meshkin, P.E., Senior Civil Engineer DATE: August 16, 2022 SUBJECT: Reimbursement Agreement for Utilities-Related Construction of the Camino Capistrano Pavement Rehabilitation Project with the Santa Margarita Water District; and Approval of Amendment No. 2 to the Professional Services Agreement for Engineering Design Services (CNC Engineering, Inc.) (CIP 19102) RECOMMENDATION: 1.Approve and authorize the City Manager to execute a Reimbursement Agreement with Santa Margarita Water District (SMWD) for the adjustment of SMWD valve covers and manholes to street grade during construction of the Camino Capistrano Pavement Rehabilitation Project (CIP 19102); 2.Increase the project contingency with the City’s pavement contractor, R.J. Noble Company, by the reimbursement amount of $270,000; and, 3.Approve and authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement (PSA) with CNC Engineering, Inc. in the amount of $22,950 for additional engineering design services for pavement rehabilitation of San Juan Creek Road, between Camino Capistrano and Valle Road, as part of the Camino Capistrano Pavement Rehabilitation Project (CIP 19102). 8/16/2022 E11 City Council Agenda Report August 16, 2022 Page 2 of 4 DISCUSSION/ANALYSIS: On June 21, 2022, the City Council awarded a construction contract for the Camino Capistrano Pavement Rehabilitation Project to R.J. Noble Company, in the amount of $7,918,241. Santa Margarita Water District (SMWD) owns water valves and sewer manholes on Camino Capistrano within the project's limits that will be impacted by construction of the pavement project and will need to be adjusted to the final street grade. Typically, SMWD uses its own crews or on-call utility contractors to adjust SMWD-owned appurtenances to street grade during pavement projects. However, for this project, SMWD has asked the City to make the necessary adjustments, with the cost being reimbursed by SMWD. This process is favored by staff as it will eliminate the need for coordination and scheduling between the City’s contractor and SMWD crews or utility contractors. On July 22, 2022, the SMWD Board of Directors approved a Reimbursement Agreement with the City for the adjustment of SMWD-owned valves and manhole covers located within the Camino Capistrano project limits. A copy of the SMWD staff report is provided as Attachment 1. The total estimated amount required by R.J. Noble to adjust these facilities is $233,740. The SMWD Board approved a Reimbursement Agreement with a not-to-exceed amount of $270,000 to provide for any contingencies should they arise in the field. SMWD recently approved a similar agreement with the City of Mission Viejo for its pavement rehabilitation project on Los Alisos Blvd. Per the proposed agreement, SMWD would fully reimburse the City for the exact cost of this utility-related work once this phase of the pavement project is complete (Attachment 2). Consequently, staff recommends that the City Council authorize the City Manager to execute the proposed Reimbursement Agreement with SMWD in the amount of $270,000; and, increase the project contingency amount with R.J. Noble Company by the same amount. The total project contingency would increase from $1,590,000 to $1,860,000. The rehabilitation of San Juan Creek Road, between Camino Capistrano and Valle Road, was not previously included in the overall Camino Capistrano Pavement Rehabilitation Project. As a result of favorable bids received and available funding in the project budget, the City Council authorized the expansion of the Camino Project scope of work to include re-pavement of San Juan Creek Road between Camino Capistrano and Valle Road. Consequently, staff recommends that the City Council approve the proposed Amendment No. 2 to the Professional Services Agreement (PSA) with the City’s design consultant, CNC Engineering, Inc., in the amount of $22,950 to cover the cost associated with additional design work required for this additional roadway segment (Attachment 3). Construction of the project is scheduled to begin in September and be completed by the end of the calendar year. Construction work on Camino Capistrano between Costco and La Zanja Street will be performed at night, between the hours of 9:00 p.m. and 5:00 a.m. Sunday through Thursday. City Council Agenda Report August 16, 2022 Page 3 of 4 FISCAL IMPACT: There is no financial impact to the City by executing the proposed Reimbursement Agreement with SMWD since the City will be fully reimbursed for the cost of utility adjustments (i.e., water valves and sewer manholes). Additionally, there are funds available in the project budget to cover the cost associated with the proposed amendment with CNC Engineering, Inc. The total project contingency would increase from $1,590,000 to $1,860,000 to accommodate this Utilities related construction. ENVIRONMENTAL IMPACT: In accordance with the California Environmental Quality Act (CEQA), the recommended action would be exempt from CEQA, per Section 15061(b)(3), the commonsense exemption that CEQA applies only to projects that would have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Furthermore, approving and authorizing the City Manager to execute a reimbursement agreement