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Home My WebLink About1994-05-17; City Council; 12716; APPROVE REIMBURSEMENT AGREEMENT WITH PORT OF LOS ANGELES AND AWARD CONTRACT FOR THE CONSTRUCTION OF THE BATIQUITOS LAGOON ENHANCEMENT PROJECT9 z o 5 < G z 3 8 -I Clw OF CARLSBAD - AGE-A BILL yi: c PORT OF LOS ANGELES AND AWARD CONTRACT C,TY AB # Idi '?/ Ip TITLE= APPROVE REIMBURSEMENT AGREEMENT WITH DEP' MTG. 5- 13- 77 DEPT. CD LAGOON ENHANCEMENT PROJECT CITY RECOMMENDED ACTION: FOR THE CONSTRUCTION OF THE BATIQUITOS It is recommended the City Council adopt Resolution No. q"I/ql approving reimbursement agreement with the Port of Los Angeles, appropriate project funding : full reimbursement by the Port of Los Angeles, approve return of a bid bond, author State business travel related to the project, accept bids, and award a contrac construction of the Batiquitos Lagoon Enhancement Project. ITEM EXPLANATION On January 1 1, 1994, the City Council adopted Resolution No. 94-20 approving the 1 specifications and authorizing the advertisement of construction bids for the Batiquito Enhancement Project. On March 30, 1994, five (5) sealed bids were received by tt Carlsbad as follows: FCI Constructors, Incorporated $25,888,000 San Diego, California T. L. James and Company, Incorporated $25,946,000 New Orleans, Louisiana Great Lakes Dredge and Dock Company $27,269,400 Oakland, California Dutra Construction, Incorporated $29,964,260 Rio Vista, California Manson Construction, lncorporated $33,470,200 Seattle, Washington The design estimate for this portion of the project was $31,400,000. Following the opening of bids, all bid submittals were reviewed for compliance applicable Federal, State, and local laws, regulations, and ordinances. During the bic period, it was questioned whether the apparent low bidder, FCI Constructors, lncorpora in compliance with Title 46 of the United States Code Section 292 which requires, in p an owner, operator, or charterer of any vessel engaged in dredging in the navigable v\1 the United States is a citizen of the United States. The Federal law further defines the operator, or charterer of the vessel requiring United States citizenship as any assc company, corporation, or other business entity conducting such business. Batiquitos I and the adjacent near shore beach areas where work will take place, are considered n: waterways under both Federal and State statutes. The City subsequently ret clarification from the apparent low bidder FCI Constructors, Incorporated as to their corn with this Federal law. Documents and subsequent correspondence furnished by the apparent low bidder to t indicate this company is owned, controlled, operated, and financed predominately by foreign corporations and, therefore, not United States citizens as is the Federal st requirement. This material, and the legal issues it raises, has been reviewed at length I the Carlsbad City Attorney's office and the Los Angeles City Attorney's office. It is i I 0 ,7ib 0 PAGE TWO OF AGENDA BILL NO. /A, I conclusion of both offices that FCI Constructors, Incorporated is not in compliance Federal statutes and therefore, not in compliance with the City of Carlsbad's documents for this project which mandate compliance with all applicable Federal, Si local laws governing the project as a precondition to awarding the contract. On this basis, it is recommended the City Council declare the apparent low bit Constructors, Incorporated nonresponsive to the project's bid requirements. It i: recommended the City Council award the contract to the next lowest responsive, res bidder, T. L. James and Company, Incorporated, in the amount of $25,946,000. 