AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 20-000800
MEETING DATE:	03/23/21
legal entity taking action:	Board of Supervisors and Orange County Flood Control District
board of supervisors district(s):	2
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	Nardy Khan (714) 647-3906
	Fiona Man (714) 647-3953

Subject: Approve Construction Services Contract for Huntington Beach and Talbert Channels

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $30,500,000

Annual Cost: FY 2021-22 $38,450,000

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: Fund 401: 100%	County Audit in last 3 years: No

Prior Board Action: 12/17/2019 #24, 4/23/2019 #11, 5/21/2013 #45

RECOMMENDED ACTION(S):

Find that Final Mitigated Negative Declaration IP No. 11-444 County-Wide Long-Term Routine Maintenance Permitting Program previously adopted by the Board of Supervisors on May 21, 2013, reflects the independent judgment of the County of Orange and is adequate to satisfy the requirements of CEQA for the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project based on the following additional findings:

The circumstances of the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project are substantially the same and Final Mitigated Negative Declaration IP No. 11-444 adequately addressed the effects of the proposed Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project. No substantial changes have been made in the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project, no substantial changes have occurred in the circumstances under which the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project is being undertaken and no new information of substantial importance to the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project, which was not known or could not have been known when the previous Final Mitigated Negative Declaration IP No. 11-444 was adopted has become known; therefore, no further environmental review is required.

Final Mitigated Negative Declaration IP No. 11-444 is adequate to satisfy the requirements of CEQA for the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project.

Award Design-Build Contract to Reyes Construction, Inc. to provide Construction Services for the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project effective upon date of execution by the Director of OC Public Works or designee in an amount not to exceed $68,950,000, for a term of 740 calendar days from the effective date of the Notice to Proceed.

Authorize the Director of OC Public Works or designee to execute the contract when the Certificate of Insurance and bonds have been submitted and approved by County Executive Office Risk Management and County Counsel.

Authorize the Director of OC Public Works or designee to execute future amendments, provided those amendments would result in minor, non-substantive changes that do not create or increase a financial obligation on the part of the County of Orange.

SUMMARY:

Award of a Design-Build Contract to Reyes Construction, Inc. to provide Construction Services for the Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project will allow for a collaborative team effort to provide greater flood protection for the residents of the County of Orange.

BACKGROUND INFORMATION:

The Huntington Beach Channel and Talbert Channel Sheet Pile Repair Project (Project) is located in the City of Huntington Beach. The Project consists of installing new steel sheet piles (SSPs) immediately behind the existing SSPs within the Huntington Beach Channel and Talbert Channel (Channels). The Channels are designated as Orange County Flood Control District (District) Facilities No. D01 and D02, respectively. The Project will also address surface drainage by removing the existing concrete v-ditch collection system and installing a new curb and gutter immediately behind the new SSPs. The Project limits of D01 extend from the confluence with D02 to downstream of Adams Avenue (approximately 3.1 miles) and D02 from upstream of Brookhurst Street to downstream of Yorktown Avenue (approximately 3 miles), as shown on the Location Map (Attachment C).

In 1959, the first reaches of D01 and D02 were constructed as earthen trapezoidal channels with design capacities to convey 65 percent of the 25-year storm event. By 1966, both D01 and D02 were constructed reach by reach, such that D01 extends from its confluence with D02 to Adams Avenue and D02 extends from the ocean outlet to upstream Slater Avenue. In March 1983, Orange County experienced a large storm event, which flooded surrounding areas and required the evacuation of homeowners. This event and additional development in the area prompted major channel improvements to meet current day design standards to convey the 100-year storm event and meet Federal Emergency Management Agency (FEMA) requirements for national flood insurance.

By 1985, a plan was developed to improve the Channels to meet District design standards for providing flood protection for a 100-year storm event by installing SSPs and widening the Channels to increase the design capacity. The construction of SSPs at D01 began in 1993, and the final reach was completed in 2007. The construction of the first SSPs at D02 began in 1993, and the final reach was completed in 2003.

In 1995, a cathodic protection system was introduced to the Channels to extend the SSPs’ life. The construction of the cathodic protection at D01 began in 1995, and the final reach was completed in 2012. On D02, the cathodic protection system was installed in 1996, and the final reach was completed in 2012.

During routine maintenance, OC Public Works observed SSP corrosion. As a result, in 2017 OC Public Works obtained services from Corrpro Companies, Inc. to analyze the cathodic protection and coating conditions on D01 and D02. Assessment reports were completed in April 2017 and February 2019, respectively. Thereafter, OC Public Works obtained services from Moffatt & Nichol to perform an analysis of the structural integrity of the Channels. The analysis by Moffatt & Nichol determined that the harsh marine environment has caused the SSPs to experience elevated corrosion rates and has resulted in the SSPs reaching their service life limit. Therefore, these facilities need replacement.