with SMWD, and an amendment to an existing professional services agreement with CNC Engineering, Inc., would not be activities with potential to cause significant effect on the environment, and therefore are exempt from CEQA. PRIOR CITY COUNCIL REVIEW: • On June 21, 2022, the City Council awarded a construction contract for the Camino Capistrano Pavement Rehabilitation Project (CIP 19102) to the lowest responsible bidder, R.J. Noble Company, in the amount of $7,918,241 and approved and authorized the City Manager to execute a Professional Services Agreement with GMU Geotechnical, Inc. in the amount of $89,000 for material testing and inspection support services during construction of the proposed project. • On April 5, 2022, the City Council approved plans and specifications for the Camino Capistrano Pavement Rehabilitation Project (CIP 19102) and authorized staff to advertise and receive construction bids for the Project. • On January 18, 2022, the City Council adopted a Resolution to authorize the submittal of the Camino Capistrano Pavement Rehabilitation Project (CIP 19102), between Junipero Serra Road and Trabuco Creek Bridge, to the Orange County Transportation Authority for funding under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA). • On November 2, 2021, the City Council approved and authorized the City Manager to execute Amendment No.1 to the Professional Services Agreement with CNC Engineering Inc. and increase the compensation amount by $219,000, bringing the City Council Agenda Report August 16, 2022 Page 4 of 4 total contract amount to 264,000, for preparation of the design plans, survey, and construction support services for the expanded Camino Capistrano Pavement Rehabilitation Project (CIP 19102) • On October 5, 2021, the City Council approved an enhanced Streets Improvement Program spending plan and expanded the scope of the Camino Capistrano Pavement Rehabilitation Project (CIP 19102). COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This item does not require commission, committee, or board review. NOTIFICATIONS: Jennifer De Iongh, R.J. Noble Company Sean Nazari, CNC Engineering ATTACHMENTS: Attachment 1: SMWD Board Approval Agenda Report Attachment 2: City of SJC/SMWD Reimbursement Agreement Attachment 3: PSA Amendment #2 MEMORANDUM TO: Board of Directors DATE: July 22, 2022 FROM: Daniel Peterson SUBJECT: Consideration and Action on Adjustment of Appurtenances, Valves and Manhole Covers in Conjunction with the City of San Juan Capistrano on the Camino Capistrano Pavement Rehabilitation Project SUMMARY: Recommendation: Authorize not-to-exceed payment of $270,000 to the City of San Juan Capistrano for Camino Capistrano asphalt rehabilitation. Issue: As part of the City of San Juan Capistrano’s (City) street maintenance and paving program, District appurtenances such as sewer manholes and water valve cans need to be adjusted to match the new pavement grade. Fiscal Impact: Funds for these types of repairs are included in the operating budget for ID 9. Previously Related Action: The District authorized a $218,700 payment to the City of Mission Viejo for similar work on Los Alisos Blvd in May 2022. This is the first paving project within San Juan Capistrano that the District has participated in. Adherence to Policy: Purchases greater than $100,000 require Board authorization. Committee Status: This item was reviewed by the Engineering and Operations Committee on July 8 and was recommended for approval as an Action Item Recommended by Committee. The Committee discussed the valve replacements that have been done ahead of this paving work. DISCUSSION: The District operates water and sewer facilities within public streets under encroachment permits issued by the applicable local cities or the County. It is the responsibility of the District, under the terms of the encroachment permits, to protect and/or adjust the District facilities to accommodate improvements to the public streets by the City or County. On June 21, 2022, the City of San Juan Capistrano authorized the Camino Capistrano Pavement Rehabilitation Project which covers approximately five miles of Camino Capistrano, the primary north/south throughfare within the City. The attached map shows the SMWD service area ATTACHMENT 1 Page 1 of 3 boundary in black and the affected street in red. Construction is scheduled to begin in September 2022 and run through December 2022. The City anticipates $40 million (in City costs) of paving projects in the next six years. The District has been coordinating with the City to ensure that the water/sewer infrastructure in these areas are reviewed and any relevant replacements are done prior to the asphalt work. For this project, the City of San Juan Capistrano awarded the contract for this resurfacing project to R.J Noble Company for a total project cost of $8.4 million. The costs for adjusting sewer manholes were $1,360 each while water valve cans were $1,300 each. In total, 39 sewer manholes and 139 water valve cans are scheduled to be adjusted. Facility Quantity Cost/ea. Total Cost Adjust Sewer Manholes 39 $1,360 $53,040 Adjust Water Valve Cans 139 $1,300 $180,700 SUBTOTAL 178 $233,740 15% Contingency $35,061 TOTAL $268,801 