Agenda Item AGENDA STAFF REPORT ASR
Control 23-000056 |
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MEETING
DATE: |
11/28/23 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
2 |
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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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Daniel
Hernandez (714) 645-7001 |
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Subject: Approve Retroactive Contract for
Juvenile Hall Rehabilitation Center
ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement(s) and Resolution(s) |
Discussion |
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3
Votes Board Majority |
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Budgeted: Yes |
Current Year
Cost: $395,125 |
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: 3/9/2021 #16, 2/25/2020 #10, 9/13/2016
#30, 5/24/2016 #74 |
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RECOMMENDED
ACTION(S):
1. |
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. |
2. |
Authorize the Director of OC Public
Works or designee to execute the retroactive contract with Kitchell-CEM, Inc.
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3. |
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. |
SUMMARY:
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.
BACKGROUND
INFORMATION:
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.
FINANCIAL
IMPACT:
Appropriations for this Contract
are included in Fund 104, Criminal Justice Facilities, or General Budget
Control Fund 104, FY 2023-24 Budget.
STAFFING
IMPACT:
N/A
REVIEWING
AGENCIES:
OC
Probation
ATTACHMENT(S):
Attachment
A - Contract MA-080-23011124 with Kitchell-CEM, Inc.
Attachment B - Contract Summary Form
Attachment C - Resolution