1 review of T. L. James and Company, Incorporated has concluded this company is in co with all statutory requirements. The Port of Los Angeles, Board of Harbor Commissioners reviewed this issue and conc this recommendation by virtue of its April 29, 1994 action authorizing the City of Ca award the Batiquitos Lagoon construction contract to T. L. James and Company, lncc in the increased amount of the next bid. Please reference attached Exhibit 2. Attached as Exhibit 3 is a letter dated April 28, 1994 from FCI Constructors, Incc acknowledging their noncompliance with the required laws and regulations and re return of their bid bond. Staff recommends this request be granted and the bid returned to FCI Constructors, Incorporated. City staff has discussed this issue with PC Angeles staff and they are in agreement with the return of the bid bond. The Batiquitos Lagoon Enhancement Project is a three (3) year construction project a multiplicity of Federal, State, regional, and iocal agencies. Additionally, the project c is headquartered out of State. It is expected that during the course of impleme Enhancement Plan, meetings, hearings, conferences, negotiating sessions, and other required of the project, and the numerous involved agencies, will require the occasio State travel of City officials and staff. In accordance with established Council pol recommends the City Council at this time pre-approve travel for City officials requir project and authorize the City Manager to approve all out of State travel related to tht implementation of the Enhancement Project for staff. All City of Carlsbad costs relat required of the Batiquitos Lagoon Enhancement Project are fully reimbursed by the P Angeles under the terms of the existing Carlsbad-Port agreement. In regard to the project schedule, the major construction will begin in September launching of the first dredge and continue for a three (3) year period. Beginning with 1 of this contract and continuing through the balance of 1994, it is anticipated that the activities will begin: Establishment of the contractor's staging and storage area; Establishment of the onsite project management, environmental monit Batiquitos Information Center offices; Installation of the dredge equipment electrical power system, booste and dredge transfer pipe to the beach; Initial beach building at the foot of Palomar Airport Road north of Encir Initial construction of the jetty structures; 0 0 z PAGE THREE OF AGENDA BILL NO. /a, "?lo - Further construction of other least tern nesting sites. Also in 1994 under a separate contract, the reconstruction of the West Carlsbad Boulevard bridg will begin. This project will be coming to the City Council for authorization to advertise for bid within the next 3 months. This 12 month bridge reconstruction will conclude in late 1995 to b followed by future work on the East Carlsbad Boulevard bridge. The project management team has been assembled including assigned staff from both the Cii of Carlsbad and the Port of Los Angeles as well as the technical expertise and resources ( various consulting groups. Attached as Exhibit 4 is the construction phase organization cha for the Batiquitos Lagoon Enhancement Project. FISCAL IMPACT Attached as Exhibit 5 is the construction phase reimbursement agreement between the Port ( Los Angeles and the City of Carlsbad which was approved by the Port's Board of Harbc Commissioners on April 29, 1994. This agreement follows the same approach and format as i previous reimbursement agreements between the City and Port. To summarize, the agreemei provides: Complete and total funding responsibility by the Port for all construction relate costs estimated at $31,332,650. - Port will pay the project contractor directly all monthly construction Port will pay directly all ongoing legal expenses required to defend against tt progre: payments as well as all utility relocations. Sierra Club and Audubon Society lawsuit currently in Federal District Court. Reimburse Carlsbad for all City costs related to the construction phase. control agreement with the U. S. Department of Agriculture. Port will pay directly to the retained construction management firm all overtin costs associated with the c~ntractor~~ expected request to work a 24 hour p day, 7 day per week shift to accomplish the dredging phase of the project. Establishes the change order approval authority and limits for both the Prole Directors and the Construction Manager. - - Reimburse Carlsbad for all costs associated with administering the animal damas - Establishes dispute resolution