DATE: May 8, 2018
SUBJECT:
Title
RESOLUTION WAIVING BPC POLICY NO. 110, PART 1.G.2, TO INCREASE THE EXECUTIVE DIRECTOR’S CHANGE ORDER AUTHORITY FROM 10% TO 20% OF THE ORIGINAL CONTRACT AMOUNT AND CONTRACT TIME EXTENSION AUTHORITY FROM 120 DAYS TO 220 DAYS FOR CONTRACT NO. 2012-06, SHELTER ISLAND BOAT LAUNCHING FACILITY IMPROVEMENTS PROJECT WITH NO INCREASE TO PROJECT BUDGET
Body
EXECUTIVE SUMMARY:
This action recommends that the San Diego Unified Port District (District) Board of Port Commissioners (Board) waive BPC Policy No. 110, Part 1.G.2, to increase the executive director’s change order authority from 10% to 20% of the Original Contract Amount and Contract Time Extension authority from 120 days to 220 days for Contract No. 2012-06, Shelter Island Boat Launching Facility Improvements Project.
The Shelter Island Boat Launching Facility Improvements Project scope includes replacing the worn-out launch ramp, enlarging the maneuvering area in the basin, increasing of the length of boarding floats, and installation of a new breakwater wall system and public walkway platform.
During excavations for removal of the existing jetties the contractor encountered an unforeseen amount of large buried concrete debris which required changes to their construction methodologies. These changes have significantly impacted their productivity and construction schedule and could contribute to a delay in the installation of the new breakwater wall system.
Staff is seeking to expedite the change order approval process for any change orders due to additional unforeseen conditions to minimize the District’s exposure to additional project delays. Accordingly, staff is recommending an increase in the Executive Director’s authority to approve change orders up to 20% of the original contract amount and increase the contract duration up to 220 days. The recommended increase in change order capacity does not impact the overall project budget.
RECOMMENDATION:
Recommendation
Adopt Resolution Waiving BPC Policy No. 110, Part 1.G.2, to increase the Executive Director’s Change Order Authority from 10% to 20% of the Original Contract Amount and Contract Time Extension authority from 120 days to 220 days for Contract No. 2012-06, Shelter Island Boat Launching Facility Improvements Project with no increase to project budget.
Body
FISCAL IMPACT:
The Shelter Island Boat Launching Facility Improvements Project is funded through grants from the State of California Division of Boating and Waterways (DBW) and the State of California Wildlife Conservation Board (WCB), and budgeted in the FY 2017 - 2018 Capital Improvement Program (CIP) at a total project budget of $8,768,560. Approval of this agenda will not impact the project budget.
Compass Strategic Goals:
Adoption of this resolution will allow staff to continue implementing the CIP, approved by the Board to be in alignment with the District’s vision, mission and strategic goals.
This agenda item supports the following Strategic Goal(s).
• A vibrant waterfront destination where residents and visitors converge.
• A Port that is a safe place to visit, work and play.
DISCUSSION:
The Shelter Island Boat Launch was constructed in 1956 with a single-lane concrete launch ramp and the last major improvement was completed in the mid-1970s when the existing 10-lane boat launching ramp was constructed. The facility is used by recreational boaters from the general public, including small yachts, inboard and out-boards motorboats, private fishing boats, fishing tournament boats, and amphibious tour buses.
With an estimated 50,000 launches annually, the Shelter Island Boat Launch is believed to be the busiest boat launch ramp in the state of California, and was evaluated to be in desperate need of repairs. Improvements will address safety concerns related to maneuverability in the basin, reducing queuing outside of the basin, and bringing the overall facility up to new code standards.
On April 11, 2017, the Board authorized the award of contract No. 2012-06 to R. E. Staite Engineering, Inc. for improvements to the Shelter Island Boat Launch Facility. This project is funded through grants from the State of California Division of Boating and Waterways (DBW) and the State of California Wildlife Conservation Board (WCB). The Project’s scope includes the removal and disposal of existing earthen jetties which will be replaced with a new pre-cast concrete breakwater wall system, a new 10-lane concrete launch ramp, and new floating docks. Overall the new boat basin will have approximately 80% more maneuvering area, 350 additional feet of docking footage, and a larger 60-foot wide basin entrance from the bay.
Construction started in May, 2017, and during excavation of the jetties, an unforeseen amount of oversized concrete debris was encountered by the contractor (see attachments). The concrete debris was likely placed in the jetties during its initial construction in the 1950s but was never depicted on any existing as-built drawings of the jetties. During the project design phase, the design team engaged Terra Costa Consulting Group for geotechnical investigation and testing to obtain soil samples and borings at the project site and provide the design team with geotechnical engineering design parameters to address site conditions. The geotechnical engineering reports were inconclusive and underestimated the volume and size of existing underground debris. Due to these unforeseen underground conditions, the contractor is justified for compensation and additional time to remove and dispose of the unanticipated underground concrete debris.
Although the jetties have been removed, the project team anticipates that concrete debris might still be present at lower elevations based on a test pile driving program conducted by the construction team. It is anticipated that this debris could impact the installation of piles that will support the new breakwater wall system. The project team has proactively taken steps to minimize the potential impacts of this debris through changes to the pile driving methods and resequencing of work. If debris is encountered during the installation of piles that prevent the pile position tolerances from being met, the contractor will need to proceed with selective excavation to clear this debris and allow the piles to reach their required depth.
