|
Agenda Item
ASR
Control 19-000745 |
||
|
MEETING DATE: |
05/05/20 |
|
|
legal entity taking action: |
Board of Supervisors |
|
|
board of supervisors
district(s): |
3, 5 |
|
|
SUBMITTING
Agency/Department: |
Sheriff-Coroner
(Approved) |
|
|
Department contact
person(s): |
Robert Beaver (714) 647-1815 |
|
|
|
Matt Monzon (714) 935-6876 |
|
Subject: Award James A. Musick
Facility Jail Construction Agreement, Phase I and II
|
ceo CONCUR |
|
Clerk of the Board |
||||||||
|
Concur |
Approved Agreement to Form |
Discussion |
||||||||
|
|
|
3 Votes Board Majority |
||||||||
|
|
|
|
||||||||
|
Budgeted: Yes |
Current Year Cost:
$9,400,000 |
Annual Cost:
FY 2020-21: $ 111,093,681 |
||||||||
|
|
|
|
||||||||
|
Staffing Impact: |
No |
# of Positions:
|
Sole Source:
N/A |
|||||||
|
Current Fiscal Year Revenue: N/A
|
||||||||||
|
Prior Board Action: 3/12/2019
#15, 10/30/2018 #S23C, 1/12/2016 #19, 1/12/2016 #21 |
||||||||||
RECOMMENDED ACTION(S):
|
1. |
Adopt the latest plans and specifications, including all addenda for the James A. Musick Facility Jail Construction Project, Phase 1 (Assembly Bill 900) and Phase 2 (Senate Bill 1022), that are on file with the Clerk of the Board. |
|
2. |
Award construction agreement to Bernards Bros., Inc. for the project in the amount of $261,118,000 and approve a five percent construction contingency amount of $13,055,900. |
|
3. |
Authorize the Sheriff-Coroner or designee to execute the agreement, pending receipt of approval from State of California Department of Finance, and after the required bonds and certificate of insurance have been approved by the County Executive Office Risk Management and County Counsel. |
|
4. |
Authorize the Clerk of the Board to return bid security to all bidders after execution of the agreement. |
|
5. |
Approve Amendment No. 8 to the agreement with Vanir Construction Management, Inc. for the Project for construction management and special inspection and materials testing services, increasing the total contract amount by $4,043,560, for a revised cumulative contract total not to exceed amount of $8,921,370 and authorize the Sheriff-Coroner or designee to execute the Amendment, pending receipt of approval from State of California Department of Finance. |
|
6. |
Approve the inclusion of insurance for the protection of insurable risks for the project in the estimated amount of $5.8 million as an element of the Owner-Controlled Insurance Program secured by Chief Executive Office's Risk Management though the County’s participation in the County Supervisors Association of California Excess Insurance Authority. |
|
7. |
Approve the Application for Service and Agreement with the Irvine Ranch Water District for sanitary sewer, potable water and recycled water connection fees and charges for the project, in an amount not to exceed $3.6 million, and authorize the Sheriff or designee to modify the Agreement, provided that any modifications would result in minor, non-substantive changes that do not increase financial obligation on the part of the County and which are approved by County Counsel. |
|
8. |
Approve utility connection fees and charges for power, natural gas and other utilities for the project in an aggregate total amount not to exceed $400,000 and authorize the Sheriff-Coroner or designee to execute all applicable utility applications for the project. |
|
9. |
Authorize the County Chief Real Estate Officer or designee to execute easement deeds and other related instruments needed to convey any utility rights necessary and to accept any quitclaim deeds for easements that are no longer utilized for the project. |
SUMMARY:
Award of the construction agreement to Bernards Bros., Inc., approval of the Amendment with Vanir Construction Management, Inc. for the James A. Musick Facility Jail Construction Project, along with related fees, insurance and utility related documents, will provide the County with a new 896-bed jail facility that enhances safety and confinement conditions for inmates and staff, while also enhancing programming, treatment and rehabilitation in support of the County of Orange inmate population.
BACKGROUND INFORMATION:
On May 3, 2007, the Public Safety and Offender Rehabilitation Services Act of 2007 became law (Assembly Bill [AB] 900, Chapter 7, Statutes of 2007) and provided up to $1.2 billion total, in two phases, for financing the construction of local jail facilities. Although the County of Orange (County) could not accept funding from the first phase of allocations due to certain project requirements, those requirements were changed for the second phase of funding, which permitted the County to participate in seeking funding for the expansion of the James A. Musick Facility (JAMF).
