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Agenda Item
ASR
Control 23-001066 |
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MEETING
DATE: |
02/06/24 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
5 |
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SUBMITTING Agency/Department: |
OC
Public Works (Approved) |
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Department contact person(s): |
James
Treadaway (714) 667-9700 |
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Dylan
Wright (714) 338-9521 |
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Subject: Award Construction Contract for
Niguel Shores Restoration Phase I Revetment
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $1,455,900 |
Annual Cost: N/A |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 6/6/2023 #11, 12/20/2022 #SCS3,
3/15/2016 #17, 10/6/2015 #CS1 |
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RECOMMENDED
ACTION(S):
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1. |
Find that the Niguel Shores Restoration
of Phase I Standard Revetment Project is categorically exempt CEQA, Class 1
(Existing Facilities), Class 2 (Replacement or Reconstruction), Class 4
(Minor Alterations to Land) and Class 8 (Actions by Regulatory Agencies for
Protection of the Environment) pursuant to CEQA Guidelines Sections 15301,
15302, 15304 and 15308. |
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2. |
Award contract to Power Engineering
Construction Company for the Niguel Shores Restoration of Phase I Standard
Revetment Project, in the amount of $1,455,900 effective upon Board of
Supervisors approval, to be completed within 95 calendar days of the effective
date of the Notice to Proceed. |
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3. |
Authorize the Director of OC Public
Works or designee to execute the contract with Power Engineering Construction
Company. |
SUMMARY:
Award of the contract for the
Niguel Shores Restoration of Phase I Standard Revetment Project will comply
with the Settlement Agreement reached by the County of Orange and provide the
necessary rehabilitation of the Niguel Shores Revetment.
BACKGROUND
INFORMATION:
The Niguel Shores Restoration of
Phase I Standard Revetment Project (Project), located in Dana Point,
California, aims to reconstruct an existing revetment originally constructed in
the late 1960s. This revetment, located between Salt Creek Beach and Strand
Beach, was designed to stabilize a slope near several homes. The Project
involves reassembling existing boulders within the previously restored
revetment area and repairing access ramps and stairs.
Historically, a landslide in 1977
and subsequent damage in 1977-78 prompted the Niguel Shores Community
Association to take legal action in 1984 against Orange County Harbors, Beaches
and Parks District (HBPD, since renamed OC Parks) and Avco Community Developers
(Avco). This legal action centered on slope maintenance responsibilities
pertaining to a 1971 agreement indicating Avco's construction commitments and
HBPD's maintenance obligations.
In 1989, a settlement agreement was
reached, mandating HBPD’s oversight of the revetment's design, construction and
maintenance. Efforts to comply with this agreement, while adhering to
California Coastal Commission (Commission) regulations, faced challenges,
including the Commission’s 2012 permit denial due to expansion limitations.
A 2013 lawsuit by Breakers Isle
homeowners against Niguel Shores Community Association and the County of Orange
(County), further complicated matters, leading to a 2015 settlement agreement
that tasked the County seeking Coastal Development Permit (CDP) approval, which
was approved by the Board of Supervisors (Board) on October 6, 2015. On March
15, 2016, the Board approved a contract with TerraCosta Consulting Group for
professional services related to the Project. On October 13, 2022, the
Commission approved the CDP application. On December 20, 2022, the Board
approved a technical amendment to the County's 2015 settlement agreement that
incorporated a new, Commission-approved revetment repair plan. On June 6, 2023,
the Board approved the Project as part of the 7-Year Capital Improvement
Program.
On November 17, 2023, OC Public Works
issued pre-qualification documents through the County online bidding system for
the Project. Seven contractors responded and were pre-qualified and allowed to
submit proposals in response to the County’s subsequent Invitation for Bid
(IFB).
On December 5, 2023, OC Public Works
issued an IFB to the pre-qualified contractors for the Project. Four bids were
received and deemed responsive.
The following summarizes the responsive
bids and provides a comparison against the Engineer’s Estimate (EE):
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Base
Bid |
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EE |
$1,950,000 |
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Gentry General Engineering, Inc |
$2,642,000 |
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KEC Engineering |
$3,060,000 |
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Matcon General Engineering Inc. |
$1,491,870 |
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Power Engineering Construction Company |
$1,455,900 |
A full summary of the responsive bids
received can be found in the Bid Summary as Attachment C.
The lowest responsive and responsible bid
submitted by Power Engineering Construction Company (Contractor) for this
Project is approximately 25.3 percent below the EE of $1,950,000. OC Public
Works has reviewed the bid submitted by the Contractor and verified that the
difference is not the result of errors or omissions in the estimate but is
attributed to the competitive environment.
OC Public Works is procuring Construction
Services (Services) for this Project in accordance with the 2020 Design and
Construction Procurement Policy Manual (DCPM), Section 4. The Orange County
Preference Policy is not applicable to contracts procured in accordance with
the DCPM.
OC Public Works is recommending the Board
award Contract MA-012-24010359 (Contract) with the Contractor in the amount of
$1,455,900, effective upon Board approval, to be completed within 95 calendar
days of the effective date of the Notice to Proceed.
Pursuant to 2020 DCPM Section 6.10(2),
upon award of the Contract by the Board, receipt and approval by OC Public
Works of the Contractor’s bonds and insurance and on satisfaction of any other
prerequisites to the Contractor’s performance, the Director of OC Public Works
or designee will execute the Contract and the Project Manager will issue the
Notice to Proceed, which begins the performance period of the Contract.
The Contractor’s license number was
verified as current and active through the Contractors State License Board
database as of December 18, 2023. A copy of the verification is on file. The
Contractor is based in Alameda County.
An analysis was conducted to determine the
benefit of contracting out versus providing Services in-house. Based on this
analysis, OC Public Works has determined that contracting for Services is more
cost effective and required for the specialized construction expertise.
OC Public Works has conducted due
diligence on the Contractor. Reference checks were satisfactory and completed
with the San Francisco Public Utilities Commission, the City of Berkeley and
the East Bay Regional Park District regarding similar projects.
This Contract includes subcontractors. See
Attachment B for Contract Summary Form.
Compliance
with CEQA: The
proposed Project is Categorically Exempt (Class 1, 2, 4 and 8) from the
provisions of CEQA pursuant to CEQA Guidelines Sections 15301, 15302, 15304 and
15308 because the reconstruction of the existing revetment and repair of the
north and south access ramps and north stairs are repairs of the existing
facilities that do not involve expansion of the existing use, are replacement
or reconstruction as existing facilities on the same site and for the same
purpose and capacity of the existing facilities, consist of minor alterations
to public land and consist of actions taken by regulatory agencies, as
authorized by state or local ordinance to assure the maintenance, restoration
or enhancement of the environment where the regulatory process involves procedures
for the protection of the environment.
FINANCIAL
IMPACT:
Appropriations
for this Contract are included in OC Parks Fund 405, FY 2023-24 Budget.
The proposed Contract includes a provision
stating the County may at any time and without cause terminate the Contract, in
whole or in part, upon not less than 30 days written notice to the Contractor
and immediately for cause upon written notice to the Contractor without penalty
to the County.
STAFFING
IMPACT:
N/A
REVIEWING
AGENCIES:
OC
Community Resources/OC Parks
ATTACHMENT(S):
Attachment
A - Contract MA-012-24010359 with Power Engineering Construction Company
Attachment B - Contract Summary Form
Attachment C - Bid Summary
Attachment D - Project Location Map