Furthermore, the construction team has encountered unexpected soft and unstable subgrade soil conditions underlying the ramp extension area. The very soft soils are not suitable to support the compacted backfill proposed for placement of the ramp footing and geotechnical design changes are currently being implemented by the contractor to stabilize the subgrade.
Staff has been communicating the delays caused by unforeseen site conditions to the public through periodic site meetings and outreach updates in accordance with the project communication plan developed during the public outreach process.
Board Policy No. 110, part 1.G.2 stipulates that any change that causes the aggregate amount of change orders to exceed 10% and increase the contract duration over 120 days must be approved by the Board. However, staff has committed the majority of the initial 10% change order capacity to removing unanticipated concrete debris during jetty excavation. Staff authorization of an additional 10% capacity for a total of 20% change order authority is requested to address any further unforeseen conditions.
On average, the agenda process for Board approvals takes approximately two months. A two month approval process for any change orders on projects currently underway may expose the District to additional unnecessary cost increases and schedule delays. For this reason, staff recommends an increase in the Executive Director’s authority to approve change orders up to 20% of the original contract amount and increase the contract duration up to 220 days. This will reduce change order processing time and minimize impacts to the overall project cost and schedule. Any supplementary work, if required, will be performed in accordance with the Standard Specifications to reimburse the contractor for additional equipment and labor. The increase in change order capacity does not impact the project budget, but rather authorizes staff to utilize the funds currently allocated to this project.
General Counsel’s Comments:
The Office of the General Counsel has reviewed the issues set forth in this agenda and found no legal concerns as presented.
Environmental Review:
The proposed Board action to authorize a change order to an existing contract for the construction of the Shelter Island Boat Launch Facility Improvements project was adequately covered in the Final Mitigated Negative Declaration (MND) entitled “Shelter Island Boat Launch Facility Improvements Project and Port Master Plan Amendment” (UPD #MND-2015-38; Clerk’s Document No. 63789), prepared and adopted by the District on January 12, 2016, and the Addendum to the Final Mitigated Negative Declaration (Addendum) (UPD #MND-2015-38; Clerk’s Document No. 67162) prepared and adopted by the District on August 25, 2017. The proposed project is not a separate “project” for CEQA purposes but is a subsequent discretionary approval related to a previously approved project. (CEQA Guidelines § 15378(c); Van de Kamps Coalition v. Board of Trustees of Los Angeles Comm. College Dist. (2012) 206 Cal.App.4th 1036.) Additionally, pursuant to CEQA Guidelines Sections 15162 and 15163, and based on the review of the entire record, including without limitation, the MND and Addendum, the District finds and recommends that the approval of the resolution to authorize a change order to the existing contract for the construction of the Shelter Island Boat Launch Facility does not require further environmental review as: 1) no substantial changes are proposed to the project and no substantial changes have occurred that require major revisions to the MND and Addendum due to the involvement of new significant environmental effects or an increase in severity of previously identified significant effects; and 2) no new information of substantial importance has come to light that (a) shows the Project will have one or more significant effects not discussed in the MND and Addendum, (b) identifies significant impacts would not be more severe than those analyzed in the MND and Addendum, (c) shows that mitigation measures are now feasible that were identified as infeasible and those mitigation measures would reduce significant impacts, and (d) no changes to mitigation measures have been identified or are required. Because none of these factors have been triggered and the adoption of the resolution to authorize a change order to the existing contract for the construction of the Shelter Island Boat Launch Facility, the District has the discretion to require no further analysis or environmental documentation (CEQA Guidelines §15162(b)). Pursuant to CEQA Guidelines §15162(b), the District finds and recommends that no further analysis or environmental documentation is necessary. Accordingly, the proposed Board action is merely a step in furtherance of the original project for which environmental review was performed and no supplemental or subsequent CEQA has been triggered, and no further environmental review is required.
In addition, the proposed Board action complies with Section 87 of the Port Act, which allows for the establishment, improvement, and conduct of small boat harbors, marinas, aquatic playgrounds, and similar recreational facilities, and for the construction, reconstruction, repair, maintenance, and operation of all works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient for the promotion and accommodation of any of those uses, including, but not limited to, snack bars, cafes, restaurants, motels, launching ramps, and hoists, storage sheds, boat repair facilities with cranes and marine ways, administration buildings, public restrooms, bait and tackle shops, chandleries, boat sales establishments, service stations and fuel docks, yacht club buildings, parking areas, roadways, pedestrian ways, and landscaped areas. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
Finally, the project was covered in the Coastal Development Permit (CDP-2016-08) issued by the District on November 7, 2016 and Amendment to Coastal Development Permit approved by the District on August 25, 2017. The proposed Board actions are consistent with the project in that CDP, as amended. No additional action under the California Coastal Act is required at this time.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Eric Guerreiro
Capital Project Manager I, Engineering-Construction
Attachment(s):
Attachment A: Site Photo 1
Attachment B: Site Photo 2
Attachment C: Site Photo 3
Attachment D: Site Photo 4