When funding for AB900 Phase II became available in October 2011, the County submitted an Interest Statement to the Corrections Standards Authority (CSA), now the Board of State and Community Corrections (BSCC), indicating interest in receiving $100 million in jail construction funding through AB900 Phase II. On October 26, 2011, the CSA invited the County to submit its Request for Application (RFA) for funding. The RFA was intended to solicit applications to establish an ordered list of projects and to allocate financing for the addition of beds in county jail facilities. On December 6, 2011, the Board of Supervisors (Board) authorized the Sheriff-Coroner Department (Sheriff) to execute the RFA and submit it for funding. Sheriff submitted the RFA and received a conditional award in the amount of $100 million on March 8, 2012. On March 8, 2013, the State Public Works Board (SPWB) approved project establishment, the action to allocate funding for design and construction. The establishment of the project by the SPWB allows the County to commit funding to design, construction and related services that will be reimbursed from the AB900 $100 million award.
SB1022 Funding
On June 27, 2012, Senate Bill (SB) 1022 (Chapter 42, Statutes of 2012) became law. SB1022 authorizes state lease-revenue bond financing for the acquisition, design and construction of program and treatment space for adult local criminal justice facilities. The SB1022 program focuses on adding programming and treatment services and less emphasis is placed on additional bed space. However, it is necessary to add bed space to keep the group fully immersed in the programming environment, which enhances the outcome objectives. On July 23, 2013, the BSCC issued a Request for Proposals (RFP) to establish conditional awardees and allocate financing as authorized by SB1022 for the construction of program and treatment space for adult local criminal justice facilities.
On October 8, 2013, the Board approved submission of the County RFP application for SB1022 funding. On March 18, 2014, the County received a conditional award for $80 million for the construction of treatment, rehabilitation, housing and ancillary spaces at the JAMF, and on January 9, 2015, the SPWB approved project establishment, which was the action to allocate funding for design and construction. The establishment of the project by the SPWB allows the County to commit funding to design, construction and related services that will be reimbursed from the SB 1022 $80 million award.
The AB900 and the SB1022 projects are funded separately and were originally scheduled to be bid and constructed as individual projects. Due to schedule compaction between the two project phases, it was determined that the two project phases should be bid as a single project (Project) for the benefit of cost reduction and project management efficiencies. This approach was approved by the California Department of Corrections and Rehabilitation, although costs must be tracked and reported by project phase based on the two separate funding sources.
Construction Management Services
On February 10, 2014, a Request for Qualifications (RFQ) for Construction Management (CM) services was released by Sheriff. A total of five firms submitted responses to the RFQ and expressed interest in providing CM services for the AB900 project. After Board approval on October 28, 2014 to negotiate with the primary firm, Vanir Construction Management, Inc. (Vanir), services were determined and negotiated resulting in an award for pre-construction and construction phase services, including constructability reviews required for AB900 in the amount of $2,666,676.
On January 12, 2016, Amendment No. 1 to the Agreement with Vanir was executed for CM services for SB1022 384-bed programming, treatment and housing facility in the amount of $2,193,284, for a total contract amount of $4,859,960. Amendment No. 2 was approved administratively in the amount of $17,850 and provided for a third-party review of the design of the smoke control system. Amendment Nos. 3 through 7, were reallocation of fees from the Construction Phase Basic Services line items to the Pre-Construction Phase Basic Services line items (net zero additional fee). Amendment Nos. 2 through 7 were issued administratively in accordance with the County’s Design and Construction Procurement Policy Manual, Section 3.3-108, increasing the total of contract cost by $17,850 to $4,877,810.
Sheriff now requests that the Board approve and execute Amendment No. 8 to the agreement with Vanir and adopt the latest revised plans and specifications, including addenda for construction of the Project, as referenced in the Recommended Actions. Amendment No. 8 consists primarily of special inspections and materials testing, replenishment of construction phase services that were previously reallocated and commissioning services during the closeout and warranty period. Per the California Building Code, special inspections and materials testing are required to be provided by the County or the County’s authorized agent, other than the contractor. Amendment No. 8 increases the total Agreement amount by $4,043,560, for a revised cumulative agreement total not-to-exceed amount of $8,921,370.
Project Bidding and Construction
Pursuant to Section 6.1 of the County of Orange Design and Construction Procurement Policy Manual, Sheriff publicly advertised a Request for Prequalification, in order to establish a list of prequalified general contractors that would be eligible to bid on the Project.
