Agenda Item   



                                                                                                                        ASR Control  23-000056




legal entity taking action:

Board of Supervisors

board of supervisors district(s):


SUBMITTING Agency/Department:

OC Public Works   (Approved)

Department contact person(s):

James Treadaway (714) 667-9700 



Daniel Hernandez (714) 645-7001



Subject:  Approve Retroactive Contract for Juvenile Hall Rehabilitation Center


     ceo CONCUR

County Counsel Review

Clerk of the Board


Approved Agreement(s) and Resolution(s)




3 Votes Board Majority




    Budgeted: Yes

Current Year Cost:  $395,125

Annual Cost: N/A




    Staffing Impact:


# of Positions:           

Sole Source:   No

    Current Fiscal Year Revenue: N/A

   Funding Source:    See Financial Impact Section

County Audit in last 3 years: No

   Levine Act Review Completed: Yes


    Prior Board Action:         3/9/2021 #16, 2/25/2020 #10, 9/13/2016 #30, 5/24/2016 #74






Approve retroactive contract with Kitchell-CEM, Inc. for payment of Construction Management Services for the Juvenile Hall Multipurpose Rehabilitation Center Project, for the term of November 1, 2021, through December 31, 2022, in an amount not to exceed $395,125.



Authorize the Director of OC Public Works or designee to execute the retroactive contract with Kitchell-CEM, Inc.



Adopt Resolution amending Resolution No. 21-131 evidencing the updated appropriation for the Cash/In-Kind Match and identifying the source of the Match for the architectural, CEQA, construction management and state agency fees.







Approval of a retroactive contract for Construction Management Services will allow OC Public Works to pay for services that were previously provided for the Juvenile Hall Multipurpose Rehabilitation Center Project.






With the passage of Senate Bill (SB) 81 (Stats. 2007, Chapter 175), the rehabilitation of youthful offenders in the State of California (State) shifted from state to local juvenile justice systems where rehabilitation can take place closer to each youth’s community. Among SB 81's many provisions, the Local Youthful Offender Rehabilitative Facilities (LYORF) Construction Financing Program authorized $300,000,000 in State-issued lease-revenue bonds for the acquisition, design, renovation or construction of LYORFs to support the rehabilitation of youthful offenders at the local level.   The Orange County Probation Department submitted a proposal to the BSCC in response to SB 81, Round Two Construction RFP to apply for financing for construction of a Multipurpose Rehabilitation Center and a Conditional Award was granted. OC Public Works negotiated a contract with Kitchell-CEM, Inc. (Contractor) to provide Construction Management Services (Services) during the construction of the Juvenile Hall Multipurpose Rehabilitation Center Project (Project).


On May 24, 2016, the Board of Supervisors (Board) approved the initial contract MA-080-16011848 with the Contractor and approved Amendments 1 and 2 to increase the contract amounts on February 25, 2020, and March 9, 2021, respectively.


The original contract for Services ended on May 23, 2022, and the contract was not extended as Project completion was expected before the contract end date. Final fire inspections required additional Project scope. The scope of items requested at the end of the Project faced supply chain delays, which lead to a substantially longer construction close-out period. Despite the contract's end, the Contractor continued to work on the Project. The initial contract duration mandated the Contractor’s oversight of the Project until the Project was delivered to both the County of Orange (County) and the State regardless of the contract’s term. 


Project was found to be accepted by OC Public Works on September 30, 2022. Once OC Public Works identified the oversight in the amended contract term and capacity, additional delays arose. The delays occurred due to the need to complete a financial reconciliation concerning the Contractor's dues and overall Project costs with both the State and the County. This postponed presenting the accurate additional requested contract amount until now. 


OC Public Works is recommending Board approval of retroactive Contract MA-080-23011124 (Contract) with the Contractor, effective November 1, 2021, through December 31, 2022, in in an amount not to exceed $395,125. Additionally, OC Public Works recommends updating Resolution No. 21-131, which will ensure the County allocates up to $10,108,372 in Cash/In-Kind Match, bringing the total Project budget to a maximum of $28.2 million. This will be financed by Fund 104, Criminal Justice Facilities, and Probation will cover architectural, CEQA, management and State agency fees. It also assures State and matching funds won't replace other construction funds.


OC Public Works procured these Services in accordance with the 2020 Design and Construction Procurement Policy Manual (DCPM), Section 3.3-108. The Orange County Preference Policy is not applicable to contracts procured in accordance with the DCPM.


This Contract does not currently include subcontractors or pass through to other providers. See Attachment B for Contract Summary Form.


Compliance with CEQA: This Project is a necessarily included element of the Project considered in Mitigated Negative Declaration (MND) IP No.16-036, adopted by the Board on September 13, 2016, and Addendum IP No. 17-062, which was administratively approved on May 11, 2017, which includes minor changes or additions necessary and both documents adequately address the effects of the proposed Project. No substantial changes have been made to the Project, no substantial changes have occurred in the circumstances under which the Project is being undertaken and no new information of substantial importance to the Project that was not known or could not have been known when MND IP No.16-036 and Addendum IP No.17-062 were approved has become known; therefore, no further environmental review is required.






Appropriations for this Contract are included in Fund 104, Criminal Justice Facilities, or General Budget Control Fund 104, FY 2023-24 Budget.










OC Probation




Attachment A - Contract MA-080-23011124 with Kitchell-CEM, Inc.
Attachment B - Contract Summary Form
Attachment C - Resolution