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23-0905_R.J. NOBLE COMPANY, INC._Agenda Report_F2aCity 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: September 5, 2023 SUBJECT: Award of Contract for Construction of the Local Streets Pavement Rehabilitation Project (CIP 24102) (R.J. Noble Company, Inc.); CIP Budget Transfers; Reimbursement Agreement for Utilities-Related Construction of the Project with Santa Margarita Water District; and, Finding Said Actions Categorically Exempt from the California Environmental Quality Act (CEQA) Section 15061(b)(3). RECOMMENDATIONS: 1.Award a construction contract for the Local Streets Pavement Rehabilitation Project (CIP 24102) to the lowest responsible bidder, R.J. Noble Company, in the amount of $11,953,207, and authorize the City Manager to execute the contract and approve change orders, for a total construction contingency not to exceed $1,374,618; 2.Approve and authorize the transfer of project savings, estimated at approximately $500,000, from the recently completed Camino Capistrano Pavement Rehabilitation Project (CIP 19102) to the Local Streets Pavement Rehabilitation Project (CIP 24102); 3.Approve and authorize the transfer of surplus budgeted funds from the Local Streets Pavement Rehabilitation Project budget, in the amount of approximately $2,322,174, 9/5/2023 F2a City Council Agenda Report September 5, 2023 Page 2 of 5 to the Arizona Crossing Removal (CIP 20202) and Stream Bank Restoration (CIP 20203) Project budget; 4. Approve and authorize the City Manager to execute a Reimbursement Agreement with Santa Margarita Water District (SMWD) for the adjustment of SMWD water valve and manhole covers during construction the Local Streets Pavement Rehabilitation Project (CIP 24102); and, 5. Find that the proposed actions are exempt from the California Environmental Quality Act (CEQA) pursuant to the commonsense exemption under State CEQA Guidelines, section 15061(b)(3). EXECUTIVE SUMMARY: The Local Streets Pavement Rehabilitation Project represents an unprecedented investment in the City’s roadway infrastructure. The project was advertised for construction on June 29, 2023, and four bids were received on August 10, 2023. A location map is included as Attachment 1. Staff recommends that the City Council award a construction contract to the lowest responsible bidder, R.J. Noble Company, in the amount of $11,953,207 (Attachment 2). To cover additional project costs that may result from unforeseen site conditions and differing construction material quantities during the construction phase, staff recommends that the City Manager be authorized to approve change orders in an amount not to exceed $1,374,618, which is approximately 11.5% of the contract amount. Approval of the recommended action would also transfer $500,000 of project savings from the recently completed Camino Capistrano Pavement Rehabilitation Project to the to the Local Streets Project, and execute a Reimbursement Agreement (Attachment 3) with Santa Margarita Water District (SMWD) for the adjustment of SMWD-owned water valves and manhole covers during construction of the project, which is anticipated to provide approximately $750,000. The total budget savings of $2,322,174 is proposed to be transferred to the Arizona Crossing Removal (CIP 20202) and Stream Bank Restoration (CIP 20203) Project budgets to cover unanticipated additional costs for these two projects. DISCUSSION/ANALYSIS: As shown on Attachment 1, the local public streets slated for pavement rehabilitation as part of this project have been grouped into five zones throughout the city. Following award of the construction contract, Public Works staff will work with R.J. Noble and various utility companies, including SMWD, to schedule the construction timing for the local streets in each zone. Currently, it is anticipated that construction will begin by mid- October for Zone 4, which encompasses local streets within the Belford Terrace community and the communities located south of Ortega Highway and east side of Rancho Viejo Road to Avenida Siega. City Council Agenda Report September 5, 2023 Page 3 of 5 The overall project scope of work generally includes the removal of existing failed pavement and construction of new pavement sections. The project entails grading, excavation, saw-cutting, milling of existing street asphalt concrete pavement, reconstruction of existing non-compliant pedestrian ramps, removal and replacement of damaged curb, gutter and sidewalk, signing and striping, and adjustment of existing manhole covers, pull boxes and valve covers to match the new pavement surface grade. Notably, because of additional design for enhanced drainage and an expanded scope of work to include resurfacing the Los Rios Park parking lot with colored asphalt concrete, pavement rehabilitation for Los Rios District streets, which are included in Zone 2, will