On May 3, 2017, Sheriff received prequalification submittals from four potential general contractors. All of the respondents met the prequalification requirements, as follows (in alphabetical order):
|
1. |
Bernards Bros., Inc. |
|
2. |
Clark Construction Group - California, LP |
|
3. |
McCarthy Building Companies, Inc. |
|
4. |
S.J. Amoroso Construction Co., LLC |
On March 12, 2019, the Board adopted the list of prequalified general contractors and set the bid opening date and time for the Project, pending approval from the State of California Department of Finance (State DOF). On March 18, 2020, the following two bids were received from prequalified general contractors:
|
Bidder |
Base Bid |
|
Bernards Bros., Inc. |
$261,118,000 |
|
S.J. Amoroso Construction Co., LLC |
$330,597,000 |
The bid of S.J. Amoroso Construction Co., LLC (S.J. Amoroso) was incomplete as it did not include all required documentation outlined in the Instructions to Bidders, including certification that is statutorily mandated by Public Contract Code Section 2204. Confirmation letters from a surety and an insurance underwriter to provide the bidder with the required performance and payment bonds and coverages and amounts specified in the bid documents were also absent. Hence, Sheriff deemed the bid of S.J. Amoroso as non-responsive.
The low bid submitted by Bernards Bros., Inc. (Contractor) is approximately 56 percent above the architect-engineer (A-E) estimate of $167 million prepared by AECOM Technical Services, Inc. (AECOM), the original A-E for the Project. On January 12, 2016 and October 30, 2018, the Board approved agreement amendments with AECOM that eliminated redesign and re-estimating services previously required of AECOM for designs that significantly exceeded the contractually stated County budget for the Project. The A-E estimate was last updated in November 2018. Aside from the seemingly low A-E estimate, a recent Bidding Climate Analysis performed by Vanir concluded that the construction market remains robust for competing criminal justice projects with a substantial number of these projects bidding on or near the same timeframe. Other factors include a shortage of skilled labor and an increase in the escalation of costs from when the A-E estimate was last prepared to the time permission was received from the State DOF to proceed with bid advertisement, and to a lesser extent the uncertainty in the supply chain caused by trade issues and the COVID-19 pandemic.
The Contractor's License No. 302007 was verified as current and active through the Contractors State License Board database on March 25, 2020, and a copy of the verification is on file. The Contractor was previously prequalified to bid on the Project and has submitted acceptable updated prequalification documentation. Sheriff recommends award of the agreement to the Contractor and an additional five percent construction contingency of $13,055,900 for unidentified or additional costs inherent of every large design-bid-build project. Five percent is the minimum contingency required by the State for the AB900 and SB1022 funding programs. The Contractor’s bid breakdown, which excludes the Owner’s contingency, is provided in the Contract Operating Expenses of the Contract Summary Form. See Attachments E and F for the Bid Tabulation and Contract Summary Forms, respectively.
The Contractor’s bid remains valid subject to County acceptance for 120 days after the day of bid opening, as the State DOF must provide the County with permission to award the agreement after award by the Board. During this period of time, the Contractor guarantees the price quoted in its bid. Any Contract award by the County is conditioned on, and subject to, receipt of all required approvals from the State DOF. The County has no obligation under Contract Documents including, and without limitation, any obligation to pay any portion of the Contract Sum, unless and until the State DOF provides the required approval.
Owner-Controlled Insurance Program
On March 24, 2009, the Board approved a Joint Powers Agreement with the County Supervisors Association of California Excess Insurance Authority (CSAC-EIA) for membership. CSAC-EIA membership provides access to insurance programs, including the Master Rolling Owner-Controlled Insurance Program (OCIP), construction insurance that provides protection for California public entities, contractors and subcontractors of every tier. This insurance coverage method is supported by County Executive Office (CEO) Risk management and is a best practice for large construction projects. The benefits of OCIP over the traditional approach to construction insurance by a contractor include greater risk control and improved coverage for all involved parties.
Sheriff recommends that the County purchase insurance policies through CEO Risk Management for protection of certain insurable risks for the Project as the Contractor’s bid excludes the normal cost for insurance. The OCIP estimated premium of $5.8 million referenced in the Recommended Actions is for coverages including Builder’s Risk, Workers’ Compensation and Employer’s Liability insurance, Commercial General Liability insurance and Excess Liability insurance for the Project, a savings of 0.25 to 1.5 percent compared with traditional contractor-provided insurance. The Contractor, however, is required to obtain coverages for offsite activities and Automobile Liability insurance.
Utility Connection Fees and Charges
Sanitary sewer, potable water and recycled water for the Project are provided by the Irvine Ranch Water District (IRWD). Sheriff recommends that the Board approve the Application for Service and Agreement with IRWD in the not to exceed amount of $3.6 million for connection fees and plan check and inspection charges. This amount includes a potential five percent increase from the IRWD Schedule of Rates and Charges, adopted on June 24, 2019.
