AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 17-000178
MEETING DATE:	04/11/17
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	Shane Silsby (714) 667-9700
	Octavio Rivas (714) 245-4520

Subject: Approve Change Orders for Schedule B of the La Pata Avenue Project

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $6,000,000

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: OC Road Fund 115: 100%	County Audit in last 3 years: No

Prior Board Action: 10/6/2015 #25, 12/10/2013 #61, 5/24/2011 #71

RECOMMENDED ACTION(S):

Authorize the Director of OC Public Works or designee to approve Contract Change Orders No. B4 and No. B5 with Sukut Construction, LLC for Schedule B of the La Pata Avenue Project for additional work to address adverse geological conditions such that the total combined cost does not exceed $6,000,000.

SUMMARY:

Approval of the two Change Orders with Sukut Construction, LLC, will allow for completion of the additional work required to address the adverse geological conditions.

BACKGROUND INFORMATION:

On December 10, 2013, the Board of Supervisors (Board) awarded a construction Contract MA-080-14011895 (Contract) to Sukut Construction, LLC, (Contractor) for the La Pata Avenue Gap Closure and Camino Del Rio Extension Project (Project). Construction of the Project consists of three construction schedules or phases as follows: 1) Schedule A - closed an existing roadway gap from Calle Saluda to just south of Stallion Ridge; 2) Schedule B - will widen La Pata Avenue from three lanes to five lanes from approximately 750 feet south of Ortega Highway to just south of Stallion Ridge and 3) Schedule C - extended Camino Del Rio from its terminus in the Forster Ranch Community of the City of San Clemente to La Pata Avenue.

Schedule A began construction on April 23, 2014, and the roadway was opened to the public on August 14, 2016. Schedule B began construction on April 18, 2016, and is currently still in construction. Schedule C began construction on August 1, 2016, and the roadway was opened to the public on January 9, 2017.

Contract Change Orders

In November 2016, as work on Schedule B progressed, adverse geological conditions were encountered that caused minor slope failures to occur when performing earthwork on the east side of La Pata Avenue. Schedule B also crosses an existing active 16-inch petroleum product pipeline owned by Santa Fe Pacific Pipeline, L.P., a subsidiary company of Kinder Morgan Energy Partners, L.P. (KMEP). In February 2016, the 16-inch pipeline was relocated to outside of the Project grading limits by KMEP pursuant to relocation Agreement No. D15-004 between the County and KMEP, approved by the Board on October 6, 2015.

In early 2017, Southern California experienced the largest storm since 2010, which exacerbated the already fragile geological conditions. On February 10, 2017, major slope failures occurred on the east side of La Pata Avenue that extended outside of the Project grading limits and close to the relocated 16-inch petroleum pipeline. On February 28, 2017, the Contractor elected to stop earthwork activities on the east side of La Pata Avenue to avoid potential slope failures in the vicinity of the 16-inch pipeline. OC Public Works staff subsequently confirmed with KMEP that the 16-inch pipeline could not be temporarily shut down to mitigate ongoing area construction impacts.

The Contractor was directed to construct all remaining excavations at the flatter slope. This change increased the amount of earthwork required, resulting in additional material excavation, temporary stockpiling, hauling and re-compacting. The estimated increase in earthwork is approximately 1,300,000 cubic yards. This change also requires pioneering additional haul roads, finishing additional areas at the top of the buttresses, amendments to the traffic control plans, Storm Water Pollution Prevention Plan amendments and additional time related overhead costs. This proposed work is included in Change Order No. B4 at a not-to-exceed cost of $5,250,000.

OC Public Works and the Contractor also agreed to provide active protection for the 16-inch pipeline by driving steel piles into the adjacent slopes to prevent failures from migrating beyond the Project grading limits. The work on the east side of La Pata Avenue is currently on hold pending approval of a protection plan for the 16-inch pipeline. This proposed work is included in Change Order No. B5 at a not-to-exceed cost of $750,000.

OC Public Works is recommending the approval of the change orders with the Contractor for costs associated with the described extra work for an amount not-to-exceed $6,285,000.

Per Section §4.5-104 of the Design and Construction Procurement Policy Manual, Changes in excess of the limits within the Director’s approval require Board of Supervisor approval.

Therefore, OC Public Works is requesting that the Board delegate authority to the Director of OC Public Works or designee to approve the final price and work to be completed such that the total combined cost for Change Orders No. B4 and No. B5 does not exceed $6,000,000. This will allow OC Public Works to finalize negotiating the actual cost of the work to be performed and complete the protection plan to prevent significant delay costs.

Compliance with CEQA: This Project is a necessarily included element of the Project considered in Final EIR No. 610, certified by the Board on May 24, 2011, which 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 which was not known or could not have been known when the Final EIR No. 610 was certified has become known, therefore no further environmental review is required.

FINANCIAL IMPACT:

Appropriations and revenue for the recommended Contract Change Orders were not all included in the Fund 115 OC Road FY 2016-17 Modified Budget, however the fund is able to absorb the cost within existing appropriations budgeted for the La Pata Avenue Gap Closure and Camino Del Rio Extension Project. The Project is included in the OC Public Works multi-year Capital Improvement Program plan. In addition, staff explored whether or not the Contract Change Orders qualified for disaster relief assistance, however, the associated work efforts do not qualify due to the absence of any immediate public safety threat.

	Projected Construction Estimate	Schedule A	Schedule B	Schedule C	Schedules A+B+C
Original Contract Amount	$72,741,290	$57,123,241	$13,528,855	$2,089,194	$72,741,290
CCO 10% Contingency	$7,274,129
Previous CCOs		$3,351,057	$119,428	$10,931	$3,481,416
CCO No. B4 and B5			$6,000,000		$6,000,000
Project Construction Total	$80,015,419	$60,474,298	$19,648,283	$2,100,125	$82,222,706

The overall construction estimate for the La Pata Avenue Gap Closure and Camino Del Rio Extension Project included a 10% contingency for change orders. This unforeseen event slightly exceeds the 10% planned for change orders and OC Public Works may request a Budget Augmentation Request in the FY 2017-18 First Quarterly Budget Augmentation Request Process to increase appropriations, if needed. OC Public Works will continue to strive and identify savings within the overall cost for the La Pata Avenue Gap Closure and Camino Del Rio Extension Project estimated at a total of $127,000,000.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Change Order No. B4 with Sukut Construction, LLC
Attachment B - Change Order No. B5 with Sukut Construction, LLC
Attachment C - Project Location Map