be combined with the Los Rios Park Parking Lot Pavement Project. Construction is anticipated to begin early next year and be completed by Spring 2024. Bid Results The table below provides a summary of the Base Bid results: Bidders Base Bid Amounts R.J. Noble Company $11,953,207 ATP General Engineering Contractors $12,059,942 PALP dba Excel Paving Company $15,248,224 All American Asphalt, Inc. $16,342,614 The Engineer’s Estimate for this project is $14,100,000. Staff has checked R.J. Noble’s references, licenses, and payment bonds, and has received very positive feedback on the past performance of this contractor. In fact, R.J. Noble has successfully completed multiple pavement rehabilitation projects in San Juan Capistrano, including the Meredith Canyon Local Streets Pavement Rehabilitation Project, the Capistrano Villas I, II, and III Pavement Rehabilitation Project and, most recently, the $10 million Camino Capistrano Pavement Rehabilitation Project between Dana Point and Laguna Niguel city limits. R.J. Noble is one of the largest and most reputable paving contractors in Southern California. Construction of the Local Street Pavement Rehabilitation Project is scheduled to commence in October 2023 and be completed by Summer 2024. FISCAL IMPACT: Below is a summary table of available funding and overall anticipated project costs, including project management, material testing, and construction inspection services. City Council Agenda Report September 5, 2023 Page 4 of 5 Budget Items Amounts Construction Contract (R.J. Noble Company) – Base Bid $11,953,207 11.5% Contingency $1,374,618 SMWD Reimbursement -$750,000 Camino Capistrano Pavement Rehabilitation Project Savings -$500,000 Sub-Total $12,077,825 Contract Administration and Support Services $600,000 Total Project Construction Cost $12,677,825 Available Project Budget $15,000,000 Remaining Balance $2,322,174 ENVIRONMENTAL IMPACT: In accordance with the California Environmental Quality Act (CEQA), the recommended action is 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 CIP budget transfers and/or the City Manager to execute a reimbursement agreement with SMWD, would not be activities with potential to cause significant effect on the environment, and therefore are exempt from CEQA. Additionally, with respect to the scope of work associated with the recommended construction contract, Section 15301, Class 1 (a) exemption allows for repair and maintenance of existing streets, sidewalks, gutters, and similar existing facilities with negligible or no expansion of an existing use. The proposed project involves removal of existing failed pavement and construction of new pavement surface. Consequently, staff finds that the proposed project meets the criteria for a categorical exemption. If the proposed construction contract is approved, a notice of exemption will be filed within five days of the action. PRIOR CITY COUNCIL REVIEW: • On February 21, 2023, the City Council approved and authorized the City Manager to execute a Professional Services Agreement with Adams Streeter Civil Engineers Inc. to perform design services, prepare specifications and cost estimates for the Local Streets Pavement Rehabilitation Project (CIP 24102), for an amount not-to-exceed $454,000, which included a 25% contingency. • On October 5, 2021, the City Council approved an Enhanced Streets Improvement Program Spending Plan that allocated American Rescue Plan Act (ARPA) funds, along with other sources, to the existing annual budget for capital City Council Agenda Report September 5, 2023 Page 5 of 5 street repair, and approved expanding the scope of work for the Camino Capistrano Pavement Rehabilitation Project to include the entire length of Camino Capistrano, from Dana Point to Laguna Niguel City limits. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This item does not require commission, committee, or board review. NOTIFICATIONS: Jennifer De Iongh, R.J. Noble Company Mo Abedi, Adam/Streeter Civil Engineers, Inc. Jaime Aguilar, SMWD ATTACHMENTS: Attachment 1: Location Map Attachment 2: Proposed Construction Contract Attachment 3: City of SJC/SMWD Reimbursement Agreement District 2 District 1 District 5 District 4 District 3 Camino Las Ramblas C a lle R i c ardo Ca mi n o Capi s t r anoTrabucoCreekRoadL a N o v i a C alle A c ord ars eRancho Viejo RoadHillside TerraceOrtega HighwayVia Alano ViadeLindaOso Road Call e A s p e r o Via CuartelViaBelardesMission Street Via CaliforniaA venidaAeropuertoVia Del AmoViaA nza rLa No v i a Charro Drive Calle AviadorVia Estancia Via de AguilaRamos Street ViaCristalSpring Street V ia Rueda Calle Winona AvenidaEvitaCalle Villa ClaraVia AliciaCalle MiguelPaseoTiradorViaErrecarteVia EstenagaVia CarlosVia MayorViaMonturaCamino CapistranoVia OrdazPurple Sag e L a n e ViadeOliviaLaZ a n ja S t reet DelObispoStreet SilverCreekDrive CalleRoberto Carreterra DriveVia