AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 15-000640
MEETING DATE:	05/12/15
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	OC Waste & Recycling (Approved)
Department contact person(s):	Dylan Wright (714) 834-4122
	Jeff Southern (714) 834-4147

Subject: Approve Change Order No. 2 with KBI General Contractors at Prima Landfill

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

N/A

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: $72,995.09

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No

Prior Board Action: N/A

RECOMMENDED ACTION(S):

1.	Find that the project is categorically exempt from the California Environmental Quality Act (CEQA), Class 1 (Existing Facilities), pursuant to CEQA Guidelines, Section 15301.
2.	Find that due to increased costs of rebidding certain work delineated in the Change Order submitted herewith for approval and due to the fact that rebidding would not be likely to result in any advantage to the County, the Board of Supervisors is not subject to the limiting provisions of California Public Contract Code Section 20137.
3.	Approve Change Order No. 2 to Contract MA-299-15010961 with KBI General Contractors to complete the repair and remedial work Project No. 540819 on the Administrative “Green” Building at Prima Deshecha Landfill increasing the Contract amount by $72,995.09 for a revised total amount not to exceed $490,765.09, per Board policy effective upon Board approval.
4.	Authorize the OC Waste & Recycling Director or designee to execute Change Order No. 2 to Contract MA-299-15010961.

SUMMARY:

Approval of Change Order No. 2 to Contract MA-299-15010961 with KBI General Contractors in the amount of $72,995.09 is required for additional repairs in order to protect the building from further water intrusion and/or damage.

BACKGROUND INFORMATION:

OC Waste & Recycling is responsible for managing the County’s solid waste disposal system including South Region Landfills that consist of the active Prima Deshecha Landfill and five closed solid waste disposal sites. The Prima Deshecha Landfill was opened in 1976 to meet the solid waste disposal needs of the southern portion of Orange County.

Change Order No. 2 to Contract MA-299-15010961 with KBI General Contractors in the amount of $72,995.09 is for additional remedial work uncovered during repairs of the Administration "Green" Building at the Prima Deshecha Landfill. This Contract does not include subcontractors or pass through to other providers.

The construction contract for the Green Building was originally bid and awarded to Horizons Construction Company International, Inc. on January 27, 2009. The work that was performed by Horizons failed to meet any acceptable level of workmanship or comply with the requirements of the plans and specifications. As a result, OC Waste & Recycling notified Horizons that they must complete all repairs of their defective work no later than September 30, 2011; Horizons failed to complete that work. OC Waste & Recycling terminated Horizons' right to proceed with further work under the construction agreement because of its performance failures and completed unfinished portions of the project. The County initiated litigation against Horizons and its surety, seeking to recover costs to complete the original project scope and costs to repair defective and deficient work. The litigation is still pending. Significant work was required including repair of substandard work to the roof and below-grade waterproofing system performed by Horizons. Costs to complete that work and other deficient work by Horizons identified as non-critical are part of the damages claimed against Horizons and its surety in the ongoing litigation.

On September 16, 2014, the Board of Supervisors approved an agreement with KBI General Contractors in an amount of $415,701 for repairs and completion of remedial work on the Administrative “Green Building” at the Prima Deshecha Landfill. Change Order No. 1 in the amount of $2,069 was administratively approved to accommodate a 60-day time extension to allow for the replacement of the door hardware. The incorrect door hardware was part of the claim filed by the County in its original lawsuit. The original door hardware installer agreed to supply and install the correct door hardware at no cost to the County in exchange for a dismissal from the lawsuit.

The buildings below grade waterproofing system originally installed by Horizons was defective and allowed water to intrude into the building causing considerable damage to the building’s interior. After the initial water intrusion occurred, interim water deflection and protection was installed by OC Waste & Recycling. Through outside counsel, a waterproofing expert, Roofing and Waterproofing Forensics, Inc., developed a detailed repair and remediation specifications for this project. Roofing and Waterproofing Forensics, Inc., prepared the project specifications based on limited access to areas of concern. Permanent repairs have now been completed by KBI General Contractors and interim water protection measures have been removed. However, during the repair work KBI General Contractors discovered additional construction defects that were immediately addressed and repaired in order to protect the building from further water intrusion and/or damage. These additional repairs were documented by KBI General Contractors and submitted to Roofing and Waterproofing Forensics, Inc. for further evaluation. Roofing and Waterproofing Forensics, Inc. reviewed the defects and deficiency report and submitted repair details to OC Waste & Recycling and KBI General Contractors for completion of the deficiencies.

Bidding out the additional work as a separate project would have significantly delayed the repair of the Green Building, resulting in increased costs. KBI General Contractors was the only bidder for the repair work, so it is not likely that rebidding the additional work would result in any cost savings to the County.

The costs to complete these newly discovered construction defects and deficiencies will be included in the damages sought by the County against the original contractor Horizons Construction Company, International and its surety in the pending litigation.

Approval of Change Order No. 2 includes the following repairs:

Masonry split-face block preparation	$17,411.51
Prepare roofing subsurface and fabricate sheet metal	$30,131.92
Install insulation and sheet metal at roof decking building edge	$8,221.53
Install backing and framing members to the north end of the upper roof	$8,478.24
Install backing and framing members to the south end of the upper roof	$3,213.43
Remove and reset five – (5) windows	$5,538.46
Total:	$72,995.09

Compliance with CEQA: The proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301, since Class 1 (Existing Facilities) consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographic features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The approval of plans and specifications and award of a contract for Administrative “Green” Building repair and completion of remedial work at the Prima Deshecha.

FINANCIAL IMPACT:

Sufficient appropriations are available in the FY 2014-15 budget to accommodate Change Order No. 2.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Change Order No 2
Attachment B - Copy of Change Order No. 2
Attachment C - California Public Contract Code Section 20137