Repair and replacement of portions of the existing SSP channel walls are necessary to maintain the current level of flood protection for the adjacent residents and to maintain FEMA accreditation of the levees to avoid reintroduction of FEMA-designated Special Flood Hazard Areas (SFHAs). Without FEMA levee accreditation, areas near the D01 and D02 systems could be remapped to reintroduce SFHAs that could result in the requirement for property owners to obtain mandatory flood insurance policies. The proposed Project will maintain the Channels’ design capacity to convey flows from a 100-year storm, increase levee resilience and facilitate post-construction levee recertification to allow for continued levee accreditation by FEMA.

The Project was included in the 7-Year Capital Improvement Program (CIP) for FY 2019-20 to FY 2025-26 and adopted by the Board of Supervisors (Board) on April 23, 2019. The CIP provides transparency for the public on how the County of Orange (County) plans to utilize resources in order to deliver horizontal infrastructure over the next seven years. Adoption of the CIP directs the focus of County resources in the pursuit of grant funds and the delivery of complete roadway, flood control and active transportation projects necessary to enhance public safety, reduce traffic congestion, complete bicycle facilities and provide flood protection for County residents, businesses and visitors.

On July 3, 2019, OC Public Works issued a Request for Qualifications to solicit a Statement of Qualifications (SOQ) from contractors to provide Design Services and Construction Services for the Project. Four contractors submitted SOQs. The four SOQs were evaluated and three contractors were pre-qualified.

On September 6, 2019, a Request for Proposals (RFP) was issued to the three pre-qualified contractors: Ames Construction Inc., Reyes Construction, Inc. and Shimmick Construction Company, Inc. The three proposals were evaluated based upon predetermined criteria in the RFP. The evaluation panel scored the three proposals and the rankings are as follows:

Contractors Lead Design Subcontractor Rank

Reyes Construction, Inc. GHD, Inc. 1

Ames Construction, Inc. AZTEC Engineering Group, Inc. 2

Shimmick Construction Company, Inc. Michael Baker International, Inc. 3

On December 17, 2019, the Board awarded Contract MA-080-20010602 to Reyes Construction, Inc. (Contractor) to provide Design Services for the Project in an amount not to exceed Guaranteed Maximum Price (GMP) of $2,846,577. The Contractor is completing the design phase on schedule and on budget and has established a GMP for Construction Services (Services) to construct the Project.

The following summarizes the GMP for Services and the Engineer's Estimate (EE):

GMP

EE $105 million

Reyes Construction, Inc. $68.95 million

OC Public Works is returning to the Board for approval of the negotiated GMP for Services. The Contractor's GMP for Services is approximately 34 percent below the EE of $105 million. OC Public Works has reviewed the EE and verified that the difference is not the result of errors or omissions in the estimate, but rather is attributed to the Contractor’s early involvement and familiarity with the Project as the Design-Build Entity and incorporation of value engineering and construction means and methods best suited for the site and coordination with selected subcontractors.

OC Public Works is recommending the Board award Contract MA-080-21010996 (Contract) to provide Services for the Project to the Contractor in an amount not to exceed $68.95 million, a summation of the negotiated GMP and the County and the Contractor’s Project contingencies.

OC Public Works has conducted due diligence on the Contractor. Reference checks were satisfactory and completed with the Port of Los Angeles, City of Santa Monica and the Port of San Diego regarding similar Services. OC Public Works has verified there are no concerns that must be addressed with respect to the Contractor’s ownership/name, litigation status or conflicts with County interests.

This Contract includes subcontractors. See Attachment B for information regarding subcontractors and Contract Summary Form.

OC Public Works is procuring Services under the 2020 Design and Construction Policy Manual, Section 5.5.

Compliance with CEQA: This Project is a necessarily included element of the Project considered in Initial Study/Mitigated Negative Declaration (IS/MND) IP No. 11-444, County-Wide Long-Term Routine Maintenance Permitting Program, approved by the Board on May 21, 2013, that adequately addressed the effects of the proposed Project. No substantial changes have been made in 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 IS/MND IP No. 11-444 was approved have become known; therefore, no further environmental review is required.

FINANCIAL IMPACT:

Appropriations for this Contract are included in the FY 2020-21 Budget for OC Flood – Capital Improvement Projects, Fund 401, 100 percent and will be included in the budgeting process for future years.

The proposed Contract includes a provision stating the Contract is subject to, and contingent upon, applicable budgetary appropriations approved by the Board for each fiscal year during the term of this Contract. If such appropriations are not approved, this Contract may be immediately terminated without penalty to the County.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Contract MA-080-21010996 with Reyes Construction, Inc.
Attachment B - Contract Summary Form
Attachment C - Project Location Map