procedures between the Port and City during tt- phase of the project. The agreement provides for the reimbursement of an estimated $100,000 of City of Carlsb: costs anticipated to be incurred during the 3 year construction phase of the project. Sti requests the City Council appropriate this amount from the General Capital Construction Fur to the project account as interim cash flow for City costs subject to complete and toi reimbursement from the Port of Los Angeles under the terms of this reimbursement agreemei \ 0 0 PAGE FOUR OF AGENDA BILL NO. Id, 3 / 0 Staff recommends approval of the construction phase reimbursement agreement bel Port of Los Angeles and the City of Carlsbad. EXHl BITS 7. Resolution No. 9L[- lY / approving a reimbursement agreement betweei of Carlsbad and the Port of Los Angeles, awarding the construction contra Batiquitos Lagoon Enhancement Project, and approving other project related Letter dated May 4, 1994 from the Port of Los Angeles including the action of of Harbor Commissioners of April 29, 1994. Letter dated April 28, 4 994 from FCI Constructors, Incorporated. Batiquitos Lagoon Enhancement Project construction phase organization chi Reimbursement agreement between City of Carlsbad and Port of Los Angel€ 2. 3. 4. 5. 1 2 3 4 5 6 7 8 g 10 11 12 l3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e limits, and agency authority to implement said project has been prepared and i approved and the Mayor is authorized to execute said agreement. Following the City’s execution of said agreement, the City Clerk is directed to return tl original copies of the agreement to the Port of Los Angeles, Attention Bruce Seaton of Construction Management, 425 South Palos Verdes Street, P. 0. Box 151, S California 90733-0151, and one signed Xerox copy to the Community De\ Department. 3. That in accordance with Federal, State, and local laws, statutes, regula ordinances, the City Council hereby finds the apparent low bidder for said pi Constructors, Incorporated nonresponsive to the bid requirements for said project i said bid. 4. That in accordance with Federal, State, and local laws, statutes, reguli ordinances, the City Council hereby awards said bid and contract to the lowest r responsible bidder, T. L. James and Company, Incorporated in the amount of $25 The City Council authorizes the Mayor to execute said contract following the acce approval by the City of the contractual requirements to be provided by said comp, That the City Council hereby authorizes the return of the bid bond PO 5. Constructors, Incorporated for said bid. 6. That in accordance with Council policy, the City Council hereby appr State business travel for City officials required for activities related to said pro duration of the construction phase. Also in accordance with Council policy, the 1 hereby authorizes the City Manager to approve similar out of State business travel f required for activities related to said project for the duration of the construction business related travel and corresponding expenses shall be undertaken in acco existing policies and requirements, and as later amended, related to out of Stl travel. 2. I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e 7. That the City Council does hereby appropriate $100,000 from the Generi Construction Fund to the project account 3429 as interim cash flow for City expense to the construction phase of said project, subject to the full and complete reimburse the Port of Los Angeles under the terms of the aforementioned reimbursement agrec PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Coun City of Carlsbad, California, held on the 17th day of MAY , 1994 following vote, to wit: AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila NOES: None ABSENT: None ATTEST: ALETHA L. RAUTENKRANZ, City Clerk 1 (SEAL) 3. 