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Agenda Item
ASR
Control 12-000292 |
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MEETING DATE: |
05/08/12 |
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legal entity taking action: |
Board of Supervisors and Orange County Flood Control
District |
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board of supervisors
district(s): |
1 |
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SUBMITTING
Agency/Department: |
OC Public Works
(Approved) |
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Department contact
person(s): |
Ignacio G. Ochoa (714) 667-3213 |
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Vincent Gin (714) 647-3907 |
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Subject:
Award Construction Contract:
Haster Project
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
$26,367,119 |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
No |
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Current Fiscal Year Revenue: N/A |
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Funding Source: Flood
Fund 400: 100% ( Reimbursement from State: 50% and OC Parks Fund 406: 10%) |
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Prior Board Action: 1/24/2012
#19; 10/18/11 #11; 4/19/11 #36; 9/15/09 #34 |
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RECOMMENDED ACTION(S):
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1. |
Find that this portion of the project is adequately covered by Final Environmental Impact Report No. 609 certified on October 18, 2011. |
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2. |
Declare the bid of Environmental Construction, Inc. to be non-responsive and find that irregularities in other bids were resolved in accordance with the bid special provisions. |
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3. |
Award contract to Shimmick Construction Inc. for the construction of the Haster Retarding Basin, Pump Station and Recreational Field Project in the amount of $25,167,119. |
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4. |
Authorize the Chair of the Board to execute the construction contract when the required bonds and insurance certificates have been submitted and approved by County Executive Office Risk Management and County Counsel. |
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5. |
Authorize return of bid security to all bidders after contract execution. |
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6. |
Approve Proposition 1E Grant Agreement, in substantial conformance with Attachment A, with the State Department of Water Resources and authorize the Interim OC Public Works Director or his designee, to execute the Grant Agreement to receive the Project reimbursement funding in the amount of $15,677,100. |
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7. |
Approve and authorize the Chair of the Board to execute Amendment No. 3 to Architect-Engineer Agreement No. D03-024 with AKM Consulting Engineers, the Engineer-of-Record for the Project, for engineering support services during the construction phase and post-construction project close-out phase, which will increase the contract amount by $1,200,000 for a revised total contract amount not to exceed $2,927,000 and extend the term for three additional years through November 4, 2016. |
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8. |
Authorize OC Public Works to expedite the Request for Proposal process by returning to your Board with award of an Agreement to an Architect-Engineer (A-E) Firm for independent construction management and inspection services representing a deviation from the County’s Contract Policy Manual, which requires a two-step process for selection of an A-E firm and approval of the Agreement. |
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9. |
Authorize the Auditor/Controller to transfer funds from OC Parks Capital Projects Fund 406 to OC Flood Fund 400 for costs approved in advance by the OC Parks Director or his designee, for reimbursement of: a) the Recreational Field-related construction costs in an amount not to exceed $2,530,705; b) Recreational Field-related administrative costs in an amount not to exceed $100,000; and c) Recreational Field-related construction change order costs in an amount not to exceed $250,000 |
SUMMARY:
Awarding of the construction contract for the Haster Retarding Basin, Pump Station, and Recreational Field Project to Shimmick Construction Inc. in the amount of $25,167,119; approving the Proposition 1E Grant Agreement to receive the Project reimbursement funding in the amount of $15,677,100; approving the Engineering Support Services Agreement Amendment with AKM Consulting Engineers increasing the sum by $1,200,000 for a revised total contract amount not to exceed $2,927,000; authorizing OC Public Works to expedite the Request for Proposal for construction management and inspection services process representing a deviation from the County Contract Policy for Architect-Engineer Firms; and authorizing execution of grant and contract as well as the transfer of funds, will collectively support increased flood protection and additional recreational opportunities.
BACKGROUND INFORMATION:
The Haster Retarding Basin, Pump Station, and Recreational Field Project (Project) is a joint effort between OC Public Works and OC Parks to provide both regional flood protection and recreational opportunities. Haster Basin is an Orange County Flood Control District (OCFCD) retarding basin located in the City of Garden Grove (see Exhibit B - Location Map). The 21.5-acre flood control facility is part of the East Garden Grove-Wintersburg Channel (Facility No. C05) system, which is within the Westminster Watershed. The Westminster Watershed is the largest remaining floodplain in Orange County. Located in the upper one-quarter of the watershed, the Haster retarding basin and pump station construction is a controlling element in the overall C05 flood protection system.