ParraJunipero Serr a R o a d Wi ndsongDri veVia Inez R o a d Calle Bonita CalleMiramarLa Calera StreetCalleSantaYnez CaminoLaRonda San Juan Creek RdViaCascadaDel Obispo StreetCalle Lorenz o AvenidaCalitaAvenida Los AmigosCalleArroyoVia Del C e r r oVillageRoad AvenidaSiegaBelford Drive GanadoRoadDon Juan AvenueDana M e s a D r i v e C a l l e B o r r e g oAguacate RoadCalle ArroyoCalleChuecaC alle Re s pl endor Via MadonnaAvenida DescansoVia SolanaEl C am i n o R e a l Vi aCerroRebalC alle d e B o n a n z a HighlandDrive Avenida Mariposa Avenida Cabrillo ValleRoadViaEstelita Camino Del Avion Via Solis CountryHillsRoadWindsorD riv e A v e n i d a del aVi st aAlipazStreetCaminoCapi st r a n o Calle Del CampoC a lle E s p e ra n zaMissio n H i l l s D r i v e V i s t a M o n tanaSundance Dr ive Via CordovaElHornoStreetImperialDriveP a s e oTerrazaAvenidaPescadoCamino S a n t o D o m i n g o Calle J a r d i n Via Del Rey AlipazStreetCamino CapistranoA ve n id a California Sadd leridgeDrive CalleConej oPaseoAdelantoViaLaMiradaSan Juan Creek RdViaSonoraC alle S a n t a Ro s a li a M a r i n er Drive MonarchDriveCalle PerfectoViadeA g uaLos Rios Street Calle San R e m o AvenidaLargaRa n c ho Vi ej oRoadRosenbaumRoadPeppertree BendCurrent ConditionsCity of San Juan Capistrano PCI Ranges 86 - 100 (Very Good) 75 - 85 (Good) 60 - 74 (Fair) 41 - 59 (Poor) 0 - 40 (Very Poor) ´0 0.5 10.25 Miles ZONE MAP ATTACHMENT 1 Page 1 of 1 00 52 13 – CONTRACT This CONTRACT, No. ________ is made and entered into this ____ day of _______, ______, by and between City of San Juan Capistrano, sometimes hereinafter called “City,” and _______________________________________________, sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: a.SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: LOCAL STREETS PAVEMENT REHABILITATION PROJECT ZONES 1-5 (CIP 24102) The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. b.TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 240 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. c.CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of ____________________________________________________________________ Dollars ($_________________________________). Payment shall be made as set forth in the General Conditions. d.LIQUIDATED DAMAGES. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum set forth in Section 00 73 13, Article 1.11 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents. e.COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Form Bid Bond Designation of Subcontractors Information Required of Bidders R. J. Noble Company, Inc. Eleven Million Nine Hundred Fifty Three Thousand Two Hundred Seven 11,953,207 ATTACHMENT 2 Page 1 of 4 5th September 2023CIP 24102 Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor Registration Certification Performance Bond Payment (Labor and Materials) Bond General Conditions Special Conditions Technical Specifications Addenda Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Applicable Local Agency Standards and Specifications, as last revised Approved and fully executed change orders Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties. f.PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. g.INDEMNIFICATION. Contractor shall provide indemnification and defense as set forth in the General Conditions. h.PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Administrative Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] ATTACHMENT 2 Page 2 of 4 IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF SAN JUAN CAPISTRANO Name of Contractor By _____________________________________ Name and Title: _________________________ License No. ____________________________ Date: __________________________________ By______________________________ Benjamin Siegel, City Manager Date: ____________________________ (CONTRACTOR’S SIGNATURE MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED, IF APPLICABLE) Approved as to form this _____________day of 20___. _______________________________ Attorney for City of San Juan Capistrano ATTEST: By: City Clerk San Juan Capistrano END OF CONTRACT ATTACHMENT 2 Page 3 of 4 R. J. NOBLE COMPANY, INC. Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above ATTACHMENT 2 Page 4 of 4 ATTCHMENT 3 PAGE 1 OF 3 September 6, 2023 Mr. Danny Peterson Santa Margarita Water District 26111 Antonio Parkway Rancho Santa Margarita, CA 92688 Subject: Utility Adjustment Reimbursement Agreement Letter for Local Streets Pavement Rehabilitation Project CIP 24102 Dear Mr. Peterson: The City of San Juan Capistrano (City) is preparing to construct the Local Streets Pavement Rehabilitation Project CIP 24102 (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 938 $625 $586,250 Sewer Manholes Each 598 $625 $373,750 Estimated Costs $960,000 ATTCHMENT 3 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 □ ATTCHMENT 3 PAGE 3 OF 3 LOCATION MAP