HomeMy WebLinkAboutAGENDA REPORT 2015 1021 CCSA REG ITEM 10D ITEM 10.D.
CITY OF MOORPARK,CALIFORNIA
City Council Meeting
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AGENDA REPORT . ' 'i •_t;��
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TO: Honorable City Council
FROM: Jeremy Laurentowski, Parks and Recreation Directo
BY: Jessica Sandifer, Senior Management Analys 4
DATE: October 9, 2015 (CC Meeting of 10/21/15)
SUBJECT: Consider Authorization for Recordation of the Notice of Completion
for Walnut Acres Park Project (Project# 5081) and Release of Bonds
in Accordance with the Contract
BACKGROUND & DISCUSSION
On September 17, 2014 the City Council awarded the Walnut Acres Park Project to
Malibu-Pacific Tennis Courts, Inc. (Malibu) for $408,000.00 plus a 10% contingency of
$40,800.00 for an overall project budget of $448,000.00. There were three change
orders approved for the project, paid for out of the project contingency, totaling
$5,799.85, as outlined below:
• Change Order #1 — City requested changes in work scope and a deduction of
$15,000 to improve the existing property line wall, rather than a complete remove
and replace. Additional work included the property line wall improvements, the
addition of electrical conduit, a concrete ramp and filter fabric within the tot lot.
Deductions: ($15,000.00)
Additions: $18,940.00
Net Cost to City: $3,940.00
• Change Order #2 — City requested changes for additional work. The City
accepted a $10,000 deduction in exchange for a twenty working day extension,
requested by the Contractor. Additional work included the replacement of two
asphalt driveway approaches, improvements to the sign footing design, and
improvements at the alley intersections. Four additional days were allocated to
perform the extra work.
Deductions: ($10,000.00)
Additions: $12,858.00
Net Cost to City: $2,858.00
• Change Order #3 — City requested changes for additional work and a deduction
of $8,000 for the removal of the one-year maintenance requirement, requested
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October 21, 2015
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by the Contractor. Additional work included the addition of plant material and a change
in specifications regarding the vehicular striping paint
Deductions: ($8,000.00)
Additions: $7,001.85
Net Cost to City: ($998.15)
Accounting for the change orders and cost deductions, the final contract cost for the
construction of Walnut Acres Park was $413,799.85. However, there were some
difficulties on the part of the Contractor with finishing the project by the project
completion date. Per the terms of the agreement, the contractor was allowed seventy-
five working days to complete the construction of the park. The City allowed the
contractor to delay the start date of construction by one week and issued a Notice to
Proceed on October 27, 2015. This established a project completion date of February
23, 2015 after accounting for City holidays. As mentioned above, the Contractor
requested an additional 20 working days, in exchange for a $10,000 reduction in the
payment of Change Order #2 and was allocated an additional 4 days to complete the
additional work. The Liquidated Damages section of the contract includes a provision
whereas the contractor is subject to liquidated damages of $500 for every day the
project was deemed incomplete, thus the total sum of $10,000 in exchange for the
additional twenty days. The time extension established a new project completion date
of April 6, 2015.
Even with the requested additional working days, the City was required to assess
liquidated damages due to extensive project delays. To date, the City has deducted
$38,500 from payments owed to the Contractor in satisfaction of liquidated damages.
Currently, there is still an additional $9,000 in liquidated damages that will be deducted
from payments owed to the Contractor, accounting for a total of $48,500 in liquidated
damages for this project.
On July 13, 2015, the City suspended liquidated damages due to the fact that the main
portions of the project were installed and initiated a series of punch lists in order to
deem the project substantially complete. Two separate punch lists were prepared over
a three week period, and on August 10, 2015 the Contractor was removed from the job
due to the Contractor's failure to complete the punch list items. The terms of the
Agreement allowed for a total of ten working days to correct any project deficiencies.
As a courtesy, the Contractor was allocated a total of fifteen working days.
Due to Malibu's non-performance, the City was required to complete the required punch
list items and will be deducting the costs for these items from the Contractor's final
payment request. The total cost to complete this work, which includes a 15% charge for
City costs incurred in administering the punch list work, is approximately $7,232.
Additionally, several project close-out items have not been completed, such as the as-
built irrigation, lighting and plumbing plans and the delivery of the City logo for the park
sign. Staff requested these items from Malibu on August 24, 2015, and has not received
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a response from the Contractor. Staff will obtain costs to purchase or complete these
items and will deduct these costs from any payments owed to Malibu.