On April 19, 2011, your Board authorized OC Public Works to submit a grant application to the Department of Water Resources (DWR) for Proposition 1E grant funding. On January 27, 2012, DWR submitted a funding commitment letter in the amount of $15,677,100, funding 50% of the estimated Project cost. The Grant Agreement (Attachment A) has been negotiated with DWR and is recommended for your Board's approval. The Grant Agreement requires the County to repay the funds expended to the State in the event expenditure requirements are determined to not be in compliance, which is considered unlikely.
On January 24, 2012, your Board approved the plans and specifications and authorized advertising the Project for bid. The following table summarizes the bids received on March 28, 2012; see Exhibit A Bid Summary and Abstract.
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Shimmick Construction |
$25,167,119.00 * |
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Norman A. Olsson Construction Inc. |
$26,756,576.50 * |
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Engineer's Estimate |
$27,195,055.00 |
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Mallcraft |
$27,403,194.80 ** |
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Hal Hays Construction Inc. |
$27,651,120.20 *** |
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Griffith Construction Company |
$28,261,647.00 ** |
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Steve P. Rados Construction |
$29,678,455.00 |
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Reyes Construction Inc. |
$30,335,124.60 |
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USS Cal Builders, Inc. |
$31,454,322.10 |
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Ortiz Enterprises, Inc. |
$32,115,469.00 * |
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Environmental Construction Inc. |
Non-Responsive **** |
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* |
Arithmetical correction to the bid proposal; does not affect bid standing. The bidder made an error when multiplying one (1) estimated quantity and its unit price. The irregularity was corrected in accordance with the bid special provisions.
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** |
Arithmetical correction to the bid proposal; does not affect bid standing. The bidder made an error when multiplying several estimated quantities and their unit prices. The irregularity was corrected in accordance with the bid special provisions.
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*** |
Arithmetical correction to the bid proposal. The correction changed their bid standing from the lowest bid to fourth lowest bid. The bidder made an error when adding the "Total" column. The irregularity was corrected in accordance with the bid special provisions. |
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**** |
Bidder included a total bid price, but omitted item prices and totals for multiple bid items; therefore, the bid item prices and totals cannot be determined. The bid should be deemed non-responsive. |
The low bid submitted by Shimmick Construction for this Project is approximately seven percent below the Engineer's Estimate. The Contractor’s License No. 594575 was verified as current and active through the Contractors State License Board database and a copy of the verification is on file. Shimmick Construction has submitted acceptable references and OC Public Works staff conducted further reference review resulting in satisfactory references.
Two bid schedules were developed: Schedule A for the flood control-related costs including the triple barrel flood control box extension and basin fill, and Schedule B for the Recreational Field-related costs. OC Parks will reimburse OCFCD for the items of work in Schedule B. The lowest, responsible bid was submitted by Shimmick Construction Inc., which was $22,636,414 for Schedule A and $2,530,705 for Schedule B, see Exhibit A for detailed summary.
Due to the complexity of the Project, OC Public Works requires both engineering support and construction management services during construction. The Project includes one of the largest storm water pump stations in the County, with three 48-inch diameter, 30-foot tall pumps, 845-horsepower engines, and a complicated control system. Engineering support services are required to resolve issues that arise during construction and to keep the Project on schedule. On November 4, 2003, your Board selected AKM Consulting Engineers (AKM) to provide design services for the Project and they have performed satisfactorily. The firm has incorporated the recreational field into the Project and has the most knowledge of the Project's technical drawings and specifications. It is critical that the construction support engineer be intimately familiar with the plans and specifications to respond quickly to avoid Project delays. A delay in responding to requests from the construction contractor will have a material impact on the Project schedule, which increases the risk for costly construction change orders.