0 e u L'' WORLDPORT L Richard J. Riordan. Mayor, city 01 LOS A Frank M. Sanchez, Ph.0.. President Lee M. Anderson, Vice Pmident Steven L soboroff Gertrude Schwab Peter Mandra. Secretary Ezunial Burts Executive Director May4,1994 Board ol Harbor Commissioners The Honorable Claude A. Lewis Mayor Cam/ L Rowen City of Carlsbad City Hall Carlsbad, CA 92009 Attn: Mr. Raymond R. Patchett: SUBJECT: ELECTION BY BOARD TO PROCEED WITH CONSTRUCTION OF THE The interagency agreement (MOA) for Batiquitos Lagoon identifies three times when the Los Angeles Board of Harbor Commissioners must notify parties of its intent to proceed with the next phase of project development. These include: 1) following preliminary engineering (MOA Section 6.d. - completed), 2) following the environmental process (MOA Section 6.e .- completed) and 3) within 45 days following receipt of bids for project construction (MOA Section 6.g.). On March 30, 1994 construction bids wefe opened on Batiquitos. As a Result it is now time for the Board to elect, or decline to proceed in accordance with Section 6.g. of the MOA. At the April 29, 1994 meeting of the Board of Harbor Commissioners, the Board unanimously elected to proceed with the next step in the project by approving the construction reimbursement agreement with the City of Carlsbad (see attached). This letter is formal notification of all parties to the MOA of the Board's intention to proceed at Batiquitos to construction in accordance with Section 6.g. of the MOA. This approval is contingent on a City of Los Angeles Council waiting period of five council days (approximately two weeks). The City of Carlsbad intends to award the contract at its Council Meeting on May 17, 1994 to the second low bidder, T.L. James since the lowest bidder (FCI) withdrew (see Carlsbad Bid Analysis in attachment). If you have any questions regarding this information, please contact Dr. Ralph Appy at (310) 732- 3497. 1200 Carlsbad Village Drive BAnourrOS JA-N ENHA~~*~*NT PROJECT / < ~~ %* tor ~'2- Executive DGL:RGA Enclosure cc: Mr. Gary Wayne, City of Carlsbad Mr. John Cahill, City of Msdad ADP NO. 870324-034 Port of 10s Angeles 425 So. Palos Verdes Street PO Box 151 San Pedro, CA 90733-0151 310/SEA-PORT FAX 310/831-0439 An Affirmative Acfion/€qua/ Oppofrunify Employer LAn 0 Am&. F*C*I \ CONJTOUCTOLS ma-r .r.~unUrululr*Sr~w,r- *w 8MNlurylrm ClWtlu- yr fFK: ApRI28, 19b4 A Mfi. Ruth Fletcher hrchnst.lg Officer 1200 Carlsbad Vie Drive SUBTECT: BATIQUITOS LAGOON LWTANcIXENT PItOJW lkar Ms. Fletcher: We received your letter of April 26, 1994 in which you prasent numaous obstacles to the City in awarding tho bid to FCI Constructors. In the spirit of cooperadon and the best interest of the City of catlsbad, the Port of Los Angeies, and the project itself, FCI Consbuctors will not pursue any future dtematives or legat remedies in order to seek award of the projcct. Ln the same spirit of coopemion, FCI Constructors requests that the City of Carlsbad retur our bid bond. city of catlsbad Carlsbad, catifarnia 92008-1989 d - \ 12707 HIGH KUT,I DIl\E %1Tf IN SAN Dlt03 CA VXX-2036 . # ILL w4u,+m ?A* 619 192g011 - - t 3 =G 23 E& cj E = -- 2%--2& a-=-- .I e '60's .9 2 .z G L 0, E,": pg-5 Q, U%Z -E-% -e Qe 5 - F GSgg&j* L -. zs CaOGZ u 0 L= -u- g*s2I U r: e- m Y) ss"gg-$ s5.z +-urn& 9- gj 0 g2 s M =g-g&s 2s 0 e .I r cs m Lzy ws 4 UG'" .E - tSQS.2 ZZEF T - - B 3 g .s as2 ZSb 54 3 sp += 4)gt 9 Eq .g& % 0-2 '@.E ; a$ s '5 - - Ea- b2 0 3- g - c 4 me$* .x w B .Y & B 4) 9 a '&Z .ri, EF: gal3 .c 0- 8 c &! 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HIS AGREEMENT is made this 29% dz of , 1994, between the CITY OF CARLSBAD, a municipz corporation of the State of California, hereinafter referred to z CITY, and the City of Los Angeles acting by and through the Boar of Harbor Commissioners hereinafter referred to as BOARD. RECITALS WHEREAS, BOARD and CITY intend to pursue a project identifie as the enhancement of Batiquitos Lagoon (Project) as mitigation fc Los Angeles Harbor fills; and WHEREAS, BOARD and CITY are parties to an Agreement ("MOA" with various federal and state agencies which establish€ procedures and responsibilities for design, construction ar maintenance of the Project; and WHEREAS, CITY has received bids and is now proposing to awar a contract to the lowest, responsive, responsible bidder for th construction of the Project; and WHEREAS, BOARD is responsible to fund the amoun necessary to construct the Project and to assist City wit administration of the construction of the Project. NOW, THEREFORE, in consideration of the covenants an conditions, it is agreed as follows: 1. BOARD shall assist City with construction managemen services for the Project. These services are defined i Agreement No. 1750 (Attachment 1) between the BOARD an Centennial Engineering, Inc. Administrative service beyond the scope of work described in Agreement No. 175 but necessary to administer the contract provisions shal be provided by CITY and funded by BOARD pursuant t Reimbursement Agreement No. 1419-4. 