Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-000976

 

MEETING DATE:

10/22/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

OC Public Works   (Approved)

Department contact person(s):

Julie Lyons (714) 667-9701 

 

 

Jim Treadaway (714) 647-3948

 

 

Subject:  Approve Assignment, Novation and Consent Agreements

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

No Legal Objection

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: See Financial Impact Section

County Audit in last 3 years: No

 

 

    Prior Board Action: 6/27/2017 #70, 12/15/2015 #45

 

RECOMMENDED ACTION(S):

 

 

1.

Approve the Assignment, Novation and Consent Agreement with Owen Group, Limited Partnership to transfer and assign one existing Board of Supervisors approved contract from Owen Group, Inc. to Owen Group, Limited Partnership, effective March 22, 2019, through December 14, 2020.

 

2.

Approve the Assignment, Novation and Consent Agreements with Henrikson Owen & Associates, Limited Partnership to transfer and assign two existing Board of Supervisors approved contracts from Henrikson Owen & Associates, Inc. to Henrikson Owen & Associates, Limited Partnership, effective March 22, 2019, through June 26, 2020.

 

3.

Authorize the Director of Public Works or designee to execute the Assignment, Novation and Consent Agreement with Owen Group, Limited Partnership to transfer and assign rights of one Board of Supervisors approved contract from Owen Group, Inc. to Owen Group, Limited Partnership.

 

4.

Authorize the Director of Public Works or designee to execute Assignment, Novation and Consent Agreement with Henrikson Owen & Associates, Limited Partnership to transfer and assign rights of two Board of Supervisors approved contracts from Henrikson Owen & Associates, Inc. to Henrikson Owen & Associates, Limited Partnership.

 

 

 

 

SUMMARY:

 

Approval of the three Assignment, Novation and Consent Agreements will allow the County of Orange to assign and transfer one contract with Owen Group, Inc. for On-Call Architectural Services to Owen Group, Limited Partnership and two contracts with Henrikson Owen & Associates, Inc. for On-Call Electrical Engineering and On-Call Mechanical-Plumbing Engineering Services to Henrikson Owen & Associates, Limited Partnership at no cost to the County of Orange.

 

 

 

BACKGROUND INFORMATION:

 

On December 15, 2015, the Board of Supervisors (Board) approved a contract for On-Call Architectural Services with Owen Group, Inc., effective December 15, 2015, through December 14, 2020, in an amount not-to-exceed $1.5 million.

 

On June 27, 2017, the Board approved contracts for On-Call Electrical Engineering and On-Call Mechanical-Plumbing Engineering Services with Henrikson Owen & Associates, Inc. (Contracts), effective June 27, 2017, through June 26, 2020, in an amount not-to-exceed $1.5 million.

 

On March 22, 2019, the County of Orange (County) received letters from Owen Group, Inc. and Henrikson Owen & Associates, Inc. announcing that Bureau Veritas SA had acquired a majority interest in both Owen Group, Inc. and Henrikson Owen & Associates, Inc., converting Owen Group, Inc. to a Nevada limited partnership known as Owen Group, Limited Partnership and Henrikson Owen & Associates, Inc. to a California limited partnership known as Henrikson Owen & Associates, Limited Partnership (Contractors).

 

The Contractors have requested to continue providing On-Call Architectural, Electrical Engineering and Mechanical-Plumbing Engineering Services (Services) under the Board approved Contracts:

 

Contractors

Services

Contract Number

Effective Date

Expiration Date

Owen Group, Inc.

On-Call Architectural Services

MA-080-16010914

12/15/2015

12/14/2020

Henrikson Owen & Associates, Inc.

On-Call Electrical Engineering

MA-080-17011293

  6/27/2017

  6/26/2020

Henrikson Owen & Associates, Inc.

On-Call Mechanical-Plumbing Engineering

MA-080-17011298

  6/27/2017

  6/26/2020

 

OC Public Works was informed that the change to Contractors is the only change to the corporate organizational structures and the business will otherwise remain fundamentally unaffected by this change. OC Public Works conducted a thorough vetting of the Contractors financial stability through standard County practices, and also determined that there will be no change in management or personnel servicing the contracts. All Contracts will remain unaltered, with corresponding obligations and rights assumed under the new name.

 

OC Public Works conducted due diligence on the Contractors. OC Public Works has verified there are no concerns that must be addressed with respect to Contractor's ownership/name, litigation status or conflicts with County interests.

 

OC Public Works recommends Board approval of the Assignment, Novation and Consent Agreements with the Contractors to enable Owen Group, Limited Partnership and Henrikson Owen & Associates, Limited Partnership to continue to provide the Services authorized under the original Contracts, which are necessary for the completion of County projects. All original Contract terms and conditions shall remain unchanged.

 

Compliance with CEQA: This action is not a project within the meaning of CEQA Guidelines Section 15378 and is therefore not subject to CEQA, since it does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action in regard to a project since the action authorized is transfer of existing on-call Architect-Engineer contracts. This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a project will be reviewed for compliance with CEQA.

 

 

 

FINANCIAL IMPACT:

 

The original Contracts included a provision stating that the contracts are subject to, and contingent upon, applicable budgetary appropriations being approved by the Board for each fiscal year during the term of the Contracts. If such appropriations are not approved, the Contracts may be immediately terminated without penalty to the County.

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A - MA-080-16010914 with Owen Group, Limited Partnership
Attachment B - MA-080-17011293 Henrikson Owen & Associates, Limited Partnership
Attachment C - MA-080-17011298 Henrikson Owen & Associates, Limited Partnership