Staff has also received two requests to withhold funds, one from the Labor
Commissioner and one from Malibu's sub-contractor, RP Barricades, who served a
Stop Notice on the City. The City is required to withhold the requested funds until the
labor commissioner completes their investigation. Under the Stop Notice, the City is
required to withhold the funds until: 1) RP Barricades forecloses upon their Stop Notice
request; 2) RP Barricades receives payment and releases the Stop Notice; 3) Malibu
Pacific posts a release bond in the amount of 125% of the amount in dispute. The
following is an approximate breakdown of the amounts owed to the Contractor and
items to be deducted to-date:
Amounts Owed to Malibu Pacific (per contract)
Remaining Contract Balance $22,751.85
Retention Balance $19,552.40
SUB-TOTAL $42,304.25
Amounts to be Deducted from Final Pay App
Liquidated Damages 6-30 to 7-13 $ 9,000.00 deduction of 2 days per CO#3
Fence Repair $ 4,350.00
Seal Installation $ 90.00
Driveway Apron $ 950.00
Re-Heat Brand Valve Covers $ 224.15
City Seal Balance $ 603.00
Graffiti Removal $ 207.20
Temp Fence Rental $ 647.50
Administrative Fee $ 970.33
SUB-TOTAL(to be deducted from remaining pay app) $14,614.15
Amounts to Be Withheld Pursuant to Duly Received Notices
RP Barricades Stop Notice $ 454.16 '125% of the requested amount
Labor Commissioner Notice $ 4,200.00
SUB-TOTAL(to be withheld from pay app) $ 4,654.16
Net to Malibu After Payment of Retention and
Withholding of Sums $23,035.94
The Contractor has yet to submit their final payment application. Staff feels confident
that the deductions in the payments owed to Malibu will cover the work the City has had
to perform on their behalf. The City Attorney has confirmed that Malibu will be
responsible for the final costs of these items. Malibu has been informed of these costs
and has remained nonresponsive. Staff is recommending that the City Council
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authorize the recordation of the Notice of Completion.
With the City Council's authorization to record the Notice of Completion, the City Clerk's
office will be authorized to release the project bonds as follows:
• Payment Bond No. 2183723 shall be released one (1) year after the
recordation of the Notice of Completion with the City's written consent.
• Performance Bond No. 2183723 shall be null and void one (1) year after the
recordation of the Notice of Completion.
FISCAL IMPACT
The final contract cost is $413,799.85, as broken down below:
Original Contract Price; $408,000.00
less Change Order#1 Deduction $ (15,000.00)'
less Change Order#2 Deduction $ (8,000.00)'
Adjusted Base Contract Price $ 385,000.00
Change Order#1 $ 18,940.00
Change Order#2 $ 2,858.00
Change Order#3 $ 7,001.85
Total Final Contract Price: $413,799.85
STAFF RECOMMENDATION
Authorize the City Clerk to file the Notice of Completion, and release the project bonds
as outlined in the report.
Attachment : Notice of Completion
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ATTACHMENT
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
CITY OF MOORPARK
799 Moorpark Avenue
Moorpark, California 93021
Attn: City Clerk
NO FEE REQUIRED PURSUANT TO:
Government Code Sections 6103 and 27383
Space above this line for Recorder's use
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204 must be filed on or within 15 days after the date of completion of a work of
improvement. Civil Code Section 9200 provides that completion of a work of improvement occurs at the earliest of
(a)acceptance of the work of improvement by the public entity or (b) cessation of labor On the work of improvement for a
continuous period of 60 days.
Notice is hereby given that:
The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property
hereinafter described:
The full name of the owner is: City of Moorpark
The full address of the owner is: 799 Moorpark Avenue, Moorpark, California 93021
The nature of the interest or estate of the owner is: owner in fee
The owner retained a contractor to perform a work of improvement as follows:
Construction of Walnut Acres Park
The name and address of the contractor, if any,for such work of improvement was:
Malibu Pacific Tennis Courts, Inc..
The date of the contract was: September 29, 2015
The name and address of the surety, if any, was:
North American Specialty Insurance Company
The name and address of the construction lender, if any, for such work of improvement was:
None
The property on which the work of improvement was constructed is in the City of Moorpark, County of Ventura,
State of California, and is described as follows: 512-0-102-210
The street address of said property is: 161 Second Street, Moor-park, CA 93021
Date labor ceased on the work of improvement: August 15,2015
The work of improvement was completed on: October 21, 2015
Dated: Signed:
Steven Kueny, City Manager, City of Moorpark,799 Moorpark Ave., Moorpark,California
VERIFICATION
I, the undersigned, say: I am the City Manager of the City of Moorpark. I am authorized to make this
verification for and on behalf of the City of Moorpark and I make this verification for that reason. I have read this
Notice of Completion and the matters stated in this Notice of Completion are true of my own knowledge. I
declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on , 2015, at Moorpark, California.
Signed:
Steven Kueny,City Manager,City of Moorpark, 799 Moorpark Avenue, Moorpark, California 93021
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