Sheriff also requests that the Board authorize the Sheriff-Coroner or designee to execute other utility applications for power distribution and generation, natural gas and telecommunications for the Project in an aggregate total amount not to exceed $400,000. Additionally, Sheriff requests that the Board authorize the County Chief Real Estate Officer or designee to execute easement deeds and other related instruments needed to convey any utility rights necessary and to accept any quitclaim deeds for easements that are no longer utilized for the Project.
Compliance with CEQA: The recommended actions are necessarily included implementing activities for the Project considered in Final Environmental Impact Report (EIR) No. 564, certified by the Board on November 5, 1996, and recertified as amended on October 20, 1998; and the Supplement to EIR No. 564, certified by the Board on December 11, 2012, all of which analyzed the staffing and operational needs for a 7,584 bed expansion at the JAMF.
In 1996, the Board certified Final EIR No. 564 pursuant to Resolution No. 96-810 and recertified EIR No. 564 in 1998 pursuant to Resolution No. 98-400. In 2001, the California Court of Appeal for the Fourth Appellate District upheld the County’s EIR against legal challenge brought pursuant to the California Environmental Quality Act (CEQA).
Following initial approval of the expansion of the JAMF project in 1996, a Master Site Plan was subsequently approved by the Board on December 11, 2012, pursuant to Resolution No. 12-180. The County prepared and certified a Supplement to EIR No. 564 (SEIR No. 564) in accordance with the CEQA to address the Master Site Plan and evaluate minor revisions to the project analyzed in EIR No. 564. SEIR No. 564 analyzed construction and operations of a jail facility to accommodate up to 7,584 beds at the JAMF for maximum, medium and minimum security inmates and ancillary support service facilities.
The action to award the construction contract is a necessarily included element of the project considered in FEIR No. 564, certified by the Board on November 5, 1996, and recertified as amended on October 20, 1998; and SEIR No. 564, certified by the Board on December 11, 2012, which adequately addressed the effects of the proposed expansion of JAMF. 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 the FEIR and SEIR No. 564 were certified has become known; therefore, no further environmental review is required.
.
General Plan:
N/A
FINANCIAL IMPACT:
Costs related to the James A. Musick Facility Jail Construction Project, Phase 1 (Assembly Bill 900) and Phase 2 (Senate Bill 1022) will be reimbursed by the State of California (State) within the limits of the approved award for each of the two funding programs (AB900 PHII $100 million, SB1022 $80 million). Appropriations for this project are included in the Sheriff-Coroner’s FY 2019-20 Budget for Fund 14Q, Sheriff-Coroner Construction and Facility Development for project costs incurred during the development of the project, offset by a loan from OC Waste and Recycling, as reimbursement from the State is received in arrears of actual expenditures. The costs are reimbursed once the Notice to Proceed (NTP) for construction has been issued. The NTP date is scheduled for June 2020. Reimbursements from this point forward are based on progress payments that are issued throughout construction and completion of the project. The JAMF expansion costs are estimated to be $288,017,460 with $180,000,000 being reimbursed from the State of California. The Sheriff-Coroner Department is not able to absorb the remaining $124,722,710 and is requesting additional funding from the County of Orange.
|
Bernards Bros Inc. |
$261,118,000 |
|
Construction Contingency (5%) |
$13,055,900 |
|
|
$274,173,900 |
|
|
|
|
Vanir Construction Management |
$4,043,560 |
|
Owner-Controlled Insurance Program |
$5,800,000 |
|
Irvine Ranch Water District |
$3,600,000 |
|
Utilities Connection Fees |
$400,000 |
|
JAMF Expansion Costs |
$288,017,460 |
|
|
|
|
|
|
|
SB 1022 |
($80,000,000) |
|
AB
900 |
($100,000,000) |
|
State Funding |
($180,000,000) |
|
|
|
|
|
|
|
County Funding |
$108,017,460 |
|
OCWR Loan |
$16,000,000 |
|
OCWR
Interest |
$705,250 |
|
Outstanding Cost Plus Loan |
$124,722,710 |
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Agreement MA-060-20011517 with Bernards
Bros., Inc.
Attachment B - Amendment No. 8 with Vanir Construction Management, Inc.
Attachment C - AB 900, Chapter 7, Statutes of 2007; Cal. Gov. Code § 15819.40
Attachment D - SB 1022, Chapter 42, Statutes of 2012
Attachment E - Bid Tabulation
Attachment F - Contract Summary Forms
Attachment G - Irvine Ranch Water District Service Applications and Agreement
Attachment H - Final EIR No. 564 (1996)
Attachment I - Recertified EIR No. 564 (1998)
Attachment J - Supplement to EIR No. 564 (2012)
Attachment K - Public Contract Code Section 2204