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).
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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
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□
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