ATTACHMENT 1 Page 2 of 3 ATTACHMENT 1 Page 3 of 3 ATTACHMENT 2 PAGE 1 OF 3 July 5, 2022 Mr. Danny Peterson Santa Margarita Water District 26111 Antonio Parkway Rancho Santa Margarita, CA 92688 Subject: Utility Adjustment Reimbursement Agreement Letter for Camino Capistrano Pavement Rehabilitation Project CIP 19102 Dear Mr. Peterson: The City of San Juan Capistrano (City) is preparing to construct the Camino Capistrano Pavement Rehabilitation Project CIP 19102 (Project), as illustrated on the location map (see attached). The Santa Margarita Water District (SMWD) has facilities within the Project's limits, including water valves and sewer manholes, that will be impacted by construction and these facilities will need to be raised to final grade. In an effort to better coordinate our construction efforts, the City requests to enter into an agreement with SMWD to reimburse the City for all costs related to adjustment of SMWD facilities within the project limits. Below are estimated water valve and sewer manhole adjustment costs, for the Project based on recent bids for this Project. Final costs are subject to change and will be based on actual unit pricing and utility adjustment quantities. Table 1 - Estimated Utility Adjustment Costs Item Description Unit Estimated Quantity Estimated Unit Price Estimated Total Water Valves Each 139 $1,300 $180,700 Sewer Manholes Each 39 $1,360 $53,040 Estimated Costs $233,740 ATTACHMENT 2 PAGE 2 OF 3 This letter serves as an agreement between SMWD and the CITY for the Project. Please mark the appropriate box below and return the signed copy of this letter to my office at your earliest convenience. If you have any questions, please contact Joe Parco, City Engineer, at (949) 443-6353. SMWD elects for the City to complete all SMWD utility adjustments, in accordance with SMWD standards, and to reimburse the City for all costs associated with this work. SMWD acknowledges that final costs will be based on the awarded contract unit price and the final number of utility adjustments completed. City agrees to require the selected paving contractor to obtain a no- fee SMWD encroachment permit prior to construction for modifications to valve can and manhole facilities. SMWD elects to self-perform all SMWD facility adjustments within one week of receiving notification. SMWD acknowledges that not completing its utility adjustments within the specified timeframe may adversely impact the City's Contractor and agrees to reimburse the City for any costs associated with the delay. SANTA MARGARITA WATER DISTRICT _________________________________ _____________________ Date SMWD General Manager CITY OF SAN JUAN CAPISTRANO __________________________________ _______________________ Benjamin Siegel Date City Manager Attachment: Location Map □ x □ ATTACHMENT 2 PAGE 3 OF 3 LOCATION MAP Attachment 3 Page 1 of 3 AMENDMENT NO. 2 TO THE PERSONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND CNC ENGINEERING, INC. 1. Parties and Date. This Amendment No. 2 to the PROFESSIONAL SERVICES AREEMENT is made and entered into as of this 16th day of August 2021, by and between the City of San Juan Capistrano, a municipal organization organized under the laws of the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano, California 92675 (“City”) and CNC Engineering, Inc, a Corporation with its principal place of business at 2121 Alton Parkway, Suite 200, Irvine, CA 92606, Consultant. City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 The City and Consultant have entered into an agreement entitled “Personal Services Agreement dated December 13, 2018, (“Agreement”) for the purpose of retaining the services of Consultant to provide Engineering Design and Construction Support Services. 2.2 Amendment Purpose. The City and Consultant desire to amend the Agreement to revise the Term of the Agreement as indicated on the attached Exhibit A. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 2 of the Agreement. 3. Terms. 3.1 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as follows: In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $289,245. This amount includes a 10% contingency. City’s prior approval is required to use the contingency fees. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis. Attachment 3 Page 2 of 3 3.2 Amendment. Section 5 of the Agreement is hereby amended in its entirety to read as follows: Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). Consultant shall complete the services required hereunder by December 31, 2022. The Notice to Proceed shall set forth the date of commencement of work. 3.3 Continuing Effect of Agreement. Except as amended by this Amendment No.1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No.2. From and after the date of this Amendment No.2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2. 3.5 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. [Signatures on Next Page] Attachment 3 Page 3 of 3 SIGNATURE PAGE FOR AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND CNC ENGINEERING, INC. CITY OF SAN JUAN CAPISTRANO Approved By: Benjamin Siegel City Manager Date Attested By: Maria Morris, City Clerk Approved As To Form: City Attorney CNC ENGINEERING, INC. Signature Name Title Date