1 i 0 0 2. CITY shall appoint Centennial Engineering, Inc. as 1 Construction Manager for the Project. The Construct: Manager shall have authority to authorize and exec1 construction change orders increasing or decreasing t construction contract amount not to exceed $50,000 1 change order with a cumulative limit of ten percent (1( of the original construction amount. 3. Both BOARD and CITY shall appoint one (1) Projc Director each to represent BOARD and CITY to adminisl the project in the following way: (a) The Project Directors shall have joint authority authorize and execute construction change ordc increasing or decreasing the contract amount in excess $50,000 per change order. The Project Directors sh; have joint authority to approve increases and decrea: to the contract time. (b) Construction change orders that exceed a cumulat: total of fifteen percent (15%) of the origir construction contract amount shall be approved in advar by CITY and BOARD. (c) For the purposes of this paragraph 3 and otl paragraphs of this agreement, the It joint authority" the parties shall be defined as the mutual obligation meet and confer in good faith with joint authorizati occurring if the parties are in agreement. In the evc that, after meeting and conferring in good faith, t parties are unable to agree, a meeting of the Cj Manager and the BOARD'S Executive Director shall be he to resolve the item in dispute. (d) In the event the parties are unable to agree and t disagreement involves the refusal of the BOARD to apprc a payment to the contractor, the BOARD agrees it wj defend all litigation brought by the contractor agair the CITY or BOARD and pay any and all sums which may awarded in favor of the contractor or negotiated settlement of the litigation. 2 'r 0 a (e) CITY and BOARD recognize that during t construction period, the contractor could reque additional monies due to an unforeseen difficulty completing the specified work or for requested ext work. CITY and BOARD agree that if a change order jointly authorized as described above, City may requi the contractor to proceed with work without negotiati a change order price (assuming contractor and bc project directors have been unable to agree on price) 2 BOARD will defend all litigation brought by t contractor against CITY or BOARD and pay any and all SL which may be awarded in favor of the contractor or pz in settlement of the litigation. CITY agrees that it 1 reviewed Contract No. 3429 and agrees that it will r award extra work beyond the scope of work described Contract No. 3429 unless the Project Directors hz approved such work as set forth above. 4. Board's Executive Director shall appoint a Projc Director for the Project. Board's Executive Direct shall replace the Project Director at his discretion. CITY'S City Manager shall appoint a Project Director 1 the Project. CITY'S City Manager shall replace t Project Director at his sole discretion. 6. It is understood by the parties to this agreement C1 shall have sole authority to direct the activit: related to environmental monitoring and public relatior further understood by the parties to this agreement tl: BOARD and CITY shall have joint authority to direct 1 activities related to construction management, includ: retained consultants, for the Project. 