AKM's design services contract is currently in an not to exceed amount of $1,727,000, representing 6.87% of the recommended construction contract award. AKM’s cost to date for design and evaluation of the engineering feasibility and integration of the recreational element for the Project is in line with the standard identified by the American Society of Civil Engineers (ASCE) for design of projects of this scale. In addition, AKM's scope of work included geotechnical and groundwater studies not typically included in design. Amendment No. 1 to the AKM contract was for time extension only and Amendment No. 2 extended the term and increased the contract value from $927,000 to $1,727,000 to complete the design and perform additional geotechnical and dewatering studies as well as grading plan revisions to include the recreational element to the Project.
The recommended Amendment No. 3 to Agreement D03-024 with AKM (Attachment B) has been negotiated for AKM to provide engineering support services during Project construction for an additional amount not to exceed $1,200,000 for a revised total contract amount of $2,927,000. The new total amount will be 11.6% of the construction cost, consistent with ASCE cost projections for both design and engineering support services.
OC Public Works also recommends independent construction management and inspection services for the Project. To avoid significant delay in the provision of these services, authorization is requested to return to your Board for concurrent selection and approval of the negotiated Agreement, which represents a deviation from the two-step approval requirement in the County's Contract Policy Manual for selection of A/E Firms.
Project risk issues at this time. include the outstanding approval of the Project’s 404 permit from the U.S. Army Corps of Engineers, which is anticipated to be approved within the next several weeks. A new requirement for a conservation easement over the mitigation area has been initially discussed and staff is negotiating with the Army Corps alternative requirements. Additionally, OC Public Works has been meeting regularly with The Gas Company to ensure that sufficient pressure and volume of natural gas is available to supply the pump station with the Gas Company providing a will-serve letter. The Gas Company’s installation of the service pipeline and meter within four months prior to completion of the facility is a critical path issue for the Project. Actual start-up of the pump station engines will occur within 90 days of receiving their estimated payment in amount not to exceed $500,000. OC Public Works will return to your Board for approval of the payment to The Gas Company.
A 0.41-acre parcel owned by the City of Garden Grove is required to maximize the area available for the Recreational Field. OC Public Works is working closely with the City of Garden Grove to quitclaim the parcel to the OCFCD at no cost. OC Public Works will return to your Board for approval of the quitclaim deed for the parcel upon City Council approval.
Compliance with CEQA: Final Environmental Impact Report (FEIR) No. 609, previously certified by the Board of Supervisors on October 18, 2011 reflects the independent judgment of the County of Orange and is adequate to satisfy the requirements of CEQA for the Haster Retarding Basin, Pump Station, and Recreational Field Project, which is a necessarily included element contemplated as part of that project. The circumstances of the project or projects are substantially the same and EIR No. 609 adequately addressed the effects of the proposed project. No substantial changes have been made in the project, no substantial changes 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 EIR No. 609 was certified had become known and no further environmental review is required.
FINANCIAL IMPACT:
The Project has been budgeted and the following provides a summary of the estimated Project Budget including past and future costs:
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Haster Basin, Pump Station, and
Recreational Field |
Dollar Amount |
Percent of Project |
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Soft
Cost |
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Environmental and Permit Services |
$ 400,000 |
1.1% |
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Design Services |
$1,727,000 |
5.0% |
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Engineering Support Services |
$1,200,000 |
3.4% |
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Construction Management and Inspection |
$1,258,356 |
3.6% |
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Administrative Cost |
$1,000,000 |
2.9% |
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Sub-Total |
$5,585,356 |
16.0% |
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Hard Costs |
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Construction |
$25,167,119 |
71.9% |
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Gas Company (expected) |
$500,000 |
1.5% |
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Contingencies (15% of construction) |
$3,775,068 |
10.8% |
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Sub-Total |
$29,442,186 |
84.2% |
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Total Project Cost |
$35,027,542 |
100.0% |
STAFFING IMPACT:
N/A
EXHIBIT(S):
Exhibit A - Bid Summary and Abstract
Exhibit B - Location Map
ATTACHMENT(S):
Attachment A - Grant Agreement with Department of Water
Resources in the amount of $15,677,100
Attachment B - Amendment No. 3 to Agreement D03-024 with AKM Consulting
Engineers for Engineering Support Services