5. including retained consultants, for Project. It 7. The amount of reimbursement under this agreement estimated not to exceed $31,332,650.00 for construction costs incurred through CITY Contract 1 3429 to construct the Project; (b) the estimated not exceed costs to relocate a 12-inch diameter high pressi gas line by Southern California Gas Company; (c) estimated not to exceed amount for construction perm. and other construction phase costs that are reasonal incurred by CITY; (d) a not to exceed amount for 1 legal expenses of Dwight Worden who is representing C: in the Sierra Club lawsuit; and (e) an estimated not exceed amount for predator control costs dur. construction. However, no provision of this agreemei includingthis estimate, changes or diminishes in any T the obligations of the BOARD and the City of Los Ange to fund the project to completion. 3 0 0 9. BOARD shall establish and maintain a construction fur funded each fiscal year by the Board to fund a: authorized construction costs. Upon receipt of month: pay estimates , reviewed and approved by the Constructic Manager and jointly authorized by the Project Director: payment will be made directly by the City of Los Angel( to the contractor who has been awarded a contract by CI: to construct the Project (Contractor). BOARD agrees 1 make payment to the Contractor within thirty (30) da after receipt of an undisputed (by both Proje Directors) and properly submitted payment request fr the contractor. 10. Pursuant to the provisions of the Collectible Wo Authorizations to be entered into between the CITY a Southern California Gas Company, the BOARD agrees to r directly to Southern California Gas Company an amount r to exceed $1,251,450 for all costs associated wi relocating a 12-inch diameter gas line. CITY agrees expeditiously pursue the tax exemption referenced in t Collectible Work Authorization. BOARD agrees to reimburse CITY all fees associated w.' construction permits or other construction phase co: for an amount not to exceed $100,000. Board agrees to allocate an additional $100,000 for ft incurred by Dwight Worden, Attorney-at-Law, who representing CITY in the Sierra Club lawsuit. 13. It is understood that BOARD agrees to reimbu Centennial Engineering directly for overtime pay incur by Centennial's personnel as a result of the Contrac working beyond the normal working hours as defined Contract No. 3429, Section 6-7.2. 14. BOARD agrees to allocate $110,000 for predator cont costs as incurred by the CITY through its agreement tr, the United States Department of Agriculture. 15. In the event the Contractor elects to use an esc agreement for security deposits in lieu of retenti CITY shall provide BOARD with an executed copy of escrow agreement immediately after execution of agreement. 11. 12. 4 0 0 IN WITNESS WHEREOF, the parties hereto have executed thi CITY OF CARLSBAD, a Municipal Corporation c agreement on the day and year first above written. Attest u 1. u - ALETHA L. RAUTENKRANZ, City Clerk CITY OF LOS ANGELES, by and through its Boa] of Harbor commissi ners J %&++/%+ AL By EZUNIAL URTS, Executive Director PJI AS TO FORM: Appa:* BY RONALD R. BALL Q L .;l/d: 199 , 199 Assistant City Attorney JCW:mc 3985wp 5 u 0 e .- WORLDPORT Richard J. Riordan, Mayor, City of 1 Board of Harbor Commissioners Frank M. Sanchez, Ph.D., Presiden lee M. Anderson, Vice President Steven L. Soboroff Carol L. Rowen Gertrude Schwa b Peter Mandia, Secretary fzunial Burts Executive Director May 12, 1994 Mr. John Cahill City of Carlsbad 2075 Las Palmas Drive Carl sbad, CA 92009 SUBJECT: AGREEMENT NO. 1419-5 BETWEEN THE CITY OF LOS ANGELES AND THE CITY OF CARLSBAD At the meeting held on Friday, April 29, 1994, the Los Angeles Board of Hart Commissioners resolved that Agreement No. 1419-5 between the City of Los Angel and The City of Carlsbad be approved for construction of the Batiquitos Lagr Enhancement Project. Enclosed are (5) five copies of Agreement No. 1419-5, please execute and ret (4) four executed copies to: Port of Los Angeles Board of Harbor Commissioners 425 S. Palos Verdes Street San Pedro, CA 90731 Attn: Stacey Xenios Ver truly yours, r PETER MANDIA Commission Secretary/Analyst PM: sax Enc. Port of Los Angeles 425 So. Palos Verdes Street P.O. Box 151 San Pedro, CA 90733-0151 SlO/SEA-PORT FAX: 310/831 An Affirmative Action/€qual Opportunity Employer